AB2222: Significant Changes to California's Density Bonus Law Occur on January 1, 2015

On January 1, 2015, California Assembly Bill 2222 (Nazarian) goes into effect and modifies the State's Density Bonus Law by establishing significant additional constraints on density bonus projects. Key measures of this bill include:

  • Mandatory replacement of all existing affordable units on a site for the density bonus to apply. Affordable units will include, among others:
  • Affordable units;
  • Rent-stabilized units;
  • Units subject to any City ordinance or policy regarding affordability; and
  • Any units owned or occupied by low- or very-low income households, even if no ordinance or policy applies.
  • Inclusion of affordable units occupied or demolished within the previous five years within the provisions above; and
  • Increasing the term of affordable housing covenants from 30 years to 55 years.

AB 2222 exempts your project if you submit an application or the application is processed by December 31, 2014. Therefore, a small window still exists to submit your application for a density bonus project and avoid these new provisions.