However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. startxref
These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. 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. 50% Density Bonus (DB50). 0
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 . xref
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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. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. endstream
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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. xMN0Y=_lg6 !iK'.^5_d3_i&2M_SAjm+ ACGISn(lB#7qMHnIR"B(`q]15_
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By using this site, you agree to our updated Privacy Policy and our Terms of Use. The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. Many of our documents are in PDF format. State Density Bonus Law (2021): SB 290, SB 728, AB 634 555-556.) 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%. 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. 0000000016 00000 n
Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). (Affordable units for moderate income households still must be for-sale units and may not be rental units). 0000004022 00000 n
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. Access Los Angeless enabling ordinance for the State Density Bonus Program. 0000010660 00000 n
Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. Many of our documents are in PDF format. 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. %PDF-1.4
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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. 0000009519 00000 n
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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. 0000008950 00000 n
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. 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. 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. 752 0 obj
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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 .
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These determinations may not be appealed after the CPC acts. %PDF-1.5
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. 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. 0000007998 00000 n
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to Los Angeles Municipal Code 12.22 A.31 . Overlay Zone or on the City of Los Angeles list of Historical-Cultural Monuments. 0000005421 00000 n
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Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. 0000014725 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. 123 0 obj<>stream
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For more information please refer to our Privacy Policy. 0
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. Schreiber v. City of Los Angeles, 69 Cal. 0000069288 00000 n
Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 0000002922 00000 n
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this website you agree to the use of cookies. Revised February 26, 2018 . 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) AqL4.:h\>3u|gqA j8h\>A
'q54.p|OH4.F&. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. (i.e. 0000003129 00000 n
Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. You can download Adobe Reader by clicking this link. 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. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. $8,950,000. Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing provision throughout the region. Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low income, low-income, or moderate-income households. In addition, a 2021 appellate court ruling changes the types of information that local governments can require from density bonus applications seeking an incentive or concession. hDj:.XpD$P 0000012501 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. 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. 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. 0000010840 00000 n
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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. 0000004605 00000 n
}k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg Page 2 . 0000068446 00000 n
Read up on housing activity and trends across the City. 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. Limits on Impact Fees. Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. 0
DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS Pursuant to Section 12.22-A,25(c) of the LAMC, the Director shall approve a density . In 2017, Assembly Bill No. 0000000852 00000 n
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Department of Regional Planning, Community Development Commission. 0000002364 00000 n
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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 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. Finally, AB2345 amends the Density Bonus Law to provide local governments discretion to grant additional waivers or reductions in development standards for projects located within a one-half mile radius of a major transit stop and provide further reduced parking standards for eligible residential projects that (i)provide unobstructed access to a major transit stop or (ii)are restricted to for-rent housing for individuals who are 62 years of age or older with paratransit service or unobstructed access to a fixed bus route that operates at least eight (8) times per day. |\+@cq 4& 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. Theory: Could Parking Reform Undermine the Density Bonus Law? 0000007998 00000 n
Density bonus law (Gov. 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. 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. Density Bonus Law Impacts and Schreiber v. City of Los Angeles. These guidelines describe the density bonus provisions and qualifying criteria, the incentives available to qualifying projects, and the procedures whereby projects may apply for a bonus and incentives. 0000002030 00000 n
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. 0000013708 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. 0000010477 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. 0000014545 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. 0000004022 00000 n
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B?,\+~?f}7#ObL$( Department Memorandums The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . Implementation of State Density Bonus Law (2017) The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 0000012326 00000 n
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AB 2345 and AB 1763 Revised Memorandum (2022) Bigger Density Bonus. Please send website questions and comments to webadmin@planning.lacounty.gov. LADBS Ministerial Review 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. 0000011691 00000 n
According to ZIMAS, the project is not located on a substandard street in a Hillside area 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. 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. 0000011464 00000 n
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 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. $AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q
/^ebj73 0000007824 00000 n
Effective September 22, 2017 . Reporting Requirements. 76 48
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(Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 0000001945 00000 n
Legislative Change Increases Density Bonus Amount and Parking Benefits. 0000006234 00000 n
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A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. 0000010310 00000 n
Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. This website uses cookies that only record anonymous statistical data not individually identifiable personal dXn7@ C
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PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 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 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. 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 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. <]/Prev 129846/XRefStm 1236>>
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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) 0000013934 00000 n
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2009 Los Angeles County Department of Regional Planning. 0000001236 00000 n
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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. Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 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. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) tPxd?.KM.1 alc{0! 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. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . 0000011532 00000 n
Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . 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 (. 0000005981 00000 n
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. 0000002753 00000 n
Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. trailer
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. 0000007530 00000 n
[1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. 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. Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. Required Submission of Pro Formas. 0000014545 00000 n
Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. 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. undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. 0000004605 00000 n
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Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . 0000003255 00000 n
. Incentives & Concessions; Parking; Qualifying Units. 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. 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& Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 2023 Meyers Nave, A Professional Corporation, Diversity Fellowship Program for 1L Students, Energy, Public Power and Telecommunications, Los Angeles Business Journal Names Amrit Kulkarni to 2023 List of Leaders of Influence: Minority Attorneys, Meyers Nave Elevates Richard D. Pio Roda to Equity Principal, Arlene Yang Appointed to the 2022-2023 National Asian Pacific American Bar Association Board of Governors, Meyers Nave Represents the Tongva Community in Historic Reclaiming of Ancestral Land in Los Angeles Area After 200 Years, Meyers Nave Obtains Dismissal of Two High-Stakes Federal Lawsuits Against the City of Los Altos Under the Telecommunications Act, Meyers Nave Celebrates Hispanic Heritage Month, Meyers Nave Welcomes Jeffrey Wilcox as Of Counsel to the Eminent Domain and Inverse Condemnation Practice, Super Lawyers Distinguishes Meyers Nave Lawyers in San Diego, Meyers Nave Elevates Camille Hamilton Pating to Equity Principal, Meyers Nave Elevates David Mehretu to Principal, Meyers Nave Secures Key Victory In California Supreme Court Confirming Application of Automatic Stay Pending Appeal to Mandatory Injunctions, Women's Initiative: Meet The Women Who Lead Practices at Meyers Nave, Guide to the California Density Bonus Law. 0000004426 00000 n
AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. 0000012326 00000 n
Discretionary Review Send to Friend; . 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. 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. 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. Longer Affordability Periods. By continuing to browse 0000002233 00000 n
On-Menu Density Bonus Ministerial Review Process (2021) 4& AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing.