Rezoning Program Aims to Tackle Housing Shortages but Faces Feasibility Concerns
The Los Angeles City Council voted unanimously on Tuesday to approve new land use regulations designed to advance the goals of the city’s 2021-2029 housing element, aiming to address housing shortages and affordability.
The package, known as the Los Angeles Housing Element Rezoning Program, includes four key ordinances:
- State Density Bonus and Incentive Programs:
Updates to the state density bonus program and a Mixed-Income Incentive Program aim to boost housing production, including “missing middle” housing types, along with new affordable housing incentives focused on high-resource areas. - Opportunity Site Development:
Implements state housing laws on opportunity sites identified in the housing element, requiring replacement housing, by-right development for projects with 20 percent affordable units, and minimum density standards. - Expanded Tenant Protections:
Introduces longer affordability terms—up to 99 years—and adds housing replacement requirements and occupancy protections for renters. - Commercial-to-Residential Conversions:
Creates a streamlined approval process for converting commercial buildings older than 15 years into housing, with a discretionary review for buildings aged 5 to 15 years.
The council’s vote directs the City Attorney to draft the final ordinances, which must be put into place by mid-February 2025 to adhere to state housing mandate requirements. Missing the deadline could trigger penalties, including the potential activation of the “Builder’s Remedy,” which would allow developers to bypass certain zoning restrictions.
A proposal by Councilmember Nithya Raman and housing advocates to extend incentives to single-family zones was rejected in a 10-5 vote. LA Controller Kenneth Meijia urged that the City Council should include single-family zones and said, “Single-family zoning is a roadblock to inclusivity. Its history is steeped in racial and class segregation. It has exacerbated inequality in education, transportation, parks, public safety, job access, generational wealth, and healthy environments. Single-family zoning around Metro stations has limited who gets to ride. And it has contributed to climate change by preventing dense housing near transit and jobs.”
A report from UCLA researchers has found that without including single-family areas, comprising over 70 percent of the city’s residential-zoned land—the new regulations would generate just 30 percent of the 250,000 homes planned under the housing element.
Reports from the Western States Regional Council of Carpenters and consultants AECOM and RCLCO also raise concerns about the feasibility of the ordinances. Many opportunity corridor sites remain constrained due to costs, existing buildings, and other challenges, with only 7.2 percent considered viable for redevelopment.
AECOM’s study highlights potential inefficiencies in the mixed-income incentive program. Developers may favor building extremely low-income units, which require fewer units to achieve incentives, over low- or very low-income housing. While this approach maximizes market-rate units, it risks leaving gaps in housing for those with moderate income levels.
In a related vote, the council approved a spending plan for Measure ULA, the so-called “mansion tax,” which applies to property sales over $5 million. To date, the tax has generated $480 million, with $158 million allocated for fiscal year 2024-2025. The bulk of the funds will support affordable housing construction, renovation, and preservation.
The approved housing regulations and tax spending plan represent the city’s latest efforts to address a worsening housing crisis, though challenges remain in achieving ambitious production goals.
