Merced, CA Zoning Overlays & Bonuses: Density Bonus Law (2026)
Key Facts
- Minimum project size
- 5+ units
- Very low-income threshold
- 5% units, 20% bonus
- Low-income threshold
- 10% units, 20% bonus
- Maximum density bonus
- 35%
- Affordability term
- 55+ years, deed-restricted
Summary
Merced grants a density bonus and development incentives to any housing project of five or more units that sets aside units for very low-, low-, or moderate-income households, seniors, transitional foster youth, or homeless residents under Chapter 20.56. Bonuses reach up to 35% additional density, with affordability locked in by deed restriction for at least 55 years.
A.General.1.The city shall grant a density bonus and other incentives to an applicant for a housing development of five (5) or more units if they meet the requirements of this chapter.2.The deed restriction and other applicable documents, approved by city attorney, of a property subject to density bonus shall include a period of continuation of affordability not less than fifty-five (55) years or a longer period of time.3.Neither the granting of an incentive nor the granting of a density bonus shall be interpreted, in and of itself, to require a general plan amendment, zoning ordinance amendment, or other discretionary approval.4.If any portion of this chapter conflicts with density bonus law or other applicable state law, then state law shall supersede this chapter.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 85 - 1-26).
Full Breakdown
020, re-enacted by Ordinance No. 5. Any housing development of five or more units qualifies for a density bonus by dedicating target units: 5% very low-income, 10% low-income, 10% moderate-income in a for-sale condo or planned development, a 35-unit-plus senior development, 10% for transitional foster youth/disabled veterans/homeless persons, or 20% for low-income college students. 5% for low-income, 1% for moderate-income, up to a hard cap of 35% for any project. Every deed restriction implementing the bonus must be approved by the city attorney and run for a minimum of 55 years.
020(A)(3), and where this chapter conflicts with state density bonus law, state law controls. 020(E) depending on how far above the minimum threshold their affordable unit percentage runs.
Violations & Fines
Because the affordability deed restriction runs with the land for a minimum of 55 years and must be approved by the city attorney before recording, a project that fails to maintain its restricted units at the required affordability level breaches that recorded covenant for the full term; the city attorney-approved restriction remains independently enforceable against the property regardless of any change in ownership.
Frequently Asked Questions
How many units qualify a Merced project for a density bonus?
What is the maximum density bonus in Merced?
How long must the affordable units stay affordable?
Does getting a density bonus require rezoning the property?
Sources & Official References
Other rules in Merced
California rules heatmap·Compare Merced to another location·View the California zoning overlays & bonuses overview
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