A combination of new laws coming out of Sacramento have significantly increased the possible density of new development while simultaneously undermining the ability of local agencies to oppose those projects according to a recent report presented to the Santa Monica Planning Commission.
The Commission received its annual update on new legislation earlier this month with significant attention to a new law that allows developers to potentially double the density of their projects.
Assembly Bill 1287 expands state density bonuses if developers include moderate-income units in their projects. California Density Bonus Law, according to California Government Code, “provides developers with powerful tools to encourage the development of affordable and senior housing, including up to a 50% increase in project densities for most projects, depending on the amount of affordable housing provided.”
An existing density bonus already provided up to a 50% increase if developers included low-income housing and Rachel Kwok of the City Planning Division said AB 1287 is a “bonus on top of a bonus,” allowing developers to get “another round at the buffet table” and potentially double the size of their projects if they hit the affordable and moderate income goals.
She said the number of Santa Monica projects utilizing the bonuses were small at the moment but said they expected more to enter the pipeline in the future. State law also precludes municipalities from passing laws that would undermine a developer’s ability to take advantage of the density rules.
Specifically, Senate Bill 713, prohibit a local government from applying development standards if the standards will “physically preclude the construction of a development” permitted by density bonus law. This includes development standards adopted by local initiative or referendum.
Staff said that the combination of rules essentially put developers “in the driver’s seat” if they choose to use density bonuses and that the City has very little ability to oppose projects under the combined rules. Kwok said that for example, if local rules prohibited construction of buildings over 84 feet, density laws would allow a developer to bypass that restriction provided they met the requirements for affordable housing.
Several projects have already taken advantage of density rules to expand their projects. According to city staff a project at 601 Colorado is proposed as 20 stories tall, one at 1437 6th Street is proposed as 18 stories and 1435 4th Street is proposed as 16 stories. All three of those sites have been under development for some time and were previously part of the Builder’s Remedy discussion but all have since been refiled utilizing the density bonus rules.
State legislation also expanded housing protection requirements for units lost to commercial development. The new rules close the commercial project “loophole,” forcing commercial projects to comply with replacing protected units that are demolished on or after January 1, 2020. Kwok explained that “protected units” are affordable units, rent-controlled units, units withdrawn within the past 10 years, or any unit that was occupied by a low-income household within the past five years.
“For example, if there’s an office project that [demolishes] two rent-controlled apartments, they have to replace those units,” Kwok said. “It doesn’t need to be on-site, it can be somewhere else, but they have to replace those units ... either before or concurrent with the project.”
State legislation is also pushing toward adaptive reuse of existing buildings, passing Assembly Bill 529 that requires HCD to “convene a working group to identify potential amendments to state building standards that support adaptive reuse residential projects no later than December 31, 2025.” Furthermore, Assembly Bill 1490 provides “streamlining for 100% affordable housing projects that adaptively reuse an existing building with residential units or allows temporary dwellings or occupancy,” even if it conflicts with local plans or regulations. Kwok noted that many of the state’s building standards either preclude or hinder adaptive reuse, with these bills beginning to change the conversation.
Kwok added that a number of the passed bills align with what the City is already acting upon with its housing element programs, and that the City is “taking next steps” to comply with other new legislation.
thomas@smdp.com
