Legal Definitions - bonus zoning

Bonus zoning, also known as incentive zoning, is a regulatory tool used by local governments to encourage developers to provide specific public benefits in exchange for permission to exceed standard zoning restrictions. Essentially, a developer is granted a "bonus" – such as increased building height, greater density (more residential units), or a larger floor area – if they agree to incorporate features or services that benefit the community, which might not otherwise be required by law.

This approach aims to achieve public policy goals, like increasing affordable housing, creating public open spaces, or supporting local infrastructure, by leveraging private development interests. It's a voluntary system where developers choose to provide a public amenity to gain a development advantage.

Here are some examples illustrating bonus zoning:

• Affordable Housing Bonus: A city's zoning code typically limits residential buildings in a certain district to ten stories. A developer proposes to build a twelve-story apartment complex. Under a bonus zoning program, the city might approve the additional two stories (the "bonus") on the condition that the developer designates 15% of the new units as affordable housing for low-income residents (the "public benefit").

  This example demonstrates bonus zoning because the developer receives permission to build a taller structure than normally allowed, directly in exchange for providing much-needed affordable housing units to the community.

• Public Plaza Bonus: A commercial developer plans to construct a new office tower in a dense urban area. The standard zoning regulations allow for a specific maximum floor area ratio (FAR), which dictates the total square footage of the building relative to the lot size. The developer wishes to build a larger tower with a higher FAR. The city's bonus zoning provisions allow for an increased FAR if the developer includes a publicly accessible plaza or green space at ground level, complete with seating and landscaping, for use by the general public.

  Here, the "bonus" is the increased building size (higher FAR), and the "public benefit" is the creation of valuable public open space in a crowded urban environment, enhancing the quality of life for residents and workers.

• Transit Improvement Bonus: In a rapidly developing neighborhood, a developer seeks to build a mixed-use complex with more residential units and commercial space than the existing zoning permits. The local government, concerned about increasing traffic and strain on public transit, offers a bonus zoning incentive. The developer is granted permission for the increased density and floor area if they contribute a substantial sum to fund improvements at a nearby public transit station, such as adding new bus shelters, upgrading pedestrian access, or contributing to a new subway entrance.

  This illustrates bonus zoning as the developer gains the advantage of a larger project, while the community benefits from enhanced public transportation infrastructure, addressing a critical urban challenge.