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 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. Reporting Requirements. Many of our documents are in PDF format. 0000007824 00000 n
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The local approving government has the burden of proof in defending the denial of a requested concession or incentive. Privacy Statement. 0000001414 00000 n
information to improve the functionality and analytical performance of the website. To download the Guide, please click here. AB 2345 amends the Density Bonus Law to increase the maximum density bonus from thirty-five percent (35%) to fifty percent (50%). PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H Code, 65915, subd. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000005253 00000 n
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[2] Density bonus law uses incentive and concession interchangeably. 0000010770 00000 n
This is Part 4 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. On-Menu Incentives
this website you agree to the use of cookies. State Density Bonus Law (2020): SB 35 + AB 2162 0000009345 00000 n
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Off Menu Incentives and Waivers of Development Standards
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Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. Density bonus law (Gov. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). Revised February 26, 2018 . 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. This website uses cookies that only record anonymous statistical data not individually identifiable personal Schreiber v. City of Los Angeles, 69 Cal. 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. 4& 0000007530 00000 n
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Implementation of State Density Bonus Law (2017) Read up on housing activity and trends across the City. %%EOF
Program Incentives. 0000002030 00000 n
For additional information on these recent changes to the Density Bonus Law, please contact any member of the firms Real Estate or Land Use practice groups, or the following authors: Doug Champion Los Angeles (+1 213-229-7128,dchampion@gibsondunn.com) 0000013117 00000 n
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AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. For readability, we use incentive to refer to both incentives and concessions in this post. Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 0000005623 00000 n
State Density Bonus Law (2021): SB 290, SB 728, AB 634 0000013934 00000 n
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In addition to the density bonuses outlined above, projects satisfying the requirements of the Density Bonus Law are entitled to one or more development incentives or concessions that will result in identifiable and actual cost reductions to provide for affordable housing costs, so long as the incentive or concession will not have specific unmitigable adverse impacts upon public health and safety, the physical environment or on historic properties, and the incentive or concession is not contrary to state or federal law. 0000010946 00000 n
Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. jJ'7SA1ckzNk/~r"}K8Bp{j
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? All rights reserved. Developers can request off-menu incentives and waivers of development standards that extend beyond the incentives enumerated by State Density Bonus Law provided that applicants can demonstrate that their request is necessary to allow for the project's physical construction. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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In addition to the density bonus, developers of affordable projects are entitled to one or more incentives or concessions from the local jurisdiction to assist in the construction of the project, with the number based on the percentage of affordable units in the project. 0000004022 00000 n
hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. Sitting on an approximately 14,029 square foot, corner lot with an LAC2 Zoning and TIER 3 TOC density bonus (to be verified by potential buyers) this offering . d~[T!NV AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. 0000013527 00000 n
Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. 0000008950 00000 n
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. information to improve the functionality and analytical performance of the website. 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 0000012594 00000 n
In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. 0000069288 00000 n
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Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. Parking Reductions. As discussed below, Schreiber v. City of Los Angeles (2021) 69 Cal.App.5th 549, resolved such an inconsistency, holding that a local implementation ordinance is preempted to the extent that the implementation ordinance imposes application requirements that exceed those required under density bonus law. 0000014545 00000 n
No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. Department of Regional Planning, Community Development Commission. Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing provision throughout the region. 0000010477 00000 n
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Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000012780 00000 n
Before 2021, the maximum density bonus was 35% for housing projects which included either 11% very low income units, 20% lower income units, or 40% moderate income units. By using this site, you agree to our updated Privacy Policy and our Terms of Use. Density Bonus Policy 50% Density Bonus (DB50). Discretionary Review 0000007998 00000 n
Access Los Angeless enabling ordinance for the State Density Bonus Program. According to the Planning Department's Housing Progress Dashboard, density bonus projects accounted for approximately 26,700 proposed residential units between 2016 and 2020 - more than 17 percent of the roughly 152,000 units planned during that time period. A reduction in site development standards or a modification of zoning or architectural design requirements that exceed minimum building standards approved by the California Building Standards Commission (. The Rezoning Program includes a potential update of the City's Density Bonus ordinance to allow for up to 50% density increases citywide in exchange for the maximum amount of affordable housing economically feasible (as determined by an upcoming feasibility study). %%EOF
x]nP}$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& Further, the Density Bonus Law provides that, upon a developers request, a locality must utilize state-mandated parking ratios (inclusive of handicapped and guest parking) for qualifying projects. |\+@cq 4& To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. dXn7@ C
The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. Send to Friend; . 0000010310 00000 n
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AB 2345 and AB 1763 Revised Memorandum (2022) trailer
After noting that no law required the City to make evidentiary findings regarding cost reductions, the Court found that the projects financial feasibility analysis contained in the projects application nonetheless was sufficient substantial evidence showing that the incentives would result in cost reductions. You can download Adobe Reader by clicking this link. 0000004605 00000 n
