Developers Seizing 'Supersized' Density Bonus Opportunity

West Coast Land Use and Environment attorney Chelsea Maclean was interviewed by the Daily Journal about how developers are taking advantage of a new California law to maximize their available density bonus for projects. Under Assembly Bill (AB) 1287, which took effect at the beginning of this year, developers can increase the density of existing projects by as much as 50 percent through incorporating deed-restricted, moderate-income units. This bonus is "stackable" with any density increases previously approved under the State Density Bonus Law, creating a lucrative opportunity for developers. Ms. Maclean outlined how developers can qualify for the bonus and highlighted AB 1287's innovative nature as the first density bonus law offering benefits for moderate rental units.

"The way it works is you have to first maximize the density bonus that has been available in the past," Ms. Maclean explained. "...If you maximize that, then you get to stack on top of that additional density by providing additional affordable housing units. One of the most powerful combinations people recognize is if you do 15 percent very low-income, that originally would have entitled you to a 50 percent bonus. If you add an additional 15 percent of moderate units, you get an additional 50 percent bonus [under AB 1287] for a total 100 percent density bonus."

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