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Louisville, KY Zoning Overlays & Bonuses: Density Bonus Law (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Eligible zoning
R-4 and R-5 districts only
Minimum subdivision size
5+ lots, major subdivision
Diversity Housing minimum
At least 10% Level 1/2 units
Max R-4 density
Up to 4.84 units/acre
Max R-5 density
Up to 7.26 units/acre

Summary

Louisville Metro's Land Development Code lets R-4 and R-5 subdivisions of five or more lots earn extra density, up to 4.84 units/acre in R-4 and 7.26 in R-5, by dedicating at least 10% of lots to income-restricted Diversity Housing.

Residential subdivisions located in the R-4 or R-5 Single Family Zoning District that create five or more lots in accordance with the procedures for major subdivisions and provide at least ten percent of Level 1 or 2 Diversity Housing as defined herein, are eligible for the incentives set forth in this section, unless the subdivision is located in a Qualified Neighborhood A, in which case, at least ten percent of any level of Diversity Housing shall be provided. The number of dwelling units created in accordance with this regulation may not exceed the number which is theoretically possible according to the rules of the applicable zoning district. The maximum is determined by multiplying the total site acreage by the applicable maximum density (dwelling units per acre) listed in Table 4.5.2. Proposed developments or portions thereof located more than one mile from a major transit corridor or an existing major or minor arterial classification roadway shall not be eligible for maximum gross densities to exceed 4.0 dwelling units per acre in the R-4 zoning district and 5.8 dwelling units per acre in the R-5 zoning district. The distance shall be measured using a straight line from the arterial or transit corridor street centerline. If the proposed development falls partially within and partially outside one mile of an arterial or transit corridor, measured as described above, the maximum density of the development shall be calculated as follows:

Source: Louisville Metro Plan 2040View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-47: Supplement contains: Local legislation current through Ordinances passed by the Council and approved by the Mayor as of July 1, 2026).

Full Breakdown

Under LDC § 4.5.2, developers in the R-4 or R-5 Single Family Zoning District who create five or more lots through the major subdivision process and dedicate at least 10% of units to Level 1 or 2 Diversity Housing qualify for Alternative Development Incentives density bonuses. Table 4.5.2 awards higher gross density on a points scale, 3 to 15 points earn 3.3 up to 4.84 dwelling units per acre in R-4, and 4.4 up to 7.26 in R-5, with points earned through common or public open space, brownfield redevelopment, and proximity to a major transit corridor or arterial. Sites farther than one mile from a qualifying corridor cap at 4.0 (R-4) or 5.8 (R-5) units per acre regardless of points earned.

Violations & Fines

Plats exceeding the calculated maximum density under Table 4.5.2 are rejected by Louisville Metro Planning & Design Services; developers must also file update reports every 6 months until all designated Diversity Housing lots are sold.

Frequently Asked Questions

Does this density bonus apply citywide in Louisville?
No. It only applies to R-4 or R-5 Single Family subdivisions of five or more lots under LDC § 4.5.2, not other zoning districts or home rule cities.
What must a developer provide to unlock extra density?
At least 10% Diversity Housing units (Level 1 or 2), plus additional points from open space, brownfield reuse, or transit-corridor proximity per Table 4.5.2.

Sources & Official References

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