Citywide Housing Incentive Program

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 80-100% 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. The Resident Protections Ordinance requires all affordable units provided in exchange for development incentives available in these programs to be subject to 99 year affordability covenants, with limited exceptions.

 

Program Incentives

Base Incentives
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 density bonuses and parking relief.  One Hundred Percent Affordable developments are further eligible for a base height incentive under state law. While in all three programs projects can access the density and parking base incentives (available under state law), in AHIP and MIIP projects may utilize varying floor area ratio (FAR) and height bonuses as base incentives above and beyond what state law offers.

 

Menu of Incentives
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.

 

Incentives Not on the Menu of Incentives and Waiver
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 incentive 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
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.

 

Please note that the State Density Bonus Program, AHIP, and MIIP have slightly different Menus of Incentives and Public Benefit Options.

 

Citywide Housing Incentive Program - Procedures and Resources

For more information on the resources and procedures associated with the State Density Bonus Program, Affordable Housing Incentive Program (AHIP), and Mixed Income Incentive Program (MIIP), please review the information below.

The table below is a summary of Density Bonus Procedures for the Local Density Bonus Programs, where decision makers may include the  Los Angeles Department of Building and Safety (LADBS), Director of Planning (DIR), or the City Planning Commission (CPC).




Program


Allowed Incentives		Ministerial 
 		Planning Discretionary 
 

LADBS
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 1 Waiver
Over 1 Wavier

Mixed Income 
Incentive Program
Up to 4*
Base Incentives

Menu of Incentives 
 
Public Benefit Options

Incentives not on
the Menu of Incentives 
 
Up to 3 Waivers
Over 3 Waivers

* 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.

Ordinance No. 188477 - Ch 1
Ordinance No. 188478 - Ch 1A

Forms - Chapter 1 (Original Zoning Code)
CP13-4043 Affordable Housing Referral Form

Forms - Chapter 1A (New Zoning Code)
CP13-4043 Affordable Housing Referral Form

Implementation Memos
Memorandum of Implementation of State Density Law AB 1287 (2024)
On-Menu Density Bonus Ministerial Review Process (2021)
Implementation of State Density Bonus Law (2017)
Affordable Housing Incentive Guidelines (2024)

Ordinance No. 188477 - Ch 1
Ordinance No. 188478 - Ch 1A
2024 TCAC Map

Forms - Chapter 1 (Original Zoning Code)
CP-4097 Affordable Housing 100% Affordable Projects Referral Form (Chapter 1)
CP-4098 Affordable Housing Faith Based Organization (FBO) Referral Form (Chapter 1)
CP-4099 Affordable Housing Public Land Referral Form (Chapter 1)
CP-4100 Affordable Housing Shared Equity Project Referral Form (Chapter 1)
CP-4101 AHIP Ownership Declaration Form (Chapter 1)

Forms - Chapter 1A (New Zoning Code)
CP-4097.A Affordable Housing 100% Affordable Projects Referral Form (Chapter 1A)
CP-4098.A Affordable Housing FBO Referral Form (Chapter 1A)
CP-4099.A Affordable Housing Public Land Referral Form (Chapter 1A)
CP-4100.A Affordable Housing Shared Equity Project Referral Form (Chapter 1A)
CP-4101 AHIP Ownership Declaration Form (Chapter 1A)

Implementation Memos
State Density Bonus Law: AB 2334, AB 1551, and AB 682 (2023)
AB 2345 and AB 1763 Revised Memorandum (2022)

Ordinance No. 188477 - Ch 1
Ordinance No. 188478 - Ch 1A
Opportunity Corridors and Corridor Transition Incentive Area Map
Transit Oriented Incentive Areas Map
2024 TCAC Map

Forms - Chapter 1 (Original Zoning Code)
CP-4095 Opportunity Corridor Incentive Area Referral Form (Chapter 1)
CP-4096 Transit Oriented Incentive Area Referral Form (Chapter 1)

Contact LADBS
 

For questions about by-right development standards and the Opportunity Corridor Transition Incentive Areas, please contact the Los Angeles Department of Building & Safety.

VISIT LADBS
Contact City Planning
 

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

LEARN MORE
Housing Policy Webpage
 

To learn more about the Housing Element Rezoning Program and other policy initiatives.

ACCESS HERE