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Assembly Bill 2433
The Affordable Homes Bonus Law - AB 2433
The Affordable Homes Bonus Law will modernize California’s Bonus Law to create more affordable homes. The bill is authored by Assemblymember David Alvarez.
Support the Bill!
Interested in supporting the bill? Organizations and individuals can sign on as a supporter here.
Additional Resources
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- Full text of AB 2433
- FAQ on AB 2433
- Submit a letter of support to the California State Legislature portal using this downloadable template.
- Learn more about Bonus Law
- Contact Aria Grossman at [email protected] with questions.
Bill Details
This bill will boost homeownership, create more affordable homes, and streamline housing approvals.
Boost Homeownership
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- Create More For-Sale Affordable Homes: Grants two additional incentives for homebuilders with projects that deed-restrict for-sale units for low- and moderate-income families.
More Affordable Homes
The purpose of Bonus Law is to create more affordable Homes. AB 2433 will further strengthen that goal through a variety of modernizations.
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- Deeply Affordable Housing:This bill will ensure that 100 percent affordable homebuilders can use the full stacked bonus available under AB 1287. This better harmonizes this program with existing obligations tied to public subsidies and local inclusionary requirements.
- Name Update: Change the program name to the “Affordable Homes Bonus Law” to better reflect the law’s core purpose of creating affordable homes, improving clarity for homebuilders, local governments, and advocates.
Streamline Housing Approvals
Bonus Law is already highly used and highly effective. AB 2433 will build on this success to help approve even more affordable homes throughout California.
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- Floor Area Ratio (FAR) Fix:Allow density bonus percentage to be calculated using FAR for local governments that rely on FAR.
- Automatic Benefit Structure:Require local governments to treat every project with sufficient on-site affordable units as qualifying for the benefits of Bonus Law. Currently, a substantial percentage of projects that should receive these benefits are not opting into the program.
- Reaffirming Non-Discretionary Approval of Benefits: Explicitly affirm that the granting of incentives and waivers under Bonus Law are not discretionary. Some jurisdictions are not following the current law, and treat the award of these incentives as discretionary actions, which can significantly slow projects.
- One Application Rule: Clarify that Bonus Law projects receive certainty after their initial application, even if additional permit applications are submitted later in the process. This prevents approved projects being re-ligated at subsequent phases.
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By-Right Approval: Require that environmentally friendly infill projects that include affordable homes are approved by-right. Projects with for-sale units would also have map approvals by-right.
What is California Bonus Law?
California Density Bonus Law (Government Code Section 65915 or “Bonus Law”), is a statewide policy that streamlines housing approvals by granting a variety of benefits to projects that include deed-restricted affordable units. When a project contains a certain percentage affordable homes, builders qualify for a "bonus", allowing them to build more overall units. Homebuilders can also qualify for incentives and waivers from local zoning restrictions. These benefits operate at a sliding scale, meaning projects with more affordable homes qualify for more benefits. Bonus Law has been a uniquely successful tool to unlock approvals for more affordable and market rate homes without relying on public subsidy.
The proof is in the numbers. Bonus Law has been used to entitle over 140,000 new homes across California over the past five years, making it the state's most utilized program to streamline housing approvals.
Sponsors
Press
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- New state bill aims to boost affordable homeownership in San Diego, NBC, March 10, 2026
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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.
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- Circulate San Diego Report: Home Run for Homes (2022)
- Circulate San Diego Report: Equity and Climate for Homes (2020)
- Circulate San Diego Report: Good Bargain (2020)
- Circulate Report: Early Win for Affordable Homes Bonus Program (2017)
- Letter: Coalition Supporting San Diego's Enhancement to Bonus Program (2016)
- Bonus Production in San Diego until 2016 (2016)
- Original 50% bonus proposal from San Diego Housing Commission (2014)
- AB 1287 Fact Sheet
- AB 1287 Bill Text
- Guide to the California Density Bonus Law (Myers Nave, 2021)
Press
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- Press Release: Assemblymember Alvarez to Announce Legislation to Build More Affordable Homes, February 24, 2023
- Bill offers incentives to build middle income housing, KPBS, February 28, 2023
- New bill could create affordable middle-class housing for Californians, CBS 8, July 3, 2023
- AB-1287 Density Bonus Law: maximum allowable residential density: additional density bonus and incentives or concessions, California Legislative Information, October 12, 2023
- Governor Signs AB 1287, Creating Density Bonuses For Middle-Income Apartments and Condos, East County Magazine, October 13, 2023
- San Diego housing reform migrates to the state, AXIOS, October 17, 2023
- New law aims to create affordable housing for middle-income residents, NBC 7, October 19, 2023
