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Troy, MI Zoning Overlays & Bonuses: Density Bonus Law (2026)

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

Key Facts

Governing section
Zoning Ordinance Sec. 10.04.H
Open-space bonus
10% density per 10% extra open space
Sustainable design bonus
10% unit bonus above base yield
Housing-diversity home cap
1,900 sq ft max, bonus units
Approval authority
City Council on Planning Commission recommendation

Summary

Troy allows a discretionary density bonus for One-Family Cluster Option developments under Zoning Ordinance Section 10.04.H. City Council, acting on a Planning Commission recommendation, may award extra units for added open space, housing diversity, or sustainable design, but nothing is granted automatically.

H. Density Bonus. To encourage the use of the cluster development as set forth in the objectives in Section 10.04.A, a variable density bonus may be allowed at the discretion of City Council, based on a recommendation from Planning Commission. Density bonuses may be based upon a demonstration by the applicant of the following elements: 1. Open Space. For every ten percent (10%) additional open space above the minimum required amount that is not encumbered by rights-of-way or utility easements, a ten percent (10%) bonus density may be applied, or fraction thereof above the base yield number of units as established in 10.04.C.1.

Full Breakdown

A, and makes the bonus discretionary: City Council decides, based on a recommendation from the Planning Commission, whether to grant it at all. 1. First, for every 10% of additional open space provided above the minimum required amount, and not encumbered by rights-of-way or utility easements, the applicant may receive a 10% bonus in density, or a fraction of that bonus for a smaller increment. Second, a housing-diversity bonus is available for developments offering a variety of housing types, or a housing type not currently offered in the city, but every bonus unit above the base yield must cap home square footage at 1,900 square feet and include a first-floor master bedroom and bathroom.

Third, a sustainable-design bonus of 10% of the base yield is available for projects using green infrastructure, stormwater best-management practices, or green building techniques; like the housing-diversity bonus, City Council discretion applies on a Planning Commission recommendation. 4 confirms these bonuses stack on top of each other rather than replacing one another. I, which requires the Planning Commission to evaluate the application against listed cluster-development objectives, including preservation of natural resources, innovative site design, buffering from adjacent property, and adequate public facilities, and to report findings and a recommendation to City Council before any bonus density or unit count is approved.

Violations & Fines

There is no density bonus by right in Troy. Building a cluster development at a density above the base yield established under Section 10.04.C.1 without a City Council-approved bonus under Section 10.04.H is a zoning violation subject to the code's general enforcement and penalty provisions, and the Planning Commission can recommend denial of the bonus outright if the Section 10.04.I findings are not met.

Frequently Asked Questions

Does Troy grant density bonuses automatically for cluster developments?
No. Section 10.04.H makes any density bonus discretionary with City Council, acting on a recommendation from the Planning Commission. An applicant must demonstrate qualifying elements such as extra open space, housing diversity, or sustainable design, and Council can still decline to grant the bonus.
How much extra density can open space earn in a Troy cluster development?
For every 10% of additional open space above the minimum required, not encumbered by rights-of-way or utility easements, the code allows a 10% bonus in density above the base yield number of units set in Section 10.04.C.1, or a proportional fraction for smaller increments.
What limits apply to housing-diversity bonus units in Troy?
Every bonus unit granted above the base yield for offering diverse or underrepresented housing types must cap home square footage at 1,900 square feet and include a master bedroom and bathroom on the first floor, per Section 10.04.H.2.

Sources & Official References

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