The property must be in a mixed-use zoning district to receive the height bonus, or in a Residential (R-6, R-10, etc.) district to receive the density bonus. Additionally, sites in Mixed Use districts must have the Transit Overlay District (TOD) applied or be within one-quarter mile of a bus rapid transit (BRT) route. For Residential districts, the site must be in a Frequent Transit Area. That means it must be within one-half mile of a transit route where the bus stops at least every 15 minutes during peak travel times.
To receive the bonus, the development must include rental units that cost less than the maximum the landlord could charge. The number of affordable units must be at least 20 percent of the extra units allowed by the bonus. The units have to be rented at a rate that is affordable for a family making 60% of the area median income (AMI) or less and stay affordable for at least 30 years. To learn more about AMI, please visit the Affordable Rental Housing web page.
Are there any other forms of the bonus?
Yes. In Residential districts in Frequent Transit Areas (see map link below), buildings may not exceed three stories even with the bonus. But they can include more than 12 units on a site if 20 percent of the additional units are affordable to the depth and duration noted above.
Where does it apply?
In areas with TOD zoning (TOD) or that are within the Frequent Transit Area. You can find both on iMaps, the city’s mapping service. Buildings within the Frequent Transit Area that do not have TOD zoning are limited to a maximum of five stories with the bonus.
Do the units have to be subsidized through tax credits or other means?
Affordable housing developments that use tax credits can also make use of either of the density bonuses. The bonuses also apply to any other project that includes below-market-rate units, whether or not there are separate funding sources for those units
Do units have to be a certain size or have a certain number of bedrooms?
No, there is no such requirement. Any apartment unit can count towards the number of units required by the bonus as long as it is rented at an affordable rate.
Are there other requirements about the units?
There are some requirements that apply in the same areas where bonuses are allowed. The TOD overlay requires buildings to meet certain dimensional standards and prohibits some types of businesses. The Frequent Development Option for Mixed Use districts also includes some dimensional requirements. Learn more about these requirements and Missing Middle housing options in general.
How do I know what the affordable units can rent for?
Developers should use the HOME rent and income limits for the Raleigh, NC Metropolitan Statistical Areas published annually by the U.S. Department of Housing and Urban Development.
Does the city monitor the rents and tenant incomes?
Yes. The City will review and approve initial rents for affordable units once the units are ready to be placed in service. Owners must submit a request for rent increases along with back-up documentation to the City and receive approval before rents may be changed.
The City will also require tenant income verification forms be submitted for households occupying affordable units. We do not have a standard form for income verification – property management companies may develop their own income worksheets according to the requirements of their property. Any form that includes all required information will be accepted.
- An example tenant income verification form used in the LIHTC program can be found here.
- Tenant incomes must be recertified at least annually. Income limits are available on HUD’s webpage.
What information will I need to provide to the City?
See above.
Who can I talk to if I have other questions?
If you have questions about the affordability requirements or monitoring, contact our Housing and Neighborhoods Department at 919-996-4330 or cd.info@raleighnc.gov.
If you have questions about the zoning itself, contact our Planning and Development Department at 919-996-2682 or planning@raleighnc.gov.