Mandatory Inclusionary Zoning

On March 18, 2019, the New Orleans City Council adopted Ordinance 28,036 MCS establishing a Mandatory Inclusionary Zoning (MIZ) program in certain areas of the City. Please visit our Property Viewer to learn if your property is located within a MIZ district.

How Does the Program Work?

The Mandatory Inclusionary Zoning (MIZ) program applies to all residential developments that contain 10 or more multi-family residential dwelling units, including:

  • New construction
  • Substantial improvement
  • Expansion
  • Mixed-use development
  • Change of use

Such developments are termed Affordable Housing Developments.

The MIZ program will require Affordable Housing Developments to set aside 10 percent of their on-site rental units in the Central Business District and Vieux Carre "Core" areas, and 5 percent of their on-site rentals in all other IZ District "Strong" areas as affordable housing for individuals and families earning up to 60 percent of the Area Median Income (AMI). Rental housing units are required to remain affordable for at least 99 years pursuant to the IZ ordinance. See Section 26-638 of the City Code for information about a Payment-in-Lieu option for developments that cannot meet the set-aside requirement.

What is Affordable Housing?

Affordable Housing rents are based on HUD guidelines and are adjusted annually for family size.

Orleans Parish Maximum Monthly Rent (July 2021-July 2022)

Bedrooms 60% AMI
0 $616
1 $661
2 $793
3 $916

Inclusionary Zoning Required Affordable Units

Affordable Housing Developments are required to set aside either 10 percent or 5 percent of the units within the same structure as the market rate units.

The bedroom mix (i.e. number of bedrooms) of the Affordable Housing Development shall be proportional to the market-rate dwelling units.

Example 1 (Core MIZ District)

Sample unit mix of a 10 percent "Core" MIZ area: 40 units

  • 12 studios
  • 18 one-bedroom units
  •  6 two-bedroom units
  •  4 three-bedroom units

STEP 1: Calculate required units based on district type (10% is required in the "Core" MIZ District)

  • In this example, 4 units would be required to be set aside for affordable housing.

STEP 2: Calculate number of bedrooms required (the bedroom mix)

  • In this example one studio, 2 one-bedroom, and 1 two-bedroom units would be required (10% of each unit type)

Example 2 (Strong MIZ District)

Sample unit mix of a 5 percent "Strong" MIZ area: 40 units

  • 12 studios
  • 18 one-bedroom units
  •  6 two-bedroom units
  •  4 three-bedroom units

STEP 1: Calculate required units based on district type (5% is required in the "Strong" MIZ District)

  • In this example 2 units would be required to set aside for affordable housing

STEP 2: Calculate number of bedrooms required (the bedroom mix)

  • In this example one studio and 1 one-bedroom would be required (5% of each unit type)

Incentives

Where applicable, Affordable Housing Developments are eligible to receive density bonuses, parking reductions, Payment in Lieu of Taxes (PILOT), and/or a Restoration Tax Abatement (RTA) in exchange for the provision of affordable housing units.

Inclusionary Zoning Application

The MIZ program requires submission of:

Applicants will be contacted once the applications have been received and reviewed.