For example, Figure 1 shows a cluster development preserving 24 acres of commonly-owned land. Initially, the municipality needs to identify the areas that are important to the community and develop goals for these areas. By allowing the same number of units, landowners and developers aren't penalized financially for doing cluster development. A yield plan or development plan is currently being used by a number of communities to determine the maximum number of units allowed in a cluster development. Some communities do not specifically require a yield plan, basing the maximum number of units instead on the net developable land as determined by performance standards.
Some communities mandate cluster development.
In such instances, developers must meet the cluster ordinance criteria. However, many communities offer voluntary cluster ordinances, allowing the developer to choose between a standard subdivision or a cluster development. In voluntary cluster development cases, communities usually provide developers with incentives to apply clustering. One common incentive, density bonuses, automatically provides developers with a number of additional units if they decide on a cluster development. These bonuses can also be discretionary, with the number of additional units based on the subdivision design.