PLANNING COMMISSION

Agenda Item # 2.
 
 LAND DEVELOPMENT CODE
AMENDMENT

Planning Commission January 8, 2020

LDC-1-1019
Christine Hughes, 910-341-5885, christine.hughes@wilmingtonnc.gov

Staff Recommendation Approval

Planning Commission 01/08/20; Scheduled for public hearing
City Council

Request
Code Section(s) Add Sec. 18-332. Workforce Housing Mixed Use; amend Sec. 18-190,
O&I-1, Office and Institutional District, Sec. 18-194, CB, Community
Business District, Sec. 18-195, RB, Regional Business District, and Sec.
18-812. Definitions
Request To create workforce housing mixed use (WHMU) as a use permitted by
prescribed conditions in the O&I-1, CB, and RB districts and to add
definitions associated with the use.
Applicant City of Wilmington

Case Overview

The proposed amendment would create “workforce housing mixed use” (WHMU) as a use
permitted by prescribed conditions in the O&I-1, CB, and RB districts to encourage the provision
of workforce housing units by the private sector within mixed-income neighborhoods. This use
would be an optional use, available only to property owners who apply for this designation,
either as an opt-in by right development on land already zoned appropriately, or as a part of a
conditional rezoning request. A developer may opt to include workforce housing units within a
development or pay a fee in lieu of units in exchange for increased building height and lot
coverage, prioritized development plan review, and elimination of city development fees.

Analysis

1. History/Background

In 2016, the city of Wilmington and New Hanover County appointed a joint ad-hoc committee to
conduct a comprehensive review of workforce and affordable housing efforts, along with the
demand for and supply of such housing, recommend best practices, and help increase the stock
of such housing in the region. The committee, in 2017, made several recommendations,
including to make changes to the Land Development Code (LDC) that support the addition of
workforce housing units. During the development of Create Wilmington Comprehensive Plan,
citizens said that housing types and price points should be integrated within neighborhood areas
to ensure diverse school populations, that aging in place should be encouraged and facilitated,
that a variety of housing types and price points helps make Wilmington a more attractive place
to do business, and that there is a significant need for affordable housing.

191031 Draft
 2
LDC-1-1019

The proposed amendment would support, facilitate, and encourage the provision of workforce
and affordable housing units by the private sector in a manner that strengthens neighborhoods,
provides stability for families, and improves opportunities for education and career development.

The proposed amendment would allow developers to provide onsite workforce housing units or
to allow a payment in lieu of units onsite. A payment in lieu of units would be made to a
dedicated housing fund, the funds from which would be used in support of the development of
affordable housing in the city of Wilmington.

Staff researched 19 cities to benchmark workforce housing zoning incentive practices. The full
chart is attached to this report as Attachment 1. The table below highlights several North
Carolina cities. This research shows that most cities with these types of zoning regulations allow
other options in lieu of providing units within a development, most commonly cash, land, or
offsite units, and several offer incentives such as density or height increases for such projects.
The benchmarking shows two North Carolina cities require workforce units to be below market
rate in perpetuity, two require a 99-year period of affordability, one requires a 25-year period of
affordability, and two require a 15-year period of affordability. The proposed code change would
require a 20-year period of affordability for units provided within a development.

North Carolina Cities

Applicability Required Set Options in Lieu of Units Bonuses/
Aside/Period of Incentives
Affordability
Chapel Hill Mandatory for all 15% of units in Land in lieu – adequate to 15% density bonus
single- and multi- most districts allow construction of units in most districts
family development to be replaced 25% minimum lot
of at least 5 units 99-year period of Dedication of existing size reduction for
(for-sale projects affordability offsite units – location subdivisions
only) proximate to transit
Cash in lieu – provide equal
Voluntary for rental to or more than the required
developments number of workforce units
Charlotte Opt-in development 50% of the Density bonus up
type for some additional units to 3 units/acre for
single-family allowed by density SF (may be
developments of 1 bonus must be duplex, triplex, or
acre or more and workforce units quadraplex units)
some multi- family Density bonus of 2
developments of 3 First right of refusal -3 additional
acres or more for sale of units for units/acre in MF
15 years districts
Davidson Mandatory for all 12.5% of all units For every unit built onsite,
residential payment in lieu of a unit
development No prescribed waived
period of Cash payment amount is a
affordability fixed amount/unit, adopted
as part of fee schedule
Manteo Mandatory for all 20% of all units None Fees waived
new development/ Density bonus –
redevelopment with No prescribed one market rate
5 or more units period of unit added for
affordability every workforce
unit provided

