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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. 0000010477 00000 n
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4& 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. 0000002922 00000 n
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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. Access Los Angeless enabling ordinance for the State Density Bonus Program. 0000012746 00000 n
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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. These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. xref
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To download the Guide, please click here. 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. 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. 0000008761 00000 n
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. AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. 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. AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. . SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000011691 00000 n
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Revised February 26, 2018 . These additional incentives or concessions could include any of the following: ** applies to a common interest development, as defined in Section 4100 of the Civil Code. City Planning Ministerial Review 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. 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. 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. 0
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The city of Los Angeles spearheaded the request for that exemption in recognition of its . These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. (65915, subd. 0000011882 00000 n
DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS Pursuant to Section 12.22-A,25(c) of the LAMC, the Director shall approve a density . 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. Read up on housing activity and trends across the City. this website you agree to the use of cookies. 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. 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 readability, we use incentive to refer to both incentives and concessions in this post. Density Bonus Law Impacts and Schreiber v. City of Los Angeles. 0000004426 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). 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. Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. Density bonus law (Gov. %%EOF
Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. 0000007530 00000 n
information to improve the functionality and analytical performance of the website. density bonus) depending on the types of land use incentives being sought for the project, if any. 0000010946 00000 n
The Los Angeles City Planning Commission approved a mixed-used development that qualified for increased building density under the density bonus law due to its inclusion of low-income housing. 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.
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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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. 0000002030 00000 n
201 27
Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . You can download Adobe Reader by clicking this link. 0000009113 00000 n
These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. endstream
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d~[T!NV Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. 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). %%EOF
Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. startxref
Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) <]/Prev 129846/XRefStm 1236>>
Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. Limits on Impact Fees. To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. 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. 2009 Los Angeles County Department of Regional Planning. Density Bonus Policy 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. 0000002233 00000 n
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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. State Density Bonus Law (2021): SB 290, SB 728, AB 634 0000002233 00000 n
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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. These practices can lead to inconsistencies between state law and local ordinances. 0000013117 00000 n
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By continuing to browse 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. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 4& 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. A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. $8,950,000. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. 0000009345 00000 n
State Density Bonus Law (2015): AB 744. 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. The trial court denied the petition, and the neighbors filed an appeal. 0000004758 00000 n
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Program Incentives. 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. On-Menu Density Bonus Ministerial Review Process (2021) 76 0 obj <>
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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. . Privacy Statement. 0000011691 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. 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. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000068446 00000 n
to Los Angeles Municipal Code 12.22 A.31 . 0000005421 00000 n
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Many of our documents are in PDF format. Bigger Density Bonus. The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. trailer
The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. 76 48
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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. 0000005623 00000 n
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. 0000005737 00000 n
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In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. 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. Court of Appeal Upholds the Project Approval. App. 0000011362 00000 n
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