The California Bonus Law
The "California Bonus Law," also known as the "Density Bonus Law," is an innovative way of motivating developers to build affordable housing. The density bonus law states that local governments can give a developer permission to build at an higher density than the zoning permits if the developer offers affordable residences inside the development.
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History
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California first passed the Bonus Density Law in 1979. The law was amended in 1989. It mandated that every city and county adopt a density bonus and required all local governments to give developers who offer affordable residences in their new developments a 25 percent density bonus. State law also mandates a city or county grants a minimum of one density bonus and permits additional housing incentives for builders who want to build affordable housing for lower-income families.
Significance
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As an example of how the bonus density law works, if the zoning parcel allows 60 apartments to be built, a builder could increase the number by 15 more. This would mean, however, that at least six of the apartments had to be made affordable to lower-income families. The density bonus is more for apartments than single family zones.
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Features
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The density bonus requirements come into effect when the developers set aside at least 20 percent of the total residences (units) as affordable to low-income households; at least 10 percent of the total residences (units) as affordable to very low-income households; or at least 50 percent of the residences (units) for occupancy by "qualifying residents" such as senior citizens.
Benefits
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According to Inclusionary Housing.com, some of the building incentives may include a reduction in site development standards, a modification of zoning code requirements, and other regulatory incentives proposed by the builder, city or county that add up to identifiable cost reductions.
Other Features
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In 2002, the city of Los Angeles began allowing 35 percent density bonuses in certain transit zones in order to allow smoother traffic flow. This promotes new housing in areas that are well-served by the city's public transportation.
Considerations
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A project that is given a density bonus must keep these units affordable to low-income households for a minimum of 30 years.
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References
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