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. 2009 Los Angeles County Department of Regional Planning. Incentives & Concessions; Parking; Qualifying Units. 0000004022 00000 n 0000003255 00000 n 0000004758 00000 n 0000014725 00000 n All Rights Reserved. 0000072751 00000 n Density Bonus Law Impacts and Schreiber v. City of Los Angeles. %PDF-1.4 % 0 <]/Prev 129846/XRefStm 1236>> 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 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. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? 0000000016 00000 n Density bonus law (Gov. 0000013295 00000 n 0000000016 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). Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . 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. 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. In 2017, Assembly Bill No. This is Part 2 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program.Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing . Affordable Housing Incentive Guidelines (2005) 0000012594 00000 n 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. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. 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 . 201 0 obj <> endobj 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& These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. For readability, we use incentive to refer to both incentives and concessions in this post. 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. 0000010477 00000 n 0 0000010310 00000 n Schreiber v. City of Los Angeles, 69 Cal. 0000009760 00000 n 0000002030 00000 n Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) 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. startxref 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. 0000001414 00000 n 0000007530 00000 n Court of Appeal Upholds the Project Approval. 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 0000011362 00000 n 0000004605 00000 n (a)(2).) density bonus) depending on the types of land use incentives being sought for the project, if any. 0000011960 00000 n 0000006484 00000 n 0000002030 00000 n The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. 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. 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. hbbd`b`eb``b`> S@x|o ?OLyLLL qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). 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. 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. On-Menu Incentives 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. Page 2 . Schreiber found that both density bonus law and City code implementing it require the City to grant requested incentives unless the City can make findings that the requested incentives do not result in cost reductions or the incentives would have a specific, adverse impact on public health, safety, the physical environment, or any property listed in the California Register of Historical Resources. 0000002233 00000 n AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 0000002753 00000 n to Los Angeles Municipal Code 12.22 A.31 . 0000002251 00000 n 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. 0000006234 00000 n State Density Bonus Law (2021): SB 290, SB 728, AB 634 %%EOF 0 xref 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%. /z!rq=_4k!%^@f2 e@C.C"kS:_DAh5|M R'+oCxM/w`pc"w+htt4aAVLZ#%\8:P@[ZXX!p41))0--DAAaccdaBFAALh"`(v90fFu5D)dqP @3 H[vxbLoz3,dhg0CQaYL2,eX0v- c\o3\` These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 0000010660 00000 n 0000004181 00000 n The city of Los Angeles spearheaded the request for that exemption in recognition of its . }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg 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). AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. 76 0 obj <> endobj Replacement of Existing Residential Dwelling Units. 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. 0000013295 00000 n 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. 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. The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. 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. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 0000005623 00000 n 0000002922 00000 n 227 0 obj <>stream AB 2345 and AB 1763 Revised Memorandum (2022) According to ZIMAS, the project is not located on a substandard street in a Hillside area $8,950,000. Both the state Density Bonus Law and the Los Angeles Transit-Oriented Communities (TOC) program offer market rate developers an array of regulatory concessions in exchange for setting By using this site, you agree to our updated Privacy Policy and our Terms of Use. Please send website questions and comments to webadmin@planning.lacounty.gov. 0000008271 00000 n State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 Read up on housing activity and trends across the City. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 123 0 obj<>stream This website uses cookies that only record anonymous statistical data not individually identifiable personal 0000009345 00000 n 0000008950 00000 n 2009 Los Angeles County Department of Regional Planning. 0000011532 00000 n Limits on Impact Fees. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 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 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. 0000012814 00000 n 0000070100 00000 n 0000007530 00000 n Legislative Change Increases Density Bonus Amount and Parking Benefits. Overlay Zone or on the City of Los Angeles list of Historical-Cultural Monuments. All rights reserved. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. 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. 0 %%EOF 0000005549 00000 n dXn7@ C 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. (a).) PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 0000010840 00000 n Where appropriate, promote such development through incentives. hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! 76 48 (0[yd JivE!X$~{E4tp{ !vI H*9&> As discussed below, Schreiber v. 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