In an effort to forestall the implementation of SB 79, the Los Angeles City Council voted to expand the citywide housing incentive program (CHIP) to permit mid-sized apartment buildings in select single family zones.

Potential upzoning options to delay citywide implementation of SB 79City of Los Angeles

The vote, taken on March 24, will extend CHIP's Corridor Transition incentives to the surroundings of 55 transit hubs in neighborhoods in Central and West Los Angeles, the South Valley, and some parts of the Eastside. The Corridor Transition program is intended to allow apartment buildings of up to four stories in height, including 4-to-16 residential units.

While the move by the City Council will allow delayed effectuation of SB 79 citywide, it is the least aggressive of three options offered by the Planning Department for consideration, and will likely require further rezoning at a future date. The Council could also have expanded the Transit Oriented Incentive Area incentives, which can permit buildings of up to eight stories, for neighborhoods located near rail transit stops. 

The vote by the City Council was also colored by an acknowledgement that CHIP's Corridor Transition incentives have failed to generate a single application since implementation in 2025. Councilmembers Nithya Raman and Katy Yaroslavsky both noted that the program, as currently conceived, does not offer generous enough incentives to cover the cost of the amount of affordable housing required.

Incentives offered by the three optionsCity of Los Angeles

Motions introduced by Yaroslavsky to amend the program to offer additional incentives, as well as to accelerate additional development capacity in high-opportunity area before 2030, have been referred to the Council's Planning Committee, reports the Los Angeles Times.

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