Los Angeles Considers Plan to Construct 250,000 New Homes to Comply with State Requirements

LOS ANGELES—On December 10, the City Council will evaluate a strategy to rezone Los Angeles and facilitate the construction of over 250,000 new homes, although some critics contend that the initiative may be inadequate.

Elected leaders are required to approve a plan by February that aims to increase affordable housing units and fulfill state housing mandates. In this context, council members will discuss the Citywide Housing Incentive Program ordinance.

The suggested ordinance is designed to enhance housing development by offering developers specific concessions regarding project height and parking requirements. Additionally, developers would gain advantages for constructing near public transport, employment centers, and quality schools. Extra incentives would be available for projects that are entirely affordable.

L.A. Housing Department officials have highlighted anticipated growth in “high-opportunity communities,” such as commercial districts or areas with multi-family units—which would lead to an increase in density in already populated parts of the city.

There is an alternative proposal aimed at providing protections for renters.

Displaced low-income residents would have the right to return at either their previous rent or a rate proportional to their income. Furthermore, renters would benefit from extended relocation assistance.

City officials previously explored the possibility of rezoning single-family residential neighborhoods, which represent 72 percent of Los Angeles, to permit new developments. However, after facing opposition from homeowners, the council’s Planning, Land Use, and Management Committee decided against it when they advanced the item in November.

Nevertheless, the City Council still has the opportunity to implement that change if they decide to do so.

A UCLA report indicates that the CHIP ordinance would meet the state’s housing requirements. However, researchers have pointed out that excluding single-family parcels from zoning reforms “raises concerns about the city’s ability to achieve its housing production targets and to actively promote fair housing, as mandated by state law.”

Previously, housing officials described the proposed CHIP ordinance as an “equitable and climate-focused rezoning strategy that emphasizes increased incentives and bonuses.”