Affordable Housing
The Town of Carrboro Land Use Ordinance (LUO) provides for residential density bonuses when affordable housing is included in a development. What does this mean? According to the ordinance, the maximum residential density allowed within a development may be increased by two dwelling units for every one 'affordable housing unit' included within the development, up to a maximum of 150% of the zoned density.
What is an 'affordable housing unit'? The Town of Carrboro LUO definition reads:
an affordable housing unit means a dwelling unit (i) that is offered for sale at a price that does not exceed two and a half times an amount equal to eighty percent of the annual median income level for a family of four in the Raleigh-Durham-Chapel hill Metropolitan Statistical Area [as defined by HUD] and (ii) with respect to which the developer has arranged for the affordable housing units to remain affordable as described herein for a period of not less than 100 years.
In order to develop housing that is affordable and allows a developer to make use of Carrboro's density bonus, the homes must be affordable to households earning no more than 80% of the area median income. The 2002 Raleigh-Durham-Chapel Hill MSA Median Family Income is $71,300. These maximum income limits are provided by the federal government.
The current maximums are as follows:
| # in Household | 100% of Median | 80% of Median |
| 1 | $49,900 | $38,100 |
| 2 | $57,040 | $43,500 |
| 3 | $64,150 | $48,950 |
| 4 | $71,300 | $54,400 |
| 5 | $77,000 | $58,750 |
| 6 | $82,700 | $63,100 |
| 7 | $88,400 | $67,450 |
| 8 | $94,100 | $71,800 |
Furthermore, as was indicated above, the ordinance requires that the maximum price of the house not exceed two and a half times the amount equal to 80% of the median income for a four-person household. This amount may be higher next year if the federal income limits increase.