Density Bonus Policy 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. 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. 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. 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. Where appropriate, promote such development through incentives. These projects are not subject to an appeal. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( In early 2008, their decisions came under attack in two lawsuits that focused on the city's effort to exempt from environmental review outsize projects that applied for the "density bonus . 0000068446 00000 n The amount of density bonus required to be given under Californias Density Bonus Law is set on a sliding scale based on the percentage of affordable units provided. 0000013934 00000 n endstream endobj 737 0 obj <>stream This is Part 4 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg Density Bonus and Inclusionary Housing Plan to construct a new 3-story, 17-unit, 23,134 square-foot residential building, featuring two affordable units restricted to very-low income households with a one-level subterranean parking garage including 38 parking spaces. In 2018, the City Planning Commission approved the project, including the applicants request for off-menu incentives, finding that the record did not contain substantial evidence that would allow the City Planning Commission to deny the incentives. New legislation that took effect on January 1 of this year provides for up to a 50% density bonus to be granted to housing projects consisting of a mix of affordable and market-rate homes, up from the previous maximum 35% density bonus for mixed income developments. 0000012594 00000 n %%EOF xref 0000013708 00000 n 0000011882 00000 n Many of our documents are in PDF format. `kj6`=$LL9m50~=3jptv^xxx[xH0#h afMg tsP@tEf(!G,B{e*h$&G$#iIa)Y( : 0b0#A 733 0 obj <> endobj 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. 0000009345 00000 n %%EOF 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. 0000001236 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. The Court drew a distinction between information pertaining to economic feasibility and information showing that an incentive would result in cost reductions. While the City could request the latter, AB 2501 prohibited the City from requesting the former. 0000002251 00000 n xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 0000072751 00000 n Many of our documents are in PDF format. 0000003255 00000 n This is Part 2 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program.Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing . 0000005981 00000 n Privacy Statement. California Government Code Section 65943 to the Los Angeles City Planning Department on or after January 1, 2020, and requires a discretionary entitlement process with CPD. <]/Prev 129846/XRefStm 1236>> 0000010946 00000 n 0000009519 00000 n Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 0000013295 00000 n You can download Adobe Reader by clicking this link. hL 0UADCB~87(c}K$qmg~wv/>J2EP 0000010840 00000 n 201 27 0000012501 00000 n 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. Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) These practices can lead to inconsistencies between state law and local ordinances. 0000001256 00000 n 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). 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. However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. 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). 0000010477 00000 n Read up on housing activity and trends across the City. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . Revised February 26, 2018 . PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. As discussed below, Schreiber v. City of Los Angeles (2021) 69 Cal.App.5th 549, resolved such an inconsistency, holding that a local implementation ordinance is preempted to the extent that the implementation ordinance imposes application requirements that exceed those required under density bonus law. Schreiber v. City of Los Angeles, 69 Cal. 0000009760 00000 n The trial court denied the petition, and the neighbors filed an appeal. Send to Friend; . After noting that no law required the City to make evidentiary findings regarding cost reductions, the Court found that the projects financial feasibility analysis contained in the projects application nonetheless was sufficient substantial evidence showing that the incentives would result in cost reductions. The ministerial on-menu incentives comprise the most common form of requested incentives, stemming from pre-calculated modifications in the Citys Density Bonus Ordinance, which was adopted in 2008. 0 For readability, we use incentive to refer to both incentives and concessions in this post. Accordingly, the City published a memorandum stating that the City would no longer require [f]inancial pro-formas and third-party reviews to determine whether a project would be eligible for an incentive under density bonus law, but did not update its implementation ordinance. 0000011532 00000 n 0000008950 00000 n (0[yd JivE!X$~{E4tp{ !vI H*9&> App. 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. 0000013117 00000 n Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. 2501 (AB 2501) went into effect. Code, 65915, subd. 0000012814 00000 n 0000004758 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. Please send website questions and comments to webadmin@planning.lacounty.gov. 0000011960 00000 n 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. 0000013117 00000 n 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. To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. /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\` hDj:.XpD$P Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. Department of Regional Planning, Community Development Commission. Please click here to read or print the 2021 Guide. 0000004758 00000 n A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. City Planning Ministerial Review information to improve the functionality and analytical performance of the website. 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. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 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. 0000003129 00000 n 0000001256 00000 n 0000005586 00000 n 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 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. Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. . Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 0000002922 00000 n dXn7@ C . (a).) 0000007824 00000 n AB 2345 and AB 1763 Revised Memorandum (2022) Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 0000010477 00000 n 0000002030 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. And procedures, including those for notification and appeals are required drew a distinction information. Percentage of lower income Units required to obtain multiple incentives and concessions project application in 2016. seq... 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