PRESS RELEASE - FOR IMMEDIATE RELEASE April 10, 2026
Contact
Colin Parent, (619) 567-6856, [email protected]
Aria Grossman, (619) 736-0072, [email protected]
Mariah Almasco, (619) 295-7043, [email protected]
Sandy Young, (619) 295-7140, [email protected]
Win-Win Bonus: New report finds California’s Bonus Law was used to approve more than 140,000 homes, outpacing all other housing streamlining laws
SAN DIEGO – California Density Bonus Law (“Bonus Law”) has quietly become the state's most powerful housing tool, according to a new report released today by Circulate Planning & Policy. It was used to approve more than 140,000 affordable homes between 2021 and 2024, and it was used 10 times more than every other housing streamlining law combined in 2024.
Circulate’s report, titled “Win-Win Bonus: How California’s Bonus Law quietly transformed housing approvals,” shows that incremental, targeted policy changes made Bonus Law the most powerful housing tool in the state. In 2024 alone, Bonus Law was approved for use in 47% of all homes in multifamily projects and 78% of homes in completely affordable projects.
Bonus Law provides valuable benefits to homebuilders that include permanently affordable homes in new residential projects, which means that they are legally restricted from increasing the resale prices or rent levels. Projects that provide enough affordable on-site units can build up to twice the number of units as underlying zoning would allow.
“Many people have questioned the effectiveness of California’s recent housing reforms, but our research proves that Bonus Law is a solid winner,” said report author Colin Parent, CEO and general counsel with Circulate Planning & Policy. “These reforms are a win-win result for homebuilders and the communities that need more affordable homes – exactly what our state needs.”
“California’s Density Bonus Law is proof that smart policy produces real results,” said California Assemblymember Chris Ward, who was on hand for the press conference announcing the release of the report. “When we make it easier and more financially viable to build affordable homes, homebuilders and residents across California benefit.”
Since its start in 1979, Bonus Law has been changed and amended numerous times. The most recent enhancements to California’s Bonus Law were developed first in the San Diego region. City of San Diego Mayor Kevin Falconer adopted a 50% bonus as a local enhancement to the state policy in 2016. Circulate sponsored legislation to expand the 50% bonus statewide in 2020 with AB 2345, authored by Asm. Lorena Gonzalez. Circulate sponsored legislation with Assemblymember David Alvarez in 2023 to enact AB 1287, which created an additional 50% bonus. Combined, the two pieces of legislation allow for a full 100% bonus.
The two state laws dramatically increased Bonus Law’s effectiveness, becoming a major tool for multifamily homebuilders in California today. The report offers lessons learned and a quantitative analysis of the results: more affordable and market-rate homes for the Golden State.
The report offers recommendations to expand the use of Bonus Law, including:
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Name Update: Change the policy’s name to the “Affordable Homes Bonus Law” to better reflect the law’s core purpose of creating affordable homes. Data in the report shows that many projects build affordable units to take advantage of the law, and do not add any additional density.
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More Deeply Affordable Homes: Ensure that homebuilders can deed-restrict their units at levels more affordable than the levels outlined in the current statute. This will close a current loophole that limits the benefits available to 100% affordable homebuilders compared to those creating mixed-income projects.
- Streamlining Approvals: Simplify the approval process for homebuilders to make sure that homes are approved more quickly and face fewer barriers. Policy reforms should include making the benefits automatic, so homebuilders do not have to worry about retaliation from resistant local governments.
This report is part of a research collaboration between Circulate Planning & Policy and the Center for Housing Policy and Design at UC San Diego.
In the report, Circulate refers to the policy throughout as “Bonus Law,” not its long-form full statutory title of “California Density Bonus Law.” The statute’s name is misleading because the purpose of the policy is to create affordable homes, and many projects use the policy without adding any additional density whatsoever. The term “Bonus Law” also avoids the potential stigmatization that may come from the term “density.”
The full report is available at CirculateSD.org/WinWinBonus.
A press kit, including specific data about the Top 10 cities in California, video from the in-person and virtual press conferences, project photos, and report graphics, is available at CirculateSD.org/WinWinBonusPress.
About Circulate Planning & Policy
Circulate Planning & Policy is a nonprofit think tank based in San Diego, dedicated to advancing mobility and making the region a better place to move, work, learn, and play. Our work focuses on creating great mobility choices, more walkable and bikeable neighborhoods, and land uses that promote sustainable growth. For more information, visit CirculateSD.org.
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