Density bonus law (Gov. 0000013708 00000 n 5th (2021). A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. AB 2345 amends the Density Bonus Law to increase the maximum density bonus from thirty-five percent (35%) to fifty percent (50%). To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. 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). Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 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. (65915, subd. Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . 0000005253 00000 n 0000009728 00000 n For readability, we use incentive to refer to both incentives and concessions in this post. AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. According to ZIMAS, the project is not located on a substandard street in a Hillside area Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. This website uses cookies that only record anonymous statistical data not individually identifiable personal 0000002922 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. AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. 0000010660 00000 n 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. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) Reporting Requirements. Program Incentives. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. 201 27 (Affordable units for moderate income households still must be for-sale units and may not be rental units). 0000002364 00000 n 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. 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 endobj startxref Please send website questions and comments to webadmin@planning.lacounty.gov. endstream endobj 737 0 obj <>stream 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. AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. 0000004181 00000 n 0000011882 00000 n /z!rq=_4k!%^@f2 e@C.C"kS:_DAh5|M R'+oCxM/w`pc"w+htt4aAVLZ#%\8:P@[ZXX!p41))0--DAAaccdaBFAALh"`(v90fFu5D)dqP @3 H[vxbLoz3,dhg0CQaYL2,eX0v- c\o3\` 0000007530 00000 n Department of Regional Planning, Community Development Commission. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000002251 00000 n Legislative Change Increases Density Bonus Amount and Parking Benefits. 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 The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000008950 00000 n %PDF-1.4 % 0000072751 00000 n 0000012594 00000 n 0000012501 00000 n Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. 0000004605 00000 n 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. 0000004758 00000 n 0000001968 00000 n 0000000016 00000 n AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 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. endstream endobj 734 0 obj <> endobj 735 0 obj <>/Rotate 0/Type/Page>> endobj 736 0 obj <>stream Further, the Density Bonus Law provides that, upon a developers request, a locality must utilize state-mandated parking ratios (inclusive of handicapped and guest parking) for qualifying projects. 0000014545 00000 n 0000002030 00000 n 0000005586 00000 n 0000007824 00000 n 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. . 0 SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. d~[T!NV The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. . %%EOF 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. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. On-Menu Incentives 2023 Meyers Nave, A Professional Corporation, Diversity Fellowship Program for 1L Students, Energy, Public Power and Telecommunications, Los Angeles Business Journal Names Amrit Kulkarni to 2023 List of Leaders of Influence: Minority Attorneys, Meyers Nave Elevates Richard D. Pio Roda to Equity Principal, Arlene Yang Appointed to the 2022-2023 National Asian Pacific American Bar Association Board of Governors, Meyers Nave Represents the Tongva Community in Historic Reclaiming of Ancestral Land in Los Angeles Area After 200 Years, Meyers Nave Obtains Dismissal of Two High-Stakes Federal Lawsuits Against the City of Los Altos Under the Telecommunications Act, Meyers Nave Celebrates Hispanic Heritage Month, Meyers Nave Welcomes Jeffrey Wilcox as Of Counsel to the Eminent Domain and Inverse Condemnation Practice, Super Lawyers Distinguishes Meyers Nave Lawyers in San Diego, Meyers Nave Elevates Camille Hamilton Pating to Equity Principal, Meyers Nave Elevates David Mehretu to Principal, Meyers Nave Secures Key Victory In California Supreme Court Confirming Application of Automatic Stay Pending Appeal to Mandatory Injunctions, Women's Initiative: Meet The Women Who Lead Practices at Meyers Nave, Guide to the California Density Bonus Law. (a)(2).) Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 0000005512 00000 n Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. Access Los Angeless enabling ordinance for the State Density Bonus Program. City of Los Angeles. 555-556.) 0000068446 00000 n In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. Affordable Housing Incentive Guidelines (2005) information to improve the functionality and analytical performance of the website. Privacy Statement. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( Prior to 2021, the Density Bonus Law permitted a maximum density bonus of thirty-five percent (35%) for a housing development in which (a) at least eleven percent (11%) of the total units are for very low income households, (b) at least twenty percent (20%) of the total units are for low income households, or (c) at least forty percent (40%) of the total for-sale units are for moderate income households. i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. 