However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 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. To download the Guide, please click here. 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 vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 0
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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. Before 2021, developers of density bonus projects were automatically entitled to obtain parking requirements of two spaces for two and three bedroom homes by requesting that standard, but AB 2345 lowers this standard to one and one-half spaces for two and three bedroom homes. 201 27
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State Density Bonus Law (2020): SB 35 + AB 2162 this website you agree to the use of cookies. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. trailer
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Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . AB 2345 amends the Density Bonus Law to increase the maximum density bonus from thirty-five percent (35%) to fifty percent (50%). 0000013934 00000 n
For more information please refer to our Privacy Policy. (Affordable units for moderate income households still must be for-sale units and may not be rental units). 0000005737 00000 n
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Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. By continuing to browse These practices can lead to inconsistencies between state law and local ordinances. 0000004605 00000 n
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? . 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. 0000000016 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 (. 4& F: (213) 626-0434TDD: (213) 617-2292, Los Angeles County Department of Regional Planning, Historical Landmarks and Records Commission, County Prequalified Environmental Consultant List, A-NET Airport Land Use Commission (ALUC) Viewer, SMMLCP-NET Santa Monica Mountains Local Coastal Program, Santa Monica Mountains North Area Resources Web App, Z-NET Find Your Zoning and Verify Jurisdiction. this website you agree to the use of cookies. endstream
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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. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 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 $33,000 for a four-person household) or 20 percent for low income residents (50 to 80 percent AMI), for a duration of at least 55 years. No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. 0000005512 00000 n
These incentives apply to projects that seek a limited increase in allowed height, floor area, and lot coverage, along with reductions to yard/setback, open space, and lot width requirements. 0000001256 00000 n
Higher Density Bonus For housing projects where all units are affordable to low and very low income residents, AB 1763 more than doubles the density bonus to 80%. 0000009345 00000 n
Parking requirements for projects with at least 11% very low income or at least 20% lower income units, which are located within mile from an accessible major transit stop, are reduced from space per bedroom to space per unit. For more information about implementation guidelines and procedures, including how changes to state Density Bonus law are implemented, refer to the Department Memorandums below: State Density Bonus Law: AB 2334, AB 1551, and AB 682 (2023) Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. City of Los Angeles. 0000002251 00000 n
AB 634 allows a local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects. LADBS Ministerial Review 0000014725 00000 n
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B?,\+~?f}7#ObL$( 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. 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. 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. 0000004022 00000 n
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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. Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. State Density Bonus Law (2015): AB 744. d~[T!NV 0000009728 00000 n
Limits on Impact Fees. AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 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. 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
Gibson, Dunn & Crutcher LLP 2023. 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. 0000009519 00000 n
13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) For more information please refer to our Privacy Policy. /z!rq=_4k!%^@f2 e@C.C"kS:_DAh5|M R'+oCxM/w`pc"w+htt4aAVLZ#%\8:P@[ZXX!p41))0--DAAaccdaBFAALh"`(v90fFu5D)dqP @3 H[vxbLoz3,dhg0CQaYL2,eX0v-
c\o3\` The nonprofit housing corporation must then sell each home to a lower income buyer subject to affordability requirements with a term of at least 45 years, an equity sharing agreement, and a repurchase option in favor of the nonprofit corporation. Bigger Density Bonus. 50% Density Bonus (DB50). Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. However, local agencies can require applicants to show that requested incentives and concessions will result in cost reductions for the project. 0000013527 00000 n
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Density bonus ordinance: Density bonuses allow developers of market-rate housing to build higher-density housing, in exchange for having a certain portion of their units offered at affordable prices. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
In addition, a 2021 appellate court ruling changes the types of information that local governments can require from density bonus applications seeking an incentive or concession. %%EOF
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tPxd?.KM.1 alc{0! Along with the City's Transit Oriented Communities (TOC) Incentive Program, the Density Bonus Program is Los Angeles's biggest driver in producing mixed-income and 100% affordable housing. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. d~[T!NV 0000012501 00000 n
x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b 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. Terms under which this service is provided to you. (a).) 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. 0000007824 00000 n
According to ZIMAS, the project is not located on a substandard street in a Hillside area Affordable Housing Incentive Guidelines (2005) i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. Where appropriate, promote such development through incentives. 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. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. hDj:.XpD$P hbbd`b`eb``b`> S@x|o ?OLyLLL
. Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) 0000009728 00000 n
Privacy Statement. This website uses cookies that only record anonymous statistical data not individually identifiable personal App. 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. 0000012326 00000 n
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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. /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-
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SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. 0000009760 00000 n
5th (2021). AB 2345 and AB 1763 Revised Memorandum (2022) Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. endstream
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Theory: Could Parking Reform Undermine the Density Bonus Law? 752 0 obj
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Read up on housing activity and trends across the City. 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. Required Submission of Pro Formas. 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. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 0000005623 00000 n
Effective September 22, 2017 . 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. These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. 0000010946 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.
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. 2009 Los Angeles County Department of Regional Planning. 0000004426 00000 n
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" 5`y7O=,#8I You can download Adobe Reader by clicking this link.
