LA Expedite’s Look at LA's Housing Element Sites Ordinance


The Los Angeles housing market is notoriously tight, with affordable housing options in short supply. To address this challenge, the city has implemented a new ordinance that streamlines approvals for affordable housing projects on designated sites. This article unpacks the key provisions of this ordinance, explaining how developers and property owners can benefit from this initiative.

The Need for Affordable Housing in Los Angeles

According to the National Low Income Housing Coalition, a decent two-bedroom apartment in Los Angeles costs an average of $2,892 per month in 2024. This translates to a staggering 83% of the median wage needed to afford such housing. This situation creates a significant burden for low and moderate-income families, pushing many towards overcrowded or unstable housing situations.

The Los Angeles Housing Department estimates a shortage of over 450,000 affordable housing units across the city. This new ordinance aims to tackle this shortage by incentivizing the development of more affordable units.

Benefits of the Streamlined Approval Process

The ordinance establishes two categories of sites with faster approval tracks:

  • Prior Housing Element Sites: These are sites identified in previous Housing Element plans that are still viable for development. If your project allocates at least 20% of units for lower-income households, you may qualify for "Ministerial Approval." This streamlined process bypasses many bureaucratic hurdles, potentially saving significant time and resources.

  • Lower Income Rezoning Housing Element Sites: These are areas recently rezoned specifically to encourage affordable housing development. Similar to Prior Housing Element Sites, projects with a minimum of 20% designated affordable units can leverage Ministerial Approval. Additionally, these sites come with a minimum density requirement of 20 units per acre, including accessory dwelling units. This higher density allows for more efficient use of land while maximizing the number of affordable units created.

Preserving Existing Affordable Housing Stock

The ordinance prioritizes protecting existing affordable housing options. Developments on Housing Element Sites cannot be approved if they involve the demolition of occupied or vacant "protected units" unless all existing protected units are replaced. Protected units include those subject to rent control, income restrictions, or occupied by lower-income households within the past five years. This provision ensures that the overall stock of affordable housing in Los Angeles is not depleted during new development.

Maintaining Affordable Housing Capacity

The City remains committed to upholding its overall capacity for affordable housing throughout the Housing Element planning period. This means the Department of City Planning cannot approve projects on Housing Element Sites that reduce the total number of units planned for different income categories.

However, there are safeguards in place:

  • The department can approve a project with fewer units if it can demonstrate, with documented evidence, that the remaining Housing Element Sites are sufficient to meet the city's housing needs.

  • If sufficient sites aren't available, the department has 180 days to identify and rezone additional sites to fulfill the affordable housing needs.

Conclusion

This ordinance represents a significant step forward for affordable housing development in Los Angeles. By expediting approvals for qualified projects on designated sites, the city aims to bridge the gap in affordable housing options. Developers and property owners working on affordable housing projects can leverage this program to streamline the development process and contribute to creating a more equitable housing landscape in Los Angeles.

Disclaimer: The Housing Element Sites Ordinance is a recent initiative by the City of Los Angeles. While this information reflects the ordinance as currently implemented, some details may be subject to change.

For full details and legalities, consult the official ordinance on the LA City Official Page or contact us for professional guidance on Affordable Housing Projects at info@laexpedite.com or call 310-363-7973

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Key Updates on Executive Directive 1 (ED 1) for Affordable Housing Development (March 2024)

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A Blueprint for Affordable Housing Development in Los Angeles