City-County Planning Department

Performance Standards

8.1.28 Affordable Housing Density Bonus

In order to encourage the development of affordable housing throughout the community, a zoning density bonus is available for developments that include a residential component. Density bonuses can be applied to a proposed development with a residential component, subject to the following requirements:
  1. This program may be applied as part of the site plan or subdivision approval process for projects in any zoning district where residences are permitted, except as noted below.
  2. A project must propose a minimum of 20 new units to be eligible, either on a new site or as an addition to an existing development.
  3. At least 15% of the units shall have payments affordable to persons and families with annual incomes at or below 60% of the area median family income by family size, according to target income limits set by HUD for Durham. A developer could receive up to a 20% density bonus if providing units for persons with incomes below 50% of the median family income and could receive up to a 15% density bonus for assisting persons between 50% and 60% of the median family income.
  4. The required affordability limits shall be adhered to for a minimum of 15 years. The housing developer shall be required to submit an annual report during this time to the Housing and Community Development Director (in the City) or to the County Manager or his designee (in the County) to verify incomes of persons residing in and rents being charged in, or initial sale price of, the affordable units are within the established limits. Compliance measures include but are not limited to: contracts, restrictive covenants, deed restrictions and stipulated penalties.
  5. All affordable units shall be incorporated throughout the project, using similar or compatible physical and design characteristics. These units shall not be physically grouped together nor otherwise separated from other units.
  6. In determining the application of the density bonus, the following considerations shall be applied:
    1. For multifamily developments, the maximum permitted density on the property may be increased by up to 15% or 20% (see Section 3 above). Neither lot sizes nor setbacks of buildings from exterior property lines may be reduced.
    2. For single-family developments, the percentage increase in density and corresponding decrease in allowable lot size and/or setbacks for internal lots shall be up to 15% or 20% (see Section 3 above). No reductions in setbacks for exterior lots shall be permitted.
  7. Units added through application of the affordable housing density bonus shall not be used to require an increase in the amount of open space otherwise required for a project.
  8. This provision may not be used by projects meeting any of the following criteria:
    1. Projects proposed in any area of the City or County designated in the Comprehensive Plan as having a concentration of subsidized housing or poverty greater than that of the City or County as a whole;
    2. Projects zoned with an adopted development plan that specifies the number of units or maximum units per acre [for example, a PDR, zone] to be allowed on the site;
    3. Projects located within the Downtown Design Overlay;
    4. Projects within a designated historic district; or,
    5. Projects that are 100% affordable.
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