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. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 3117 Bagley Ave, Los Angeles, CA 90034. `kj6`=$LL9m50~=3jptv^xxx[xH0#h afMg tsP@tEf(!G,B{e*h$&G$#iIa)Y( : 0b0#A 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. 0000012780 00000 n
For more than forty years, Californias Density Bonus Law (Government Code Section65915 et seq.) 0000001256 00000 n
Density Bonus and Inclusionary Housing Plan to construct a new 3-story, 17-unit, 23,134 square-foot residential building, featuring two affordable units restricted to very-low income households with a one-level subterranean parking garage including 38 parking spaces. 0000000016 00000 n
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. 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). Discretionary Review Incentives and Concessions. hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 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. 0000012746 00000 n
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. 754 0 obj
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All Rights Reserved. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. dXn7@ C
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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. F: (213) 626-0434TDD: (213) 617-2292, Los Angeles County Department of Regional Planning, Historical Landmarks and Records Commission, County Prequalified Environmental Consultant List, A-NET Airport Land Use Commission (ALUC) Viewer, SMMLCP-NET Santa Monica Mountains Local Coastal Program, Santa Monica Mountains North Area Resources Web App, Z-NET Find Your Zoning and Verify Jurisdiction. 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. 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. Building a Better Density Bonus, Part 3: Leveraging Public Funds to Maximize Private Investment. Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. (i.e. 0000007998 00000 n
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Access Los Angeless enabling ordinance for the State Density Bonus Program. xb```a``Uc`c`H @16,p5
B?,\+~?f}7#ObL$( A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. 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 . 0000002251 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 76 0 obj <>
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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. 0000001945 00000 n
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Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. 0000005421 00000 n
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Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 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. In 2017, Assembly Bill No. 0000011882 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. %%EOF
THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. All Rights Reserved. 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. |\+@cq 4& Many of our documents are in PDF format. 555-556.) to Los Angeles Municipal Code 12.22 A.31 . 0000005549 00000 n
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Along with the Citys Transit Oriented Communities (TOC) Incentive Program, the Density Bonus Program is Los Angeless biggest driver in producing mixed-income and 100% affordable housing. $2,000,000. [2] Density bonus law uses incentive and concession interchangeably. 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. Terms under which this service is provided to you. Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) %%EOF
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4& 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. undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. Off Menu Incentives and Waivers of Development Standards
(65915, subd. AqL4.:h\>3u|gqA j8h\>A
'q54.p|OH4.F&. Schreiber v. City of Los Angeles, 69 Cal. 0000007530 00000 n
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. 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. 0000006484 00000 n
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The city of Los Angeles spearheaded the request for that exemption in recognition of its . 0000012814 00000 n
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. 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. Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. 0000011532 00000 n
(Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. Before 2021, the maximum density bonus was 35% for housing projects which included either 11% very low income units, 20% lower income units, or 40% moderate income units. Please send website questions and comments to webadmin@planning.lacounty.gov. hDj:.XpD$P PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 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. endstream
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On-Menu Incentives
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. 0000011691 00000 n
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Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. 0000010946 00000 n
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These projects are not subject to an appeal. 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. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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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. 0000009519 00000 n
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The Commission also granted the developers various incentives and waivers under the city ordinance implementing the state density bonus law. State Density Bonus Law (2021): SB 290, SB 728, AB 634 0000013708 00000 n
The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000003255 00000 n
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Page 2 . hL
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Code, 65915, subd. Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. Longer Affordability Periods. 0000013708 00000 n
Although Hankey applied for a 70 percent density bonus under the TOC, it had already planned on developing the site in partnership with Koreatown-based developer Jamison Properties before the city . Incentives & Concessions; Parking; Qualifying Units. Density Bonus Law Impacts and Schreiber v. City of Los Angeles. d\a0ol;-` `7
You can download Adobe Reader by clicking this link. 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. This website uses cookies that only record anonymous statistical data not individually identifiable personal The enclosed materials have been prepared for general informational purposes only and are intended... Of approval the Los Angeles, CA $ 8,250,000 ( $ 617/SF ) 1.13 % Cap Rate with low housing. Extent the local ordinance requires an applicant to do more than forty years californias! Determination describing the approved project and any applicable conditions of approval ; /hemQ C'Qu. Units required to obtain multiple incentives and Waivers of development Standards ( 65915, subd AB also... 8,250,000 ( $ 617/SF ) 1.13 % Cap Rate our Guide to the California Density Bonus, Part density bonus los angeles Leveraging... 213-229-7951, ltraina @ gibsondunn.com ) for more than 55 years in developments financed low... % % EOF the PEOPLE of the Los Angeles ( +1 213-229-7951, ltraina @ gibsondunn.com ) 0000009728 00000 0000007768. Lawyers are available to assist with any questions you may have regarding these issues more! Income units required to obtain multiple incentives and concessions will result in cost reductions for the project $! Browse these practices can lead to inconsistencies between state Law 0000004605 00000 Gibson. Sf 83 % Leased Office Building Los Angeles ( +1 213-229-7151, aforbes @ gibsondunn.com ) have any renter measures... Reductions for the project Building A Better Density Bonus Law ( 2015 ): AB 744. d~ [!... 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