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N <br /> housing. The land would be of sufficient size and 74 <br /> character to accommodate the same number of lots or <br /> units granted by the density bonus. <br /> 3) A 50% density increase may be allowed if all of the <br /> lots/units are reserved for qualifying households <br /> (20% low-income, 80% moderate-income) . <br /> (Note: This provision would not apply to lands <br /> donated under 2) above. <br /> COMPARISON WITH OTHER LOCAL REGULATIONS <br /> House Bill 915 has been recently ratified, amending the <br /> charter of the Town of Chapel Hill to allow density bonus for <br /> affordable housing. <br /> The Chapel Hill proposal includes a density increase of at <br /> least 25% when <br /> • 1) 25% of the total units are reserved for <br /> low/moderate income families (50-100% of median <br /> • income) , <br /> 2) 10% of the total units are reserved for lower <br /> income households (less than 50% of median income) . <br /> When compared with the legislation proposed by Chapel Hill, <br /> the Orange County proposal generally provides for greater <br /> benefits in affordable housing, but may offer less of an <br /> incentive to the developer. The maximum bonus proposed is <br /> 25% (compared to a minimum of 25% in Chapel Hill) , the <br /> percentage of reserved units is higher, and the qualifying <br /> income of residents is generally lower. This difference is <br /> not as great as it appears, however, because the affordable <br /> units constructed in Orange County could also qualify for the <br /> low income housing tax credit. There is also more <br /> flexibility in the Orange County proposal through provisions <br /> for land dedication. <br /> GENERAL APPLICABILITY <br /> The incentives set forth in this proposal are but one tool in <br /> the effort to encourage affordable housing. The incentive <br /> provided by a density increase is greatest in urbanized <br /> areas, where the land is of a greater value. Density bonus <br /> provisions where lot sizes are as great as one or two acres <br /> will not be as effective as similar provisions in an urban <br /> area. <br /> The proposed provisions are most likely to be utilized by <br /> • non-profit organizations already intending to develop <br /> affordable housing, or by developers/landowners with suitable <br /> land of lesser value to donate in exchange for a density <br /> increase. <br /> These bonus provisions would benefit those individuals who <br /> meet specific income eligibility criteria and the benefits <br /> would be guaranteed through a contractual agreement with the <br />