Instagram Logo Facebook Logo Linkedin Logo Twitter Logo
Circulate Planning & Policy logo

Public Policy

California Bonus Law

Introduction:

Since 1979, California has had a statute on the books titled density bonus law ("Bonus Law"). Bonus Law has seen many amendments and changes over the years, but in essence, it provides a package of benefits to encourage new developments to build deed-restricted affordable homes.

How Bonus Law Works:

Under ordinary zoning rules, a multifamily property is allowed to be developed into a certain number of new homes, called a “base density.” Bonus Law allows for a project to set-aside a percentage of the base density as permanently affordable homes, in exchange for certain concessions, and permission to build up to 100 percent more homes overall.

The benefits under Bonus Law vary on a sliding scale depending on the percentage of affordable units, and the level of affordability for those units. Under current law created by Assembly Bill 1287, projects seeking the maximize benefit, most will set aside 15 percent of their base density at the very-low income level, and another 15 percent of base density at the moderate-income level. With this combination, a development is eligible for a 100 percent bonus, doubling what was allowed by local zoning rules.

Recent History of Bonus Law

Before 2020, California Bonus Law incentivized developments to set-aside only 11 percent of their base density as affordable, in exchange for a 35 percent bonus.

While serving as the Director of Policy for the San Diego Housing Commission, Colin Parent organized a working group of housing stakeholders to develop a proposal to create a local enhancement to the State's Bonus Law. The proposal would allow for a development to set aside up to 15 percent of their units as affordable, in exchange for a new 50 percent bonus. After Parent joined Circulate San Diego, the proposal was taken up by Mayor Faulconer's administration, and Circulate lead a coalition that successfully pushed the City of San Diego to adopt its enhanced “Affordable Homes Bonus Program.” The program has been a remarkable success, generating many more affordable and market-rate homes.

In 2020, Circulate co-sponsored Assembly Bill 2345 from Lorena Gonzales, that brought San Diego’s 50 percent bonus program statewide. The policy was supported by robust pro forma analyses, to ensure it would succeed and produce more homes. It was the most substantial housing production bill signed that year by Governor Newsom. In 2020, AB 2345 was co-sponsored by Circulate San Diego and Up for Growth.

In 2023,  Assembly Bill 1287 further expanded Bonus Law, bringing the available bonus from 50 percent to 100 percent. That expansion represented a 33 percent increase in multi-family development capacity for the entire state of California, one of the largest single up-zones in the history of the United States. The bill was co-sponsored by Circulate San Diego, SPUR, and the Bay Area Council.

Additional Resources

Over the years, Circulate San Diego has conducted a variety of successful advocacy campaigns to expand Bonus Law, both locally and statewide. We have produced a number of reports documenting the success of the programs.

Press

Close Button
Close Button