Legislative Change Increases Density Bonus Amount and Parking Benefits. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. trailer 0000001256 00000 n Many of our documents are in PDF format. Limits on Impact Fees. 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. %%EOF Part 1 focused on background, while Parts 2 through 5 include specific recommendations to . 0000007998 00000 n 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. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> 0000007824 00000 n 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. 0000002364 00000 n 0000000016 00000 n AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 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 (. /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\` 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. 0000005981 00000 n 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. Originally enacted in 1979, California's Density Bonus Law 3 gives housing and mixed-use developments with five or more homes the right to increased density beyond applicable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. 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). [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. The trial court denied the petition, and the neighbors filed an appeal. Implementation of State Density Bonus Law (2017) To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. City Planning Ministerial Review Program Incentives. 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. 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. 0000013708 00000 n 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. 0000001968 00000 n 0000004022 00000 n Required Submission of Pro Formas. For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 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. 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. 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. AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. 0000004022 00000 n 0000068446 00000 n . AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 0000009113 00000 n 0000008271 00000 n State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. For more information please refer to our Privacy Policy. }k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg Gibson, Dunn & Crutcher LLP 2023. 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. 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. to Los Angeles Municipal Code 12.22 A.31 . AB 2345 amends the Density Bonus Law to increase the maximum density bonus from thirty-five percent (35%) to fifty percent (50%). Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. To download the Guide, please click here. %PDF-1.6 % 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. Discretionary Review 0000011362 00000 n (i.e. information to improve the functionality and analytical performance of the website. 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. 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. 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). Home Find Answers Contact DRP Board of Supervisors Regional Planning Commission Airport Land Use Commission Hearing Officer Hearing Examiner Historical Landmarks and Records Commission Public Meeting All Advisory Committees Contact DRP 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. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. %PDF-1.5 % 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. trailer /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\` Many of our documents are in PDF format. 0000012746 00000 n (a)(2).) The Court then turned to the neighbors claim that the administrative record did not contain substantial evidence supporting the Citys approval of the project. dXn7@ C 0000011960 00000 n dXn7@ C 0000004758 00000 n this website you agree to the use of cookies. %%EOF By using this site, you agree to our updated Privacy Policy and our Terms of Use. 0000004426 00000 n 0000005623 00000 n Page 2 . City of Los Angeles. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. 0000014545 00000 n 0000012780 00000 n 0000002922 00000 n 0000007998 00000 n Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. Privacy Statement. Replacement of Existing Residential Dwelling Units. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. density bonus) depending on the types of land use incentives being sought for the project, if any. 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. Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. 0000002251 00000 n 0000001256 00000 n 0000004758 00000 n hL 0UADCB~87(c}K$qmg~wv/>J2EP Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000013708 00000 n 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 0000011691 00000 n The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) 0000010840 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. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 0000007768 00000 n AB 2345 and AB 1763 Revised Memorandum (2022) Share. For more information please refer to our Privacy Policy. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. 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. 0000012594 00000 n 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) 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 0000008950 00000 n 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. 4& 0000012501 00000 n Density Bonus Law Impacts and Schreiber v. City of Los Angeles. 0000002030 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 . 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. 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. AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. 0000009345 00000 n 0000011960 00000 n 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. 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. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. 3117 Bagley Ave, Los Angeles, CA 90034. Longer Affordability Periods. These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 0000005253 00000 n Density bonus law (Gov. 0 0000013527 00000 n 4& State Density Bonus Law (2021): SB 290, SB 728, AB 634 The local approving government has the burden of proof in defending the denial of a requested concession or incentive. $2,000,000. AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. Terms under which this service is provided to you. 0000007824 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 total for-sale units are for moderate income households. 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