The developer of the first two for-sale IZ units at 2910 Georgia Ave. NW recently sued the city.

Four years after the initiative took effect, D.C. has finally sold its first housing unit under the inclusionary zoning program.

The IZ program requires that new residential buildings of 10 or more dwelling units set aside 8 to 10 percent of the units for low- to moderate-income households at below-market rates. The city’s latest report on the program found that as of the end of 2012, zero IZ units had been rented or sold.

But today, the Department of Housing and Community Development was finally able to announce the first sale of an IZ unit, at the Standard Eleven condo building at 1109 M Street NW.

“This closing is a huge step for the District’s implementation of the Inclusionary Zoning Program,” says DHCD spokesman Marcus Williams in a statement. “This sends a clear message that the District of Columbia government is committed to ensuring that the growth and development of the nation’s capital includes housing opportunities for residents of all income levels, who are seeking to become homeowners and/or renters.”

The IZ program got off to a slow start due to the recession, which led developers to hold off on residential construction. It took another hit in December when the developer of the city’s first two for-sale IZ units sued the city for depriving the developer of its property rights.

But now, finally, the program appears to be picking up. According to Williams, 14 IZ units have now been rented, and more than 1,000 new IZ units are expected to be built in the coming years.

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