West Hollywood Council to Vote on Changes to Affordable Housing Rules
The West Hollywood City Council will consider significant revisions to its Inclusionary Housing Ordinance on Monday night, a move that could impact the future development of affordable housing in the city.
The proposed update maintains the existing 20 percent requirement for affordable units in larger developments but shifts the income mix to include 5 percent extremely low-income, 10 percent very low-income, and 5 percent low-income units. Experts warn that this change, while seemingly minor, could substantially increase the financial burden on developers, potentially slowing down housing production. The city’s consultant, The Housing Workshop, based its feasibility analysis on market conditions between 2019 and May 2024 – a period marked by unusual economic factors like pandemic-era stimulus and high savings rates.
Current market conditions, however, present a different picture, with normalized vacancy rates, slower rent growth, and high construction financing costs. Recent research from the Terner Center for Housing Innovation at UC Berkeley suggests that inclusionary zoning yields diminishing returns beyond a 16 percent set-aside, with each additional unit potentially costing multiple market-rate units. This debate comes as West Hollywood prepares for upzoning around future transit stations due to SB 79 and the K Line extension, adding further complexity to the housing landscape. A lack of affordable housing options contributes to the broader housing crisis in Los Angeles County.
City staff acknowledge the need to balance affordability with financial feasibility, stating the ordinance must “ensure affordable housing is being produced without creating financially burdensome requirements that halt new housing production.” The council will weigh these considerations as they decide whether to adopt the proposed changes, potentially impacting the city’s ability to meet its housing goals.
