AB 2753 - Density Bonus Application

  • New California Law coming in 2019
  • Changes to application process to obtain density bonus
  • Applies to cities state-wide

AB 2753 - Streamlining density bonus application

AB 2753 is a California law coming in 2019 that will expedite the process to gain a density bonus for residential housing development.  Developers who agree to build part of the units as affordable for low income tenants receive a density bonus to floor area ratio and height restrictions.  In simple terms – if you agree to house some low income tenants, you can build more units.  The idea is to encourage affordable housing by offering incentives to developers.  This state program is a wild success, where developers commit to help reduce the severe low income housing shortage.  

 AB 2753 will require cities to provide developers with clear idea of the bonus provided under the density incentive.  Further, developers will know the incentive size at the time of the application, before entitlements. In the approved zones, the law will prohibit cities from imposing parking requirements from the developers, and will calculate ‘impact fees’ based on square footage, not unit number.

Here are some quick facts about AB 2753:

  • AB 2753 was introduced by Assembly member Friedman, and signed into law on September 29, 2018
  • Changes to laws made during the project may affect the final result
  • Applicant for density bonus will have a clearer picture of the density benefits once the application is complete
  • Applicants will also know if they provided sufficient information in order to qualify for a density bonus
  • AB 2753 will go into effect in 2019 across the state
  • AB 2753 amends Government Code 65915
  • Better Planning – developer will have a better idea how the project will look like earlier – not after permits but during the application process.  More deterministic outcomes earlier is better for planning ahead
  • Spotting Possible Mistakes – knowing how many units and total project size prior to permits could be an advantage to spot possible project mistakes earlier, eliminating surprises and unforeseen issues 
  • With more clarity on the size of the project earlier – developers can now secure funding earlier and with more certainty.

Below are more helpful links and further reading on AB 2753

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