The City of Madison's Planning Department released a study Friday concerning the production of inclusionary zoning and low-cost units in the city.

The department released the study to investigate the productivity of a city law requiring developers to establish 15 percent low-cost units in projects for working class and low-income residents.

According to the study, the city produced more low-cost units than originally projected since January 2004.

"It shows that in its first year, the law has been very successful," George Twigg, communications director for the mayor, said.

The study says the city approved construction of 360 new units, which will be spread across town.

Units will be set aside for families that make 80 percent below the Dane County median income of $52,000.

Twigg said the original ordinance passed by the City Council wanted to create more affordable housing and disperse units across the city.

"Housing in Madison is very expensive," he said. "We wanted to create affordability in the Madison housing market so that people can afford to live here, regardless of their economic background."

He added the law establishes a blend of households in neighborhoods to discourage "pockets" of only low-income and high-income residents.

"There's a mix across the area so people of median income can live in the area best fit for their families," he said.

Ald. Jed Sanborn, District 1, claims the study is inaccurate because it leaves out the number of units that have actually been sold.

"Frankly, overall the report doesn't say anything," he said. "It's 33 pages of nothing."

Sanborn added the report doesn't define the demographics of unit buyers and does not include information about unit selling and buying in 2005.

"I think what we're seeing is a decrease in housing and an increase in price," he said.

The law aims to create more diversity in Madison schools, but according to Sanborn, most schools already have students from families with varied income levels.

Sanborn said the main argument against the ordinance will be exposing a decrease in the overall amount of housing in Madison.

"The best option is to repeal the ordinance," he said. "The cost greatly outweighed the benefits."

Ald. Brenda Konkel, District 2, — a primary supporter and creator of the law — said the study also shows where the law could be improved.

"During the first year, it's going to be hard to see and get results because the process takes a while," she said. "But the study shows that some of the improvements that need to be made are some of the proposals that we have already sponsored."

Konkel said one those improvements involves a reworking of the equity model, which sets terms for buyers after they purchase a unit.

"The current one is very complicated," she said. "The first two years you don't get any money if your house increases in value, and then it changes every year."

Konkel also added after a certain point, the buyer receives less money until the buyer is forced to move.

According to Twigg, the study also shows weaknesses in incentives for developers that build the units.

"We are trying to make sure that inclusionary zoning is supposed to be a win-win situation," he said. "Developers are supposed to get incentives to make it cost-neutral."

Konkel said those who are in opposition to the ordinance do not have any proof of the law's lack of productivity.

"Those that want radical changes haven't said what those radical changes are," she said.