0 Limits on Impact Fees. hL 0UADCB~87(c}K$qmg~wv/>J2EP 0000010477 00000 n 0000001236 00000 n 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. %%EOF Gibson, Dunn & Crutcher LLP 2023. 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. 0000011532 00000 n 0000009345 00000 n 0000012110 00000 n SB 728 allows developers in for-sale density bonus housing developments to sell affordable units to nonprofit housing corporations instead of selling the units directly to a low or moderate income homebuyer. 0000004022 00000 n %PDF-1.5 % 0000007768 00000 n Schreiber v. City of Los Angeles, 69 Cal. 2501 (AB 2501) went into effect. 0000014545 00000 n 2009 Los Angeles County Department of Regional Planning. 0000000852 00000 n Higher Density Bonus For housing projects where all units are affordable to low and very low income residents, AB 1763 more than doubles the density bonus to 80%. 0000004426 00000 n x]nP}$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& Read up on housing activity and trends across the City. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. AB 2345 and AB 1763 Revised Memorandum (2022) hDj:.XpD$P hDj:.XpD$P 76 48 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. California Government Code Section 65943 to the Los Angeles City Planning Department on or after January 1, 2020, and requires a discretionary entitlement process with CPD. Discretionary Review 0000012746 00000 n xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( Please click here to read or print the 2021 Guide. The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. 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. These projects are not subject to an appeal. In 2017, Assembly Bill No. 0000004758 00000 n Send to Friend; . However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. Parking Reductions. Terms under which this service is provided to you. 0000069288 00000 n 0000007824 00000 n 0000002753 00000 n Some local jurisdictions adopt implementation ordinances that modify or add to the requirements of density bonus law, and many jurisdictions fail to update their implementation ordinances when density bonus law is amended. 2009 Los Angeles County Department of Regional Planning. 0000004181 00000 n State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H Many of our documents are in PDF format. State Density Bonus Law (2021): SB 290, SB 728, AB 634 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. Page 2 . 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. dXn7@ C 0000006234 00000 n Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . Many of our documents are in PDF format. 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. Incentives & Concessions; Parking; Qualifying Units. Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. By continuing to browse 0000007530 00000 n /z!rq=_4k!%^@f2 e@C.C"kS:_DAh5|M R'+oCxM/w`pc"w+htt4aAVLZ#%\8:P@[ZXX!p41))0--DAAaccdaBFAALh"`(v90fFu5D)dqP @3 H[vxbLoz3,dhg0CQaYL2,eX0v- c\o3\` 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. 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. 0000013117 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. A reduction in site development standards or a modification of zoning or architectural design requirements that exceed minimum building standards approved by the California Building Standards Commission (. 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. By using this site, you agree to our updated Privacy Policy and our Terms of Use. 0000002251 00000 n Implementation of State Density Bonus Law (2017) 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. 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. AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. tPxd?.KM.1 alc{0! 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. jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? {O0sl3$'Kn&Bj&| aQl%i+sLmO_Y{U\nUuJ*]tE@I0-$bO,|\]'n " 5`y7O=,#8I Terms under which this service is provided to you. 0000002364 00000 n 0000001968 00000 n 0000002922 00000 n 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. 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. 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. In early 2008, their decisions came under attack in two lawsuits that focused on the city's effort to exempt from environmental review outsize projects that applied for the "density bonus . However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 0000006484 00000 n 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 . Required Submission of Pro Formas. AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. 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. 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Households still must be for-sale units and may not be rental units ) 2009! Ab 634 allows a local government to adopt an ordinance requiring an affordability period of more than bonus. Been prepared for general informational purposes only and are not intended as legal advice 5 include specific recommendations.. Fee nexus study ) - Planning and zoning: density bonuses: affordable housing Guidelines. Housing developers with tools to encourage the development of much needed affordable and senior housing to decrease for... Of jurisdictions in Los Angeles do ORDAIN as FOLLOWS: Section 1 County do not have any renter measures.
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