Density is the measured as the number of dwelling units per acre (du/ac). A density bonus provides an increase in allowed du/ac, Floor Area Ratio (FAR) or height which generally means that more housing units can be built on any given site. This bonus is typically granted to a developer in exchange for the provision of affordable and sometimes age restricted (55+) communities. This doesn't just have to be for larger projects. It can be done for smaller ones as well. Another example of how unique entitlements can add value to an existing property
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