Density Bonuses

Communities can adopt zoning and subdivision regulations to allow a density bonus above what is normally permitted on the site in exchange for the provision of some below-market-rate housing units. The bonus is usually specified as a percentage of the density allowable under existing zoning regulations.

The State of California enacted significant changes to the state's density bonus law, which went into effect on January 1, 2005. The legislation, SB 1818 introduced by Senator Hollingsworth (chaptered as Government Code Section 65915-65918), requires cities and counties to overhaul their ordinances to bring them into conformance with new state mandates.

The new law significantly reduces the number of units a developer must provide in order to receive a density bonus and requires cities and counties to provide between one to three concessions, depending upon the percentage of affordable units that the developer provides. It also imposes a new land donation rule, and statewide parking standards.

An overview of the new Density Bonus, along with answers to frequently asked questions on the topic, has been prepared by the California Chapter of the American Planning Association with the help of Barbara E. Kautz at Goldfarb & Lipman LLP. View the guide at http://www.goldfarblipman.com/art_sb1818faq.html.

TheAmerican Planning Associationhas also created a model Affordable Housing Density Bonus Ordinance.