Zoning & entitlements
Concession / incentive
A cost-reducing modification of development standards — reduced setbacks, mixed use, fee relief — that density-bonus projects can demand under § 65915(d).
Definition
Concessions and incentives under Government Code § 65915(d) are modifications of zoning or development standards — reduced setbacks or open space, mixed-use allowances, fee deferrals — that result in identifiable cost reductions for a density-bonus project. The number a project can claim scales with its affordability tier, from one up to four, with more available to 100%-affordable projects.
They are mandatory: the city must grant the request unless it makes written findings, supported by substantial evidence, that the concession would not reduce costs, would cause a specific adverse health or safety impact, or would violate state or federal law.
Why it matters in an underwrite
The burden sits on the city, not the applicant — a rare posture in land use. Priced right, one concession can be worth more than the bonus units themselves: trading required ground-floor commercial for residential, or cutting a common-open-space ratio, converts dead program into leasable area. HCD's advisory and technical-assistance letters back applicants when cities balk, so ask for the full count in the application itself.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.