What is the purpose of a density bonus in development?

The purpose of a density bonus in development is to alter zoning regulations to encourage public benefits. A density bonus allows developers to build more units than typically allowed under the existing zoning laws in exchange for providing certain public benefits. These benefits can include affordable housing, parks, or community facilities. The idea behind this incentive is to promote positive outcomes for the community, such as addressing housing shortages or enhancing public amenities, while also allowing developers to achieve greater density and, potentially, increased return on investment.

In many jurisdictions, density bonuses are part of policies designed to align private development goals with broader community objectives, thus fostering a more sustainable and equitable urban environment.