191219 Draft
 3
LDC-1-1019

Winston- Opt-in development 40% workforce Land in lieu of units – 25% Density bonus
Salem type for residential housing units density bonus for single-
developments family development with
15-year period of donation of land within
affordability same census tract to
housing authority
Carrboro Opt-in development 15% of all units Payment in lieu equal to the Density increase of
type provision of one workforce 2 units for every
99-year period of unit workforce housing
affordability unit, up to 150% of
Number of units x 0.15 = base density
payment per unit
Dare Opt-in development 30% of all units for None No parking
County type for mixed-use projects with 10 or required for
or duplex/triplex more units residential units in
developments; mixed-use building
requires conditional 25-year period of Density bonus of
use permit affordability between 3 and 10
units per acre,
depending on
zoning district
Kill Devil Opt-in multifamily At least one None Waiver of plan
Hills development type; workforce housing review fees
requires conditional unit; no more than
use permit 75% workforce Density bonus
housing between 0.8 and
1.2 market rate
No prescribed unit per workforce
period of housing unit
affordability provided,
depending on the
AMI rent/sales
price range

2. Proposed amendment
Following is the proposed amendment to the Land Development Code. Additions are underlined
and deletions are in strikethrough.

Amend Article 5. Zoning District Regulations. Division II. District Regulations.

Sec. 18-190. O&I-1, Office and Institutional District 1

***

(c) Uses permitted under prescribed conditions. The following uses are permitted provided that
they meet all requirements of this section, Article 6, and all other applicable requirements
established in these regulations.

***

(20) Workforce housing mixed use

***

191219 Draft
 4
LDC-1-1019

Sec. 18-194. CB, Community Business District

***

(c) Uses permitted under prescribed conditions. The following uses are permitted provided that
they meet all requirements of this section, Article 6, and all other applicable requirements
established in these regulations.

***

29. Workforce housing mixed use

***

Sec. 18-195. RB, Regional Business District

***

(c) Uses permitted under prescribed conditions. The following uses are permitted provided that
they meet all requirements of this section, Article 6, and all other applicable requirements
established in these regulations.

***

29. Workforce housing mixed use

***

Amend Article 6. Supplemental Development Regulations, Division 1. Prescribed Conditions,

Special Use Prerequisites, and Accessory Uses and Structures.

Sec. 18-332. Workforce Housing Mixed-use

Purpose: Urban areas have traditionally included mixed-use developments that provide housing
for persons of all income levels, along with complementary nonresidential uses. In Wilmington,
these mixed-use developments have contributed to economic success, unique built
environment, job creation, and diversity. Mixed-use centers bring together medium- to high-
density residential and nonresidential uses within a walkable, bicycle-friendly, and/or transit-
accessible development framework. Uses can be mixed vertically (within buildings) and
horizontally (among buildings). The diversity of uses and activities in mixed-use centers make
them vibrant destinations. A mixed-use center should provide a full-service environment and
diverse uses, including housing at a variety of price points, offices, retail, service, entertainment,
civic, and open space, for residents, employees, and visitors.

Accommodating growth within the city in mixed-use neighborhoods with a variety of housing
types and price points helps build inclusive, diverse, and strong communities. Mixed-use
developments that include housing of varying types and price points within a single
development help ensure that schools have a diverse population, help ease the strain caused
by lack of housing attainable by a significant portion of the workforce, facilitate aging in place,
encourage access to convenient public transportation, and help make Wilmington a more
attractive place to do business.

191219 Draft
 5
LDC-1-1019

Developing mixed-income communities helps provide stability for families, improve opportunities
for education and career development, and reduces the risk of homelessness for families that
depend on low-wage jobs or are on fixed incomes. Housing for a broad socioeconomic
spectrum improves Wilmington’s community viability and economic growth.

It is in the interest of the city to establish an incentive-driven, opt-in use to encourage continued
development of mixed-use projects. This district is intended to provide incentives to promote a
mix of housing price points within a single development, along with compatible nonresidential
uses, in a manner that enhances the built environment and pedestrian realm, facilitates efficient
public transit systems, and minimizes impacts on the natural environment by maximizing site
design efficiencies.

