Dallas, TX Zoning Overlays & Bonuses: Density Bonus Law (2026)

Sec. 905(a) states that regulations for SAH districts in Article IV set the dwelling unit density permitted by right, and a density bonus 'may be obtained in these districts if one or more SAH units or an in-lieu payment is provided,' with the application submitted to and approved by the director before any building permit that would push density above the by-right number. Subsection (b) requires the written application to identify the property owner and plan preparer, the lot's zoning classification and census tract, the density proposed versus the density permitted by right, the number of SAH units the bonus requires, the location of those units if they sit elsewhere, and the amount of any in-lieu payment.

The companion sections in the same division screen every SAH unit offered for the bonus, requiring it to sit within a set distance of the bonus lot, cap how concentrated SAH units can be on any one lot, and fix a bedroom mix for the units provided; a single SAH unit cannot be used to qualify two different lots for a bonus. Sec. 907 gives the director 10 working days after a complete application to decide, and if the director misses that window the application 'is approved subject to compliance with all applicable city ordinances,' a default-approval clock that puts real pressure on city review staff.

The director's decision must take one of three forms: approval with no conditions, approval subject to stated conditions, or denial with written reasons. Approved bonuses must be memorialized in an affordable housing instrument under Sec. 908, signed by all owners and lienholders, before the higher density is realized on the ground.