Did You Know? AB 1287 Enhances the State Density Bonus Incentives

Developers can potentially double the State Density Bonus and increase concessions by allocating additional affordable housing units to a project

What Does AB 1287 Change? What is the Intention?

Allowable Density Increase, by Up to 2X

  • AB 1287, effective January 1, 2024, amends the State Density Bonus Law to allow developers to receive an additional density bonus if the project has already allocated the maximum amount of affordable housing for very-low-income, low-income, or moderate-income units. This effectively doubles the potential allowable density increase on eligible sites.

    • For example, if a developer plans to build the qualifying number of very-low-income units to receive a density bonus, the project may also receive another density bonus if the developer commits to a qualifying number of low- or moderate-income units as well.

    • The second density bonus is provided on a sliding scale. In other words, the percentage of bonus units increases incrementally as more affordable units are incorporated into the plan.

Increased Concessions

  • AB 1287 increases the number of concessions (IE. relaxing certain site development standards or regulations) that may be awarded based on the amount of affordable housing provided. Projects with at least 16% very low-income units can receive four concessions, and those with 100% lower-income units can receive five concessions.

Conforming to Judicial Opinions

  • The bill also amends the existing State Density Bonus Law to conform to recent judicial opinions, limiting the information local governments can require to determine the need for concessions or waivers.

Uncertain Impact on Housing Crisis

  • AB 1287 is intended to address California's housing crisis by providing tools to encourage market-rate and affordable housing production.


 

An Example of How the State Density Bonus Has Changed

Existing Law

  • For a 100-unit project under the existing density bonus incentives, allocating 15% to very-low-income units results in a 50% density bonus, allowing up to 150 units.

Amended Law AB 1287

  • Under the new density bonus incentives, if the same project allocates 15% to very-low-income and 15% to moderate-income units, it can receive an additional 50% bonus, allowing up to 200 units.

Table of Additional Incentives

 
 
 

 

Sources:

  • https://legiscan.com/CA/text/AB1287/id/2845266

  • https://www.hansonbridgett.com/publication/231207-4021-ab1287-maximizes-housing-production

  • https://www.reubenlaw.com/increased-state-density-bonus-available-next-year/

 
 

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