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. 0000014725 00000 n This website uses cookies that only record anonymous statistical data not individually identifiable personal Density Bonus Law Impacts and Schreiber v. City of Los Angeles. On-Menu Incentives 0000002922 00000 n 3117 Bagley Ave, Los Angeles, CA 90034. startxref These determinations may not be appealed after the CPC acts. 0000012814 00000 n 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. dXn7@ C 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. By continuing to browse 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) However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. . 123 0 obj<>stream 0000010310 00000 n 201 27 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. The density bonus law, enacted in 1979, incentivizes developers to construct more affordable housing by providing density bonuses for projects that incorporate on-site affordable units or donate qualifying land for the construction of affordable units. The primary take-away from this case is to always check a density bonus local implementation ordinance against state law. 0000007998 00000 n 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. 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. 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. Incentives & Concessions; Parking; Qualifying Units. Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. Discretionary Review [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. 0000002753 00000 n Required Submission of Pro Formas. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. 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. 0000002233 00000 n 0000000016 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). In 2017, Assembly Bill No. 0000013117 00000 n 0000008761 00000 n AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. 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. 0000004605 00000 n 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. 0 0000013708 00000 n Effective September 22, 2017 . You can download Adobe Reader by clicking this link. Affordable Housing Incentive Guidelines (2005) Gibson, Dunn & Crutcher LLP 2023. 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 . 0000012326 00000 n 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. AB 571 by Assemblymember Chad Mayes (I-Rancho Mirage) - Planning and zoning: density bonuses: affordable housing. 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. 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 . Reporting Requirements. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 0000002251 00000 n 0000013295 00000 n 0000009760 00000 n %%EOF 0000000852 00000 n AB 2345 lowers the required percentage of lower income units required to obtain multiple incentives and concessions. 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. 0000012746 00000 n 0000009113 00000 n 4& 0000004181 00000 n 0000010310 00000 n Legislative Change Increases Density Bonus Amount and Parking Benefits. 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 0000004758 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. 0000014545 00000 n information to improve the functionality and analytical performance of the website. The vast majority of jurisdictions in Los Angeles County do not have any renter protection measures (such as rent stabilization). 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. 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. 0 AqL4.:h\>3u|gqA j8h\>A 'q54.p|OH4.F&. City of Los Angeles. 0000008271 00000 n 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 trailer <]/Prev 129846/XRefStm 1236>> xb```a``Uc`c`H @16,p5 B?,\+~?f}7#ObL$( 0000007824 00000 n trailer 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. 0000001581 00000 n 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. Page 2 . 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. %PDF-1.5 % 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. 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. 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. 0000005737 00000 n 0000002030 00000 n 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. 0000001945 00000 n AB 2345 amends the Density Bonus Law to increase the maximum density bonus from thirty-five percent (35%) to fifty percent (50%). By continuing to browse These projects are not subject to an appeal. 0000009519 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. hDj:.XpD$P Rendering of TCA Architect's Camden Glendale apartments, which received a 32.5% density bonus. The Court drew a distinction between information pertaining to economic feasibility and information showing that an incentive would result in cost reductions. While the City could request the latter, AB 2501 prohibited the City from requesting the former. information to improve the functionality and analytical performance of the website. Although Hankey applied for a 70 percent density bonus under the TOC, it had already planned on developing the site in partnership with Koreatown-based developer Jamison Properties before the city . 0000010840 00000 n x]nP}$t9A,z>A,rYtHx[=8S6z_S{//_o2~_o{s}:{].fnSTNiS^/mWv|,i:Z60_r^mQV(+5e,b*(RX%TY%U6,,(*e(Je9Tc%KhiE*Z:*b1hL>%hL>F a154&c|+4& 0000011464 00000 n Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) 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. xref PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 555-556.) 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. 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