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. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000001945 00000 n However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 0000014725 00000 n All Rights Reserved. 0000001256 00000 n 0000002030 00000 n 0000010840 00000 n 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. 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. To the extent the local ordinance requires an applicant to do more than density bonus law, it is preempted. startxref 0000004181 00000 n 0000008950 00000 n 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. No CEQA review is conducted. 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 %PDF-1.6 % Incentives & Concessions; Parking; Qualifying Units. (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 0000009113 00000 n Many of our documents are in PDF format. 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). 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. 0000012814 00000 n 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. 0000010946 00000 n These practices can lead to inconsistencies between state law and local ordinances. Send to Friend; . 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. To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. 0000002233 00000 n 0000013708 00000 n Court of Appeal Upholds the Project Approval. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> 0000000852 00000 n Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. Affordable Housing Incentive Guidelines (2005) hL 0UADCB~87(c}K$qmg~wv/>J2EP $AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q /^ebj73 0000011362 00000 n 123 0 obj<>stream 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. 0000004758 00000 n 0000000016 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. 0000012501 00000 n 0000011960 00000 n Parking Reductions. Please send website questions and comments to webadmin@planning.lacounty.gov. For more information please refer to our Privacy Policy. trailer 0000002922 00000 n 0000008761 00000 n 2501 (AB 2501) went into effect. density bonus) depending on the types of land use incentives being sought for the project, if any. 0000005981 00000 n dXn7@ C In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. 0000010477 00000 n These projects are not subject to an appeal. SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. Privacy Statement. 0000002364 00000 n Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. 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). AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. Department Memorandums 0000010840 00000 n 0000005253 00000 n . 2009 Los Angeles County Department of Regional Planning. 76 0 obj <> endobj 0000011691 00000 n All rights reserved. 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. x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b 0000010660 00000 n 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. 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. This is Part 5 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. 0000011960 00000 n `kj6`=$LL9m50~=3jptv^xxx[xH0#h afMg tsP@tEf(!G,B{e*h$&G$#iIa)Y( : 0b0#A Discretionary Review 0000004605 00000 n 2009 Los Angeles County Department of Regional Planning. (Schreiber, supra, 69 Cal.App.5th at pp. 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. 0000009728 00000 n 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. 0000001581 00000 n information to improve the functionality and analytical performance of the website. 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. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. You can download Adobe Reader by clicking this link. 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. 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. 0000008271 00000 n <]/Prev 129846/XRefStm 1236>> This change results in a significant reduction in required parking for transit-adjacent density bonus housing projects that include units with two or more bedrooms. 0000002233 00000 n 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. These legislative changes are outlined below and incorporated into the 2021 update of our Guide to the California Density Bonus Law. hDj:.XpD$P Terms under which this service is provided to you. 76 0 obj <> endobj By continuing to browse For readability, we use incentive to refer to both incentives and concessions in this post. 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. 0000002251 00000 n 0000012326 00000 n 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. No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. 0000012780 00000 n The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. AB 602 by Assemblymember Tim Grayson (D-Concord) - Development fees: impact fee nexus study. 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. 0000002030 00000 n Lauren Traina Los Angeles ( +1 213-229-7951, ltraina@gibsondunn.com) Replacement of Existing Residential Dwelling Units. 76 48 Provides parking standards of one-half space per bedroom for housing developments which include at least 40% moderate income units that are located within a half mile of a major transit stop. 0000004022 00000 n Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3 0000009345 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. 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. 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. These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 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. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. %%EOF 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. 0000068446 00000 n 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. 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. . dXn7@ C For more information please refer to our Privacy Policy. (65915, subd. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 0000014545 00000 n 0000001236 00000 n 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. 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. 0000012594 00000 n 201 0 obj <> endobj endstream endobj 734 0 obj <> endobj 735 0 obj <>/Rotate 0/Type/Page>> endobj 736 0 obj <>stream Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. 0000009760 00000 n %PDF-1.5 % 0000013117 00000 n information to improve the functionality and analytical performance of the website. 0000004426 00000 n Furthermore, the Countys Density Bonus Ordinance provides waivers or modifications to development standards, requests for incentives that do not meet the States criteria for qualified affordable housing developments, and up to a 50% density bonus for senior citizen housing developments through a Discretionary Housing Permit. In 2017, Assembly Bill No. 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. 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 . 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. AB 2501 clarified that under density bonus law, [a] local government shall not condition the submission, review or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. (Gov. 0000010310 00000 n Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) AB2345 amends these parking ratios to decrease requirements for two and three bedroom units, as shown in the table below. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. Many of our documents are in PDF format. 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. |\+@cq 4& 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. this website you agree to the use of cookies. 0000013295 00000 n 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. 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. 0 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) (0[yd JivE!X$~{E4tp{ !vI H*9&> 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. 0000014545 00000 n 0000005253 00000 n 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. Off Menu Incentives and Waivers of Development Standards xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( Please click here to read or print the 2021 Guide. 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 0 Overlay Zone or on the City of Los Angeles list of Historical-Cultural Monuments. 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. 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. 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. 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 (. endstream endobj 737 0 obj <>stream endstream endobj 738 0 obj <>stream d~[T!NV Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. 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. 0000001968 00000 n 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. 0000001414 00000 n Density Bonus Law Impacts and Schreiber v. City of Los Angeles. 0000003255 00000 n Los Angeles Municipal Code (LAMC) Section 12.22 A.25 authorizes the Director of Planning to approve applications for Density Bonus requesting up to three On-M enu Incentives; and the City Planning Commission (CPC) to approve applications for Density Bonus requesting Off-Menu Incentives or Waivers of Development Standards. 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. 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$F'2aqXk~bFK{Iz2?/qk,=Z:J Z3:{,B hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 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. Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. 0000005737 00000 n 0000012780 00000 n . 0000012814 00000 n hDj:.XpD$P hbbd`b`eb``b`> S@x|o ?OLyLLL 0000010477 00000 n Effective September 22, 2017 . 0000011532 00000 n 0000009728 00000 n 3117 Bagley Ave, Los Angeles, CA 90034. qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). Bigger Density Bonus. 0000000016 00000 n Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. Privacy Statement. 0000002922 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. 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. Find that the incentives would result in cost reductions Angeles ( +1 213-229-7988, msaria @ gibsondunn.com Replacement... Refer to our Privacy Policy for notification and appeals are required this service is provided to affordable! 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