Density Bonus in California: 100% Bonus, Waivers, and Where Projects Pencil

The State Density Bonus Law (Government Code 65915) is the primary tool that lets a California multifamily project exceed local zoning density. The headline cap is now a 100% bonus on a fully stacked AB 1287 project, not the 50% number many sponsors still anchor to. The economics that matter, however, sit in the incentives and waivers, not in the base bonus.

The three components

A density bonus project carries three distinct entitlements that work together:

1. The base density bonus. Additional units above the base zoning density, scaled to the depth of the affordability commitment. The first 50% comes from the long-standing tiers in Government Code 65915(f).
2. Incentives and concessions. Modifications to development standards (height, FAR, open space, etc.), capped at one to five concessions depending on the affordability commitment.
3. Waivers. Relief from any objective standard that would physically preclude building at the granted bonus density. Uncapped in count.

The base bonus is the headline. The incentives and waivers are usually where the project actually pencils.

What AB 1287 changed in 2023

AB 1287, signed October 2023 and effective January 1, 2024, added a second stackable bonus on top of the standard 50% maximum. A project that already qualifies for the 50% bonus can earn an additional 20% to 50% bonus by adding very-low-income units (5% to 15%) or moderate-income units (5% to 15% at up to 120% AMI). At the top of the table, a project can reach a 100% density bonus.

AB 1287 also increased the concession count: four concessions for projects with at least 16% very-low-income, and five concessions for 100% lower-income projects. Projects with 100% lower-income units retain the 80% bonus track from earlier amendments.

Stacking with local programs

In the City of LA, the State Density Bonus stacks with TOC under LAMC 11.5.11 in defined ways. The City Planning Department issued implementation guidance for AB 1287 that addresses the interaction; the stacking rules are technical and have already produced staff-level disagreements. Outside LA, programs in Santa Monica, Long Beach, and West Hollywood create additional layering opportunities, each with its own application sequencing.

Where projects go wrong

Three patterns recur:

• Underestimating the affordability commitment. Deeper bonuses require deeper affordability, with real operating and refinance implications. The 55-year covenant survives sale and lease-up assumptions.
• Confusing incentives with waivers. Incentives are capped; waivers are not. Sponsors that treat waivers as the primary tool unlock projects that incentive-only analyses miss.
• Missing the parking analysis. AB 2097 (effective January 2023) eliminated parking minimums within a half-mile of major transit, and Government Code 65915(p) provides separate density bonus parking ratios. The interaction is the difference between a feasible podium and a feasible wrap.

A density bonus analysis is a structural decision that drives unit count, parking strategy, financing, and exit. We model the full bonus stack against a conventional zoning baseline before any site goes hard, and re-run it once the unit mix and AMI tiers are set.

Need hands-on help on a live project? Our density bonus structuring and zoning and land use analysis services cover this work end-to-end across Southern California.