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

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

Key Facts

Governing law
Tracy Municipal Code Article 36.5, §§10.08.4650-10.08.4686
State authority
Gov. Code §§65915-65917.5
Minimum bonus
5% density increase, very low tier
Maximum bonus
up to 35%-50% depending on tier
Sample trigger
10% very low income or 20% low income units
Required document
recorded density bonus housing agreement
Zoning effect
no general plan or zoning change required

Summary

Tracy grants qualifying housing developers an increased density bonus plus at least one extra concession when a project sets aside affordable or senior units. Under Tracy Municipal Code section 10.08.4656, agreeing to build 10% very low-income, 20% low-income, 50% senior, or 20% moderate-income condominium units triggers a mandatory density bonus and incentive package under Article 36.5.

(a)The City shall either grant a density bonus and at least one concession or incentive, or provide other concessions or incentives of equivalent financial value (based on the land cost per dwelling unit) when the applicant for a housing development agrees or proposes to construct at least any one of the following:(1)Ten (10%) percent of the total dwelling units for very low-income households.(2)Twenty (20%) percent of the total dwelling units for low-income households.(3)Fifty (50%) percent of the total dwelling units for qualifying residents.(4)Twenty (20%) percent of the total dwelling units in a condominium project for moderate income households.(b)The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, zoning change or other discretionary approval by the City.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 69).

Full Breakdown

4650. 4656 requires the City to grant a density bonus, plus at least one concession or incentive of equivalent financial value, whenever a housing developer agrees to build any one threshold: 10% of units for very low-income households, 20% for low-income households, 50% for qualifying senior residents, or, in a condominium project, 20% for moderate-income households. 4653(g) defines "density bonus" itself as an increase of at least 5%, and up to 35%, over the maximum density otherwise allowed by the zoning ordinance and general plan land use element in effect when the application is filed.

4659 sets out a sliding scale: providing 10% low-income units earns a 20% density bonus, rising in half-percent increments up to a 50% bonus at 24% low-income units; the very low-income scale starts at 5% units for a 20% bonus and reaches the same 50% cap. 4653(e) include reduced minimum lot sizes and setbacks, increased lot coverage, and reduced on-site parking, with the code fixing the parking ratio the City may require at one space for a studio or one-bedroom unit, two spaces for two- or three-bedroom units, and two and one-half spaces for units with four or more bedrooms. 4656(b) makes clear that granting a density bonus does not, by itself, require a general plan amendment, zoning change, or other discretionary City approval.

Violations & Fines

Density bonus eligibility is not self-executing. Section 10.08.4686 requires the developer to sign a density bonus housing agreement as a condition of the discretionary permit and record it against the property before or with the final map. The recorded agreement runs with the land, binds every successor owner, and must state remedies for breach by either party, so a developer or later owner who rents or sells target units outside the approved terms is violating a recorded covenant enforceable by the City.

Frequently Asked Questions

How big a density bonus can a Tracy developer earn?
Tracy Municipal Code section 10.08.4653(g) defines a density bonus as an increase of at least 5%, and up to 35%, over the maximum density otherwise allowed by the zoning ordinance and general plan, with the exact percentage set by which affordability tier and unit count the project commits to under section 10.08.4659.
What affordability level triggers the density bonus?
Section 10.08.4656 sets four qualifying thresholds: 10% of units for very low-income households, 20% for low-income households, 50% reserved for qualifying seniors, or 20% for moderate-income households in a condominium project. Meeting any one obligates the City to grant a bonus plus at least one concession.
Does a density bonus project need a separate zoning change?
No. Section 10.08.4656(b) states that granting a density bonus "shall not be interpreted, in and of itself, to require a general plan amendment, zoning change or other discretionary approval by the City," so the increased density layers onto the existing entitlement.
Is the affordability commitment legally binding after the project is built?
Yes. Section 10.08.4686 requires a recorded density bonus housing agreement that runs with the land and binds future owners, spelling out affordable rent or sale terms, tenant qualification procedures, and remedies if either the developer or the City breaches the agreement.

Sources & Official References

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