Density Bonus Law

California’s Density Bonus Law (Government Code 65915) lets a housing developer build more homes than local zoning allows, and obtain incentives, waivers and capped parking ratios, in exchange for including deed-restricted affordable or senior housing. It is the oldest and most used tool in the state’s housing law stack.

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At a glance
Statute
Gov. Code 65915 to 65918, first enacted 1979 and amended nearly every year since
Applies
Every city and county in California, including charter cities
Key fact
Its parking caps apply on request, even where a local code requires more
BASE ZONING+50% BONUS+100% STACKEDDENSITY BONUS: MORE HOMES, CAPPED PARKINGMAX PARKING A CITY MAY REQUIRE (SPACES/UNIT)0 TO 1 BEDROOM12 TO 3 BEDROOMS1.54+ BEDROOMS2.5NEAR TRANSIT, QUALIFYING0.5100% AFFORDABLE NEAR TRANSIT0
Schematic. The bonus is a percentage of base density, shown here as floors. Parking caps from Gov. Code 65915(p) include guest and accessible spaces. Near-transit caps require at least 20% lower income, 11% very low income or 40% moderate income for-sale units and unobstructed access to a major transit stop within a half mile.

How the density bonus is earned

A project of five or more units earns a bonus by setting aside a share of its base units as affordable. The bonus is a sliding scale in each income category, and the developer chooses one category to count. Since AB 2345 took effect on January 1, 2021, the maximum base bonus is 50 percent.

CategoryEntry set-aside and bonusSet-aside for the maximum 50% bonus
Very low income (rental or for-sale)5% of units, 20% bonus15%
Lower income (rental or for-sale)10% of units, 20% bonus24%
Moderate income (for-sale)10% of units, 5% bonus44%
Senior housingFlat 20% bonusNot applicable
100% affordable (up to 20% moderate)80% bonusNo density limit within a half mile of a major transit stop, plus up to three stories or 33 feet
Density Bonus Law base bonus scale, Gov. Code 65915(f) and (b), as amended by AB 2345 (2020) and AB 1763 (2019).

AB 1287, effective January 1, 2024, added a second, stacked bonus. A project that already maxes out one category can earn up to 50 percent more by adding very low or moderate income units, for a combined bonus of up to 100 percent of base density. Rental affordable units carry recorded restrictions of at least 55 years.

Incentives, concessions and waivers

  • Incentives and concessions are reductions in development standards or other regulatory relief that cut costs, such as reduced setbacks or a mixed-use allowance. A project gets one at the entry set-asides, rising to three at higher affordability, and 100 percent affordable projects receive more. A city may deny one only with written findings that it would not reduce costs, would have a specific adverse impact on health, safety or historic resources that cannot be mitigated, or would violate state or federal law.
  • Waivers are unlimited. A city must waive any development standard that would physically preclude building the project at its bonus density with its concessions, such as a height limit or a floor area ratio. The grounds for refusal are narrow, similar to those for concessions.

Density bonus parking ratios

Gov. Code 65915(p) sets the most parking a city may require for a qualifying project, inclusive of guest and accessible spaces, when the developer asks. Tandem and uncovered spaces may count. A project that qualifies for a bonus can request these caps even if it does not take the extra units.

ProjectMaximum parking a city may require
Studio and one-bedroom units1 space per unit
Two- and three-bedroom units1.5 spaces per unit
Four or more bedrooms2.5 spaces per unit
At least 20% lower income, 11% very low income or 40% moderate for-sale units, within a half mile of a major transit stop with unobstructed access0.5 spaces per unit
100% affordable rental within a half mile of a major transit stop with unobstructed accessNone
Senior and special needs projects served by paratransit or near fixed bus routesReduced ratios, as low as zero to 0.5 per unit
Density Bonus Law parking caps, Gov. Code 65915(p). A city may impose a higher ratio only with a parking study that supports it under the statute’s conditions.

Near transit, AB 2097 now goes further: within a half mile of a major transit stop most projects face no minimum at all, and a project that qualifies for density bonus parking reductions cannot be pulled back into a minimum through AB 2097’s findings exception. The density bonus caps still matter on the many sites outside the half mile, and they travel with the project if a stop is ever dropped from the regional plan.

