On September 27,2014, Governor Brown signed AB 2222, which amended sections of the State Density Bonus Law (Gov. Code §§ 65915). The law’s major provision requires that density bonus projects resulting in a loss in existing affordable, and otherwise locally-regulated (Le., rent-stabilized) housing units, replace those units one-for-one. It also extends the affordability period from 30 to 55 years and expands the use of equity sharing in for-sale units. Several other clarifications of existing law are also included, but they were not judged to represent a change to current City policy.

The City has received numerous questions regarding the implementation of AB 2222, particularly with respect to timing and procedures. As the City is unable to amend the local density bonus ordinance implementing State law prior to January 1, 2015 (when the law takes effect), this memo will serve as interim direction for staff and project applicants. Also please refer to the Affordable Housing Procedures.

Review Full Memo: AB2222memo