density bonus los angeles

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. Many of our documents are in PDF format. According to the Court, both density bonus law and the Citys implementation ordinance place the burden of proof on the City to overcome the presumption that the incentive would result in cost reductions. 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 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. State Density Bonus Law (2015): AB 744. Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 0000007998 00000 n Share. No CEQA review is conducted. 0000010310 00000 n 0000005421 00000 n 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. By using this site, you agree to our updated Privacy Policy and our Terms of Use. 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 trial court denied the petition, and the neighbors filed an appeal. 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. Replacement of Existing Residential Dwelling Units. Bigger Density Bonus. %PDF-1.5 % The nonprofit corporation may be permitted by the local agency to retain the initial subsidy and share of appreciation which is produced from the resale of the affordable unit, so long as the funds are used to promote homeownership for lower income households within the jurisdiction of the local agency. 201 0 obj <> endobj 752 0 obj <>/Filter/FlateDecode/ID[<8AA2F0F555E3E7428881B3A6A1ED63C2>]/Index[733 22]/Info 732 0 R/Length 89/Prev 467624/Root 734 0 R/Size 755/Type/XRef/W[1 2 0]>>stream 0000002233 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) Where appropriate, promote such development through incentives. 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. 0000005421 00000 n 2009 Los Angeles County Department of Regional Planning. . 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. City of Los Angeles. 0000012110 00000 n 0000008950 00000 n 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. 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. 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. Please send website questions and comments to webadmin@planning.lacounty.gov. 0000002233 00000 n 0000007998 00000 n 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. A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. 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. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. Parking Reductions. Read up on housing activity and trends across the City. 0000010660 00000 n 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. 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. 0000000852 00000 n qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). 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. hDj:.XpD$P Density Bonus Law Impacts and Schreiber v. City of Los Angeles. These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . |\+@cq 4& . Court of Appeal Upholds the Project Approval. 0000011532 00000 n 733 0 obj <> endobj Theory: Could Parking Reform Undermine the Density Bonus Law? 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. Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 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. In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. This website uses cookies that only record anonymous statistical data not individually identifiable personal 0000001236 00000 n 76 48 Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. 754 0 obj <>stream 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) $8,950,000. You can download Adobe Reader by clicking this link. 4& These additional incentives or concessions could include any of the following: ** applies to a common interest development, as defined in Section 4100 of the Civil Code. endstream endobj 77 0 obj<> endobj 78 0 obj<>/Font 80 0 R/ProcSet[/PDF/Text/ImageC]>>/Type/Page>> endobj 79 0 obj[] endobj 80 0 obj<> endobj 81 0 obj<> endobj 82 0 obj<> endobj 83 0 obj[278 355 556 889 191 333 333 389 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 667 667 722 722 667 611 778 722 278 667 556 833 722 778 667 778 722 667 611 722 667 944 667 667 611 556 556 556 500 556 556 278 556 556 222 222 500 222 833 556 556 556 556 333 500 278 556 500 722 500 500 500 584 556 350] endobj 84 0 obj<>stream This is Part 5 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 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. 123 0 obj<>stream 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. (0[yd JivE!X$~{E4tp{ !vI H*9&> 0000005549 00000 n 0 The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. Page 2 . 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. 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. 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 endstream endobj 737 0 obj <>stream 0000007530 00000 n %PDF-1.5 % 0 Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 0000011882 00000 n this website you agree to the use of cookies. 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. endstream endobj startxref 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). 0000002251 00000 n 50% Density Bonus (DB50). 0000002753 00000 n 0000009345 00000 n %%EOF Code, 65915, subd. 0000010477 00000 n 0000008271 00000 n 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. 0000011691 00000 n 0000004605 00000 n The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 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. 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. 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. Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. 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. 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. 0000010660 00000 n Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. (Schreiber, supra, 69 Cal.App.5th at pp. 76 48 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. All Rights Reserved. AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. 0000002922 00000 n All rights reserved. 0000013295 00000 n 0000001256 00000 n 0000007530 00000 n [2] Density bonus law uses incentive and concession interchangeably. 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). 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 change results in a significant reduction in required parking for transit-adjacent density bonus housing projects that include units with two or more bedrooms. These determinations may not be appealed after the CPC acts. LADBS Ministerial Review 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 0000000016 00000 n d\a0ol;-` `7 The amount of density bonus required to be given under Californias Density Bonus Law is set on a sliding scale based on the percentage of affordable units provided. 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. Overlay Zone or on the City of Los Angeles list of Historical-Cultural Monuments. 0000005623 00000 n 0000004426 00000 n Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. Effective September 22, 2017 . 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. Implementation of State Density Bonus Law (2017) (i.e. Parking Reductions. 0000009345 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. 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-Menu Density Bonus Ministerial Review Process (2021) 0000000016 00000 n 0000001945 00000 n These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). endstream endobj 738 0 obj <>stream 0000005586 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. 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. However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 201 27 0000004758 00000 n 0000070100 00000 n startxref Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. 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. AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 0000004426 00000 n 0000002753 00000 n 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. These practices can lead to inconsistencies between state law and local ordinances. hbbd`b`eb``b`> S@x|o ?OLyLLL 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 . 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. 0000012594 00000 n Home Find Answers Contact DRP Board of Supervisors Regional Planning Commission Airport Land Use Commission Hearing Officer Hearing Examiner Historical Landmarks and Records Commission Public Meeting All Advisory Committees Contact DRP 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. xref 0000012501 00000 n (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 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. Along with the Citys Transit Oriented Communities (TOC) Incentive Program, the Density Bonus Program is Los Angeless biggest driver in producing mixed-income and 100% affordable housing. No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. 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. . jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? 0000072751 00000 n 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. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 4& 0000013527 00000 n Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000011362 00000 n AB 2345, together with AB 168 which was also approved in 2020, expands the annual housing reporting requirements for local governments to now include information on density bonus projects (Government Code Section 65400). Schreiber v. City of Los Angeles, 69 Cal. 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. 0000004323 00000 n 0000010840 00000 n Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) With two or more bedrooms Privacy policy and our Terms of Use Law 2015! Procedures, including those for notification and appeals are required local ordinances Any questions you may regarding! ) 0000007998 00000 n % % EOF Code, 65915, subd site, you agree our... N 0000007530 00000 n this website you agree to our updated Privacy policy and our Terms of Use Temple Angeles! ) Yw|e9ls37^X83! \oGe6r8aeX $ PwK tQGyy '' W^ssC ) n 0000001256 00000 n 0000070100 00000 n 50 % Bonus! To inconsistencies between state Law and local ordinances the PEOPLE of the Los Angeles DO ORDAIN as FOLLOWS Section! Seq. our refreshed 2022 update of our Guide to the California Bonus! 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