Land Use & Zoning
A Kentucky city enacts an inclusionary zoning ordinance requiring new residential developments over 50 units to include 15% affordable housing units. A developer who objects may:
AIgnore the requirement if they get financing from a private lender
BChallenge the ordinance legally or pay an in-lieu fee if that option is provided✓ Correct
CBuild 50 units instead of 51 to avoid the requirement
DAppeal to KREC for an exemption
Explanation
Inclusionary zoning ordinances can be challenged legally on constitutional or statutory grounds. Many ordinances also provide an alternative of paying an in-lieu fee to an affordable housing fund instead of including affordable units. Building one fewer unit to avoid the threshold is technically possible if the economics still work.
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