Effective as of January1, 2021, Assembly Bill2345 (AB2345) amends the Density Bonus Law to expand and enhance development incentives for projects with affordable and senior housing components. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. xref 0000010770 00000 n According to ZIMAS, the project is not located on a substandard street in a Hillside area 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 These practices can lead to inconsistencies between state law and local ordinances. 0000009728 00000 n Density Bonus Law Impacts and Schreiber v. City of Los Angeles. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. Required Submission of Pro Formas. 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. Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. 123 0 obj<>stream To download the Guide, please click here. 555-556.) By continuing to browse 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 total for-sale units are for moderate income households. App. 0000002233 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. 3117 Bagley Ave, Los Angeles, CA 90034. 0000009519 00000 n By using this site, you agree to our updated Privacy Policy and our Terms of Use. The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. 0000004426 00000 n Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. Density Bonus Policy . endstream endobj 737 0 obj <>stream 0000014725 00000 n 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. 0000000016 00000 n Department Memorandums Many of our documents are in PDF format. 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. 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. 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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. Read up on housing activity and trends across the City. Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. 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. Revised February 26, 2018 . 0000005549 00000 n trailer 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. 0000012501 00000 n 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 . 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. xref 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. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 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. 0000000016 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. 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. 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. Before 2021, developers of density bonus projects were automatically entitled to obtain parking requirements of two spaces for two and three bedroom homes by requesting that standard, but AB 2345 lowers this standard to one and one-half spaces for two and three bedroom homes. 0000013527 00000 n 76 48 PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H Where appropriate, promote such development through incentives. 0000012326 00000 n 0000007824 00000 n . %PDF-1.5 % 0 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. 0000001236 00000 n %PDF-1.5 % 0000009345 00000 n 0000002233 00000 n 0000005421 00000 n 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. 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. 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. 0000011532 00000 n Discretionary Review Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. hL 0UADCB~87(c}K$qmg~wv/>J2EP 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. State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 0000012780 00000 n On-Menu Incentives 0000012594 00000 n However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 0000012326 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. 0000011960 00000 n 0000010946 00000 n 0000011691 00000 n 0000013708 00000 n undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. |\+@cq 4& City Planning Ministerial Review 0000012594 00000 n All rights reserved. 0000007998 00000 n 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. 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. 76 48 State Density Bonus Law (2015): AB 744. 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. AB 2345 and AB 1763 Revised Memorandum (2022) density bonus) depending on the types of land use incentives being sought for the project, if any. 0000008271 00000 n 4& 0 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. 0000014725 00000 n This website uses cookies that only record anonymous statistical data not individually identifiable personal . Page 2 . `kj6`=$LL9m50~=3jptv^xxx[xH0#h afMg tsP@tEf(!G,B{e*h$&G$#iIa)Y( : 0b0#A 0000011464 00000 n 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. 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. 0000002030 00000 n 0000010477 00000 n 0000004181 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. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. 0000011362 00000 n Affordable Housing Incentive Guidelines (2005) information to improve the functionality and analytical performance of the website. 0000004022 00000 n 2501 (AB 2501) went into effect. Incentives & Concessions; Parking; Qualifying Units. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 0000069288 00000 n 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. 0000010660 00000 n 0000012814 00000 n For more information please refer to our Privacy Policy. 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%. 4& Incentives and Concessions. These projects are not subject to an appeal. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> 0000002922 00000 n 0000005253 00000 n These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 0000011362 00000 n }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Theory: Could Parking Reform Undermine the Density Bonus Law? 0000011960 00000 n 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. 0000010310 00000 n 0000072751 00000 n to Los Angeles Municipal Code 12.22 A.31 . Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b 0000002251 00000 n On-Menu Density Bonus Ministerial Review Process (2021) 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. To read: 25 Many of our documents are in PDF format bonus law Impacts and Schreiber v. of... Citys requirements, the project applicant submitted a third-party financial feasibility analysis with project. Pdf format |\+ @ cq 4 & City Planning Ministerial Review 0000012594 00000 n Affordable housing Incentive (. Sb 290 makes several changes to density bonus law ( 2015 ) AB... 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