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Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units

DC Department of Housing and Community Development (DHCD) · Washington, District of Columbia

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Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by DC Department of Housing and Community Development (DHCD)

What is Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units is a shared-appreciation loan for homebuyers in Washington, District of Columbia, administered by DC Department of Housing and Community Development (DHCD).

  • The Inclusionary Zoning (IZ) Program requires most new (and some renovated) residential developments of 10+ units to set aside affordable homes; the for-sale side offers below-market, resale-restricted condos and townhomes. Eligible households (generally 50%-80% MFI) must complete IZ orientation plus an 8-hour homebuyer class, register in the IZ database, and are selected by lottery. Buyers must occupy the unit as their primary residence and cannot own other residential property. Affordability comes from the controlled purchase and resale price.
  • Below-market purchase price on new condos/townhomes.
  • Access via random lottery.
  • Priority for DC residents.
  • Resale-price protection.
  • Can be combined with HPAP/DC Open Doors financing.
  • Funding comes from Developer-provided affordable units mandated by DC Inclusionary Zoning regulations (no direct public subsidy; program provides no financial assistance).

Do you have to pay it back?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units is a shared-appreciation loan and is repaid under the terms set by DC Department of Housing and Community Development (DHCD).

  • Repayment is triggered by Resale governed by a DHCD-issued resale price; owner must submit a Resale Price Request and receive a pricing letter before selling or refinancing.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Mandatory 2-hour IZ Orientation (renewed every 2 years); to purchase, also an approved 8-hour homebuyer class renewed every 2 years
  • Residency: Applicants must live or work in the District; priority to current DC residents; must occupy as primary residence
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. Must complete 2-hour IZ Orientation (renew every 2 yrs) AND 8-hour homebuyer class (renew every 2 yrs) to purchase; must register in IZ database; cannot be a full-time student; cannot own other residential property at purchase; must occupy as primary residence and re-certify annually; cannot rent/sublet; must submit DHCD Resale Price Request before selling/refinancing. Gaps: no minimum credit score, max DTI, exact 4-person income dollar limit, or cash assistance (program gives no cash).

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units limits household income to 80% of the area median income, which varies by county and household size.

  • For-sale IZ units generally serve households at 50%, 60%, or 80% of MFI; exact maximum income varies by household size and unit-designated MFI band per the annual IZ Maximum Income, Rent and Purchase Price Schedule. Minimum income thresholds apply.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units caps the purchase price as follows: Maximum purchase price set per unit by the annual IZ Maximum Income, Rent and Purchase Price Schedule (varies by MFI band and unit size).

  • Eligible property types include Condo and Townhome.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units serves buyers purchasing in Washington, District of Columbia.

How do you apply?

Applications for Inclusionary Zoning (IZ) Affordable Housing Program - For-Sale Units go through DC Department of Housing and Community Development (DHCD), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Mandatory 2-hour IZ Orientation (renewed every 2 years); to purchase, also an approved 8-hour homebuyer class renewed every 2 years.

  2. Contact DC Department of Housing and Community Development (DHCD) to reserve funds

    Funds are reserved through DHCD lottery (random drawing) or waitlist; units offered as available, no fixed schedule, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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