California mandates affordable housing in new development density bonus guidelines

Assembly Bill 87, introduced in California on March 18, 2025, aims to enhance affordable housing options across the state by implementing a density bonus program specifically targeting lower-income households. The bill seeks to address California's ongoing housing crisis by incentivizing developers to create more affordable units through various provisions.

The key provisions of Assembly Bill 87 stipulate that 100% of units in qualifying developments must be designated for lower-income households, with a provision allowing up to 20% for moderate-income households. This approach is designed to ensure that new housing developments contribute significantly to the availability of affordable housing. Additionally, the bill mandates that the affordability of these units be maintained for at least 55 years, aligning with existing state housing policies.

Notably, the bill has sparked debates among lawmakers and housing advocates. Proponents argue that the legislation is a crucial step toward alleviating the housing shortage and providing necessary support for low-income families. Critics, however, express concerns about the potential impact on developers, fearing that stringent requirements may deter new housing projects and exacerbate the housing crisis further.

The economic implications of Assembly Bill 87 are significant. By promoting the construction of affordable housing, the bill could stimulate local economies through job creation in the construction sector and increased spending in communities. Socially, the bill aims to provide stable housing for vulnerable populations, which could lead to improved health and educational outcomes for families.

As the bill progresses through the legislative process, experts suggest that its success will depend on balancing the needs of developers with the urgent demand for affordable housing. If passed, Assembly Bill 87 could serve as a model for other states grappling with similar housing challenges, potentially reshaping California's housing landscape for years to come. The next steps will involve further discussions and potential amendments as lawmakers seek to refine the bill before it reaches a vote.