- New California law aims to create more middle-income housing, ABC 10, October 20, 2023
- Middle-Income Homes Bonus Law by Assemblymember Alvarez Will Boost Affordable Housing, Times of San Diego, October 24, 2023
- AB 1287 – Legislature Creates An (Additional) Density Bonus For Very Low- And Middle-Income Households, Mondaq, October 31, 2023
- Governor Signs Ab 1287, Creating Density Bonuses For Middle-Income Apartments And Condos, East County Magazine, October 2023
- California's 2024 Housing Laws Part I: Laws Broadly Applicable to Housing, Including Market Rate Housing on November 15, 2023, Northern California Record, November 14, 2023
- New California law aims to create more middle-income housing. Will it work in San Diego?, The San Diego Union Tribune, November 6, 2023
- New California laws going into effect in 2024, CBS8, December 22, 2023
- Iconic Phoenix Hotel in Play, Positioned for Redevelopment, SocketSite, January 26, 2024
- Density bonus rules allow developers to double the size of some projects, Santa Monica Daily Press, January 30, 2024
- Housing project at S.F. parking lot stalled for a decade. Now the developer plans to supersize it, San Francisco Chronicle, February 7, 2024
- Developer Considering 8-Story or 14-Story Apartments for 875 Sansome Street, San Francisco, San Francisco YIMBY, February 9, 2024
- Letter: density is the future, Santa Monica Daily Press, February 13, 2024
- California Addressing Ongoing Housing Shortage with Legislation, The National Law Review, February 16, 2024
- Developers seizing 'supersized' density bonus opportunity, Daily Journal, February 22, 2024
- Developers Seizing 'Supersized' Density Bonus Opportunity, Holland & Knight, February 23, 2024
- Clocktower Center meeting slated Wednesday, Santa Cruz Sentinel, June 2, 2024
- Developer upsizes project at 1828 S. Western Ave. using AB 1287, Urbanize LA, July 23, 2024
- EGC taps new law to upsize apartment project in LA's Harvard Heights, The Real Deal, July 24, 2024
- Santa Cruz | Three-story Westside Village development moves forward, MSN, August 9, 2024
- Attorney General Rob Bonta Addresses 'Pink Tax' Violations, Alameda Post, August 28, 2024
- Renderings Revealed: Mixed-use development at 8811 Wilshire Blvd. in Beverly Hills, Urbanize LA, September 25, 2024
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New Details Surface For 14-Story 2812 Mission Street, Mission District, San Francisco, San Francisco YIMBY, September 28, 2024
East Bay developer oWow uses density bonus again to almost double Oakland project, the Business Journals, October 23, 2024 - OWow uses density bonus to supersize Oakland apartment project, The Real Deal, October 24, 2024
- Cityview seizes state density bonus to supersize Westchester apartment project, The Real Deal, October 25, 2024
- 12-story housing complex proposed at 505 S. Landfair Ave. in Westwood, Urbanize LA, October 28, 2024
- 2024 California Developers' Toolkit: Density Bonus Law, Housing Laws, & Strategies for Success, JD Supra, October 29, 2024
- 100 apartments proposed at 1320 Pico Blvd. in Santa Monica, Urbanize LA, November 26, 2024
- Landmark Properties proposes new apartment building to expand housing in Westwood, Daily Bruin, December 5, 2024
- 1320 Pico Blvd proposal includes 100 apartments in eight story building, Santa Monica Daily Press, December 6, 2024
- 52 apartments planned at 412 N. Oakhurst Drive, Urbanize LA, December 10, 2024
- High-Rise Apartment Projects Proliferate in Berkeley, Globest, December 16, 2024
- 12-story apartment tower planned at 11027 Strathmore Drive in Westwood, Urbanize LA, January 3, 2025
- LaTerra upsizing proposed project 4112 Del Rey Avenue using AB 1287, Urbanize LA, January 28, 2025
- Taller plan emerges for mixed-use development at 1828 S. Western Ave., Urbanize LA, February 12, 2025
- City Planning Commission approves 489 apartments at 6136 Manchester Ave., Urbanize LA, February 17, 2025
- Bigger plan emerges for mixed-use project at 55 N. La Cienega Blvd. in Beverly Hills, Urbanize LA, March 11, 2025
- Los Angeles City Planning Greenlights Major Westside Residential Development, The Pride Los Angeles, April 14, 2025
- Neighbors invited to weigh in as Pico project adds nearly 50% more housing, Santa Monica Daily Press, May 29, 2025
- Santa Monica office building could be replaced by 7-story housing and retail project, Santa Monica Daily Press, July 26, 2025
- Increased Plans For 20-Story Tower at 360 5th Street, San Francisco, SF Yimby, August 14, 2025
- Permits Filed For Safeway Redevelopment in Fillmore, San Francisco, SF Yimby, November 14, 2025
- How an accessory dwelling could turn into a 20-story tower in Berkeley, Cal Matters, December 12, 2025
- Preliminary Application For 36-Story Apartments at 329 Bryant Street, San Francisco, San Francisco YIMBY, December 19, 2025
- Developer plans 15-story residential tower at 7959 Beverly Blvd., Urbanize Los Angeles, December 18, 2025
- CEQA Streamlining Approved for 33-Story Tower at 598 Bryant Street, San Francisco, SF YIMBY, February 5, 2026
- ‘A Very, Very Sad Day’: West Hollywood Planning Commission Approves Hayworth Project Over Affordability Objections, Weho Online, February 22, 2026
- City Council Approves Eight-Story Apartments at 668 East Third Avenue, San Mateo, SF Yimby, March 6, 2026
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Circulate Webmaster published Letter: Support on behalf of SANDAG for the San Diego Rail Optimization and Asset Resiliency Application in Policy Letters 2022-04-19 15:18:00 -0700
Support Letter: Support for the San Diego Rail Optimization and Asset Resiliency Application
Circulate San Diego wrote a letter on behalf of SANDAG and the Transit and Intercity Rail Capital Program (TRICP), to support the San Diego Rail Optimization and Asset Resiliency (SD ROAR) application. Read the entire letter [PDF].
