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Council weighs inclusionary zoning changes: 40-year affordability, moderate‑income exception and fee rules
Summary
Langley planning staff presented a draft inclusionary zoning manual and code changes proposing a moderate‑income exception, a 40‑year affordability term and fee‑in‑lieu rules (50% at permit, 50% before occupancy). Council members raised concerns about administrative burden and possible 'gaming' of thresholds.
Langley planning director Meredith Penny told the city council the draft inclusionary zoning manual aims to standardize how the city calculates fee‑in‑lieu amounts, monitors affordability and enforces deed restrictions, with the goal of having the ordinance and manual finalized for public review before the local moratorium ends in November. "In Washington state, state law requires that mandatory inclusionary zoning programs are paired with an increase in development capacity," Penny said, explaining why the city offers voluntary density incentives in exchange for affordable units.
The presentation described three voluntary pathways in existing code and proposed a change from automatic inclusionary requirements to an exception for developments where 100% of units target moderate‑income households. Under the draft, developers who pay a fee in lieu would pay 50% at land‑use/permit approval and the remaining 50% before receiving a certificate of occupancy; revenues would be allocated roughly 70% to housing production/preservation, 20% to individual assistance programs (down‑payment or stabilization aid) and 10% for program administration. Penny also recommended moving from a perpetual affordability requirement to a 40‑year minimum term "subject to the city's discretion to renew."
Council members questioned administration, enforcement and whether the proposed moderate‑income exception would create a narrow price band that developers could exploit. One council member warned it "would result in market rate developers just building at a 150%" AMI threshold to avoid providing affordable units. Penny said the manual draws on examples from larger cities and that staff will pursue targeted outreach to local developers and the Planning Advisory Board (PAB) during the public comment phase to refine thresholds and monitoring fees. She also said compliance tools would include recorded deed restrictions, a required buyer/owner affordable housing agreement and annual certification requirements.
The council did not adopt the ordinance at the meeting; Penny outlined next steps that include legal review, a SEPA determination and a public comment period before returning to PAB and council for hearing and readings.
