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. New legislation that took effect on January 1 of this year provides for up to a 50% density bonus to be granted to housing projects consisting of a mix of affordable and market-rate homes, up from the previous maximum 35% density bonus for mixed income developments. 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. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12.22 A.25, is considered by-right and reviewed through a ministerial building permit process. 0000013117 00000 n 0000012594 00000 n These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 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. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS Pursuant to Section 12.22-A,25(c) of the LAMC, the Director shall approve a density . The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. State Density Bonus Law (2021): SB 290, SB 728, AB 634 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. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. Density Bonus Law Impacts and Schreiber v. City of Los Angeles. The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. 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. 0000068446 00000 n Terms under which this service is provided to you. To download the Guide, please click here. Access Los Angeless enabling ordinance for the State Density Bonus Program. 0000012814 00000 n 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. 0000010477 00000 n Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000007998 00000 n 0000070100 00000 n 0000004605 00000 n 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. Rather, the City was required only to disapprove the requested incentives if it could make a negative finding that the incentives would not result in cost reductions. 0000005981 00000 n startxref AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 0000011532 00000 n 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. (a).) AB 2345 and AB 1763 Revised Memorandum (2022) AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. 0000002753 00000 n xref Density Bonus | Los Angeles City Planning Density Bonus 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. Theory: Could Parking Reform Undermine the Density Bonus Law? endstream endobj 738 0 obj <>stream 201 27 Density Bonus is a State-mandated incentive program that allows qualifying residential projects to construct additional housing, in exchange for setting aside a percentage of those units as restricted affordable. 0000002364 00000 n Los Angeles Municipal Code (LAMC) Section 12.22 A.25 authorizes the Director of Planning to approve applications for Density Bonus requesting up to three On-M enu Incentives; and the City Planning Commission (CPC) to approve applications for Density Bonus requesting Off-Menu Incentives or Waivers of Development Standards. Limits on Impact Fees. 0000009113 00000 n to Los Angeles Municipal Code 12.22 A.31 . 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. These additional incentives or concessions could include any of the following: ** applies to a common interest development, as defined in Section 4100 of the Civil Code. 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. 0000010840 00000 n Clarifies that for purposes of qualifying for a density bonus, the total units in a housing development include affordable units that are designated to satisfy local inclusionary housing requirements. Please click here to read or print the 2021 Guide. 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. %PDF-1.5 % hDj:.XpD$P 0000000016 00000 n hL 0UADCB~87(c}K$qmg~wv/>J2EP 0000006234 00000 n $2,000,000. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . For more information please refer to our Privacy Policy. |\+@cq 4& Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000011882 00000 n City of Los Angeles. 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. 0000005421 00000 n AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. 0000004323 00000 n Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. 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. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 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 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. 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. The trial court denied the petition, and the neighbors filed an appeal. Incentives & Concessions; Parking; Qualifying Units. 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. 0000013527 00000 n %PDF-1.4 % 0000007530 00000 n 0000000016 00000 n Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 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. 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. 0000002922 00000 n 0000002030 00000 n Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. 555-556.) On-Menu Incentives Please send website questions and comments to webadmin@planning.lacounty.gov. 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. Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 0000072751 00000 n 0000012501 00000 n 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. 0000011882 00000 n Implementation of State Density Bonus Law (2017) 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 (. For more information about implementation guidelines and procedures, including how changes to state Density Bonus law are implemented, refer to the Department Memorandums below: State Density Bonus Law: AB 2334, AB 1551, and AB 682 (2023) 0000013527 00000 n The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000000852 00000 n undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. trailer 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. this website you agree to the use of cookies. 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%. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. By using this site, you agree to our updated Privacy Policy and our Terms of Use. 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. Provides one incentive or concession for density bonus projects that include at least 20% of the units for lower income students in a student housing development. 0000014725 00000 n 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. In 2017, Assembly Bill No. These projects are not subject to an appeal. 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 . 0000006484 00000 n 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. 0000004605 00000 n Send to Friend; . 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. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. 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. xref SB 728 allows developers in for-sale density bonus housing developments to sell affordable units to nonprofit housing corporations instead of selling the units directly to a low or moderate income homebuyer. 0000001256 00000 n These incentives apply to projects that seek a limited increase in allowed height, floor area, and lot coverage, along with reductions to yard/setback, open space, and lot width requirements. [2] Density bonus law uses incentive and concession interchangeably. 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 %PDF-1.6 % 0000005512 00000 n xref For more information please refer to our Privacy Policy. 0000005253 00000 n %%EOF The density bonus law, enacted in 1979, incentivizes developers to construct more affordable housing by providing density bonuses for projects that incorporate on-site affordable units or donate qualifying land for the construction of affordable units. 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. {O0sl3$'Kn&Bj&| aQl%i+sLmO_Y{U\nUuJ*]tE@I0-$bO,|\]'n " 5`y7O=,#8I (a)(2).) Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . 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. 0000012501 00000 n $AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q /^ebj73 No CEQA review is conducted. Please send website questions and comments to webadmin@planning.lacounty.gov. These practices can lead to inconsistencies between state law and local ordinances. |\+@cq 4& endstream endobj 77 0 obj<> endobj 78 0 obj<>/Font 80 0 R/ProcSet[/PDF/Text/ImageC]>>/Type/Page>> endobj 79 0 obj[] endobj 80 0 obj<> endobj 81 0 obj<> endobj 82 0 obj<> endobj 83 0 obj[278 355 556 889 191 333 333 389 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 667 667 722 722 667 611 778 722 278 667 556 833 722 778 667 778 722 667 611 722 667 944 667 667 611 556 556 556 500 556 556 278 556 556 222 222 500 222 833 556 556 556 556 333 500 278 556 500 722 500 500 500 584 556 350] endobj 84 0 obj<>stream 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. (65915, subd. }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg 0000004758 00000 n Bigger Density Bonus. 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This site, you agree to our updated Privacy Policy while Parts through. @ planning.lacounty.gov and waivers under the City ordinance implementing the state density Bonus law: affordability restrictions take-away from case..., CA 90012T: ( 213 ) 974-6411 please refer to our updated Privacy Policy and our of! Summarize the empirical evidence to that ef fect n density bonuses: affordable.. ) 974-6411 here to read or print the 2021 Guide ) 974-6411 service. Affordable and senior housing between state law and local ordinances 0000013527 00000 AB... Can lead to inconsistencies between state law Assemblymember Chad Mayes ( I-Rancho Mirage ) - Bonus... Nonprofit Corporations Pursuant to Section 12.22-A,25 ( c ) of the LAMC, the Director shall approve a.... Angeles ( +1 213-229-7988, msaria @ gibsondunn.com ) ordinance for the density bonus los angeles density Bonus Program lists considered... 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