Bill to Build More Affordable Units in California Passes Senate Housing Committee

Press Release

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SACRAMENTO The Senate Housing Committee voted 8 to 0 today to pass Assembly Bill 2345 by State Assemblywoman Lorena Gonzalez (D-San Diego) to boost the number of affordable units built in California by increasing the density bonus and the number of incentives available for a qualifying housing project.

“We must find ways to increase the number of affordable units being built in California,” Assemblywoman Gonzalez said. “AB 2345 will do that.”

With more than 40-percent of all California households considered cost-burdened—meaning households spend more than 30-percent of their monthly income on housing costs—AB 2345 will provide developers the incentive to build the affordable units we urgently need in California.

“Making density bonus as effective as possible is crucial to achieving our affordable housing goals,” said Assemblymember David Chiu (D-San Francisco), Chair of the Assembly Housing Committee and join-author of AB 2345. “I am proud to partner in this effort to help create affordable homes for Californians.”

AB 2345 will help alleviate our housing shortage by expanding California’s Density Bonus Law to provide the same enhancements adopted by the City of San Diego, which will increase the number of affordable and market-rate homes constructed in cities across the state. Under existing density bonus law, developers are able to receive up to a maximum of a 35-percent bonus of allowed density. However, after 40 years on the books, the law has failed to draw enough interest from developers and not resulted in a significant increase in affordable homes.

In 2016, the City of San Diego enhanced the State Density Bonus program, increasing the maximum bonus to 50-percent. According to Circulate San Diego’s 2020 report Good Bargain, the city has seen a 490-percent increase annually in project applications to use the density program, and a 356-percent increase annually in the number of combined affordable and market-rate homes, within the first 20 months.

Specifically, AB 2345 would:

  • Increase the maximum density bonus to 50-percent, depending on the number and level of deed-restricted affordable homes;
  • Increase the maximum number of allowable incentives to five, depending on the percentage of affordable homes in the development; and
  • Increase the number of allowable incentives available to 100-percent affordable developments to six, up from the current allowable four.

Assemblywoman Lorena Gonzalez represents California’s 80th Assembly District, located in southern San Diego County, including the cities of San Diego, Chula Vista, and National City. She serves as Chair of the Assembly Committee on Appropriations, Chair of the Assembly Select Committee on Women in the Workplace, and Chair of the California Latino Legislative Caucus. 

For more information on Assemblywoman Lorena Gonzalez visit https://a80.asmdc.org/

2 COMMENTS

  1. Notice how this press release fails to address what AB2345 will COST. That’s what “incentives” means.

  2. People are leaving California in droves. Many are sick of the fires, traffic, crime, density, business laws, the new upcoming tax increases and lack of jobs. Who can blame them?

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