Smart Growth Madison, an influential real estate group, has declared its opposition to the city ordinance that requires developers to put affordable housing in developments.

Madison's inclusionary zoning ordinance makes developers include a certain number of lower-cost units in their new housing projects. The purpose of the inclusionary zoning [IZ] ordinance is to further the availability of housing choices for families of all income levels in Madison.

Ald. Jed Sanborn, District 1, proposed to repeal the law at a Common Council meeting Oct. 31.

Agreeing with Sanborn's proposal, Smart Growth Madison Executive Director Delora Newton said the ordinance, which has been in effect for 20 months, is not effective.

"The ordinance doesn't work," Newton said. "Since its inception, there have been over 350 units approved for inclusionary zoning, but there have been only six sold."

Newton said there are two inherent problems with the zoning ordinance.

"The first problem is that nobody wants to buy the units," Newton said. "The price of these units is not right for many buyers. They can find better options somewhere else. The second problem is that someone has to absorb the cost of the affordable housing. The ordinance forces regular units to be priced higher to make up for the losses of the affordable housing."

Smart Growth Madison actively participated in the IZ program in Jan. 2004 because it was perceived that it would be an effective way to create affordable rentals and home ownerships for working families. But they say that has not happened thus far.

George Twigg, communications director for the mayor, said the law has been successful in encouraging development of businesses and housing downtown.

"The law creates a requirement to diversify Madison's neighborhoods," Twigg said. "Rents in Madison are very high, and the mayor has worked hard to provide affordable housing for people that need it."

Twigg said the ordinance, despite only having sold six IZ units, has not discouraged development.

"[The IZ law] has worked well," Twigg said. "Some of the naysayers who said it would kill development have been wrong. All they need to do is take a look at all the cranes we have in the downtown since the ordinance's inception."

Ald. Brenda Konkel, District 2, who, along with Mayor Dave Cieslewicz, championed the IZ ordinance, has been working to make amendments to the law to increase its effectiveness. Newton said her company turned against ordinance because officials admitted the presence of fundamental flaws in the law. However, amendments made to the ordinance have not met Smart Growth Madison's standards, she added.

"There have been some acts which have made the ordinance better, but they're still just tinkering with it," Newton said. "We remain committed to providing housing for working families, but we won't support Madison's efforts until Council implements a law that will work."

Madison Common Council will vote on Sanborn's repeal proposal at a future meeting.