QES, Incorporated is committed to providing our clients with comprehensive information on various aspects of the housing industry. In this blog post, we will discuss the City of Los Angeles Housing Covenant (Land Use Covenant) review and approval process.
The City of Los Angeles Land Use Covenant program is designed to encourage the development of affordable housing units in the city. This program requires developers to enter into a legally binding agreement with the city that ensures the units will remain affordable for a certain number of years. A Land Use Covenant is typically required when the project approval includes a discretionary action requiring a certain level of affordable housing. The discretionary action could be an application for Transit Oriented Communities, Density Bonus, or a Zone Change.
Here is a list of land use entitlements in the city of Los Angeles that require an affordable housing covenant.
- Density Bonus
- Zone Changes
- Transit Oriented Communities
- Conversion of illegal units to legal units
- Mello Act Compliance
- Greater Downtown Incentive Area
- Discretionary determinations by the Department of City Planning and City Council involving housing
Developers must first submit an application to the city’s Los Angeles Housing Department (LAHD) and provide detailed information on the proposed development. This includes the approved entitlement, called a Letter of Determination, the number of units, the proposed rents, and the income limits for potential tenants. The review and approval process for the City of Los Angeles Land Use Covenant program can be quite complex. At the time of writing, the land use covenant review process is taking approximately 8 to 12 weeks from the date the application is submitted.
Once the application is submitted, LAHD will review the proposal and determine if it meets the requirements of the program. If the proposal is approved, the developer will be required to enter into a Land Use Covenant agreement with the city.
The Land Use Covenant agreement is a legally binding contract that requires the developer to comply with all of the program’s requirements. This includes maintaining the affordability of the units for a specified period of time, ensuring that the units are available to low- and moderate-income households, and submitting regular reports to the city on the status of the development.
It is important to note that the review and approval process for the City of Los Angeles Housing Covenant program can be lengthy and complex. Developers must be prepared to provide detailed information and work closely with the city to ensure that their proposal meets all of the program’s requirements.
At QES, Incorporated, we are committed to helping our clients navigate the complex landscape of affordable housing development. If you are interested in learning more about the City of Los Angeles Housing Covenant program, please contact us today. For more information about Land Use Covenants, you can visit the LAHD website. https://housing.lacity.org/partners/land-use-covenants.