The Apartment Association of South Central Wisconsin filed a lawsuit Friday against Madison’s inclusionary zoning law, which requires buildings with more than 10 units to designate 15 percent of their units as “affordable housing.”
The law went into effect Feb. 15, 2004. According to Ald. Mike Verveer, District 4, the association has argued against the ordinance since its inception. They waited almost an entire year and filed the lawsuit against the city on the last possible day under state law, he added.
“They argued loudly and clearly from day one that they felt that an inclusionary zoning law that pertains to rental units, not owner-occupied housing-like condos, is strictly prohibited and illegal under existing state law that forbids rent control,” Verveer said.
Verveer said because the units designated “affordable” cannot be rented at the market rate, the association believes it is considered a form of rent control. There is a complex formula to determine who is eligible to live in an affordable-housing unit, Verveer added.
Ald. Brenda Konkel, District 2, said there are approximately 200 individual affordable-housing units in Madison. Twenty-two are rented apartments, while the remaining are condominiums and houses.
Ald. Zach Brandon, District 7, said there is a chance the inclusionary zoning law was not written correctly and in accordance with state statutes.
“There is no question that we are controlling what you can charge in rent,” Brandon said. “We’re saying you can only charge so much and, on top of that, we’re locking them into 50 years at that level.”
According to Verveer, the city has a legitimate fight against the apartment association.
“The Madison city attorney’s office and other attorneys disagree with that interpretation,” Verveer said. “They believe equally strongly that inclusionary zoning is not considered a form of rent control.”
Brandon said the ordinance was first under debate when there was a vote to separate the home-ownership side — houses and condominiums — from the rental, or apartment, side of the ordinance. Brandon supported the separation because of the chance that a lawsuit may rise.
“It’s a shame that the whole ordinance is called into question,” Brandon said.
Verveer said the inclusionary zoning ordinance does not affect every apartment building in downtown and will only affect those built in the future, such as the new student apartment building planned to be built on West Gorham Street and Broom Street this June. There are a few new condominium buildings that have been built or are near completion on the Capitol Square offering affordable-housing units.
Brandon noted there were other parts of the inclusionary zoning ordinance he did not support, such as a provision that essentially takes homes designed for ownership and allows the city to convert them into government housing.
“If the court kicks it out, we will have to revisit it,” Brandon said. “If we are going to reopen the ordinance, we should be looking at all parts of it.”
The Apartment Association of South Central Wisconsin did not return calls as of press time.