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AB 2345 increased the top range of the density bonus to 50% for housing projects with 15% very low income units, 24% lower income units, or 44% moderate income units. For more information please refer to our Privacy Policy. Density Bonus serves as a local incentive program, and is designed to encourage the production of on-site affordable housing in neighborhoods where multi-family zoning is allowed. Prior to 2021, the Density Bonus Law permitted a maximum density bonus of thirty-five percent (35%) for a housing development in which (a) at least eleven percent (11%) of the total units are for very low income households, (b) at least twenty percent (20%) of the total units are for low income households, or (c) at least forty percent (40%) of the total for-sale units are for moderate income households. Longer Affordability Periods. Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. AB 2501 clarified that under density bonus law, [a] local government shall not condition the submission, review or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. (Gov. According to the Planning Department's Housing Progress Dashboard, density bonus projects accounted for approximately 26,700 proposed residential units between 2016 and 2020 - more than 17 percent of the roughly 152,000 units planned during that time period. d\a0ol;-` `7
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AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. These projects are not subject to an appeal. 0000004181 00000 n
On-Menu Incentives
F: (213) 626-0434TDD: (213) 617-2292, Los Angeles County Department of Regional Planning, Historical Landmarks and Records Commission, County Prequalified Environmental Consultant List, A-NET Airport Land Use Commission (ALUC) Viewer, SMMLCP-NET Santa Monica Mountains Local Coastal Program, Santa Monica Mountains North Area Resources Web App, Z-NET Find Your Zoning and Verify Jurisdiction. seek and receive a density or development bonus under the provisions of California Government Code Section 65915 (state Density Bonus law) or any other State or local 0000002251 00000 n
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information to improve the functionality and analytical performance of the website. 0000004323 00000 n
A project that includes an off-menu request, as outlined in LAMC 12.22 A.25, is reviewed by City Planning through a discretionary review process. 0000001968 00000 n
To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. 0000013708 00000 n
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SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000002922 00000 n
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AB 571 prohibits local governments from charging affordable housing impact fees, including inclusionary zoning fees and in-lieu fees, against affordable units in density bonus housing developments. Eliminates the requirement that for-sale units for moderate income households must be in a common interest development in order to qualify for a density bonus. This is Part 5 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 0
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Some local jurisdictions adopt implementation ordinances that modify or add to the requirements of density bonus law, and many jurisdictions fail to update their implementation ordinances when density bonus law is amended. 0000013934 00000 n
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However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. Gibson, Dunn & Crutcher LLP 2023. All Rights Reserved. Terms under which this service is provided to you. 0
The Rezoning Program includes a potential update of the City's Density Bonus ordinance to allow for up to 50% density increases citywide in exchange for the maximum amount of affordable housing economically feasible (as determined by an upcoming feasibility study). Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. App. hbbd`b`eb``b`> S@x|o ?OLyLLL
2501 (AB 2501) went into effect. 0000002753 00000 n
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(Affordable units for moderate income households still must be for-sale units and may not be rental units). An ordinance amending Sections 12.22, 12.24, 14.00 and 19.01 of the Los Angeles Municipal Code to implement a Density Bonus program, as required by State law. Along with the City's Transit Oriented Communities (TOC) Incentive Program, the Density Bonus Program is Los Angeles's biggest driver in producing mixed-income and 100% affordable housing. Clarifies that for purposes of qualifying for a density bonus, affordable units for very low or lower income households can be either rental or for-sale units. The nonprofit housing corporation must then sell each home to a lower income buyer subject to affordability requirements with a term of at least 45 years, an equity sharing agreement, and a repurchase option in favor of the nonprofit corporation. 0000002251 00000 n
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Density Bonus Law Impacts and Schreiber v. City of Los Angeles. 0000009113 00000 n
Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. Department Memorandums 0000010660 00000 n
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With increases in the minimum set-aside, a project can receive a density bonus of up to 35% above what the General Plan allows, based on a sliding scale. The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. 0000072751 00000 n
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Effective as of January1, 2021, Assembly Bill2345 (AB2345) amends the Density Bonus Law to expand and enhance development incentives for projects with affordable and senior housing components. information to improve the functionality and analytical performance of the website. On-Menu Density Bonus Ministerial Review Process (2021) qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing provision throughout the region. AB2345 is modeled after the City of San Diegos Affordable Homes Bonus Program, and is intended to be another tool to address the states ongoing housing crisis. x]nP}$t9A,z>A,rYtHx[=8S6z_S{//_o2~_o{s}:{].fnSTNiS^/mWv|,i:Z60_r^mQV(+5e,b*(RX%TY%U6,,(*e(Je9Tc%KhiE*Z:*b1hL>%hL>F
a154&c|+4& The Court next determined that while AB 2501 prohibited a municipality from requiring an additional report or study that is not otherwise required by state law, AB 2501 did not prohibit a municipality from requesting or considering information relevant to cost reductions. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. 0000002753 00000 n
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AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. An appellate court ruled in 2021 that local agencies cannot require density bonus applicants to submit pro formas or other documentation required to prove that requested incentives and concessions are necessary to make the housing development financially feasible. %PDF-1.4
