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. 0000002251 00000 n
Terms under which this service is provided to you. 0000012326 00000 n
However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. City Planning Ministerial Review 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. These practices can lead to inconsistencies between state law and local ordinances. 0000011960 00000 n
Where appropriate, promote such development through incentives. dXn7@ C
To be eligible for the development bonus, at least 30% of the housing units must be restricted to lower income residents or 15% of the housing units must be restricted to very low income residents. 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. 0000007998 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. trailer
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Off Menu Incentives and Waivers of Development Standards
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Density bonus law (Gov. 0000009760 00000 n
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Density Bonus Law Impacts and Schreiber v. City of Los Angeles. $8,950,000. Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer.
Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . 754 0 obj
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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. 0000008950 00000 n
Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. 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. 123 0 obj<>stream
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The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. Department Memorandums 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. These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 0000001256 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. 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. 0000000016 00000 n
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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. 0000011532 00000 n
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Court of Appeal Upholds the Project Approval. AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. By continuing to browse 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 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. 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. Lofts California Los Angeles 3685 Motor Ave, Los Angeles, CA 90034. 0000010310 00000 n
State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) Schreiber v. City of Los Angeles, 69 Cal. 0000005421 00000 n
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On-Menu Density Bonus Ministerial Review Process (2021) 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 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. 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. . 0000001581 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. 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. Theory: Could Parking Reform Undermine the Density Bonus Law? 0000007824 00000 n
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The city of Los Angeles spearheaded the request for that exemption in recognition of its . xref
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Code, 65915) requires local jurisdictions to adopt an implementation ordinance to ensure compliance with it. Terms under which this service is provided to you. 0000011691 00000 n
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. |\+@cq 4& Access Los Angeless enabling ordinance for the State Density Bonus Program. 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. (a)(2).) State Density Bonus Law (2020): SB 35 + AB 2162 0000012780 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). 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. 0
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. startxref
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Please click here to read or print the 2021 Guide. 0000005737 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. 201 0 obj
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Program Incentives. Incentives and Concessions. d~[T!NV . 0000008271 00000 n
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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. 0000002753 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. Department of Regional Planning, Community Development Commission. (i.e. 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). AB 2345 and AB 1763 Revised Memorandum (2022) 0000011464 00000 n
}k9/?NE2o,):k;U+"-;Nll,s%4'UMf,Cxpfe4=hS\}5qc_,W_lc.tqC]9~g\5Y_k]|l]A2Gwu43eg 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. Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. State Density Bonus Law (2015): AB 744. Incentives & Concessions; Parking; Qualifying Units. 0000014545 00000 n
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 . startxref
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No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. Effective September 22, 2017 . 0000004605 00000 n
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