Density Bonus Law Could Spur Development Boom, Lawyers Say

Daily Journal (April 9, 2021) Until recently, California developers didn’t have much reason to include affordable housing as part of their multifamily projects since they could just pay an in-lieu fee instead. Now, however, they have a real incentive to build affordable units after the Legislature passed a law allowing builders to add 50 percent more units than the zoning allows if they include apartments for low-income residents. San Francisco attorney Caroline Chase, a partner with Allen Matkins specializing in land-use law, said the new law may encourage developers statewide to increase their densities. “And there is now a huge incentive to apply the density bonus on the site,” she said. “Before, affordable units [as part of a market-rate project] were generally only built on site when there was political pressure.” Read More (subscription required)