The WHMU is incentive based and available only to property owners who apply for this
designation, either as an opt-in by right development on land already zoned appropriately, or as
a part of a conditional rezoning request.

a) The WHMU development option may be applied to property zoned O&I-1, CB, and RB.

b) The permitted land uses within a WHMU development are those listed within the base
zoning district, plus multifamily residential uses.

c) Every WHMU development shall include a mix of uses.

1) All uses shall be integrated into the development and provide uses unified by
distinguishable design features and amenities and sidewalks or multi-use paths
to increase pedestrian activity and non-motorized transportation. All
developments shall be under unified control, management, authority, or
ownership.
2) Nonresidential uses shall be incorporated into a WHMU development.
3) Residential uses: Residential use shall be limited to multifamily.
i. The number of workforce housing units shall be the greater of one unit or
10% of the number of residential units in the development, rounded to the
nearest whole number.
ii. Multifamily units shall be permitted with no density limit, except within the
Watershed Resource Protection areas. Residential density may exceed 2.5
units per acre in the Watershed Resource Protection areas if the
development does not exceed a maximum of 25% impervious surface
area or is exceptionally designed. Exceptionally designed projects shall
meet the criteria of Article 10 and shall reduce runoff from impervious
surfaces through porous paving and or infiltration devices as well as
managing runoff with at least one or more of the following water quality
Best Management Practices (ref: NCDENR Best Management Practices
Manual for design criteria): bio-retention area, filter strip, sand filter,
grassed swales, or other approved LID techniques.
4) Community facilities and common open spaces: At least 5% of the acreage of the
site shall be devoted to common open spaces. Common open spaces include
areas where the public is directly or indirectly invited to gather, browse, sit,
interact or congregate. Common spaces may include sidewalks, multiuse paths,

191219 Draft
 6
LDC-1-1019

courtyards, plazas, and other similar areas. Unimproved natural areas and
customary side yards between buildings shall not be counted as common open
spaces.
5) Single-story development and unconnected outparcels are prohibited.
6) A conceptual elevation illustrating proposed design, including fenestration,
building height, and location of residential and nonresidential uses shall be
provided.

d) For developments providing workforce housing units onsite or a fee in lieu of units, the
following incentives are applicable:
1) All applicable city development review fees may be waived.
2) The project shall be eligible for priority development review. Priority review shall
mean that eligible plans will be reviewed for technical compliance by all
applicable city departments (e.g. planning, engineering, fire) ahead of plans
already in queue for review. This shall not apply to agencies and departments
outside of the city of Wilmington.
3) Building height permitted in the zoning district may be increased by up to 12
feet.
4) Lot (building) coverage may be increased in accordance with the following
table:
Normal With
Standard Incentive
O&I-1, buildings up to 45 ft in height 40% 45%
O&I-1, buildings up to 75 ft in height 35% 40%
CB 30% 35%
RB 40% 45%

e) For residential parking calculations, parking shall be provided at the rate of one space
per residential unit. Shared parking between residential and commercial uses is
permitted.

f) Sidewalks shall connect all buildings, surface parking areas, community facilities/open
space, bicycle parking, and any adjacent commercial uses.

g) Residential uses shall not cause increased setbacks or buffers on any adjacent parcels.

h) Fee in lieu of units on site: In lieu of providing workforce housing units onsite, a
developer may choose to contribute a fee to the city’s dedicated housing fund.
Given the example of a mixed use development with 250 residential units (therefore 25
workforce units required), the fee in lieu shall be calculated as follows:
1) The fee shall be a sum equal to the percentage of the project dedicated to
residential use in terms of gross building square footage multiplied by 10% of the
fair market value of the land at the time of the issuance of the first certificate of
occupancy.

191219 Draft
 7
LDC-1-1019

The fair market value shall be demonstrated by a licensed appraiser,

commissioned by the developer, and may be subject to verification by another
licensed appraiser commissioned by the city.

For example, if total building square footage of a development is 5%

nonresidential and 95% residential, and the fair market value of the land is
determined to be $5,000,000, the fee would be calculated as follows:

95% x $5,000,000 = $4,750,000

$4,750,000 x 10% = $475,000 total fee in lieu

In this example, the developer may choose to pay $475,000 instead of providing
the 25 required work force units on-site.

2) The fee shall be paid in full prior to the issuance of the first certificate of
occupancy for any part of the project.

