TOC Affordable Housing Incentive

The Los Angeles Department of City Planning has released its official Transit Oriented Communities (TOC) guidelines, effective since September 22, 2017.
This program is an important issue for the regional developmental market and the AEC industry, so we are sharing a brief of the ordinance.

 

TOC Affordable Housing Incentive Areas

There are four tiers of the TOC areas, which provide different levels of incentives to developers that also create affordable housing.

Eligibility

Projects eligible for TOC incentives must do the following:

1. Provide on-site restricted affordable housing at a minimum of the rates below:

  • Tier 1 – 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.
  • Tier 2 – 9% ELI, 13% VL, 23% Lower
  • Tier 3 – 10% ELI, 14% VL or 25% Lower
  • Tier 4 – 11% ELI, 15% VL or 27% Lower

2. Be located within a half-mile of a major transit stop, as defined above.
3. Replace existing housing with the same unit types and affordability levels, to be verified by the Department of Housing and Community Investment.
4. Must not seek any other density or development bonus, including those through General Plan Amendments and Zone Changes.

 

Base Incentives

 

Additional Incentives

Projects that meet more stringent requirements, including prevailing wage labor, are eligible for further incentives.
The menu of additional incentives can be seen in the chart below:

 

For details, please see the links below, or ask us for further discussion.

Urbanize.LA – TOC Guidelines
City of Los Angeles Planning – TOC Guidelines