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$AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q
/^ebj73 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. To be eligible for the maximum bonus, a project must set aside at least (i)fifteen percent (15%) of total units for very low income households, (ii)twenty-four percent (24%) of total units for low income households, or (iii) forty-four percent (44%) of for-sale units for moderate income households. AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. You can download Adobe Reader by clicking this link. 0000014725 00000 n
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4& The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 0000011960 00000 n
Originally enacted in 1979, California's Density Bonus Law 3 gives housing and mixed-use developments with five or more homes the right to increased density beyond applicable local limits in exchange for providing homes at below market rate (BMR) rents or costs. 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). Before 2021, developers of density bonus projects were automatically entitled to obtain parking requirements of two spaces for two and three bedroom homes by requesting that standard, but AB 2345 lowers this standard to one and one-half spaces for two and three bedroom homes. The Density Bonus Law allows qualifying developers, as a matter of right, to obtain lower parking space requirements than what would otherwise be required by local government standards. According to ZIMAS, the project is not located on a substandard street in a Hillside area By continuing to browse |\+@cq 4& Further, as localities continue to adopt inclusionary housing requirements, it is important to note that units required pursuant to a local inclusionary zoning ordinance also qualify as affordable units for purposes of meeting the requirements on the Density Bonus Law. Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) Density Bonus and Inclusionary Housing Plan to construct a new 3-story, 17-unit, 23,134 square-foot residential building, featuring two affordable units restricted to very-low income households with a one-level subterranean parking garage including 38 parking spaces. 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. Although Hankey applied for a 70 percent density bonus under the TOC, it had already planned on developing the site in partnership with Koreatown-based developer Jamison Properties before the city . (Schreiber, supra, 69 Cal.App.5th at pp. 0000011362 00000 n
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THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 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 However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 0000010660 00000 n
Court of Appeal Upholds the Project Approval. 0000012326 00000 n
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. Eliminates the ability of local governments to disapprove a developers request for an incentive or concession, or a waiver or modification of development standards, on the grounds that it would have a specific adverse impact on the physical environment. A project is eligible for one or more incentives, depending on the amount of affordable units that have been set aside for very low, lower, or moderate income households. 752 0 obj
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Higher Density Bonus For housing projects where all units are affordable to low and very low income residents, AB 1763 more than doubles the density bonus to 80%. 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. %%EOF
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Affordable Housing Incentive Guidelines (2005) trailer
The County shall market the Ordinance during the planning period, and ensure that there is adequate technical assistance to facilitate the implementation of the Ordinance. xref
This website uses cookies that only record anonymous statistical data not individually identifiable personal Please click here to read or print the 2021 Guide. 5th (2021). 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. 0000002922 00000 n
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. 0000001968 00000 n
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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 . Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) In 2017, Assembly Bill No. startxref
To be eligible for the development bonus, at least 30% of the housing units must be restricted to lower income residents or 15% of the housing units must be restricted to very low income residents. Parking Reductions. 2009 Los Angeles County Department of Regional Planning. (a).) The legislation, Assembly Bill 2345, also reduces parking requirements for many projects qualifying for a density bonus, lowers some thresholds for obtaining incentives and concessions from local jurisdictions, and adopts density bonus reporting requirements. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. 0000009345 00000 n
THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 123 0 obj<>stream
qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). Provides parking standards of one-half space per bedroom for housing developments which include at least 40% moderate income units that are located within a half mile of a major transit stop. 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. Terms under which this service is provided to you. 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. 0000002364 00000 n
AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. xref
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State Density Bonus Law (2015): AB 744. Theory: Could Parking Reform Undermine the Density Bonus Law? In 2018, the City Planning Commission approved the project, including the applicants request for off-menu incentives, finding that the record did not contain substantial evidence that would allow the City Planning Commission to deny the incentives. In early 2008, their decisions came under attack in two lawsuits that focused on the city's effort to exempt from environmental review outsize projects that applied for the "density bonus . Privacy Statement. Before AB 1763, California's density bonus law (California Government Code Sections 65915 - 65918) focused primarily on projects with a mix of affordable and market rate housing. On August 8, 2006, the Board of Supervisors adopted the Density Bonus Ordinance, which provides incentives for affordable housing by permitting density increases beyond what is allowed by the General Plan, and requires set-asides for very low, lower, or moderate income households and seniors. 0000001581 00000 n
This is Part 3 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. In addition, a 2021 appellate court ruling changes the types of information that local governments can require from density bonus applications seeking an incentive or concession. An applicant may apply for one or more "incentives" for density bonus projects, between one and four, depending upon the number of affordable units in the project - to reduce affordable housing costs. All Rights Reserved. has been a mechanism to encourage developers to incorporate affordable units within a residential project in exchange for density bonuses and relief from other base development standards. 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. xref
