Of the many housing laws on the books in California, few are more effective at producing new affordable homes than the state Density Bonus Law. Originally adopted in 1979, the law has a simple premise: the more affordable housing a project provides, the more flexibility the state gives it in return regarding zoning standards.
Earlier in 2026, Greenbelt Alliance was proud to join as a co-sponsor on Assembly Bill 2433, a measure by Assemblymember David Alvarez of San Diego that would make it easier to build more infill housing in California by strengthening the Bonus Law in several different ways.
We’re joining Assemblymember Alvarez alongside co-sponsors Circulate Planning & Policy, Inner City Law Center, SPUR, and the San Diego Chamber of Commerce. AB 2433 has now passed the state legislature and is headed to Governor Newsom’s desk for signature. Join us in supporting this important piece of legislation by sending a support letter to the Governor’s office, urging him to sign the bill. Take action here!
What Does the Bill Do?
AB 2433 provides important clarifications and revisions to bonus law, with a focus on two key areas:
- Making it more predictable for builders to use, and
- Ensuring its application is consistent across jurisdictions.
These new provisions do the following (click the titles to expand):
This is a big deal for many areas across the state, particularly Los Angeles. Under AB 2433, all Bonus Law waivers must be processed ministerially. That’s already supposed to be the law today, but LA and many other cities have long treated them as discretionary requests that trigger CEQA review. Now, the law is clear, and projects will have to be processed much more quickly, without triggering review, appeals, etc.
Oftentimes, communities that do not want to see more multifamily housing built will imply to project applicants that bonus law does not apply, that its provisions are more limited than they are, or that attempts to utilize the law will result in negative consequences for the applicant. To solve for this, AB 2433 requires local governments to proactively and forthrightly notify project applicants of their eligibility for bonus law usage up front.
That law grants a 100% density bonus if a project includes 15% moderate income units on top of the deeply affordable units it’s already providing. AB 2433 ensures that 100% affordable developers providing deeper levels of affordability can access that full benefit as well, leading directly to more deeply affordable homes.
Recognizing that it’s particularly difficult to produce ownership units in California, the law gives projects that provide them some additional flexibility to ensure that more for-sale homes are financially viable to build.
Why It Matters
Even though Bonus Law is one of the most widely used and effective housing production tools in the state, gaps and inconsistent local implementation have made it harder to use than it should be, including for ownership housing and 100% affordable projects. By closing those gaps, clarifying that waivers are ministerial, and requiring local governments to be upfront about eligibility, AB 2433 helps unlock more affordable and mixed-income housing in the communities that need it most.
As California continues to face a persistent housing affordability crisis, strengthening the tools that are already working is one of the most effective paths we have of producing the new housing we need at scale. AB 2433 builds on more than a decade of Density Bonus Law reforms, including AB 2345 in 2020 and AB 1287 in 2023, to help approve even more affordable homes throughout the state while keeping growth focused where it belongs: in our existing communities, not on our natural and working lands.