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Circulate Webmaster published Letter: Support for SANDAG’s Smart Growth Incentive Program for the Mid- City Communities Plan Update: Smart Growth Study in Policy Letters 2022-04-19 15:13:14 -0700
Letter: Support for SANDAG’s Smart Growth Incentive Program for the Mid- City Communities Plan Update: Smart Growth Study
Circulate San Diego wrote a letter in support of the City of San Diego’s application for the proposed Mid-City Communities Plan Update: Smart Growth Study. Read the entire letter [PDF].
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Circulate Webmaster published Letter: Support for the City of Chula Vista Trails Master Plan, Smart Growth Incentive Program Grant Application in Policy Letters 2022-04-19 15:09:16 -0700
Letter: Support for the City of Chula Vista Trails Master Plan, Smart Growth Incentive Program Grant Application
Circulate San Diego wrote a letter in support of the City of Chula Vista's application for a Smart Growth grant from SANDAG’s Smart Growth Incentive Program. Read the entire letter [PDF].
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Circulate Webmaster published Stories from the Field with Angelica Rocha in Blog Posts 2022-04-19 13:48:30 -0700
Stories from the Field with Angelica Rocha
Read moreStories from the Field, Berkeley SafeTREC’s Lisa Peterson chatted with Angelica Rocha, former Senior Planner at Circulate San Diego.
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Intro Spotlight: Jeremy Bloom
Read moreIn keeping with our tradition of interviewing new team members, we asked our new Director of Development, Jeremy Bloom, a few questions so that you all can get to know him!
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Circulate Webmaster published Intro Spotlight: Carlisle Dockery in Blog Posts 2022-04-19 13:39:50 -0700
Intro Spotlight: Carlisle Dockery
Read moreIn keeping with our tradition of interviewing new team members, we asked our new Associate Planner/Outreach Specialist, Carlisle Dockery, a few questions so that you all can get to know her!
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Circulate Webmaster published Intro Spotlight: Dara Braitman in Blog Posts 2022-04-19 13:24:57 -0700
Intro Spotlight: Dara Braitman
Read moreIn keeping with our tradition of interviewing new team members, we asked our new Director of Planning, Dara Braitman, a few questions so that you all can get to know her!
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Circulate Webmaster published SDGE Offers Safety Guidelines for Outdoor Dining in Blog Posts 2022-04-19 12:54:51 -0700
SDGE Offers Safety Guidelines for Outdoor Dining
Read moreSDGE is offering safety guidelines for businesses using the Spaces and Places program for outdoor dining or other business uses. Circulate previously advocated in favor of the Spaces as Places program because it was an opportunity transform San Diego’s streets into vibrant community spaces. SDGE’s recommendations are available here.
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Circulate Webmaster published Report: Transit Oriented Development in Policy Letters 2022-04-19 12:38:40 -0700
Report: Transit Oriented Development
Read moreCirculate San Diego released a report today on how the City of San Diego can better implement Transit Oriented Development (“TOD”). TOD benefits housing affordability, economic development, and the climate. However, a variety of barriers exist to prevent TOD in San Diego.
This report recommends a variety of specific, detailed, and actionable policy reforms that can be adopted city-wide to implement TOD. The full report can be viewed online at https://www.circulatesd.org/plan_diego_report_transit_oriented_development.
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Farewell: Angelica Rocha
Farewell: Angelica Rocha
In keeping with our tradition, we ask our team members to share a few last words about the great work they have done and their experience with us.
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Intro Spotlight: Kim Kantrud
Read moreIn keeping with our tradition of interviewing new team members, we asked our new Assistant Planner, Kim Kantrud, a few questions so that you all can get to know her!
