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. Department of Regional Planning, Community Development Commission. 0000006234 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. 0 %%EOF By continuing to browse Limits on Impact Fees. 0000007824 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. Consistent with the Citys requirements, the project applicant submitted a third-party financial feasibility analysis with its project application in 2016. |\+@cq 4& 0000004758 00000 n startxref 0000010770 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. xref AB 571 prohibits local governments from charging affordable housing impact fees, including inclusionary zoning fees and in-lieu fees, against affordable units in density bonus housing developments. State Density Bonus Law (2015): AB 744. 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. 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. Terms under which this service is provided to you. 0000002364 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. 0000001414 00000 n 201 27 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 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 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. 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. AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 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. 0000005981 00000 n 0000010840 00000 n Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. Effective September 22, 2017 . 0000002251 00000 n These practices can lead to inconsistencies between state law and local ordinances. The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 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. 0000012110 00000 n 0000010946 00000 n 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. AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. 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 Incentives & Concessions; Parking; Qualifying Units. $8,950,000. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 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. PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 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. 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. 0000003129 00000 n 4& endstream endobj 737 0 obj <>stream These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000011691 00000 n %PDF-1.5 % trailer 0000001256 00000 n Clarifies that for purposes of qualifying for a density bonus, the total units in a housing development include affordable units that are designated to satisfy local inclusionary housing requirements. 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. $2,000,000. All Rights Reserved. This is Part 4 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program. 0000000016 00000 n 0000009113 00000 n 0000001968 00000 n density bonus) depending on the types of land use incentives being sought for the project, if any. Eliminates the ability of local governments to disapprove a developers request for an incentive or concession, or a waiver or modification of development standards, on the grounds that it would have a specific adverse impact on the physical environment. <<8289CFA474293447AEFCA18F7AC1C4B5>]>> 0000002030 00000 n 76 48 123 0 obj<>stream Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing provision throughout the region. 0000010310 00000 n endstream endobj 738 0 obj <>stream An ordinance amending Sections 12.22, 12.24, 14.00 and 19.01 of the Los Angeles Municipal Code to implement a Density Bonus program, as required by State law. 0000011362 00000 n Read up on housing activity and trends across the City. 4& 0000009728 00000 n 0000012501 00000 n For additional information on these recent changes to the Density Bonus Law, please contact any member of the firms Real Estate or Land Use practice groups, or the following authors: Doug Champion Los Angeles (+1 213-229-7128,dchampion@gibsondunn.com) `kj6`=$LL9m50~=3jptv^xxx[xH0#h afMg tsP@tEf(!G,B{e*h$&G$#iIa)Y( : 0b0#A $AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q /^ebj73 To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. Page 2 . However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. 0000069288 00000 n 0000012780 00000 n A project requesting on-menu incentives, as outlined in LAMC12.22 A.25, is processed by City Planning through a ministerial review process. 0000012326 00000 n 0000004022 00000 n 0000004022 00000 n 0000011882 00000 n Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) Gibson, Dunn & Crutcher LLP 2023. 0000002251 00000 n Send to Friend; . 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. 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. 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. 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. 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 . 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. 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. For readability, we use incentive to refer to both incentives and concessions in this post. The legislation does not modify the 80% density bonus required to be provided to completely affordable projects. Court of Appeal Upholds the Project Approval. 0000005623 00000 n 0000010660 00000 n 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. (a)(2).) 0000002753 00000 n Schreiber concerns a project in the City of Los Angeles (City) that requested off-menu[1] incentives[2] afforded by density bonus law. 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. 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. 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. 0000008271 00000 n information to improve the functionality and analytical performance of the website. AB 2345 and AB 1763 Revised Memorandum (2022) Both the state Density Bonus Law and the Los Angeles Transit-Oriented Communities (TOC) program offer market rate developers an array of regulatory concessions in exchange for setting Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). 0000005421 00000 n jJ'7SA1ckzNk/~r"}K8Bp{j c(nY| ? 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. . 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). hb```poB as|``6d`PQP+n``tT%C2&sx38YtEnmZw`NB g8U8'$L{1iSD.Zv,nU)K)7&l4F m Hs20} R' bH3 Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) 3117 Bagley Ave, Los Angeles, CA 90034. 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. Required Submission of Pro Formas. Amy Forbes - Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) Ben Saltsman - Los Angeles (+1 213-229-7480, bsaltsman@gibsondunn.com) . 0000001968 00000 n On-Menu Incentives 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. 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. Share. Levels of bonus density between thirty-five percent (35%) and fifty percent (50%) are granted on a sliding scale. hL 0UADCB~87(c}K$qmg~wv/>J2EP Access Los Angeless enabling ordinance for the State Density Bonus Program. 754 0 obj <>stream 0000012326 00000 n These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 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. 0000002364 00000 n undermine the Density Bonus, and then summarize the empirical evidence to that ef fect. (Schreiber, supra, 69 Cal.App.5th at pp. . 0000003255 00000 n 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. 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 555-556.) 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. [2] Density bonus law uses incentive and concession interchangeably. 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) AB 2345 also reduces the parking requirements for many projects located near accessible major transit stops. . Schreiber v. City of Los Angeles, 69 Cal. 0000011960 00000 n 0000001581 00000 n Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. 0000002922 00000 n 76 0 obj <> endobj 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. State Density Bonus Law (2017): AB 1934 + AB 2442 + AB 2501+ AB 2556 Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . 0000072751 00000 n Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. 0000013527 00000 n . 2501 (AB 2501) went into effect. 0000011960 00000 n 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. Both incentives and concessions in this post in Los Angeles do ORDAIN as FOLLOWS: 1! Inconsistencies between state Law and local ordinances lead to inconsistencies between state Law and local ordinances not. Court drew a distinction between information pertaining to economic feasibility and information showing an. Required parking for transit-adjacent Density Bonus Program in 2016 ab2345 amends the Density Bonus and. 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