Prepared for:
Los Angeles Housing Department

Prepared by:
David Paul Rosen & Associates

September 25, 2002

 The study was completed on September 25, 2002, and released to the public on March 21, 2003. For questions regarding the study, briefing requests and other matters please contact Steven Brady at (213) 808-8646.

Briefing Presentation (PDF): Overview of statewide inclusionary practices, key policy issues and report summary.

Supplemental report (PDF) containing: 1) Outline of Program Components; 2) Summary of Program Components; and 3) Inclusionary Housing Implementation Policies, Practices, and Program Administration.

Download the entire report (PDF 18.4MB) or choose from the active links below:

Note: Due to the size of these files, consider "right clicking" on a link and using "Save Target As" to save the file to your computer.

Executive Summary (PDF 2.9MB)

A. Background	1
B. Methodology and Data Sources	2
C. Advisory Committee Review Process	3
D. Baseline Development Costs of Housing Prototypes Housing Prototypes Prototypical Development Costs	4 4 7
E. Estimated Costs of Alternative Affordability Standards	16
F. Estimated Value of Economic Incentives	21
G. Comparison of Affordability costs and Cost-Savings from Incentives	28
H. Comparison of Affordability Costs and Cost-Savings from Alternative Compliance Measures	35
I. Residential Building Permit Activity	49
J. Economic Impact of Alternative Inclusionary Standards	58

 APPENDICES A through F (PDF 11.1MB) or individually:

Appendix A: List of Advisory Group Members/Participants, Meeting Agendas, Notes
Appendix B: Costs of Alternative Affordability Requirements
Appendix C: Evaluation of Potential Economic Incentives
Appendix D: Prototype Density Bonus Feasibility Evaluation
Appendix E: Assessment of Economic Impacts of Affordability Requirements
Appendix F: Residential Building Permit Activity

LIST OF TABLES

TABLE	TITLE	PAGE
1	Renter Housing Prototype Projects	5
2	Owner Housing Prototype Projects	6
3	Per Square Foot Land Acquisition Cost Assumptions by Zoning and Prototype	7
4	Per Square Foot Hard Construction Cost Assumptions by Prototype	8
5	Residential Development Impact Fees	10
6	Estimated Prototype Development Costs, Renter Housing Prototypes	12
7	Estimated Prototype Development Costs, Owner Housing Prototypes	14
8	Affordability Standard Alternatives	17
9	Affordable Monthly Housing Expense	18
10	Affordability Gap on Inclusionary Units, Rental Housing Prototypes	19
11	Affordability Gap on Inclusionary Units, Owner Housing Prototypes	20
12	Total Economic Value of Incentives, Excluding Density Bonus, Renter Housing Prototypes	29
13	Total Economic Value of Incentives, Excluding Density Bonus, Owner Housing Prototypes	30
14	Total Economic Value of Incentives, Excluding Density Bonus, Renter housing Prototypes	31
15	Total Economic Value of Incentives, Excluding Density Bonus, Owner Housing Prototypes	32
16	Comparison of Affordability costs and Cost Savings from Incentives, with density Bonuses, Renter Housing Prototypes	33
17	Comparison of Affordability Costs and Cost Savings from Incentives, with Density Bonuses, Owner Housing Prototypes	34
18	Cost Savings, Alternative Product Type	36
19	Cost Savings, Offsite New Construction, Rental Prototypes	37
20	Cost Savings, Offsite New Construction, Owner Prototypes	38
21	Net Affordability Costs, Offsite New Construction, Rental Prototypes	39
22	Net Affordability Costs, Offsite New Construction, Owner Prototypes	40
23	Per-Unit Acquisition Cost Assumptions, Existing Multifamily Rental Properties	41
24	Cost Savings, Acquisition/Rehabilitation, Rental Prototypes	43
25	Cost Savings, Acquisition/Rehabilitation, Owner Prototypes	44
26	Net  Affordability Costs, Acquisition/Rehabilitation, Rental Prototypes	45
27	Net Affordability Costs, Acquisition/Rehabilitation, Owner Prototypes	46
28	Cost Saving, Additional Bedroom Credit, Rental Prototypes	47
29	Cost Saving, Additional Bedroom Credit, Owner Prototypes	48
30	City of Los Angeles Market Rent Date	59
31	Estimated Market Home Sales Prices, Owner Housing Prototypes	60
32	Residual Land Value Per Square Foot Site Area, Renter Housing Prototypes with Alternative Inclusionary Housing " Packages," Inclusionary Scenario 1: 10% of Units Affordable at 45% of Area Median Income	62
33	Residual Land Value Per Square Foot Site Area, Owner Housing Prototypes with Alternative Inclusionary Housing " Packages," Inclusionary Scenario 1: 10% of Units Affordable at 90% of Area Median Income	63
34	Residual Land Value Per Square Foot Site Area, Owner Housing Prototypes with Alternative Inclusionary Housing " Packages," Inclusionary Scenario 2: 15% of Units Affordable at 90% of Area Median Income	64
35	Residual Land Value Per Square Foot Site Area, Owner Housing Prototypes with Alternative Inclusionary Housing " Packages," Inclusionary Scenario 3: 20% of Units Affordable at 90% of Area Median Income	65

LIST OF CHARTS

CHART	TITLE	PAGE
1	State of California Total Residential Building Permit Activity	54
2	City of Carlsbad Total Residential Building Permit Activity	55
3	City of Los Angeles Total Residential Building Permit Activity	56

LETTER FROM MAYOR HAHN DATED MARCH 25, 2003 (PDF) -- not included in the "entire report" above

LAHD STAFF REPORT (PDF) -- not included in the "entire report" above
Staff report from the Los Angeles Housing Department transmitting the City of Los Angeles Inclusionary Housing Study to Mayor and City Council.