The Los Angeles City Council unanimously approved the Citywide Housing Incentive Program, also known as the CHIP Ordinance, on Friday. This rezoning plan aims to encourage housing development in commercial areas and densely populated residential neighborhoods throughout LA, according to a report by The Los Angeles Times.
The new ordinance will offer incentives for developers to construct both market-rate and affordable units. It is a key component of LA’s strategy to meet state housing goals that require an additional 255,000 homes be built in the city. The approval of this ordinance marks the end of a lengthy process.
Under the CHIP Ordinance, developers can exceed current building limits if they include a certain percentage of affordable units and their property is located near public transportation. Projects that are entirely dedicated to affordable housing will be eligible for incentives across more areas within the city. However, these incentives can only be used for properties within existing multifamily or commercial zones.
This decision was reported by Connect CRE .
