Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) AB2345 is modeled after the City of San Diegos Affordable Homes Bonus Program, and is intended to be another tool to address the states ongoing housing crisis. To download the Guide, please click here. |\+@cq 4& Share. 0000010946 00000 n THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements. information to improve the functionality and analytical performance of the website. Longer Affordability Periods. 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. 0000000852 00000 n 0000005421 00000 n 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. However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. 0000008271 00000 n Schreiber v. City of Los Angeles, 69 Cal. %PDF-1.5 % 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. hbbd`b`eb``b`> S@x|o ?OLyLLL 754 0 obj <>stream 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. 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. 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 . Gibson, Dunn & Crutcher LLP 2023. 0000072751 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. 0000004181 00000 n 0000009113 00000 n 0000007768 00000 n 0000004758 00000 n 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. 0000004323 00000 n 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 (. 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. 0000005586 00000 n Court of Appeal Upholds the Project Approval. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000012814 00000 n Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. 76 0 obj <> endobj App. AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 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 0000002030 00000 n Many of our documents are in PDF format. AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. 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. 0000010770 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). AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 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. 0000010840 00000 n hL 0UADCB~87(c}K$qmg~wv/>J2EP 0000008271 00000 n trailer Discretionary Review 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. 0000014545 00000 n THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. Revised February 26, 2018 . A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. 76 48 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. Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) For readability, we use incentive to refer to both incentives and concessions in this post. %PDF-1.6 % 0000007530 00000 n [2] Density bonus law uses incentive and concession interchangeably. 0000012110 00000 n }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. 0000010660 00000 n 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 These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. 0000012814 00000 n 0 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 . %%EOF 0000001968 00000 n 0000002922 00000 n 0000004758 00000 n 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). These guidelines describe the density bonus provisions and qualifying criteria, the incentives available to qualifying projects, and the procedures whereby projects may apply for a bonus and incentives. 0000013295 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. 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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 0000004605 00000 n x]nP}$t9A,z>A,rYtHx[=8S6z_S{//_o2~_o{s}:{].fnSTNiS^/mWv|,i:Z60_r^mQV(+5e,b*(RX%TY%U6,,(*e(Je9Tc%KhiE*Z:*b1hL>%hL>F a154&c|+4& 0000013527 00000 n Page 2 . 123 0 obj<>stream Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing provision throughout the region. (Schreiber, supra, 69 Cal.App.5th at pp. An appellate court ruled in 2021 that local agencies cannot require density bonus applicants to submit pro formas or other documentation required to prove that requested incentives and concessions are necessary to make the housing development financially feasible. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 0000007824 00000 n Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. hDj:.XpD$P to Los Angeles Municipal Code 12.22 A.31 . AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. 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. AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. 201 0 obj <> endobj dXn7@ C 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. 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. AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 0000011464 00000 n State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 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. 0000012746 00000 n Density Bonus | Los Angeles City Planning Density Bonus 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. endstream endobj 738 0 obj <>stream These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000003255 00000 n %PDF-1.5 % 0000013708 00000 n this website you agree to the use of cookies. 555-556.) 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. 0000011532 00000 n xref 0000012326 00000 n Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. 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 . 0000010660 00000 n 0000005981 00000 n trailer Code, 65915, subd. i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. 0000009345 00000 n . endstream endobj 734 0 obj <> endobj 735 0 obj <>/Rotate 0/Type/Page>> endobj 736 0 obj <>stream 0000001414 00000 n 0000001968 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. State Density Bonus Law (2015): AB 744. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 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. 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On-Menu Incentives To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. 0000004426 00000 n These projects are not subject to an appeal. The density bonus law, enacted in 1979, incentivizes developers to construct more affordable housing by providing density bonuses for projects that incorporate on-site affordable units or donate qualifying land for the construction of affordable units. Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. 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. 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. 0000004426 00000 n 0000012501 00000 n 0000013295 00000 n . 0000010310 00000 n Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. 0000014725 00000 n 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. 0000003255 00000 n 76 48 The local approving government has the burden of proof in defending the denial of a requested concession or incentive. 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. Continue to promote the County Density Bonus Program to developers through the dissemination of brochures, presentations and web postings on the DRP web site, and by offering technical assistance to the public. No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. The number of incentives or concessions to which a project is entitled is based on the percentage of affordable units set aside. jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? Department of Regional Planning, Community Development Commission. Incentives & Concessions; Parking; Qualifying Units. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 0000012594 00000 n Many of our documents are in PDF format. The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. (a)(2).) Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. 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. 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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