Citywide Housing Incentive Program

Overview

Local Density Bonus Programs are designed to encourage the production of on-site affordable housing citywide. In Los Angeles, the Citywide Housing Incentive Program (CHIP) Ordinance offers three options for local density bonus programs including, the State Density Bonus Program, the Affordable Housing Incentive Program (AHIP), and the Mixed Income Incentive Program (MIIP). Each program streamlines review procedures and offers incentives for eligible project types in order to expand access to affordable housing near transit, jobs, along major corridors, and in particular cases, in higher opportunity areas.

The State Density Bonus Program offers development incentives for housing developments and serves as the City’s primary mechanism for implementing the State Density Bonus Law (Government Code Section 65915). The AHIP includes both state-required and local development incentives for 80% to 100% affordable developments, developments on land owned by faith-based organizations, community land trusts, and public agencies. The MIIP provides local incentives around transit served nodes, expands development bonuses for housing developments on or near major corridors in higher-opportunity areas of the City. The three programs function together to expand opportunities for affordable housing construction, with greater incentives for both 100% affordable developments under AHIP and projects in higher opportunity areas under MIIP. In conjunction with CHIP, the Resident Protections Ordinance establishes permanent tenant protections and replacement requirements for development projects and requires all affordable units provided in exchange for development incentives to be subject to a 99-year affordability covenants, with limited exceptions

For a detailed look at CHIP’s first six months of implementation, read the Six-Month Progress Report.

For a detailed look at CHIP’s first year of implementation, read the One Year Progress Report.

Program Details

To learn more about the State Density Bonus Program, AHIP, or MIIP, click on their respective name to be taken to their specific webpage.

State Density Bonus Program
Affordable Housing Incentive Program (AHIP)
Mixed Income Incentive Program (MIIP)

CHIP projects are eligible for three levels of review. Incentives are stackable but require progressively higher levels of review:


* AHIP projects can receive 1 waiver under Planning Ministerial Review

Please note that the State Density Bonus Program, AHIP, and MIIP have slightly different Menus of Incentives and Public Benefit Options. Each CHIP program uses the Maximum Allowable Residential Density (MARD) for varying eligibility thresholds.

The table below is a summary of Citywide Housing Incentive Program (CHIP) Procedures, where reviewing agencies and decision makers may include City Planning’s Zoning Review Division, the Director of Planning (DIR), or the City Planning Commission (CPC).




Program


Allowed Incentives		Ministerial
 		Planning Discretionary
 

Planning, Zoning Review
Planning, Expanded
Administrative
Review (EAR)
 
DIR (Appeal to CPC)		CPC
(CPC Final
Decision Maker)
 

State Density Bonus Program
Up to 4*
Base Incentives

Menu of
Incentives
Public Benefit Options

Incentives not on
the Menu of Incentives
 
N/A
Waivers

Projects seeking Density Bonuses greater than the Base Incentives in 12.22 A.37(e)
 

Affordable Housing Incentive Program
Up to 5*
Base Incentives

Menu of
Incentives
Public Benefit Options

Incentives not on
the Menu of Incentives

Up to 1
Waiver
 
Up to 3
Waivers
Over 3 Waivers

Mixed Income
Incentive Program
Up to 4*
Base Incentives

Menu of
Incentives
 
Public Benefit Options

Incentives not on
the Menu of Incentives
 
Up to 1 Waiver
Over 1 Waiver

* Per Government Code Section (GCS) 65915, an applicant may request up to 4 incentives (5 for One Hundred Percent Affordable Housing Projects) on or off the Menu of Incentives.


Note: All housing developments approved pursuant to Los Angeles Municipal Code (LAMC) 12.22 A.37, LAMC 12.22 A.38, and LAMC 12.22 A.39 shall comply with the Environmental Protection Measures (EPM) Handbook. To learn more about the EPM Handbook for Chapter I of the Zoning Code click here and to learn more about the EPM Handbook for Chapter 1A of the New Zoning Code click here. To learn more about how the EPMs are enforced for projects with five or more residential units on sites near active, idle, or plugged oil wells please click here.

Base incentives are bonuses or relief from local regulations that are offered by-right to eligible projects. Under State Density Bonus Law, these base incentives include additional density and parking relief. One hundred percent (100%) affordable developments are eligible for a base height incentive under state law. While all three programs can access the density and parking incentives (available under state law), AHIP and MIIP projects may utilize varying Floor Area Ratio (FAR) and height bonuses as base incentives above and beyond what state law offers.

 

Under State Density Bonus Law, projects providing the requisite number of affordable units may request up to four incentives (five if 100% Affordable as defined). The Menu of Incentives comprises the most common form of requested incentives. If a project limits requested incentives to those available on-menu, the project may access a more streamlined review procedure. These incentives include, but are not limited to: yard reductions, open space relief, deviations from lot coverage and lot width requirements, and relief from transitional height requirements.

 

Developers can request incentives not on the pre-vetted Menu of Incentives and waivers or reductions of any development standards that extend beyond the incentives enumerated by each local density bonus program provided that applicants can demonstrate that their request is necessary to build the affordable housing proposed or to allow for the project's physical construction.

 

Public Benefit Options offer projects the ability to utilize specific development bonuses in exchange for including community benefits as a part of their project. Public Benefit Options include but are not limited to an additional incentive in exchange for the provision of child care facilities, additional floor area and height for the construction of multi-bedroom units, and additional floor area for the rehabilitation of a surveyed historic resource facade.

 

CHIP Resources

For more information on the resources associated with the State Density Bonus Program, Affordable Housing Incentive Program (AHIP), and Mixed-Income Incentive Program (MIIP), expand the sections below. There is also a printable CHIP Procedures and Resources Guide (PDF) for download.

More information on how to determine if a project is eligible to do this can be found on the CHIP procedures and CHIP incentives PDF flowchart.  

CHIP Fact Sheet
State Density Bonus Program Fact Sheet
Affordable Housing Incentive Program Fact Sheet
Mixed Income Incentive Program Fact Sheet

For a detailed look at CHIP’s first six months of implementation, read the Six-Month Progress Report.

For a detailed look at CHIP’s first year of implementation, read the One Year Progress Report.

This table  includes a summary of CHIP cases received by Los Angeles City Planning. Note that listed projects are reflective of projects which have filed for a formal application and does not include any preliminary Planning applications or applications being reviewed by the Los Angeles Department of Building and Safety (LADBS) and Zoning Review Division.

This table is updated weekly

Please note these are case summaries of applications received by Los Angeles City Planning. Inclusion on this table does not necessarily mean that the cases have been approved or completed. All unit counts are approximate; this information is not finalized until construction permits are issued by the Los Angeles Department of Building and Safety (LADBS).

Los Angeles Department of Building and Safety (LADBS)
For questions about permit submittal requirements, contact the Los Angeles Department of Building and Safety (LADBS).

Los Angeles City Planning
For questions about how the CHIP Ordinance applies to specific addresses, contact the Affordable Housing Services Section at the Metro/Downtown Development Service Center (DSC).

For questions about zoning review, contact the Zoning Review Division at Figueroa Plaza.

State Density Bonus Program
 

Learn more about the State Density Bonus Program.

LEARN MORE
Affordable Housing Incentive Program
 

Learn more about the Affordable Housing Incentive Program.

LEARN MORE
Mixed Income Incentive Program
 

Learn more about the Mixed Income Incentive Program

LEARN MORE