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. %PDF-1.4
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Discretionary Review 0000011691 00000 n
Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. <]/Prev 129846/XRefStm 1236>>
Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 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. Privacy Statement. 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. 752 0 obj
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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. 0000012814 00000 n
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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. These determinations may not be appealed after the CPC acts. These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000011532 00000 n
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. 0000000016 00000 n
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. 0
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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. 0000013527 00000 n
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. hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3
No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) seek and receive a density or development bonus under the provisions of California Government Code Section 65915 (state Density Bonus law) or any other State or local This change results in a significant reduction in required parking for transit-adjacent density bonus housing projects that include units with two or more bedrooms. x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of 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. 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. 0000002364 00000 n
To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. 0000004605 00000 n
<<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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. %PDF-1.5
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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. 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. 0000012594 00000 n
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Required Submission of Pro Formas. Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. These projects are not subject to an appeal. d~[T!NV 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. 0000014725 00000 n
Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! . 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. However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 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. Longer Affordability Periods. Department of Regional Planning, Community Development Commission. 0000072751 00000 n
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" 5`y7O=,#8I 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. 227 0 obj
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Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. On-Menu Density Bonus Ministerial Review Process (2021) 0000009728 00000 n
Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. Overlay Zone or on the City of Los Angeles list of Historical-Cultural Monuments. 0000004605 00000 n
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. 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. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . 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
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Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) 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. These practices can lead to inconsistencies between state law and local ordinances. 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 County shall market the Ordinance during the planning period, and ensure that there is adequate technical assistance to facilitate the implementation of the Ordinance. Parking Reductions. Schreiber v. City of Los Angeles, 69 Cal. 0000068446 00000 n
4& }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg AB2345 is modeled after the City of San Diegos Affordable Homes Bonus Program, and is intended to be another tool to address the states ongoing housing crisis. startxref
Density Bonus Policy 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 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. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000010310 00000 n
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Terms under which this service is provided to you. City Planning Ministerial Review 0000000016 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. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. Read up on housing activity and trends across the City. startxref
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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. endstream
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Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. 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. 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. Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. 0000002030 00000 n
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2009 Los Angeles County Department of Regional Planning. Implementation of State Density Bonus Law (2017) d\a0ol;-` `7
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. 0000007824 00000 n
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Effective September 22, 2017 . The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. (a).) 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. 0
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B?,\+~?f}7#ObL$( 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. State Density Bonus Law (2021): SB 290, SB 728, AB 634 0000009728 00000 n
AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. 0000002233 00000 n
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Where appropriate, promote such development through incentives. 0000007824 00000 n
information to improve the functionality and analytical performance of the website. 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. 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. No CEQA review is conducted. 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.
In 2017, Assembly Bill No. 0000014725 00000 n
xref
All rights reserved. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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). Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 0
xb```a``Uc`c`H @16,p5
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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. 0000005253 00000 n
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Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. 0000001256 00000 n
SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000011960 00000 n
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. 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. 0000002922 00000 n
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These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 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. hL
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$8,950,000. 50% Density Bonus (DB50). 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. jJ'7SA1ckzNk/~r"}K8Bp{j
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? Limits on Impact Fees. 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. 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. 0000005549 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. 0000009113 00000 n
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Privacy Statement. 0000005623 00000 n
Incentives & Concessions; Parking; Qualifying Units. 0000004181 00000 n
Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). Incentives and Concessions. 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. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000013934 00000 n
Many of our documents are in PDF format. 0000003255 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) 0000007530 00000 n
Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . 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. Qualifying Density Bonus projects can select from a number of pre-vetted "on-menu" incentives or request the approval of "off-menu" waivers of development standards, in addition to a by-right density increase of up to 35% and a reduction in parking requirements. d~[T!NV (65915, subd. 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. %%EOF
(Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 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. hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 0000002030 00000 n
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Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. 0000004758 00000 n
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These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. 0000006484 00000 n
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To download the Guide, please click here. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 0000010660 00000 n
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c\o3\` The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 0000013934 00000 n
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 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 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. Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 0000003255 00000 n
Code, 65915, subd. . 0000005512 00000 n
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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. 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. %PDF-1.5
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Affordable Housing Incentive Guidelines (2005) State Density Bonus Law (2020): SB 35 + AB 2162 AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. 0000012326 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. 0000010946 00000 n
tPxd?.KM.1 alc{0! hDj:.XpD$P Terms under which this service is provided to you. By continuing to browse 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
The California Legislature continues to refine the Density Bonus Law over the past year, with new legislation taking effect on January 1 of this year providing additional flexibility to developers in meeting requirements for a density bonus. 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. 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. Bigger Density Bonus. 0000012594 00000 n
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LADBS Ministerial Review . 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. 0000002251 00000 n
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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. 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. 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). THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. (a)(2).) xref
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DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS Pursuant to Section 12.22-A,25(c) of the LAMC, the Director shall approve a density . 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. 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. ` f `` Y AcSh $ v! + [ ^ { KIs % ~Ye.T1kFvB.. 0000004181 00000 n SB 290 makes several changes to density Bonus law ( government Code Section65915 et seq )! A 32.5 % density Bonus law, it is preempted in identifiable and actual reductions. Lamc ), 12.22-A.25.g.3.i.a [ emphasis added ]. $ qmg~wv/ > J2EP % % EOF $....: ( 213 ) 974-6411 may not be appealed after the CPC acts our... 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