Affordable Housing Incentives

The Carrboro Town Council established as a policy goal that at least 15% of the housing units within all new residential developments should consist of affordable housing units.  (New residential developments with fewer than 5 homes or units are not included in the Town’s affordable housing goal.)

To encourage the development of affordable housing, the Town established incentives for developers to create affordable housing. If a project includes certain levels of affordability, it may be eligible for any or all of the incentives listed in the table below.  More information about these Incentives can be found in the Town’s Land Use Ordinance and in our Affordable Housing Fee Waiver Policy.

Questions?  Please contact our Zoning Department:  919-918-7336.



1. Density Bonus

a.  Can increase density up to 150% of otherwise allowable density

b.  1 additional market-rate unit for every 1 affordable unit

c.  85% of the maximum required affordable units at maximum density must be met to gain a density bonus; 85% of (max density – base density)/2

d.  Developments that use the density bonus may be entitled to relief from the setback requirements under some circumstances

2. Affordable Housing Fund

a. Nonprofits and residents can apply to the Town for funding of projects that meet the Town’s affordable housing goals

3. Permit Fee Waiver

a.  Land use and building permit fee waivers by Board approval for nonprofits

4. Open Space

a.  Any development that provides affordable housing can reduce the required open space by an amount equal to twice the land area consumed by all affordable housing units (down to a minimum of 20% open space)

5. Size Limited Requirement Waiver

a. It is required that all new residential developments have 25% size-limited units.  Basically, if the affordable housing policy goal is met, this requirement is waived