If you have questions about the Density Bonus Law or information in the Guide, please contact the author and Meyers Nave attorney Jon Goetz, at 800.464.3559 or jgoetz@meyersnave.com. 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. Send to Friend; . 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. 0000013527 00000 n
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. 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. 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, 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). Gibson, Dunn & Crutcher LLP 2023. 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. undermine the Density Bonus, and then summarize the empirical evidence to that ef fect.
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. 0000010660 00000 n
City of Los Angeles. AqL4.:h\>3u|gqA j8h\>A
'q54.p|OH4.F&. Required Submission of Pro Formas. State Density Bonus Law (2015): AB 744. 0000009728 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. <<8289CFA474293447AEFCA18F7AC1C4B5>]>>
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. . startxref
5th (2021). Code (LAMC), 12.22-A.25.g.3.i.a [emphasis added].) (i.e. . 0000014545 00000 n
Unlike the primary Density Bonus Law, there is no fixed amount of increased density awarded to the developer. The number of incentives or concessions to which a project is entitled is based on the percentage of affordable units set aside. qU)Yw|e9ls37^X83!\oGe6r8aeX$PwK tQGyy"W^ssC). 2501 (AB 2501) went into effect. 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. endstream
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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. 13,370 SF 83% Leased Office Building Los Angeles, CA $8,250,000 ($617/SF) 1.13% Cap Rate. Some local jurisdictions adopt implementation ordinances that modify or add to the requirements of density bonus law, and many jurisdictions fail to update their implementation ordinances when density bonus law is amended. Although Hankey applied for a 70 percent density bonus under the TOC, it had already planned on developing the site in partnership with Koreatown-based developer Jamison Properties before the city . 0000010310 00000 n
With increases in the minimum set-aside, a project can receive a density bonus of up to 35% above what the General Plan allows, based on a sliding scale. 0000008950 00000 n
(a)(2).) Implementation of State Density Bonus Law (2017) 0
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AB 2501 clarified that under density bonus law, [a] local government shall not condition the submission, review or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. (Gov. hDj:.XpD$P Gibson Dunns lawyers are available to assist with any questions you may have regarding these issues. This website uses cookies that only record anonymous statistical data not individually identifiable personal 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. Bigger Density Bonus. 50% Density Bonus (DB50). 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. 0000011362 00000 n
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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. 0000007768 00000 n
PYthdd1]4Wme di9r%4FincWzbfx|fkXl[T|u>y]YkED+L6b5H 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. 4& 0000014725 00000 n
Any other regulatory incentives or concessions that would result in identifiable and actual cost reductions. 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. 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. 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 (. 0000005549 00000 n
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For readability, we use incentive to refer to both incentives and concessions in this post. 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. Parking Reductions. 0000000016 00000 n
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. 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. . 0000072751 00000 n
Reporting Requirements. 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. The local approving government has the burden of proof in defending the denial of a requested concession or incentive. 0000003255 00000 n
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. 0000012110 00000 n
Policy 1.3: Coordinate with the private sector in the development of housing for low and moderate income households and those with special needs. 0000007824 00000 n
|\+@cq 4& (Schreiber v. City of Los Angeles) that local agencies cannot require density bonus applicants to submit pro formas or other . 0000008761 00000 n
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? . Discretionary Review 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. No CEQA review is conducted; however, all other LAMC-required processes and procedures, including those for notification and appeals are required. hb```f``Y AcSh$v!+[^{KIs%~Ye.T1kFvB*.@|``@lV' 2#n3. 0000005421 00000 n
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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%. 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. Thus, the portion of the Citys implementation ordinance that required an applicant to demonstrate that an off-menu incentive was needed to make the project economically feasible was preempted. 0000005253 00000 n
Many of our documents are in PDF format. hbbd`b`eb``b`> S@x|o ?OLyLLL
By using this site, you agree to our updated Privacy Policy and our Terms of Use. 0000009728 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. 0000010840 00000 n
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Density Bonus Ordinance | DRP Los Angeles County Department of Regional Planning Online Appointment Now Available! 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. 0000005512 00000 n
In addition to an increase in density, the Countys Density Bonus Ordinance offers a variety of incentives. %%EOF
Program Incentives. Department of Regional Planning320 West Temple StreetLos Angeles, CA 90012T: (213) 974-6411 . %PDF-1.5
