In a significant move aimed at addressing the affordable housing crisis in the Marina del Rey area, the Los Angeles County Board of Supervisors has voted to implement an update to the affordable housing policy. This decision, which came on Oct. 17, marks a transformative shift in the region’s real estate landscape, mandating that developers, whether they are building new housing or renovating existing apartment complexes, allocate a substantial portion of their units to lower-income households.
The revised Marina del Rey affordable housing policy will require developers seeking approvals for major renovations of existing apartment complexes to set aside units for lower-income households, according to a report from Urbanize Los Angeles. This policy applies to new leases or new development projects, with a focus on ensuring greater inclusivity and affordability in the region.
However, this requirement will not affect entities currently leasing land in the Marina from Los Angeles County, unless these lessees seek discretionary entitlements subject to County approval, in which case they may become subject to the new policy.
While the initial motion in 2020 had aimed to raise the requirement from 15 to 20 percent for eligible projects, the final decision goes even further. It mandates that a remarkable 30 percent of all residential units in newly-built and rehabilitated projects be set aside at below-market rates. Of these affordable units, two thirds will be reserved for very low-income households, while the remaining one third will cater to a combination of low- and moderate-income households.
This 30 percent requirement surpasses the standards set in other coastal jurisdictions within Los Angeles, such as Santa Monica, where the affordability requirement typically ranges from 20 to 25 percent in the Downtown Community Plan area. Similarly, it outpaces the inclusionary housing requirements in the new Downtown Community Plans, which range from 8 percent to 16 percent, depending on the income level, the report states.
The decision to implement this policy acknowledges that the County may see a reduction in rent revenue in the future, as market-rate units are converted into affordable units. In response, the County is committed to providing credits or subsidies to lessees to ensure the economic feasibility of leases and foster sustainable development.
