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PRESS RELEASE: Governor Gavin Newsom Signs Circulate's AB1287 creating Middle Income Homes Bonus Program


October 11, 2023

Contact: Will Moore, Policy Counsel

858-210-7999 | [email protected]

PRESS RELEASE – Governor Newsom Signs Circulate's AB 1287, Creating Middle-Income Homes Bonus Program

SAN DIEGO (October 11, 2023) – Today, California Governor Gavin Newsom signed into law AB1287, legislation that will encourage new homes for tens of thousands of middle-income families throughout California.

Circulate San Diego CEO Colin Parent said “This is a major legislative accomplishment. The Middle-Income Homes Bonus program will expand housing opportunities throughout California. It benefits all Californians by encouraging construction of more homes at every income level.”

AB 1287 was authored by Assemblymember David Alvarez. It was co-sponsored by Circulate San Diego, the Bay Area Council, and SPUR in San Francisco.

When AB 1287 takes effect on January 1, 2025, it will create a new incentive for multi-family developments to include deed-restricted units that are affordable to different income levels.

The program can only be used when a project maximizes the production of Very-Low, Low, or Moderate-Income units, as allowed by existing California Density Bonus Law. Only when those maximums are met, does an additional bonus become available when a project deed-restricts an additional percentage of Moderate-Income homes.

The City of San Diego enacted its Affordable Homes Bonus Program (AHBP) in 2016, which substantially increased the production of both market-rate and deed-restricted affordable homes, as documented in a report by Circulate San Diego titled “Home Run for Homes.” The AHBP built upon California Density Bonus Law and allows developers to build more homes if they agree to dedicate a further portion of a new multi-family project as affordable.

San Diego’s AHBP was so successful that in 2020, Governor Gavin Newsom signed AB 2345, authored by Assemblymember Lorena Gonzalez, and co-sponsored by Circulate San Diego, to expand the AHBP statewide.

With Governor Newsom signing AB1287 into law, California takes one more step towards alleviating its housing crisis.


A downloadable version of this Press Release is available here.

Circulate San Diego’s mission is to create excellent mobility choices and vibrant, healthy neighborhoods.