ED 1 and AHIP: 100 percent affordable housing in Los Angeles

A project whose units are all restricted affordable has two City pathways in Los Angeles: the program of LAMC 12.22 A.40, which codifies Executive Directive 1 (ED 1), and the Affordable Housing Incentive Program (AHIP) of LAMC 12.22 A.39. Both reward the full set-aside with incentives on height, floor area and the development standards, and both keep the approval administrative where the project stays within their limits.

What the pathway permits

A.40 was added by Ordinance 188,788, effective 19 December 2025. A project electing it receives up to five incentives, on or off the City menu, and one waiver of a development standard. Off-menu requests are capped: in a residential zone, height may rise by up to three stories or 33 ft over the zone's limit; in any zone, open space may drop by up to 50 percent, bicycle parking by up to 50 percent and tree planting by up to 25 percent; in a commercial zone, the ground story requirements may drop by up to 30 percent. The program's performance standards cannot be waived.

AHIP (A.39) serves 100 percent affordable projects of five or more units, and also Public Land, Faith-Based Organization and Shared Equity projects at 80 percent restricted. Its base incentives and its on-menu additional incentives are processed by the City in plan check.

Where it applies

• Every unit restricted affordable; under A.39, up to 20 percent of them may be Moderate Income.
• A site zoned for multifamily that allows five or more units before any bonus. No parcel in a single-family or more restrictive zone, or in an industrial zone, specific plan or overlay that bars multifamily.
• No Designated Historic Resource, historic district or HPOZ parcel, and no part of the Very High Fire Hazard Severity Zone within the Hillside Area.
• No parcel subject to the Rent Stabilization Ordinance with 12 or more units occupied in the five years before the application. Existing RSO units on a smaller site are replaced one for one.
• Labor standards apply to buildings taller than 85 ft (A.40(f)).

How approval works

Under A.40, City Planning approves the project through Expanded Administrative Review for compliance with objective standards: no hearing, no appeal, and the approval is not a project under CEQA. The ED 1 Implementation Guidelines set a completeness review within 30 days and a decision within 60 days of a complete application; A.40 itself states no day count.

Under A.39, a request beyond the menu goes to Expanded Administrative Review; up to three waivers go to a Director's Determination, appealable to the City Planning Commission; more than three waivers follow the Class 3 Conditional Use procedure before the Commission, whose decision is final.

On either pathway, the Los Angeles Housing Department records the affordability covenant before the building permit issues, and the building permit follows in plan check.

What to check on a site

• The zone and every overlay, Q condition and D limitation on the parcel, read in ZIMAS and in the ordinances themselves.
• Whether the base zone allows five units before any bonus.
• RSO status and the count of units occupied in the last five years.
• The height the incentives reach, how it compares with the 85 ft labor threshold, and the construction type it sets.
• The capital stack: a 100 percent affordable building is priced by its restricted rents and its financing, typically tax credits or a public subsidy.

Questions

Is ED 1 still in effect in Los Angeles?

Its approval procedure is codified in LAMC 12.22 A.40 (Ordinance 188,788, effective 19 December 2025). Projects that elect A.40 are reviewed under it.

Does an ED 1 project need a public hearing?

No. A.40 approval is Expanded Administrative Review for compliance with objective standards, with no hearing and no appeal, where the project meets every eligibility condition.

Can a site with rent-stabilized units use ED 1?

A parcel with 12 or more RSO units occupied in the prior five years is excluded. On a smaller site the RSO units are replaced.

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