Commentary: Note that, using this formula, a project that has more commercial area as a
percentage of the total square footage in the development will result in a lower fee in lieu.
Thus, there is a built-in incentive to provide for a more balanced mixed use development.

i) Housing development standards. Workforce housing units shall be fully integrated into
a development and shall be architecturally indistinguishable from market-rate units.

1) Exterior finishes of workforce housing units shall be of the same type and quality
as the market-rate units.

2) Workforce housing units shall be sized, in terms of square footage and number of
bedrooms, in a manner comparable and proportional to the square footage and
number of bedrooms of the market rate units. Number of bedrooms and
bathrooms per workforce housing unit shall be provided at the same proportion
of bedrooms and bathrooms per unit as the market rate units. If only a single
workforce housing unit is provided, it shall have the same number of bedrooms
as the most frequently occurring number of bedrooms and bathrooms of the
market rate units.

3) The smallest workforce housing unit by bedroom count shall not be smaller than
the smallest market-rate unit with the same number of bedrooms.

4) Workforce housing units shall be intermixed within the development and not
clustered together or segregated from the market-rate units.

5) Developments comprising multiple buildings with residential units shall

incorporate within each such building both workforce and market-rate units.

6) No more than 10% of the total number of units within any individual building shall
be workforce units.

191219 Draft
 8
LDC-1-1019

7) The developer shall provide information identifying the total number of one-
bedroom units, two-bedroom units, etc., and the respective square footages of
the same, and the initial total number of one-bedroom workforce housing units,
two-bedroom workforce housing units, etc., and the respective square footages
of the same, as well as their initial location. Prior to the issuance of the first
certificate of occupancy for any portion of the development, the developer shall
identify, in writing, to the City of Wilmington Community Development Division, or
its successor, the units designated as either owner-occupied/for-sale workforce
housing units and/or rental workforce housing units. Also prior to the issuance of
the first certificate of occupancy, the developer shall execute covenants
satisfactory to the City Attorney that restrict the development to the prescribed
number of workforce housing units and restrict that number of units for
occupancy by qualified households for a period of no less than 20 years, and
submit a copy of the recorded covenants to the City of Wilmington Community
Development Division, or its successor. The assignment of workforce housing
units, however, shall be “floating,” such that should an occupant’s income grow to
exceed the established limits for workforce housing, the occupant(s) may remain
in the unit at market rate and a different unit may be designated as a
replacement workforce housing unit.

8) For any units identified as for sale/owner-occupied workforce housing units,

covenants shall require that, if units are sold before the end of the period of
affordability, the city shall be entitled to capture the increase in value over the
original purchase price. For rental workforce housing units sold or transferred
before the end of the period of affordability, the covenants shall require the
owner to provide proof to the City of Wilmington Community Development
Division, or its successor, at inception of every tenancy, and on an annual basis
thereafter, that no more than affordable rent is being charged for the unit(s),
and verified income reports of household income of all occupants of rental
workforce housing units or that the city shall be entitled to capture the increase
in value over the original development cost. Rental workforce housing units
shall be subject to these restrictions for no fewer than 20 years from the initial
occupancy as workforce housing.

9) The covenants for rental workforce housing units shall provide:

i. If a rental workforce housing unit is converted from renter-occupied unit
to an owner-occupied unit during the term of the rental workforce
housing covenants, the unit shall be subject to the owner-occupied
workforce housing unit requirements as set out above (to include an
initial maximum sales price) for a term of months equal to the number
resulting when subtracting from 300 months the number of months the
unit has been subject to rental workforce housing covenants.
ii. Covenants shall require written notice to the city’s Community
Development Division and City Attorney prior to any conversion taking
place.

191219 Draft
 9
LDC-1-1019

10) Covenants shall provide that the City of Wilmington, or its assignee, has rights to
enforcement by any legal and/or equitable means, and in all events be subject to
approval by the City Attorney.

11) If a development is to be phased, each phase shall include workforce housing

units concurrently with the market-rate units in that phase. A phasing plan that
brings the workforce housing units online at the end of buildout is not permitted.

12) The upkeep of rental workforce housing units shall be of the same quality as the
upkeep of market-rate rental units within the development.

j) Affordability Criteria. The following terms shall be employed to determine affordability

price points for workforce housing units.

1) Workforce housing unit: A housing unit requiring a mortgage payment or

rental payment, as applicable, in accordance with the household income and
affordability criteria defined below.