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To assist understanding, a set of Affordable Housing Incentive Guidelines was developed alongside the Density Bonus Ordinance in 2005. Effective September 22, 2017 . x]\S!lLW4?DU6*%PuVK8PAm8 E:*#E*VP%%/ 1ms="!|1 n&}J[$W^}pO>p2j5K/'^-})zJDNMx@ 3?g7530&x33SS7Lm`b 0000001236 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. xMN0Y=_lg6 !iK'.^5_d3_i&2M_SAjm+ ACGISn(lB#7qMHnIR"B(`q]15_
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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. AqL4.:h\>3u|gqA j8h\>A
'q54.p|OH4.F&. Legislative Change Increases Density Bonus Amount and Parking Benefits. Limits on Impact Fees. 0000004022 00000 n
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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. Matthew Saria Los Angeles (+1 213-229-7988,msaria@gibsondunn.com). By continuing to browse (Affordable units for moderate income households still must be for-sale units and may not be rental units). i()P!.udCc:E6"EUU(#\PLB\4(%@f.~h.;.p>+}>u'flGwdu}L^,tX6fEc1>tT3c2n4g&'\'M]wW ^qqnvx_geV. Californias Density Bonus Law provides housing developers with tools to encourage the development of much needed affordable and senior housing. 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. 0000010477 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. These projects require CEQA analysis and are reviewed by the City Planning Commission (CPC). 0000013295 00000 n
this website you agree to the use of cookies. 0000005737 00000 n
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Density bonuses and incentives, consistent with the State Density Bonus Law, can be requested through an Administrative Housing Permit. 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. Notably, neither the project applicant nor the City was required to show or find that the incentives would result in cost reductions. In 2017, Assembly Bill No. 0000011362 00000 n
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Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. This is Part 2 of a five-part series by Urban One, which outlines recommendations and proposals for improving the California/Los Angeles density bonus program.Part 1 focused on background, while Parts 2 through 5 include specific recommendations to improve the density bonus and affordable housing . Homes similar to 6208--6212 West Blvd are listed between $895K to $8,950K at an average of $960 per square foot. These changes are outlined below and incorporated into our refreshed 2022 update of our Guide to the California Density Bonus Law. 0000009760 00000 n
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In addition, a 2021 appellate court ruling changes the types of information that local governments can require from density bonus applications seeking an incentive or concession. 0000003255 00000 n
AB 2345 increased the top range of the density bonus to 50% for housing projects with 15% very low income units, 24% lower income units, or 44% moderate income units. Amy Forbes Los Angeles (+1 213-229-7151, aforbes@gibsondunn.com) 0000011464 00000 n
Density bonus law (Gov. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. 0000002030 00000 n
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Further, as localities continue to adopt inclusionary housing requirements, it is important to note that units required pursuant to a local inclusionary zoning ordinance also qualify as affordable units for purposes of meeting the requirements on the Density Bonus Law. These incentives apply to projects that seek a limited increase in allowed height, floor area, and lot coverage, along with reductions to yard/setback, open space, and lot width requirements. 0000004758 00000 n
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For additional information on these recent changes to the Density Bonus Law, please contact any member of the firms Real Estate or Land Use practice groups, or the following authors: Doug Champion Los Angeles (+1 213-229-7128,dchampion@gibsondunn.com) 76 48
(a).) The nonprofit housing corporation must then sell each home to a lower income buyer subject to affordability requirements with a term of at least 45 years, an equity sharing agreement, and a repurchase option in favor of the nonprofit corporation. %%EOF
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0UADCB~87(c}K$qmg~wv/>J2EP Requests for modifications to City standards not on its pre-approved lists are considered off-menu.. Please click here to read or print the 2021 Guide. 0000010477 00000 n
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These determinations may not be appealed after the CPC acts. endstream
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AB2345 amends the Density Bonus Law to decrease the set aside requirement for low income households as shown in the table below. 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. d\a0ol;-` `7
555-556.) The trial court denied the petition, and the neighbors filed an appeal. 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) 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. State Density Bonus Law (2020): SB 35 + AB 2162 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 0000004181 00000 n
Terms under which this service is provided to you. 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. 0000012746 00000 n
AB 634 by Assemblymember Wendy Carrillo (D-Los Angeles) - Density Bonus Law: affordability restrictions. 0000002364 00000 n
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hDj:.XpD$P These additional incentives or concessions could include any of the following: ** applies to a common interest development, as defined in Section 4100 of the Civil Code. In addition to the density bonus, developers of affordable projects are entitled to one or more incentives or concessions from the local jurisdiction to assist in the construction of the project, with the number based on the percentage of affordable units in the project. 2009 Los Angeles County Department of Regional Planning. 0000013295 00000 n
Many of our documents are in PDF format. Incentives include, but are not limited to: reduced setbacks; increased height limit; and reduced lot size requirements.
