Density bonuses overview
This arrangement enables developers to recoup some or all of the foregone revenue associated with offering some of the units at prices affordable to low- or moderate-income households. A policy to provide a density bonus to qualifying developments is essentially a type of voluntary inclusionary zoningRegulation or incentive to include units within a development for low- and moderate-income families. Also referred to as inclusionary housing. policy, though many communities simply refer to the policy as a “density bonus.” Density bonuses are also common cost offsets in mandatory inclusionary zoning policies. Depending on how the policy is structured, the additional density may be used to build up or out; that is, to add more floors to a multifamily building or additional structures to a planned development. Density bonuses are most likely to yield affordable housing in neighborhoods with a robust level of construction or redevelopment activity, where residential development types include moderate- or high-density development, and where the bonus is carefully calibrated to make it financially advantageous to developers.
Planning department/zoning commission – responsible for policy design and adoption in the zoning code.
Local department of housing or community development – responsible for policy design and ongoing monitoring and program administration.
Increasing the affordability of rental housing
Increasing access to homeownership
Expanding affordable housing in resource-rich neighborhoods
Affirmatively furthering fair housing
Strengthening the resources and opportunities in high-poverty neighborhoods
Expanding access to public transit
Improving educational outcomes for children