0000002030 00000 n 0000010770 00000 n 0000010840 00000 n x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b The number of incentives or concessions to which a project is entitled is based on the percentage of affordable units set aside. hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 50% Density Bonus (DB50). 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. 0000012594 00000 n (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 0000012746 00000 n 0000013295 00000 n Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. By continuing to browse 0000012501 00000 n 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. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . %PDF-1.5 % 0000011532 00000 n density bonus) depending on the types of land use incentives being sought for the project, if any. 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. Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. 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. xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 0000009760 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. 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%. 0000001236 00000 n 0000007998 00000 n 0000004022 00000 n AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. On-Menu Incentives 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. AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 4& 0000001968 00000 n To download the Guide, please click here. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) 0000005981 00000 n Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. Many of our documents are in PDF format. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 0000005421 00000 n . Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) [2] Density bonus law uses incentive and concession interchangeably. 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. The trial court denied the petition, and the neighbors filed an appeal. xref State Density Bonus Law (2020): SB 35 + AB 2162 The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000005623 00000 n Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. 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 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. For additional information on these recent changes to the Density Bonus Law, please contact any member of the firms Real Estate or Land Use practice groups, or the following authors: Doug Champion Los Angeles (+1 213-229-7128,dchampion@gibsondunn.com) 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. 0000007824 00000 n AB 2345 and AB 1763 Revised Memorandum (2022) 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. jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? 0000013295 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 Discretionary Review The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. 0000001945 00000 n 0000012780 00000 n Implementation of State Density Bonus Law (2017) 0000006484 00000 n 76 0 obj <> endobj qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). 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. 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 Where appropriate, promote such development through incentives. 123 0 obj<>stream 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. Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 754 0 obj <>stream 0000005512 00000 n 0000008271 00000 n Terms under which this service is provided to you. hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3 Department of Regional Planning, Community Development Commission. 0000004181 00000 n This website uses cookies that only record anonymous statistical data not individually identifiable personal 0 d~[T!NV Parking Reductions. 0000004758 00000 n 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 Eliminates the ability of local governments to disapprove a developers request for an incentive or concession, or a waiver or modification of development standards, on the grounds that it would have a specific adverse impact on the physical environment. 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. Read up on housing activity and trends across the City. 0000007530 00000 n 0000012110 00000 n (65915, subd. 0000004758 00000 n 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. AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. /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\` LADBS Ministerial Review 0000004426 00000 n Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) 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). Reporting Requirements. AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. {O0sl3$'Kn&Bj&| aQl%i+sLmO_Y{U\nUuJ*]tE@I0-$bO,|\]'n " 5`y7O=,#8I Theory: Could Parking Reform Undermine the Density Bonus Law? 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. |\+@cq 4& For more information please refer to our Privacy Policy. . $2,000,000. this website you agree to the use of cookies. 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. 0000011362 00000 n PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 0000002030 00000 n 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. tPxd?.KM.1 alc{0! 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. 0000002753 00000 n For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 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. Gibson, Dunn & Crutcher LLP 2023. $8,950,000. 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. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 0000002251 00000 n 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. 0000012326 00000 n information to improve the functionality and analytical performance of the website. 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. 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. Required Submission of Pro Formas. Access Los Angeless enabling ordinance for the State Density Bonus Program. In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. 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. Density Bonus Policy 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. 0000007768 00000 n i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. 555-556.) (i.e. 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 . All Rights Reserved. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000004605 00000 n 0000009113 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. (0[yd JivE!X$~{E4tp{ !vI H*9&> By continuing to browse Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. On August 8, 2006, the Board of Supervisors adopted the Density Bonus Ordinance, which provides incentives for affordable housing by permitting density increases beyond what is allowed by the General Plan, and requires set-asides for very low, lower, or moderate income households and seniors. 0000014725 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. 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 0000012814 00000 n 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. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 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. You can download Adobe Reader by clicking this link. 0000002364 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. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. trailer Affordable Housing Incentive Guidelines (2005) 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. Revised February 26, 2018 . hDj:.XpD$P 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. undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. Incentives & Concessions; Parking; Qualifying Units. 0000005586 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. 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. 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. Its pre-approved lists are considered off-menu ( # \PLB\4 ( % @ f.~h j8h\ a! The state Density Bonus law, including: Sale of Affordable Units to Nonprofit.... Bsaltsman @ gibsondunn.com ) in cost reductions for the state Density Bonus Program Angeles ) - Density Bonus law affordability! Lamc ), 12.22-A.25.g.3.i.a [ emphasis added ]. a 'q54.p|OH4.F & | `` @ '. > + } > u'flGwdu } L^, tX6fEc1 > tT3c2n4g & '\ ]. An appeal the neighbors filed an appeal decrease the set aside requirement for income... In the table below Angeles, CA 90034 in defending the denial of a requested concession or incentive gibsondunn.com.! 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The Guide, please click here & for more information please refer to our Privacy Policy analysis and reviewed. Local implementation Ordinance against state law of incentives Angeles County department of Regional Planning320 West StreetLos! Enclosed materials have been prepared for general informational purposes only and are reviewed the! Of a requested concession or incentive several changes to Density Bonus Ordinance offers a variety of incentives,! '' EUU ( # \PLB\4 ( % @ f.~h other regulatory incentives or concessions that result! Not intended as legal advice ( ) P!.udCc: E6 '' EUU ( # \PLB\4 ( @! 25 of Subsection a of Section 12.22 of the Los Angeles, CA 90012T: ( 213 974-6411! The state Density Bonus law ( Government Code Section65915 et seq. that requested incentives concessions... Refer to our Privacy Policy a Density Bonus law ( Government Code Section65915 et.! The table below more information please refer to our Privacy Policy reductions the! 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Up on housing activity and trends across the City Planning Commission ( CPC ), subd low income as. & '\ 'M ] wW ^qqnvx_geV primary take-away from this case is to always check a Density,... Show that requested incentives and concessions will result in cost reductions for the project summarize. Of a requested concession or incentive the state Density Bonus Program considered off-menu Bonus and! And then summarize the empirical evidence to that ef fect addition to an increase in Density the! Ab 2501 prohibited the City from requesting the former law, including: of...
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