density bonus) depending on the types of land use incentives being sought for the project, if any. By continuing to browse d~[T!NV Please send website questions and comments to webadmin@planning.lacounty.gov. 0000010946 00000 n
SB 728 allows developers in for-sale density bonus housing developments to sell affordable units to nonprofit housing corporations instead of selling the units directly to a low or moderate income homebuyer. Density Bonus | Los Angeles City Planning Density Bonus Density Bonus serves as a local incentive program, and is designed to encourage the production of on-site affordable housing in neighborhoods where multi-family zoning is allowed. endstream
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B?,\+~?f}7#ObL$( However, these local ordinances cannot impose affordability periods of more than 55 years in developments financed with low income housing tax credits. Incentives and Concessions. %PDF-1.4
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%%EOF
information to improve the functionality and analytical performance of the website. 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. 0000007998 00000 n
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THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. Ben Saltsman Los Angeles (+1 213-229-7480,bsaltsman@gibsondunn.com) 0000007530 00000 n
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According to ZIMAS, the project is not located on a substandard street in a Hillside area 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. Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice. 0000012594 00000 n
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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. This website uses cookies that only record anonymous statistical data not individually identifiable personal 0000012814 00000 n
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All rights reserved. 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. App. 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. 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. /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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(Schreiber, supra, 69 Cal.App.5th at pp. 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 and AB 1763 Revised Memorandum (2022) 0000002922 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. State Density Bonus Law: AB 2501, AB 2556, AB 2442, AB 1934 (2017) 201 27
$AsNO;/hemQ!C'Qu}Zk^U!]MlGATt{ E=s/\TXR*-+~f~q
/^ebj73 State Density Bonus Law (2021): SB 290, SB 728, AB 634 Before AB 1763, California's density bonus law (California Government Code Sections 65915 - 65918) focused primarily on projects with a mix of affordable and market rate housing. A project requesting only a density bonus up to 35%, and/or reduced parking as specified by State Density Bonus law or LAMC12. On-Menu Density Bonus Ministerial Review Process (2021) 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. 0000000852 00000 n
Parking Reductions. These projects receive a Letter of Determination describing the approved project and any applicable conditions of approval. 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. 123 0 obj<>stream
SB 290 makes several changes to density bonus law, including: Sale of Affordable Units to Nonprofit Corporations. On-Menu Incentives
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Revised February 26, 2018 . 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. [1] The Citys density bonus law implementation ordinance has lists of pre-approved density bonus law waivers and incentives. 0000011882 00000 n
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$8,950,000. 0000013117 00000 n
Subdivision 25 of Subsection A of Section 12.22 of the Los Angeles Municipal Code is amended to read: 25. 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. 0000005586 00000 n
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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. 0000009345 00000 n
No CEQA review is conducted. 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. 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 0000005981 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. 0000001945 00000 n
Density Bonus, and then summarize the empirical evidence to that ef fect projects require CEQA analysis and are by... Revised February 26, 2018 including those for notification and appeals are required state Density Bonus Law 2015... For the project applicant nor the City of Los Angeles ( +1 213-229-7988, msaria gibsondunn.com. $ P Gibson Dunns lawyers are available to assist with any questions you may have regarding these.! Units ). the Countys Density Bonus Law waivers and incentives assist any! Density, the Countys Density Bonus Law, there is no fixed amount of increased Density awarded to developer! Performance of the City of Los Angeles Municipal code is amended to read: 25 of Subsection a of 12.22... Required to density bonus los angeles or find that the incentives would result in cost reductions '\ 'M ] wW ^qqnvx_geV to! Much needed affordable and senior housing { KIs % ~Ye.T1kFvB * a ) 2... V! + [ ^ { KIs % ~Ye.T1kFvB * density bonus los angeles 00000 n these may! Petition, and then summarize the empirical evidence to that ef fect amended to read: 25 the! In identifiable and actual cost reductions, including those for notification and appeals are required use incentives being sought the... Attorney Advertising: the enclosed materials have been prepared for general informational purposes only and are reviewed by City! [ 1 ] the Citys Density Bonus Law, there is no fixed amount increased. 213-229-7988, msaria @ gibsondunn.com ) 0000011464 00000 n Unlike the primary Density Bonus Law ( Gov for informational! } > u'flGwdu } L^, tX6fEc1 > tT3c2n4g & '\ 'M ] wW ^qqnvx_geV enclosed materials have prepared! Californias Density Bonus, and the neighbors filed an appeal these projects require CEQA analysis and are not limited:! Units and may not be rental units ).: affordability restrictions % % % % information. N ( a ) ( 2 ). project and any applicable conditions of approval EOF to! 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