2) Area median income (AMI): AMI is the midpoint of a region’s income

distribution – half of families in a region earn more than the median and half
earn less than the median. For housing policy, income thresholds set relative
to the area median income identify households eligible to live in income-
restricted housing units and the affordability of housing units to low-income
households. AMI shall be determined annually by the U.S. Department of
Housing and Urban Development and shall be adjusted for family size.

3) Qualified household: Households where occupants have, in the aggregate, a

household income less than or equal to 120% percent of the AMI, adjusted
for family size, for owner-occupied units, and a household income less than
or equal to 80% of the AMI, adjusted for family size, for rental units.

4) Initial maximum allowable sales price: An amount equal to three times 120%
of the AMI, adjusted for family size.

5) Affordable rent: Affordable rent is the high HOME rents* as published

annually by the United States Department of Housing and Urban
Development, or its successor, for the city of Wilmington, and adjusted for the
number of bedrooms.

6) Household income: Income as defined ans used by the U.S.Census long form.

*Commentary: Below is a chart showing the HOME Program Rents for Wilmington for 2019.
US Dept HUD 2019 HOME PROGRAM RENTS
Wilmington, NC HUD Efficiency 1 BR 2 BR 3 BR 4 BR 5 BR 6 BR
Metro FMR Area
Low HOME Rent Limit 637 683 820 946 1056 1165 1274
High HOME Rent Limit 715 790 1003 1196 1315 1432 1550
Fair Market Rent 715 790 1003 1404 1704 1960 2215

191219 Draft
 10
LDC-1-1019

Secs. 18-332 18-333 -18-339. Reserved.

CONSISTENCY WITH ADOPTED PLANS

Create Wilmington Comprehensive Plan

The following analysis examines the proposal relative to the policies of the City’s
Comprehensive Plan. Policies that most pertain to the proposed amendment are provided
below. Not all policies carry equal weight and may depend on the specifics of the proposal. The
policy analysis uses the following symbology:

Strong Support Modest Support Modest Non-support Strong Non-support

Policies 1 Development and City Building

Mixed-use development that provides a range of services within walking distance of
integrated residential development should be promoted as a way to help reduce
1.3.4 motor vehicle trips. Developments that reduce reliance on single-occupancy motor
vehicles should be supported.
Policies 3 Housing
3.2.1 Increasing the city’s range of housing assistance programs benefitting low- and
moderate-income persons should be considered.
3.2.3 Scattered-site rental housing units on infill lots should be utilized where appropriate
and where design is compatible with the neighborhood scale and context.
3.2.6 The location of affordable housing in areas with access to transit services, including
current and future transit stations, should be incentivized, including, but not limited
to, zoning and development incentives.
Policies 9 Urban Design and Placemaking
9.6.1 New housing of mixed types and prices should be encouraged in proximity to and
within employment areas, mixed-use centers, and neighborhood nodes, as identified
on the Growth Strategies Maps.

City of Wilmington Strategic Plan

Elements of support from the City of Wilmington Strategic Plan include the focus areas of:

Foster a Prosperous, Thriving Economy: The city will promote opportunity and prosperity by
fostering sustainable, regionally coordinated economic growth and development strategies for
creating jobs, building a strong workforce, facilitating commerce and business vitality; and

Engage in Civic Partnerships: The city will build and improve partnerships, collaborations and
relationships with all stakeholders, including our citizens and public and private organizations.

CONCLUSION / RECOMMENDATION

The availability of workforce housing is critical to the quality of life, economic development, and
accommodation of anticipated growth in Wilmington. This mixed-use option places both market
rate and work force residences within convenient proximity to jobs, services and, presumably,
public transportation. This type of housing can increase the mix of housing price points in new
developments, facilitating greater housing diversity across the city.

191219 Draft
 11
LDC-1-1019

The proposed change is consistent with the recommendations of the city’s Strategic Plan and
the Create Wilmington Comprehensive Plan. Staff recommends approval of the request.

