Understanding the LA Density Bonus Program
The Los Angeles Density Bonus Program is an initiative designed to encourage the development of more affordable housing options in the city. By offering incentives to developers, the program aims to increase the supply of units available to low, moderate, and very low-income households.
Here's how it works:
Density Bonus: Developers who dedicate a portion of their projects to affordable housing units can build up to 35% more total units on their property than current zoning regulations would normally allow. This applies to projects in zones that allow multi-family housing.
Benefits for Developers: In addition to the density bonus, developers can qualify for various other advantages depending on the specific project and its needs. Here are some key examples:
Reduced parking requirements: The program allows for reductions in the number of required parking spaces. The specific reduction depends on the number of bedrooms per unit.
Increased building height: Projects can be built up to one additional story or 11 feet taller than the base zoning height. However, there are limitations near properties zoned R1 (single-family residential).
Relaxed landscaping requirements: Landscaping requirements can be reduced by up to 20%, but only if the project meets specific landscaping point requirements outlined in the program's regulations.
Averaging across parcels: For projects spanning multiple parcels, developers can average building height and open space requirements across the entire site. This can be beneficial for projects with some limitations on one parcel but more flexibility on another. However, to qualify for this benefit, at least 11% of the units must be reserved for very low-income households, 20% for low-income households, or 30% for moderate-income households.
Eligibility and Requirements:
Not all projects qualify for the Density Bonus Program. There are specific requirements that developments must meet. These include:
Types of Affordable Units:
There are different categories of affordable units within the program, each with income restrictions:
Very Low Income: Units reserved for households earning up to 50% of the Area Median Income (AMI)
Low Income: Units reserved for households earning up to 80% of AMI
Moderate Income: Units reserved for households earning up to 120% of AMI
The specific percentage of affordable units required to qualify for the program depends on the desired level of density increase (up to 35%). For instance, a project seeking the maximum 35% density bonus might need to dedicate a higher percentage of units to very low-income households compared to a project seeking a 20% density bonus.
Approval Process:
The process for obtaining approval for a Density Bonus Project varies depending on the number of incentives requested and any other discretionary actions needed. Projects with minimal additional requests (up to three "on-menu" incentives listed in the program) can receive approval through a ministerial process, which is generally faster and less complex. For projects requiring more extensive changes or additional discretionary approvals, a public hearing may be required.
Ensuring Affordability:
The program includes safeguards to ensure that the designated affordable units remain affordable for the intended income brackets for a set period. This is achieved through recorded covenants with the City. The length of the affordability period varies depending on the income category:
At least 30 years for low and very low-income units
10 years for moderate-income for-sale units
Impact on You:
The Density Bonus Program is intended to create a greater availability of affordable housing options throughout Los Angeles. This can benefit the community by:
Increasing the housing supply and potentially stabilizing rents
Promoting mixed-income neighborhoods
Encouraging development projects to incorporate affordable units
For Developers:
The program offers a path to constructing higher-density projects while fulfilling a community need for affordable housing. It provides incentives that can help offset the cost of including affordable units. Overall, the Los Angeles Density Bonus Program represents a collaborative effort between the City and developers to address the city's growing need for affordable housing.
Additional Notes:
Fee payment for applications can be deferred until issuance of a Certificate of Occupancy or two years after the City's final decision, whichever comes first. Deferral requires recording a covenant to ensure affordability is preserved. Building permits won't be issued until the fee is paid.