Land Use & Zoning

What does 'density bonus' mean in Rhode Island housing law?

AA tax credit for building at high density
BAn incentive allowing developers to build more units than normally permitted in exchange for including affordable housing✓ Correct
CAn extra permit fee for high-density developments
DA state grant for building affordable rental housing

Explanation

A density bonus allows developers to exceed normal density limits in exchange for including affordable housing units in their development. Rhode Island and many municipalities use density bonuses to encourage affordable housing production.

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