NEIGHBORHOOD CONTACT
Planning Commission City Council
Advertisement Date(s) 01/04/20
Other – Contact(s)

ACTIONS TO DATE

Planning Commission 01/08/20, Scheduled for public hearing

City Council

ATTACHMENTS

Benchmarking report

191219 Draft
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

Jurisdiction  Applicability   Required set aside or fee   In lieu options  

Chapel Hill  SF and MF developments  Set aside – 15% of the units or  Land – adequate to allow construction of at least the 
(mandatory)  with at least 5 units or an  10% in town center  number of units it is replacing 
increase of at least 5 units  Density bonus – 15% in most  Existing units – restricting existing units that are the 
  districts   equivalent value, quality and size of the required BMR units 
99‐year period of affordability   Offsite construction – location proximate to public transit 
Payment – payment must provide opportunity for 
equivalent or more number BMR units 
Davidson  Up to 7 units, provide one  Set aside – minimum of 12.5%  For every unit constructed on‐site, PIL for one unit will be 
(mandatory)  BMR unit or make PIL  of the units  waived 
8 or more units – provide  Cash payment amount per unit not codified, but rather 
all required BMR units  adopted as part of the fee schedule and at least once every 
3 years, it’s reviewed and, if necessary, amended 
Current fee (developments approved after 5/26/15) $26,550 
per unit 
Beaufort County,  Regional Mixed‐use  Maximum density and  None 
SC  Center (C5 zone) only: any  minimum lot size waived and 
development including  impact fees reduced in 
residential units may opt‐ exchange for provision of 30% 
in  of all units as deed‐restricted 
  BMR units for 20 years or 20% 
of units for 25 years 
Charleston, SC   Opt‐in mixed‐use  Up to 4 units, provide 1 unit  PIL formula: 
workforce housing zoning  5 or more units: 20% of all units  Gross SF x $5.10/number of required units = fee per 
districts (MU‐1/WH and  must be BMR  in exchange for  required unit 
MU‐2/WH)   unlimited density and reduced  Opting for PIL and no onsite units increased the required 
parking requirements   ground‐floor commercial space 
25‐year period of affordability   Land – size, configuration, and location capable of 
  supporting the number of units its intended to replace 
Virginia Beach, VA  All development in  Increased density at a ratio of   None 
workforce housing  30% increase to 17% BMR set 
overlay district  aside (can slide – 20% increase 
= 11.33% set aside) 

1 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

Telluride, CO   Any new residential or  Residential development  Existing units – deed restricting existing unit allowed 

commercial development   formula:   Construction of dormitory/shared facility units 
Square footage of BMR housing  PIL – Market affordability difference is the required rate per 
tied to number of employees  unit = free market dwelling unit average – affordable 
generated   average sales price per SF    
Employees generated x 350 SF x 
required percentage mitigation 
= GFA of BMR housing 
mitigation required 
 
Land Use Generation Rate 
Commercial/Public Facility 4.5 
employees per 1,000 SF NFA 
Hotels/accommodations  0.33 
employees per unit  
MF and MU residential 0.33 
employees per dwelling unit 
One and Two‐family Dwellings 
Generation Rate = 
0.070174(e)(o.000322 x proposed new 
GFA) 

Manteo, NC  All new redevelopment/  20% of the total number of  None 

(mandatory)  development/subdivisions  residential units BMR set aside 
with 5 or more residential  Compliance results in waiver of 
units or lots  all application, building permit, 
plan review, inspection, water, 
wastewater fees 
Density bonus ‐ 1 MR unit may 
be added for each BMR unit or 
lot provided 
(period of affordability 
repealed) 
Winston‐Salem   Optional density bonus  Density bonus of 25% for duplex  Land – 25% density bonus for SFR development with 
only  or MF developments providing  donation of land to county or WSHA; must be in same 

2 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

a minimum of 40% BMR units  census tract and be able to accommodate the total number 
reserved for 60% AMI or 20%  of bonus units 
BMR set aside for 50% AMI 
Density bonus of 25% for SF 
with a 25% BMR set aside 
 
15‐year period of affordability  
Carboro  Optional density bonus  15% set aside   PIL – equivalent to the provision of one BMR unit 
15‐182.4   only  Density increase of 2 units for  Number of units/lots x 0.15 = payment per unit 
every one BMR unit, up to 150% 
of the base density  
Affordability period of 99 years 
Dare County, NC  Optional density bonus  Mixed‐use – 50% of ground‐ None 
Tit XV, ch 155,  but requires CUP  floor area must be commercial 
App A Sec. 22‐ No parking required for 
58.3  residential uses 
 
Duplex, tri, quad, MF – density 
bonus between 2 and 6 units 
per acre, depending on base 
district  
 
25‐year period of affordability 
 
Kill Devil Hills  Density bonus only –  For MF, 1.2 additional units per  None 
Title XV, 153.207  conditional use  BMR (30%‐80% AMI) unit 
1 additional unit per BMR (30% 
‐ 100% AMI) 
0.8 additional unit per BMR (30 
– 125% AMI) 
Waiver of site plan, building 
permit, water service, 
subdivision fees 
 

