By Ben Gellman
Additional Reporting by Elizabeth Friend

The Chapel Hill Town Council gave the green light to a new Inclusionary Zoning Ordinance that has stringent guidelines for developers.

Under the new ordinance, all developments with at least five units would be required to make at least 15% of the units affordable for moderate- and low-income households.  The ordinance is aimed at closing a gap in housing costs that critics say makes Chapel Hill unlivable for many.

Bob Reda is a member of the Orange County Habitat for Humanity Board of Directors.  He thanked the council and expressed Habitat’s support for the ordinance, but stressed the importance of creating an advisory board as soon as possible.

There are alternatives to creating the affordable housing, such as dedicating land to the town or an agreed-upon substitute, designating existing units as low- or moderate-income, or paying money to the town.  Developers may also submit alternative proposals that include affordable housing units.

Low-income-affordable housing is defined as being priced at 65 percent of the area median income (AMI), approximately $37,050 for a family of four.  Developers must create at least one housing unit for that level, with the remainder of the 15 percent eligible to be devoted to moderate-income-housing.  That level is considered to be 80 percent of the AMI, or about $45,600.

Mayor Mark Kleinschmidt commended not only the new ordinance but the broad group of people who helped to make it a reality.

The ordinance will go into effect as of March 1, 2011.