Los Angeles is leading North America’s transportation improvement plan while also transforming the planning, design, and development of transit-served neighborhoods. This shift towards transit-oriented communities (TOCs), instead of transit-oriented developments (TODs), brings a more comprehensive approach to understanding the complexity of neighborhoods surrounding transit stations.
Property owners can take advantage of this through the Transit-Oriented Communities (TOC) program, which provides incentives for affordable housing near transit hubs. With TOCs, the focus is on the development of the entire neighborhood surrounding transit stops, creating a more sustainable and equitable community. This article will explore how the Los Angeles TOC program works, the incentives available to property owners, and how they can take advantage of this program to develop their properties.
The Los Angeles TOC Affordable Housing Incentive Program
The TOC Program was created in response to Measure JJJ, approved by Los Angeles voters in November 2016. It aims to promote the development of affordable housing within a half-mile radius of major transit stops, making it easier for residents to use public transportation and fostering a more sustainable urban environment.
Understanding the Los Angeles TOC Program Incentives and Tiers
As a property owner, you can take advantage of various incentives offered by the TOC Program. These include increased density, reduced parking requirements, and relaxed zoning regulations. To help determine which properties are eligible, the program categorizes them into four tiers based on their proximity to transit hubs:
The TOC Incentive Program in Los Angeles offers numerous benefits for property owners looking to develop affordable housing near transit hubs. However, to be eligible for these incentives, there are certain criteria that must be met. Here are the eligibility requirements for the TOC Incentive Program:
1. Provide on-site restricted affordable housing:
The property must provide a minimum percentage of on-site restricted affordable housing. The percentage varies according to the Tier level of the project.
- For Tier 1, the property must provide 8% of the total number of dwelling units at the Extremely Low Income (ELI) level, 11% at the Very Low Income (ELI) level or 20% at the Lower Income level.
- For Tier 2, the percentage increases to 9% ELI, 13% VL, and 23% Lower.
- For Tier 3, the percentages are 10% ELI, 14% VL, or 25% Lower.
- Finally, for Tier 4, the property must provide 11% ELI, 15% VL, or 27% Lower.
2. Location:
The property must be located within a half-mile of a major transit stop as defined by the program.
3. Replacement of Existing Housing:
If the property seeks to replace existing housing, the same unit types and affordability levels must be maintained. This must be verified by the Department of Housing and Community Investment.
4. No Other Density or Development Bonus:
Property owners must not seek any other density or development bonus, including those through General Plan Amendments and Zone Changes.
By meeting these eligibility criteria, property owners can take advantage of the incentives offered by the TOC Incentive Program and develop affordable housing near transit hubs.
The incentives provided by the TOC Program depend on your property’s tier, with higher tiers offering more significant incentives. However, to qualify for these perks, you’ll need to meet specific affordability requirements.
Incentives based on Tiers:
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- Increased density bonus ranging from 20% to 80% of the base density allowed in the applicable zone.
- Reduced parking requirements ranging from 50% to 100% of the otherwise required parking spaces.
- Exemption from maximum unit density limitations.
- Reduced setbacks requirements.
- Expedited plan review and processing.
These incentives and additional incentives are designed to encourage property owners to develop affordable housing and increase residential density in Los Angeles. By taking advantage of these incentives, property owners can make a significant contribution to the city’s efforts to address the housing crisis and improve the quality of life for its residents.
Making the Most of the TOC Program as a Property Owner
To benefit from the TOC Program, you’ll need to reserve a percentage of your total units as affordable housing. The required percentage varies depending on your project’s tier and the income level of the targeted tenants. For example, a Tier 1 project must reserve at least 11% of its units for extremely low-income tenants, while a Tier 4 project must reserve at least 25% of its units for low-income tenants or 15% for very low-income tenants.
By participating in the TOC Program, you’ll not only receive incentives that can improve the financial feasibility of your development projects, but you’ll also contribute to a more sustainable and connected Los Angeles. As a property owner, you’ll be able to create value for both yourself and the community.
Unlock Your Property’s Potential with Our Complimentary TOC Assessment
Are you unsure if your property is eligible for the TOC program or how it could benefit from the incentives? Let us help! Yifu Design Studio is offering a complimentary property assessment for a limited time. Our experts will evaluate your property’s potential for TOC incentives and provide valuable insights to guide your next steps.
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