3 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

At least 25% of the units must 
be market rate housing 
 
No prescribed period of 
affordability  
Boulder, CO  Required of any  25% permanent set aside – for  Alternate means of compliance for developments with 1‐4 
Chapter 9‐13  development with 5 or  sale, half must be onsite; rental,  units 
more dwelling units  no minimum onsite   
    Development of a single lot/single unit must either 
Development with up to 4  Developments with a single unit  designate the unit as affordable or make a PIL at the time of 
units, 20% permanent set  on a single lot must also comply  development or upon conveyance of the property to 
aside  another owner or after 10 years, whichever is sooner  
   
Rebuilt dwelling units –  PIL amount calculated by city manager annually based on 
up to 4 units – applicant  the number of units in the development, the size and type 
may request exemption  of units which created the obligation (including small 
5 or more units – no  attached units and townhomes), the amount that would 
exemption   incentivize on‐site construction of affordable units, and the 
affordability gap between market and affordable home 
prices  
 
Annual escalator ‐ developments with 5 or more units: city 
manager may increase PIL annually each year up to a max 
of 10%, compounded each year until 75% of the 
affordability gap in a given year is reached; developments 
with up to 4 units: city manager may increase PIL annually 
by up to 10%  compounded each year until 50% of the 
affordability gap in any given year is reached 
 
Provision of units offsite permitted, so long as they are 
within the city limits 
 
Existing units – restricting existing units permitted if units 
are within city limits 

4 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

 
Land in lieu – location and site approved by CM; must be 
suitable for the number of units required; if land value falls 
short of the full amount of PIL required, cash PIL required 
to off‐set difference; land plus cash PIL allowed if land is no 
less than 75% of the cash amount for providing less than ½ 
the number of units required within the causal 
development 
 
Alternative methods of compliance: applicant must 
demonstrate alternative would result in additional BMR 
units that are equivalent or greater than the PIL 
contribution that is contributed if fewer than half the units 
are provided onsite; is necessary to prevent an unlawful 
taking 
Burlington, VT   Any development of 5 or  BMR units up to 139% AMI –  In a mixed‐use development, 1 market rate unit may be 
more dwelling units in a  15% set aside  substituted for 1500 SF of residential space 
single structure (new     
construction or rehab) –  BMR units 140% ‐ 179% AMI –  Provision of units offsite – allowed at 1.5 times the number 
10 or more units if  20% set aside  of BMR units otherwise required; must be within city limits 
adaptive reuse or     
conversion  Any development in a  PIL ‐ $100,000, adjusted annually (from 2007) in accordance 
  waterfront district or 180% AMI  with the CPI, per unit 
Exemptions – new units  and above in any other district – 
developed by school;  25%  
replacement units; certain   
senior housing  Density bonus between 15% 
and 25% percent, depending on 
zoning district   
Lot coverage increase between 
15% and 25% depending on 
district  
Waiver of 50% of required 
parking 

5 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

Fairfax County, VA  Any site for proposed for  SF not required to provide BMR  Land in lieu – equivalent amount necessary to provide the 

part 8, 2‐800  50 or more dwelling units  units may opt in for a 20%  number of required BMR units 
at a density greater than  density bonus with a 12.5% set   
1/u/acre  aside  PIL – amount equivalent to the fair market value for the lot 
    on which the BMR unit would otherwise have been 
  MF development up to 3 stories  constructed 
not required to comply may opt   
in for a 10% density bonus with  A combination of units, land, and cash is permitted 
a 6.25% set aside or up to 20% 
with a 12.5% set aside 
 
MF development 4 or more 
stories may opt in for a 17% 
density bonus with a 6.25% set 
aside or a 5% set aside if at least 
half of the parking is structured 
Montgomery  Every subdivision or high‐ Mandatory 15% set aside in  PIL ‐ 11‐19 units – payment equal to 0.5% of the purchase 
County, MD  rise building of 20 or  certain zoning districts  price of each dwelling unit  
COMCOR  more units     
25A.00.03     In planning areas where 45% of  Land in lieu – land transfer must outweigh the value of 
Developments 11 – 19  the census tract has a median  providing units within the development for subdivisions; for 
units must make a  income of 150% AMI,  MF projects, land must support the development of an 
payment to the housing  mandatory 15% set aside  independent rental or sales project, including amenities 
fund     
Set aside requirement  Units offsite permitted – requires an increase in the number 
calculated every year by  of units or number of bedrooms; must be in same planning 
planning department   area unless it’s in a higher‐income area 
   
