Calif. Density Law May Spur More Affordable Housing

Law360 (January 19, 2021) A California density bonus law could tip the scale in favor of residential developers undertaking certain new projects, and experts say the change could be a key step toward the state solving its housing affordability crisis. A.B. 2345, which became law on Jan. 1, allows developers to receive 50% more density than a site is zoned for provided the developer sets aside a certain percentage of units as affordable. California has for decades had a similar law on the books that allowed for a 35% density bonus, and A.B. 2345 increases that mark to 50% across the state. The change, experts say, could convince developers to build where they might otherwise have passed since the additional density could increase profit margins. "We're already seeing clients actively looking for ways to build more dense projects with more dense housing — market-rate and affordable," said Spencer Kallick, a partner at Allen Matkins Leck Gamble Mallory & Natsis LLP. "The density bonus law has been on the books for many years. Now, we have a brand new scheme, something that most cities are very familiar with." Timothy Hutter, a partner at Allen Matkins, said many developers currently have the land necessary to build projects and are working on getting permission to build so they can be ready to start when the time is right. Read More (subscription required)