Merced County, CA Zoning Overlays & Bonuses: Density Bonus Law (2026)

66 implements Government Code Section 65915 for the unincorporated county. 5), 5 percent for very low-income households (Section 50105), a senior citizen development or age-restricted mobile home park, 10 percent for moderate-income units in a common-interest development sold to the public, 10 percent for transitional foster youth, disabled veterans, or homeless persons units under a 55-year affordability restriction, or 20 percent for lower-income student housing. 030 sets the bonus scale: the low-income tier starts at a 20 percent density bonus for a 10 percent set-aside and rises on a sliding scale to 35 percent at a 20 percent set-aside; the very low-income tier starts at 20 percent for a 5 percent set-aside and reaches 35 percent at 11 percent; senior developments receive a flat 20 percent bonus.

025 disqualifies projects proposed on parcels with existing rental units that were vacated, demolished, or rent-restricted in the prior five years, unless the project replaces those units at the required affordability levels. Commercial developers can also earn a development bonus by partnering with a housing developer on- or off-site, receiving up to a 20 percent increase in General Plan intensity, floor area ratio, height, or a 20 percent parking reduction. The Director of Community and Economic Development processes applications, and the County reports approved commercial development bonuses annually to the state Department of Housing and Community Development under Government Code Section 65400.