Overview
The Citywide Housing Incentive Program (CHIP) Ordinance establishes three subprograms designed to encourage the production of on-site affordable housing citywide: The State Density Bonus Program, the Mixed Income Incentive Program (MIIP), and the Affordable Housing Incentive Program (AHIP). Together, these programs streamline review procedures and offers incentives for eligible housing projects, with the goal of expanding access to affordable housing near transit, jobs, along major corridors, and in certain cases, higher opportunity areas.
The State Density Bonus Program serves as the City’s primary mechanism for implementing State Density Bonus Law (pursuant to Government Code Section 65915) by providing development incentives for qualifying housing projects. AHIP includes both state-required and locally adopted incentives for 80% to 100% affordable housing developments, as well as projects on land owned by faith-based organizations, community land trusts, and public agencies. MIIP establishes low-rise bonuses and offers development incentives within a half mile of a Major Transit Stop. CHIP’s subprograms function together to expand opportunities for affordable housing construction, with greater incentives for both 100% affordable developments under AHIP and projects in higher opportunity areas under MIIP.
In conjunction with CHIP, the Resident Protections Ordinance establishes permanent tenant protections and replacement requirements for development projects and requires all affordable units provided in exchange for development incentives to be subject to a 99-year affordability covenant, with limited exceptions. The Housing Element Sites and Minimum Density Ordinance also implements a variety of requirements for different categories of sites identified in the 2021- 2029 Housing Element’s Site Inventory and Housing Element’s Rezoning Program
For a detailed look at CHIP’s first year of implementation, read the One-Year Progress Report.
Program Details
To learn more about the State Density Bonus Program, AHIP, or MIIP, click on their respective name to be taken to their specific webpage.
State Density Bonus Program
The State Density Bonus Program implements State Density Bonus Law through the City’s local Density Bonus Ordinance. As part of CHIP, the program updates the City’s incentives, processes, and procedures to better align with state requirements and support eligible housing projects seeking density bonus incentives. Providing up to 100% in density increases, the program also supports mixed-income density bonus projects and housing for target populations, such as senior citizens, transitional foster youth, disabled veterans, unhoused individuals, and lower income students.
Mixed Income Incentive Program (MIIP)
MIIP supports mixed-income housing near transit and along major corridors by offering incentives for eligible projects citywide. The program goes beyond what is offered in the State Density Bonus Program, with density increases ranging from 110% to Limited by Floor Area. The program includes Opportunity Corridor incentives in higher opportunity areas, which promotes housing on major streets. The Low-Rise incentives in Opportunity Station Areas encourage low-scale and low-rise housing that helps transition between single-family neighborhoods and mid-rise apartment buildings. MIIP also codifies key elements of the Transit Oriented Communities (TOC) Affordable Housing Incentive Guidelines for transit-adjacent sites.
Affordable Housing Incentive Program (AHIP)
AHIP supports the production of affordable housing citywide by providing density bonus, height, parking, and tailored land use incentives for eligible affordable housing projects. One Hundred Percent Affordable Housing Projects under State Density Bonus Law receive larger bonuses in moderate and higher opportunity areas. AHIP also expands eligibility to “P” Parking zones and creates incentives for additional affordable housing project types, including Public Land Projects, Faith-Based Organization Projects, and Shared Equity Projects.
CHIP projects are eligible for three levels of review. Incentives may be combined but require progressively higher levels of review.
* AHIP projects can receive 1 waiver under Planning Ministerial Review
Please note that the State Density Bonus Program, AHIP, and MIIP have slightly different Menus of Incentives and Public Benefit Options. Each CHIP program uses the Maximum Allowable Residential Density (MARD) for varying eligibility thresholds.
