My Breakdown of The New State Density Bonus Program (12.22 A.37 of the Los Angeles Municipal Code)

I'v been on the edge of me seat waiting for the release of the new....

State Density Bonus Program! As it was just released from LA City Planning, this new program utilizes many of the same incentives as the Transit Oriented Communities (TOC) program, however now includes Public Benefit Options, 100% Density Bonus, and other important new updates mentioned below.

In Short...

The State Density Bonus Program provides developers additional density allowances and incentives for creating affordable housing and targeted community developments, significantly enhancing project viability in competitive markets.

Eligibility Criteria

• Projects must be classified as Housing Developments or Shared Housing Buildings with five or more units.

• Required to reserve a percentage of units for specific income levels or targeted populations.

• Historic Resource demolitions are prohibited.

• Projects in Environmental Consideration Areas must comply with specific regulations.

Base Incentives

• Density Bonus: Projects offering affordable units can claim additional density bonuses, provided affordable units don't exceed 50% of the total development.

• Parking: No parking requirements within ½ mile of major transit stops. Elsewhere, parking requirements range from 1 to 2.5 spaces per unit depending on unit size. Bonus tip: parking spaces must be separately sold or rented for developments of 16 or more units.

Additional Incentives (Menu of Incentives) Developers can unlock further benefits if cost reductions are evident:

• Yard and setback reductions (up to 30%)

• Floor Area Ratio (FAR) increases up to 35% or 3.0:1, whichever is higher

• Height increases up to 11 feet or an additional story

• Reduced transitional heights and lot coverage increases (up to 20%)

• Open space and lot width relaxations

To Consider: LA City is now claiming to mandate the sale / rental of separate parking spaces... Parking spaces can no longer come included with my apartments rent... Arguably, this weirdly-intentioned regulation may directly perpetuate the frustrations of Affordable Housing and parking concerns in LA.

Other Important Aspects

• Public Benefit Options include childcare facilities, multi-bedroom unit incentives, and rehabilitation incentives for historic facades.

• Density calculations may incorporate land dedicated to streets or alleys, increasing project feasibility.

Conclusion The State Density Bonus Program isn’t just about maximizing space—it’s an innovative strategy driving affordable housing and vibrant community development. While it provides substantial benefits, developers must navigate eligibility carefully and consider all available incentives strategically.

Short Summary of the Top 3 Points:

• Clear eligibility rules and affordability requirements significantly influence project scope.

• Extensive base and additional incentives offer flexibility in project design.

• Some regulatory requirements, like separate parking rentals, may inadvertently complicate project execution.