Josie Huang reports on a new audit from the Los Angeles City Controller finding that the city's density bonus program is falling short of its goals for delivering affordable housing.
Los Angeles' density bonus program allows "developers to build higher and bigger if they set aside units for lower-to-moderate income residents," explains Josie Huang. The program was established in 2008, provoking concerns that it would cause development to run amok. Since the, however, the program's results have proven underwhelming.
"Auditors found 329 out of 4,463 affordable units added through density bonuses between 2008 and 2014 — or 7 percent — were in market-rate developments," reports Huang. "The rest were in entirely affordable housing projects."
The audit also includes suggestions for increasing the number of affordable housing units delivered by the program. "For example, the program could allow developers to locate their affordable units at another location 'in a three-or-four story building that is wood-framed,' and therefore less expensive to build than a high-rise residential building, which requires pricier materials," writes Huang.
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