density bonus los angeles

Affordable Housing Incentive Guidelines (2005) %%EOF 0000006484 00000 n State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000004022 00000 n Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 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. Court of Appeal Upholds the Project Approval. 0000002030 00000 n Many of our documents are in PDF format. hDj:.XpD$P PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H startxref Send to Friend; . 752 0 obj <>/Filter/FlateDecode/ID[<8AA2F0F555E3E7428881B3A6A1ED63C2>]/Index[733 22]/Info 732 0 R/Length 89/Prev 467624/Root 734 0 R/Size 755/Type/XRef/W[1 2 0]>>stream The Rezoning Program includes a potential update of the City's Density Bonus ordinance to allow for up to 50% density increases citywide in exchange for the maximum amount of affordable housing economically feasible (as determined by an upcoming feasibility study). No CEQA review is conducted. Discretionary Review 0000009345 00000 n 0000007824 00000 n Revised February 26, 2018 . 76 48 Along with the Citys Transit Oriented Communities (TOC) Incentive Program, the Density Bonus Program is Los Angeless biggest driver in producing mixed-income and 100% affordable housing. 0000008271 00000 n In 2018, the City Planning Commission approved the project, including the applicants request for off-menu incentives, finding that the record did not contain substantial evidence that would allow the City Planning Commission to deny the incentives. 0000072751 00000 n Code, 65915, subd. 0000002233 00000 n The court found that a City of Los Angeles ordinance requiring density bonus applicants to submit information to show incentives and concessions are needed to make the project economically feasible was preempted by state density bonus law because the requirement was based on a former version of the law that has since been revised. With increases in the minimum set-aside, a project can receive a density bonus of up to 35% above what the General Plan allows, based on a sliding scale. 0000009113 00000 n Legislative Change Increases Density Bonus Amount and Parking Benefits. 0000002922 00000 n 5th (2021). 0000005549 00000 n xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 0000011882 00000 n However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. State Density Bonus Law (2021): SB 290, SB 728, AB 634 Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. 0000010310 00000 n this website you agree to the use of cookies. Privacy Statement. Limits on Impact Fees. A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. . AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 0000010840 00000 n 0000012814 00000 n 201 0 obj <> endobj However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. Density Bonus and Inclusionary Housing Plan to construct a new 3-story, 17-unit, 23,134 square-foot residential building, featuring two affordable units restricted to very-low income households with a one-level subterranean parking garage including 38 parking spaces. to Los Angeles Municipal Code 12.22 A.31 . Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . Density Bonus is a State-mandated incentive program that allows qualifying residential projects to construct additional housing, in exchange for setting aside a percentage of those units as restricted affordable. startxref 0000013295 00000 n Eliminates the ability of local governments to disapprove a developers request for an incentive or concession, or a waiver or modification of development standards, on the grounds that it would have a specific adverse impact on the physical environment. This is Part 5 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. Parking requirements for projects with at least 11% very low income or at least 20% lower income units, which are located within mile from an accessible major transit stop, are reduced from space per bedroom to space per unit. information to improve the functionality and analytical performance of the website. 0000009519 00000 n hDj:.XpD$P City Planning Ministerial Review 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. 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. 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. (a)(2).) 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. 0000002251 00000 n startxref 0000004022 00000 n 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. |\+@cq 4& 0000003255 00000 n (65915, subd. 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. 0000005253 00000 n The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 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. 0000002753 00000 n 0000010946 00000 n 0000010770 00000 n qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). On-Menu Density Bonus Ministerial Review Process (2021) 0000001581 00000 n Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 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. 2009 Los Angeles County Department of Regional Planning. 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) 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). 76 0 obj <> endobj This website uses cookies that only record anonymous statistical data not individually identifiable personal 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. Effective September 22, 2017 . 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. 0 Program Incentives. density bonus) depending on the types of land use incentives being sought for the project, if any. 0000014725 00000 n xref 0000013527 00000 n trailer Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. 0000004323 00000 n 0000000016 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. 4& Bigger Density Bonus. 0000008950 00000 n 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. Parking 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 $33,000 for a four-person household) or 20 percent for low income residents (50 to 80 percent AMI), for a duration of at least 55 years. A project that includes an off-menu request, as outlined in LAMC 12.22 A.25, is reviewed by City Planning through a discretionary review process. AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. Share. 0000010946 00000 n 0000070100 00000 n Replacement of Existing Residential Dwelling Units. endstream endobj 77 0 obj<> endobj 78 0 obj<>/Font 80 0 R/ProcSet[/PDF/Text/ImageC]>>/Type/Page>> endobj 79 0 obj[] endobj 80 0 obj<> endobj 81 0 obj<> endobj 82 0 obj<> endobj 83 0 obj[278 355 556 889 191 333 333 389 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 667 667 722 722 667 611 778 722 278 667 556 833 722 778 667 778 722 667 611 722 667 944 667 667 611 556 556 556 500 556 556 278 556 556 222 222 500 222 833 556 556 556 556 333 500 278 556 500 722 500 500 500 584 556 350] endobj 84 0 obj<>stream Sitting on an approximately 14,029 square foot, corner lot with an LAC2 Zoning and TIER 3 TOC density bonus (to be verified by potential buyers) this offering . Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. d~[T!NV %PDF-1.6 % The trial court denied the petition, and the neighbors filed an appeal. 0000011960 00000 n 0000013117 00000 n 0000002753 00000 n On-Menu Incentives jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? 0000007824 00000 n trailer 0000004426 00000 n 0000007998 00000 n 555-556.) Terms under which this service is provided to you. [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. x]nP}$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& 0 xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 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. 0000004605 00000 n 0000001256 00000 n Reporting Requirements. Theory: Could Parking Reform Undermine the Density Bonus Law? endstream endobj 738 0 obj <>stream 227 0 obj <>stream 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. 0000010660 00000 n State Density Bonus Law (2020): SB 35 + AB 2162 0000002030 00000 n 0 AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. 0000069288 00000 n 0000000016 00000 n 0000011362 00000 n 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. 0000008761 00000 n 0000012501 00000 n To download the Guide, please click here. i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. 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. 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. 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. 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 Where appropriate, promote such development through incentives. 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. Parking Reductions. (Affordable units for moderate income households still must be for-sale units and may not be rental units). 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. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 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. 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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. 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. dXn7@ C 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. 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. Please click here to read or print the 2021 Guide. Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. All Rights Reserved. Gibson, Dunn & Crutcher LLP 2023. 0000007530 00000 n 0000011691 00000 n 0000012780 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. 0000002364 00000 n 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. 0000011882 00000 n Density Bonus Policy 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. DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS Pursuant to Section 12.22-A,25(c) of the LAMC, the Director shall approve a density . $8,950,000. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 0000013934 00000 n 0000005421 00000 n . An ordinance amending Sections 12.22, 12.24, 14.00 and 19.01 of the Los Angeles Municipal Code to implement a Density Bonus program, as required by State law. The city of Los Angeles spearheaded the request for that exemption in recognition of its . . 0000014545 00000 n 0000012326 00000 n hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 3117 Bagley Ave, Los Angeles, CA 90034. 0000009760 00000 n 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. Required Submission of Pro Formas. 0000012110 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. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 2501 (AB 2501) went into effect. 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 Part 3: Leveraging Public Funds to Maximize private Investment legislation does not the! | `` @ lV ' 2 # n3 click here to read or print the Guide! 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