Density bonus for provision of  PIL – 3% of the sale price of each unit; not allowed for rental 
BMR units – Tier 1 areas: 0.88%  units 
for each 0.1% increase in set  Requires finding of a development constraint or that it is in 
aside above 12.5% up to an  the public interest 
including 15%  Not permitted if all development fees have been waived  
 

6 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

Tier 2 areas: 22% plus 0.16% for 
each 0.1% increase in set aside 
above 15%, up to 20% 
Tier 3 areas: 30% plus 0.1% for 
each 0.1% increase in set aside 
above 20% 
Napa, CA  Any residential or  Impact fee   Fees by land use category 
nonresidential  Adopted a requirement for   
development  units within new development  Construction of units either onsite or offsite in lieu of impact 
in 1999; amended to impact fee  fee  
in 2012   
Existing units – restricted in lieu of impact fee 
Sacramento, CA  Citywide housing impact  Fee by housing type – between  Mixed‐income housing strategy (for developments greater 
fee on all new residential  $1.20 and $2.77 per SF  than 100 acres) – fee credits for land dedication, 
units    construction of BMR units, or other mechanisms 
If development is up to 100   
acres, fee on all new market  No more than 50% of the units within a project may be BMR 
rate units  units/within 400 feet of another multi‐unit project with 
  more than 50% BMR units 
More than 100 acres, fee on all   
new market rate units and  Max number of BMR units within any multi‐unit project is 
approval of mixed‐income  150 
housing strategy that   
demonstrates how a variety of  Exemptions: mobile home parks, developments with at least 
housing price points are  10% BMR units, new single‐unit, accessory dwelling units, 
included  developments subject to development agreements 
San Diego, CA  All residential  Impact fee ranging from $1.08  Units in lieu of fee – 10% of set aside 
development of 2 or more  to $5.41 per square foot 
units (with exceptions for 
developments providing 
BMR units onsite) 
Santa Fe, NM   Any development with 2  20% (with a 5/10/5% ratio of  Goal is to develop mixed‐income neighborhoods, but 
more more dwelling units  AMI ranges)  alternative compliance may be approved if it determined 
  that a proposed alternative would better serve the purposes 

7 
 
LDC‐1‐1019 Attachment 1 ‐ Benchmark Research         7/20/19     

or mixed‐use buildings,  May be reduced to 15% if AMI  of the code (approved by staff) – must find that proposed 

including annexations  ranges are lower   alternative result in a benefit that responds to city‐wide 
  need, that the provision of units would over‐concentrate 
Incentive to developers –  BMRs, factors affecting the feasibility of construction 
density bonus of 15%,   
development fee waivers  Actual value of PIL determined by administrative procedures 
Maui County,  Any development of  25% of the total number of  Fee in lieu of units – equal to the difference in unit cost for a 
Hawaii  single‐family, two‐family,  market rate units  three‐bedroom, single‐family dwelling unit at 100% and a 
Chapter 2.96  or multifamily dwelling  If the workforce housing units  three‐bed‐room, single‐family dwelling unit at 160% of AMI 
units or hotels with 10 or  are conveyed to a qualified  for a family of four 
more lots, lodging units,  housing provider, and units   
timeshare units, or  remain income‐qualified in  Land in lieu – subject to approval by the director and the 
dwelling units  perpetuity, may be reduced to  council by resolution 
  20%    
Any conversion or    Offsite units within the same planning area 
redevelopment that adds  Fast track permitting for all 
10 or more units,  county permits with executed 
including conversion of  workforce housing agreement 
hotel units to dwelling or  for projects requiring planning 
timeshare units  commission, council or other 
county board review 
 
Fee waivers, all or partial, 
available  
Charlotte, NC   Opt‐in development type  At or below 80% AMI; first right   
for some single‐family  of refusal for sale of units for 15 
developments of 1 acre or  years  
more and some multi‐   
family developments of 3  Density bonus up to 3 units per 
acres or more  acre for SF (may be duplex, 
  triplex, or quadraplex units) 
  Density bonus of 2 ‐3 additional 
units per acre in MF districts 
 

8