Density Bonus

Definition

Municipal incentive allowing developers to build above zoning limits in exchange for public benefits like affordable housing. It's government saying 'we'll look the other way for good behavior.'

Example Usage

The developer got a density bonus to build 15 additional units in exchange for 20% affordable units.

Origin

Modern planning incentive from 1970s California

Fun Fact

Density bonuses are increasingly common in cities facing housing shortages, and they work surprisingly well at increasing affordable housing.

Source: American Planning Association

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