density bonus los angeles

0000004426 00000 n Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. 0000004022 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. PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H All Rights Reserved. . dXn7@ C 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. AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. Reporting Requirements. By using this site, you agree to our updated Privacy Policy and our Terms of Use. 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. To download the Guide, please click here. 227 0 obj <>stream 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. 754 0 obj <>stream information to improve the functionality and analytical performance of the website. Department of Regional Planning, Community Development Commission. 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 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. 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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. 0000000852 00000 n 0000010770 00000 n 0000010946 00000 n 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. 0000010660 00000 n 0000012594 00000 n For more information please refer to our Privacy Policy. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> Where appropriate, promote such development through incentives. 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. 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. AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. $2,000,000. 0000011532 00000 n Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) 0 The Court next determined that while AB 2501 prohibited a municipality from requiring an additional report or study that is not otherwise required by state law, AB 2501 did not prohibit a municipality from requesting or considering information relevant to cost reductions. The court found that a City of Los Angeles ordinance requiring density bonus applicants to submit information to show incentives and concessions are needed to make the project economically feasible was preempted by state density bonus law because the requirement was based on a former version of the law that has since been revised. Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. 201 27 xMN0Y=_lg6 !iK'.^5_d3_i&2M_SAjm+ ACGISn(lB#7qMHnIR"B(`q]15_ 5-{i|RV 1mgX)Hy ,NQj0: )RPzlP$)X=gE!2j"wq$F'2aqXk~bFK{Iz2?/qk,=Z:J Z3:{,B 0000003255 00000 n 0000008950 00000 n 0000004181 00000 n The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000005549 00000 n Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. All rights reserved. [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. Sitting on an approximately 14,029 square foot, corner lot with an LAC2 Zoning and TIER 3 TOC density bonus (to be verified by potential buyers) this offering . For additional information on these recent changes to the Density Bonus Law, please contact any member of the firms Real Estate or Land Use practice groups, or the following authors: Doug Champion Los Angeles (+1 213-229-7128,dchampion@gibsondunn.com) Originally enacted in 1979, California's Density Bonus Law 3 gives housing and mixed-use developments with five or more homes the right to increased density beyond applicable local limits in exchange for providing homes at below market rate (BMR) rents or costs. Theory: Could Parking Reform Undermine the Density Bonus Law? Program Incentives. State Density Bonus Law (2020): SB 35 + AB 2162 {O0sl3$'Kn&Bj&| aQl%i+sLmO_Y{U\nUuJ*]tE@I0-$bO,|\]'n " 5`y7O=,#8I Page 2 . Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 4& Local governments may no longer impose any parking requirements for (1) 100% affordable housing projects located within mile from an accessible major transit stop and (2) 100% affordable senior housing projects that either offer paratransit service or are located within mile from an accessible major transit stop. Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. This is Part 2 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program.Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing . If you have questions about the Density Bonus Law or information in the Guide, please contact the author of the Guide, Meyers Nave Senior Of Counsel Jon Goetz, at 800.464.3559 or jgoetz@meyersnave.com. 0000002364 00000 n 2501 (AB 2501) went into effect. For more information please refer to our Privacy Policy. City of Los Angeles (2021) 69 Cal.App.5th 549, resolved such an inconsistency, holding that a local implementation ordinance is preempted to the extent that the implementation ordinance imposes. [2] Density bonus law uses incentive and concession interchangeably. 0000013708 00000 n |\+@cq 4& 123 0 obj<>stream As discussed below, Schreiber v. City of Los Angeles (2021) 69 Cal.App.5th 549, resolved such an inconsistency, holding that a local implementation ordinance is preempted to the extent that the implementation ordinance imposes application requirements that exceed those required under density bonus law. Bigger Density Bonus. 0000004323 00000 n (0[yd JivE!X$~{E4tp{ !vI H*9&> (Affordable units for moderate income households still must be for-sale units and may not be rental units). 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. 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. 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. 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. On-Menu Density Bonus Ministerial Review Process (2021) 0000011532 00000 n 0000001256 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. 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%. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000007824 00000 n On-Menu Incentives 0000013934 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). 0000004022 00000 n endstream endobj startxref 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. 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. In addition to the density bonuses outlined above, projects satisfying the requirements of the Density Bonus Law are entitled to one or more development incentives or concessions that will result in identifiable and actual cost reductions to provide for affordable housing costs, so long as the incentive or concession will not have specific unmitigable adverse impacts upon public health and safety, the physical environment or on historic properties, and the incentive or concession is not contrary to state or federal law. . Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 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. 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. 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. 0000005253 00000 n AB 2345 and AB 1763 Revised Memorandum (2022) 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). 0000011882 00000 n 0000012326 00000 n Schreiber v. City of Los Angeles, 69 Cal. 0000008271 00000 n 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. 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. This website uses cookies that only record anonymous statistical data not individually identifiable personal hbbd`b`eb``b`> S@x|o ?OLyLLL . Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. 0000001945 00000 n endstream endobj 734 0 obj <> endobj 735 0 obj <>/Rotate 0/Type/Page>> endobj 736 0 obj <>stream City of Los Angeles. 0000009728 00000 n x]nP}$t9A,z>A,rYtHx[=8S6z_S{//_o2~_o{s}:{].fnSTNiS^/mWv|,i:Z60_r^mQV(+5e,b*(RX%TY%U6,,(*e(Je9Tc%KhiE*Z:*b1hL>%hL>F a154&c|+4& 0000002251 00000 n THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. Privacy Statement. startxref Replacement of Existing Residential Dwelling Units. For more information about implementation guidelines and procedures, including how changes to state Density Bonus law are implemented, refer to the Department Memorandums below: State Density Bonus Law: AB 2334, AB 1551, and AB 682 (2023) 0000013295 00000 n 0000004605 00000 n Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 4& Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. 752 0 obj <>/Filter/FlateDecode/ID[<8AA2F0F555E3E7428881B3A6A1ED63C2>]/Index[733 22]/Info 732 0 R/Length 89/Prev 467624/Root 734 0 R/Size 755/Type/XRef/W[1 2 0]>>stream (a)(2).) hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3 0000007768 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 The number of incentives or concessions to which a project is entitled is based on the percentage of affordable units set aside. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 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. App. 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. A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. 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. 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. %PDF-1.5 % 0 0000012110 00000 n |\+@cq 4& 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. 0000011960 00000 n 50% Density Bonus (DB50). 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. 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 2009 Los Angeles County Department of Regional Planning. 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). 0000012780 00000 n 76 0 obj <> endobj Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. 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. 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. 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