Demystifying Housing Policy:
Five Housing Terms Everyone Should Know
Housing affects all of us, yet the terminology used to discuss housing can be fraught with insider lingo and it can be difficult to fully grasp. So we’ve compiled a brief list of some of the most common terms used in the housing policy world to help everyone better understand and engage in the housing conversation.
AFFORDABILITY GAP
The difference between the home price a household can afford and the current market price of a typical home for that household size. A deficit or shortage in affordable housing for a region is the difference between the number of affordable homes available and the number of homes needed to house all of that region’s low-income residents
MIXED-USE DEVELOPMENT
A building or group of buildings that combines multiple revenue producing uses in an
integrated and coherent plan. As an example, a mixed-use development might include retail
space on the ground floor, offices on the middle floor, condominiums on the top floors and a
garage on the lower level.
LOW INCOME PERSON OR HOUSEHOLD
As widely defined by governmental and nonprofit organizations, person or household with
gross household income below 60% Area Median Income, often including receptionists,
preschool teachers and security guards, or 80% Area Median Income, often including
construction workers, firefighters, and teachers in the Bay Area (depending on program
eligibility requirements) adjusted for household size.
INCLUSIONARY ZONING
A requirement that developers of new housing include a certain percentage of below marketrate homes. Inclusionary Zoning is a local law and each city that passes this law decides how
many units must be affordable, and what price is considered affordable. Often developers
can pay the city an “in-lieu fee” instead of including affordable units, which allows the city to
use the money to build new affordable homes. In California, there is a legal challenge to
Inclusionary Zoning’s application to rental housing, which is now being debated at the
California State Supreme Court.
TRANSIT-ORIENTED DEVELOPMENT (TOD)
Development of housing and mixed-use development close to public transit such as BART,
frequent bus lines, etc. TOD is usually within 1/4 to 1/2 mile of a transit station or major bus line
and Plan Bay Area encouraged TOD.
HOUSING ELEMENT
A required element of all California city general plans, housing elements identify and analyze housing needs and include goals, objectives, policies and programs for providing a city’s fair share of affordable housing needs. Although state law mandates that jurisdictions rezone enough land to meet their regional housing needs allocation and each jurisdiction is required to have an approved housing element, jurisdictions retain local land use control and Housing Elements are only plans for housing. Advocates then push for implementation of these plans and work tirelessly to get these cities and counties to produce the homes their communities desperately need.