What is incentive zoning?

Incentive zoning is a planning tool that allows developers to gain certain benefits or relax specific land use regulations in exchange for providing public amenities or features. This approach encourages developers to contribute to the public good by offering benefits such as affordable housing, parks, or public spaces, which might not be financially feasible without such incentives.

For instance, a city could allow a developer to build higher than the standard zoning height limit if they agree to include public amenities like a community park or a certain percentage of affordable housing units in their project. The essence of incentive zoning lies in the reciprocal relationship between the developer and the municipality, where both parties gain something beneficial.

This contrasts with the other options, which do not capture the essence of incentive zoning. Restrictive systems or strict zoning laws do not offer flexibility or benefits in exchange for public amenities. Rather, they impose limits on building practices without providing incentives, which can stifle development opportunities and community enhancements. Increasing residential density typically relates to growth management strategies rather than the specific trade-offs inherent in incentive zoning.