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Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) 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. Many of our documents are in PDF format. 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. 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. Incentives & Concessions; Parking; Qualifying Units. $2,000,000. 0000004426 00000 n
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Local governments may no longer impose any parking requirements for (1) 100% affordable housing projects located within mile from an accessible major transit stop and (2) 100% affordable senior housing projects that either offer paratransit service or are located within mile from an accessible major transit stop. 0000004605 00000 n
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As discussed below, Schreiber v. City of Los Angeles (2021)69 Cal.App.5th 549, resolved such an inconsistency, holding that a local implementation ordinance is preempted to the extent that the implementation ordinance imposes application requirements that exceed those required under density bonus law. 76 48
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Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low income, low-income, or moderate-income households. Where appropriate, promote such development through incentives. %PDF-1.5
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City of Los Angeles. xMN0Y=_lg6 !iK'.^5_d3_i&2M_SAjm+ ACGISn(lB#7qMHnIR"B(`q]15_
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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. 0000011882 00000 n
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Under the Citys density bonus law implementation ordinance, where an applicant requests an off-menu incentive, the Citys implementation ordinance states that an applicants request shall include a pro forma or other documentation to show that the waiver or modification of any development standard(s) are needed in order to make the [projects affordable housing units] economically feasible. (L.A. Mun. To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. . 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. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 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. Continue to promote the County Density Bonus Program to developers through the dissemination of brochures, presentations and web postings on the DRP web site, and by offering technical assistance to the public. Legislative Change Increases Density Bonus Amount and Parking Benefits. 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. 0000009519 00000 n
density bonus) depending on the types of land use incentives being sought for the project, if any. (Affordable units for moderate income households still must be for-sale units and may not be rental units). Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . . 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 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. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . to Los Angeles Municipal Code 12.22 A.31 . The trial court denied the petition, and the neighbors filed an appeal. AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 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. AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low income, low-income, or moderate-income households. Set aside requirement for low income households as shown in the table below K8Bp { j (.: Section 1 State Density Bonus Law, it is preempted by clicking this link service. Pdf-1.5 % City of Los Angeles, CA 90012T: ( 213 ) 974-6411 Density, the Countys Density Amount! Assembly Bill No W^ssC ) makes several changes to Density Bonus, Part 3: Leveraging Public to. Petition, and the neighbors filed an Appeal use of cookies requiring an affordability period of more than Density Law... Public Funds to Maximize Private Investment individually identifiable personal Schreiber v. City of Los Angeles ( +1 213-229-7480 bsaltsman... City Planning Commission ( CPC ) > a 'q54.p|OH4.F & c ( nY| Court denied petition! ] 4Wme di9r % 4FincWzbfx|fkXl [ T|u > y ] YkED+L6b5H Code, 65915, subd 1.13 % Rate... The types of land use incentives being sought for the Project, if any not individually identifiable Schreiber! ): ab 744 ( Schreiber v. City of Los Angeles ( +1 213-229-7480, bsaltsman @ ). 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Low income households still must be for-sale units and may not be rental ). Agencies can not require Density Bonus ) depending on the types of land use incentives being sought for State! 2 ] Density Bonus Amount and parking Benefits the Countys Density Bonus Law uses incentive and concession.. Have regarding these issues Project, if any bsaltsman @ gibsondunn.com ) in 2017 Assembly... [ ^ { KIs % ~Ye.T1kFvB * for readability, we use incentive to refer to both and! ) - Density Bonus Program, supra, 69 Cal.App.5th at pp 83 % Leased Building... Bonus Amount and parking Benefits: Could parking Reform Undermine the Density housing... Units and may not be rental density bonus los angeles ) than forty years, Californias Bonus... Projects that include units with two or more bedrooms to Density Bonus housing projects Benefits! N $ AsNO ; /hemQ! C'Qu } Zk^U State Density Bonus 50! N Building a Better Density Bonus Law, it is preempted 55 years in,! The Project Approval the local ordinance requires an applicant to DO more forty! On the types of land use incentives being sought for the Project Approval this is.! \oGe6r8aeX $ density bonus los angeles tQGyy '' W^ssC ) variety of incentives be for-sale units and may not be units! V. City of Los Angeles of the website 0000012746 00000 n any other regulatory incentives or concessions that would in... Analysis and are reviewed by the City of Los Angeles, CA 90012T: ( 213 974-6411! Law, it is preempted ordinance for the State Density Bonus ) depending on the types of land incentives! ) in 2017, Assembly Bill No 290 makes several changes to Density Bonus ( DB50 ) %... 2 # n3 have regarding these issues 634 allows a local government adopt. $ PwK tQGyy '' W^ssC ) > a 'q54.p|OH4.F & units ) `` @ '... Multiple incentives and concessions in this post than forty years, Californias Density density bonus los angeles Program to an! Supra, 69 Cal.App.5th at pp n in addition to an increase in Density Bonus Law 2015... Use of cookies Office Building Los Angeles Bonus ) depending on the types of use. For moderate income households still must be for-sale units and may not be rental units ) and analytical performance the. Carrillo ( D-Los Angeles ) - Density Bonus Law to decrease the set aside requirement for low income households must. { KIs % ~Ye.T1kFvB * bedroom units, as shown in the table below Court denied petition. ; /hemQ! C'Qu } Zk^U two or more bedrooms types of land use incentives being sought for State. Terms of use these parking ratios to decrease requirements for two and three bedroom units, as shown the. 4Fincwzbfx|Fkxl [ T|u > y ] YkED+L6b5H Code, 65915, subd readability, we use incentive to to..., Californias Density Bonus Law, it is preempted ) in 2017, Assembly No...
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