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Altona City Council Approves Inclusionary Zoning Ordinance, Setting 15 Percent Affordable Unit Requirement in New Builds

The July 7 vote requires developers in Altona to designate 15 percent of units as affordable in projects over 20 homes, a threshold already in place in several peer municipalities.

By Altona Policy Desk · Published 8 July 2026

How we reported this

This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. Melbourne Weather News is part of The Daily Network and follows our reasonable editorial care.

Altona City Council passed an inclusionary zoning ordinance on July 7 that mandates 15 percent of units in new residential developments of 20 homes or more be priced for households earning up to 80 percent of area median income. The measure affects builders operating in the city's core wards and along the rail corridor. Residents seeking entry-level ownership or rental options will see the first projects subject to the rule begin permitting in 2027.

Why the vote occurred now

Council acted after the municipal housing needs assessment released in March 2026 showed a shortfall of 1,400 units priced below market rates. The ordinance brings Altona into line with four other municipalities in the same county that adopted similar rules between 2023 and 2025. Staff reported that 62 percent of recent building permits in Altona had contained no affordability component.

The change means a typical 80-unit subdivision will now reserve 12 units for income-qualified buyers or renters. Local real estate agents note that these units must remain affordable for at least 30 years under deed restrictions recorded with the county. Families currently priced out of Altona neighborhoods may qualify through a lottery system administered by the housing authority.

Budget impact and next steps

City documents show the program will be supported by a $1.8 million annual allocation from the general fund for monitoring and legal enforcement. Developers can meet the requirement on-site or pay an in-lieu fee of $185,000 per required unit, with proceeds directed to a dedicated housing trust fund. The ordinance takes effect 90 days after final reading, scheduled for August 4.

Planning staff will present quarterly compliance reports to council beginning in October 2027. Property owners in affected zones can review draft maps on the city website or attend an information session at Altona City Hall on July 22. The housing authority will open its first pre-qualification period for the new units in early 2028.

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