Density bonus programs are developer incentives. They function as “build catalysts.” Catalysts which make it worthwhile - and economically feasible - for developers to undertake the construction of inclusionary housing projects. In summary, a density bonus program permits an increase in allowed dwelling units per acre - DU/A.

Here is how a density bonus program works…

Density bonuses enable developers to build in excess of a site’s base zoning. In exchange for the municipality permitting a developer to build unit totals which exceed standard allowances, the developer is required to designate a set number of units built as income-restricted affordable housing.

Density bonus programs are enacted through local ordinances. Ordinances amend zoning codes. The process of having zoning codes amended accompanies the implementation of a density bonus program because standard zoning codes - prior to the codes being amended - would not authorize the developer’s proposed build, if not amended. The intended outcome? Construction of more affordable housing units.

Density bonus programs establish developer thresholds. Once the threshold is met by the developer, the developer qualifies for the density bonus.

Typically, density bonus programs allow for increases of between 10% and 20% over baseline permitted density. This, in exchange for the develop’s commitment to the provision of a pre-set number of affordable housing units.