Inclusionary Zoning and Buyer Disclosures
The District's Inclusionary Zoning program and its condominium disclosure rules shape how brokers market restricted units and inform buyers. This chapter covers IZ affordability controls and association disclosure obligations.
Inclusionary Zoning Basics
Inclusionary Zoning (IZ) requires many covered residential developments to set aside a portion of units as affordable to income-qualified households, with ongoing rent or resale restrictions. A broker selling or leasing an IZ unit must follow the program's income-eligibility, pricing, and registration rules, which differ from market-rate transactions.
Reselling IZ Units
IZ units carry lasting affordability controls: the maximum resale price is formula-based and the buyer must be income-qualified through the program. A broker cannot market an IZ unit like a market-rate home and must follow the program's pricing and eligibility procedures. Misrepresenting the price or eligibility harms consumers and violates program rules.
Condominium and Association Disclosures
Buyers of DC condominium units are entitled to association disclosure documents, such as budgets, bylaws, rules, and information about assessments and reserves, so they can evaluate the community before committing within any applicable review period. Providing these documents is a normal disclosure obligation the broker must ensure is met, and it is distinct from the seller's private financial records.