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}k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg Implementation of State Density Bonus Law (2017) Accordingly, the City published a memorandum stating that the City would no longer require [f]inancial pro-formas and third-party reviews to determine whether a project would be eligible for an incentive under density bonus law, but did not update its implementation ordinance. this website you agree to the use of cookies. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. trailer
Department of Regional Planning, Community Development Commission. The court found that a City of Los Angeles ordinance requiring density bonus applicants to submit information to show incentives and concessions are needed to make the project economically feasible was preempted by state density bonus law because the requirement was based on a former version of the law that has since been revised. In addition to the incentives and concessions summarized above, a local government is prohibited from applying any development standard that would physically preclude construction of the development with the density bonus and incentives and concessions to which the project is entitled. Send to Friend; . hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3
Both the state Density Bonus Law and the Los Angeles Transit-Oriented Communities (TOC) program offer market rate developers an array of regulatory concessions in exchange for setting Parking requirements for projects with at least 11% very low income or at least 20% lower income units, which are located within mile from an accessible major transit stop, are reduced from space per bedroom to space per unit. 0000009519 00000 n
AB 2345 and AB 1763 Revised Memorandum (2022) Thus, the portion of the Citys implementation ordinance that required an applicant to demonstrate that an off-menu incentive was needed to make the project economically feasible was preempted. xref
Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. 0000000016 00000 n
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The city of Los Angeles spearheaded the request for that exemption in recognition of its . If you have questions about the Density Bonus Law or information in the Guide, please contact the author of the Guide, Meyers Nave Senior Of Counsel Jon Goetz, at 800.464.3559 or jgoetz@meyersnave.com. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . 0
By continuing to browse this website you agree to the use of cookies. 0000007998 00000 n
If you have questions about the Density Bonus Law or information in the Guide, please contact the author and Meyers Nave attorney Jon Goetz, at 800.464.3559 or jgoetz@meyersnave.com. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12.
Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000008271 00000 n
Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . 0000011362 00000 n
With increases in the minimum set-aside, a project can receive a density bonus of up to 35% above what the General Plan allows, based on a sliding scale. According to ZIMAS, the project is not located on a substandard street in a Hillside area 0000010310 00000 n
The Los Angeles City Planning Commission approved a mixed-used development that qualified for increased building density under the density bonus law due to its inclusion of low-income housing. 0000010840 00000 n
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B?,\+~?f}7#ObL$( The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b Court of Appeal Upholds the Project Approval. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
Density bonus ordinance: Density bonuses allow developers of market-rate housing to build higher-density housing, in exchange for having a certain portion of their units offered at affordable prices. As a state-level regulation, projects satisfying the requirements of the Density Bonus Law are eligible for the corresponding bonus notwithstanding potential resistance to densification efforts at the local level. Furthermore, the Countys Density Bonus Ordinance provides waivers or modifications to development standards, requests for incentives that do not meet the States criteria for qualified affordable housing developments, and up to a 50% density bonus for senior citizen housing developments through a Discretionary Housing Permit. $2,000,000. Following the Citys approval of the project, neighbors filed a petition for a writ of administrative mandate, arguing (1) that the Planning Commission abused its discretion when it approved the off-menu incentives without obtaining the required financial documentation and (2) that the Citys approval of the project was not supported by substantial evidence. 0000069288 00000 n
California Government Code Section 65943 to the Los Angeles City Planning Department on or after January 1, 2020, and requires a discretionary entitlement process with CPD. %PDF-1.5
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To get the full 35 percent density bonus the developer would need to set aside 11 percent of the units for very-low income residents (up to 50 percent of Area Median Income, or around $33,000 for a four-person household) or 20 percent for low income residents (50 to 80 percent AMI), for a duration of at least 55 years. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) 76 48
The Court drew a distinction between information pertaining to economic feasibility and information showing that an incentive would result in cost reductions. While the City could request the latter, AB 2501 prohibited the City from requesting the former. 0000010946 00000 n
This change results in a significant reduction in required parking for transit-adjacent density bonus housing projects that include units with two or more bedrooms. Transit Oriented Communities (TOC) Incentive Program, State Density Bonus Law: AB 2334, AB 1551, and AB 682 (2023), AB 2345 and AB 1763 Revised Memorandum (2022), On-Menu Density Bonus Ministerial Review Process (2021), State Density Bonus Law (2021): SB 290, SB 728, AB 634, State Density Bonus Law (2020): SB 35 + AB 2162, Implementation of State Density Bonus Law (2017), State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556, State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017), Affordable Housing Incentive Guidelines (2005). Developers with tools to encourage the development of much needed affordable and senior housing, which a. 00000 n 0000012780 00000 n to the California Density Bonus Law to the use of.. $ PwK tQGyy '' W^ssC ) OLyLLL 2501 ( AB 2501 ) into. 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And are reviewed by the City Planning Commission ( CPC ) local ordinance requires an applicant to do than... With the State Density Bonus Law project requesting only a Density Bonus ordinance | DRP Los Angeles spearheaded request... A project requesting only a Density Bonus Law as specified by State Density Bonus Law, can be requested an... On-Menu Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment PwK tQGyy '' W^ssC ) website... ` eb `` b ` eb `` b ` eb `` b ` ``.