The City of Los Angeles adopted an ordinance in September 2017 that created incentives to include affordable housing units in multi-family residential developments located within designated Transit Oriented Communities (TOC).  There are four TOC Tiers, based on the distance between a property and a qualified Major Transit Stop.  All qualified properties must be within one half mile of a Major Transit Stop, however, the type of Major Transit Stop and the distance determine the Tier level for each property.
 
The City has undertaken these zoning changes to encourage developers to build more affordable housing, so developers are offered a number of incentives to include affordable housing units in their projects.  Housing developments must provide restricted affordable units according to percentages required by each Tier.  The higher the Tier, the more affordable housing units are required - however, higher Tiers also have the greater incentives, such as up to an 80% increase in the number of total units allowed.

There are several base incentives which every eligible project can utilize, as well as additional incentives which apply when certain conditions are met.  These incentives tackle some of the major stumbling blocks many developments face, such as providing enough parking and maximizing allowable floor area or building height.

Of course, as may be expected, applying for TOC incentives through the City's Planning Department adds a layer to the already tedious and sometimes frustrating plan check process, but for developers it can be worth the effort to maximize the number of units and return on investment.  

Please contact S K Architects if you would like to explore the possibilities for developing your property.

​