Density bonus and SB 79

SB 79 sets state floors for height and density near qualifying stops, and the Density Bonus Law can apply on top of them, so a project near a station may layer a bonus, concessions and waivers over the SB 79 standards. Projects can also pair the bonus with the streamlined approval path in SB 423 when they meet its affordability and labor rules.

Density Bonus Law timeline

  • 1979: California enacts the Density Bonus Law.
  • 2015, AB 744: adds parking caps for affordable projects near transit.
  • 2019, AB 1763: creates the 80 percent bonus for 100 percent affordable projects, with no density limit and extra height near major transit.
  • January 1, 2021, AB 2345: raises the maximum base bonus from 35 to 50 percent and lowers the thresholds for concessions.
  • January 1, 2024, AB 1287: allows a stacked bonus of up to 100 percent total.
LawWhat it does for parking and housing near transit
SB 79 (2025)Sets state floors for height, density and floor area around qualifying rail and BRT stops
AB 2097 (2022)Bars minimum parking requirements on most projects within a half mile of a major transit stop
Density Bonus LawAdds homes in exchange for affordable units and caps the parking a city may require
SB 423 (2023)Ministerial, streamlined approval with its own parking limits near transit
AB 1317 (2023)Separates the cost of parking from rent in new buildings of 16 or more units in ten counties
AB 894 (2023)Lets owners share underused parking and count it toward requirements
The California parking law stack. SB 79 decides how big the building can be; the others decide what happens to its parking.

The Parkonomics view

Bonus units add homes without adding land, so they add pressure on the garage. A 50 percent bonus on a podium site can mean another parking level, a stacker or automated system, or a ratio well under one space per unit. The statute caps what a city can require; it does not tell an owner what the building needs. That answer comes from a parking demand analysis, the lender’s view of the market, and whether parking will be unbundled. Run those numbers before the concessions and waivers are locked, with an owner’s parking consultant at the table, because the parking count is often the waiver that decides whether the bonus pencils.

Density Bonus Law: frequently asked questions

What is the maximum density bonus in California?

The base bonus tops out at 50 percent, reached with 15 percent very low income, 24 percent lower income or 44 percent moderate income for-sale units. Since 2024, AB 1287 lets a project that maxes one category stack a second bonus for a total of up to 100 percent. Qualifying 100 percent affordable projects get 80 percent, or no density limit near a major transit stop.

What are density bonus parking requirements?

A city may require no more than 1 space for studios and one-bedrooms, 1.5 for two- and three-bedrooms and 2.5 for four or more, including guest and accessible spaces. Qualifying projects within a half mile of a major transit stop drop to 0.5 spaces per unit, and 100 percent affordable projects near transit can have no parking requirement.

What is the difference between a concession and a waiver?

A concession is a cost-reducing break from a standard or regulation, and a project gets a limited number based on its affordability. A waiver removes any development standard that would physically prevent the bonus project from being built, and waivers are unlimited.

Can a city deny a density bonus?

A city must grant a bonus to an eligible project. It can deny a requested concession or waiver only on narrow grounds, such as a specific, unmitigable adverse impact on public health or safety, an impact on a historic resource, or a conflict with state or federal law.

Does the Density Bonus Law apply in charter cities?

Yes. The Density Bonus Law applies to every city and county in California, including charter cities such as Los Angeles.

Does AB 2097 replace density bonus parking caps?

Near transit, AB 2097 usually goes further by removing minimums altogether. The density bonus caps still govern sites outside a half mile of a major transit stop and protect projects from AB 2097’s findings exception.

Related terms: AB 2097, SB 79, SB 423, Parking Minimums, Unbundled Parking, Stack Parking, Financial Feasibility Analysis, Transit-Oriented Development

Further reading: The Zoning Arrives Before the Train, The Multifamily Gap, The Underwriting Frame, Santa Monica’s Height Fight Is a Parking Fight

Sources: Gov. Code 65915 to 65918; AB 2345 (Gonzalez), 2020; AB 1763 (Chiu), 2019; AB 1287 (Alvarez), 2023; AB 744 (Chau), 2015; SCAG legislative summary of AB 2345; Los Angeles County Planning, Density Bonus parking guidance.

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