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Reading, PA Zoning Overlays & Bonuses: Density Bonus Law (2026)

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

Key Facts

Bonus ratio
1 market-rate per workforce unit
Cap
20% density increase
Where
TOD Overlay District only
Added by
Ord. No. 36-2026 (2026)

Summary

Reading's Transit-Oriented Development Overlay lets developers add one market-rate unit for every workforce housing unit, up to a 20% density increase.

Density Bonus. A density increase may be allowed when the proposed development provides workforce housing or an alternative to workforce housing. For each workforce housing unit, one additional market rate unit shall be permitted, up to a 20% increase in dwelling units.

(h)   Alternative to Workforce Housing Units.

1.   As an alternative to the requirement of subsection B.(2)(b) to provide for workforce housing within a proposed development, the applicant may contribute a fee, develop off-site workforce housing units, or provide a combination thereof in lieu of constructing workforce housing units within the proposed development, upon approval by City Council, based on recommendations from the Planning Commission and Community Planning and Development staff.

2.   Off-site workforce housing units. The applicant may provide the same number of workforce housing units as required under subsection B.(2)

(b) at another site within the TOD Overlay District, as agreed upon by City Council. As a condition of approval, the City shall require that construction of the off-site workforce housing be completed no later than completion of the market rate units. If the off-site workforce housing units are not completed within this timeframe, final occupancy permits shall not be granted for the number of market rate units equal to the number of workforce housing units that have not been completed.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-8: Current through August 10, 2026).

Full Breakdown

In the Transit-Oriented Development (TOD) Overlay District, City of Reading Code § 600-1109.B(1)(g) grants a density bonus tied to workforce housing: for each workforce housing unit a project provides (or its fee-in-lieu alternative under § 600-1109.B(1)(h)), the developer may add one additional market-rate dwelling unit, capped at a 20% overall increase in dwelling units. The bonus was added June 22, 2026 by Ordinance No. 36-2026 and applies only within the TOD Overlay, not citywide, it sits alongside other TOD incentives for reduced lot size, higher building/impervious coverage, added height and reduced parking.

Violations & Fines

Not a use restriction: a density bonus is an optional incentive available to developers who meet the workforce-housing conditions; there is no separate penalty provision.

Frequently Asked Questions

How much extra density can Reading's TOD density bonus add?
Up to a 20% increase in dwelling units, one market-rate unit per workforce housing unit provided, per § 600-1109.B(1)(g).
Does the density bonus apply outside the TOD Overlay District?
No, § 600-1109 only governs the Transit-Oriented Development Overlay District, added by Ord. No. 36-2026.

Sources & Official References

Other rules in Reading

All Reading rules

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