Inclusionary Zoning has been in effect since Jan. 2004. The Madison ordinance requires developers to make 15 percent of their new housing developments affordable to low and medium- income families.
The Madison Housing Committee rejected a proposal to repeal IZ Wednesday in an 8-2 vote.
In theory, IZ is supposed to assist low-income and first-time home buyers, as well, as create diverse neighborhoods. However, the law has received opposition from realtors and builders' associations who claim the ordinance is not working. Ald. Jed Sanborn, District 1, and Smart Growth Madison, a group representing many Madison real estate companies, proposed the repeal of the law.
'The law should be repealed because it is so deeply flawed,' executive director of Smart Growth, Delora Newton, said. She said the law is not working because developers are not receiving the incentives they were supposed to get.
Newton also pointed out that not a single unit has been sold to a family. She said people were not buying the IZ houses because they can buy equally affordable housing without the income requirements that come with an IZ home. Common Wealth Development, an organization committed to providing affordable housing, bought six of the units to resell.
Committee members who were against the repeal, including Ald. Austin King, District 8, said this was a relatively new law and they wanted to give it a chance to work. This was an important vision when it was introduced and will help achieve neighborhood diversity, chairman of the committee Tom Hirsh said.
The Realtors Association of South Eastern Wisconsin, which represents 3,000 realtors, is another group that wants to see the law repealed.
'My members are continuing to sell houses and the number is going up, but not in Madison,' Phil Salkin of the Realtors Association said.
The repeal will next go to planning commission for consideration.
