The Citywide Housing Incentive Program (CHIP) launched in February 2025. One year on, the data tells an incredible story:
Los Angeles CHIP has drawn 242 projects and 28,526 proposed homes. Of the projects filed, 91% have been processed through ministerial review.
So, what is actually getting approved?
This article breaks down the pathways, incentives, and project types moving through CHIP Los Angeles. It also shows what those trends mean for your next development project.
What Is CHIP in Los Angeles?
The Citywide Housing Incentive Program (CHIP) is a set of zoning incentives for housing. It rewards projects that include affordable homes with more density, height, and floor area. It also gives them clearer approval pathways.
What Does the Citywide Housing Incentive Program Do?
CHIP Los Angeles runs on three subprograms:
- The State Density Bonus Program localizes state law for mixed-income projects. It’s the Los Angeles density bonus route.
- The Mixed Income Incentive Program (MIIP) targets sites near transit, jobs, and corridors.
- The Affordable Housing Incentive Program (AHIP) serves projects that are 80% to 100% affordable.
When Did CHIP Take Effect?
Los Angeles City Planning launched CHIP on February 11, 2025. The city calls it one of its most significant housing reforms in decades. It created zoning capacity for more than 500,000 homes.
Timing matters for your project. Applications filed before that date can still use CHIP procedures while they await review. That gives earlier filers a way in.
How CHIP Differs From Other Los Angeles Housing Programs
CHIP builds on several older tools. Before it, developers chose between Transit Oriented Communities (TOC), Executive Directive 1 (ED 1), and standalone density bonus filings. Today, AHIP and MIIP have largely taken over from ED 1 and TOC.
The numbers even show this shift. In its first year, Los Angeles CHIP drew proposals for 28,526 homes. TOC saw 9,479 and ED 1 saw 10,151 in their own first years. By August 2025, CHIP made up 97% of proposed homes across these programs.
What Has CHIP Actually Produced After One Year?
The short answer is a lot of interest. Between February 2025 and February 2026, 242 projects proposed 28,526 homes through CHIP Los Angeles. The project count doubled from 115 at the six-month mark.
From the report, here’s what stands out the most:
- 38% of proposed homes (10,804) are covenant-affordable. That’s up to 4% from the six-month report.
- 57% of all proposed homes sit in Higher Opportunity Areas.
- Over 60% of homes are in Central Los Angeles and the South San Fernando Valley.
- More than half of projects need no demolition of existing homes.
The LA map is shifting too. Affordable housing was once clustered in Westlake and Wilshire. Now proposals reach West Los Angeles (16% of homes), South Los Angeles (13%), and the Valley.
Proposals aren’t approvals, though. So how many projects have moved forward? Of the 242, 117 received signed Preliminary Application Referrals. Of those, 89 became official Planning cases. Twenty-five of those cases have signed Letters of Determination.
More importantly, that funnel is still filling. It shows Los Angeles development projects moving from idea to filing, with a smaller group already through review.
Which CHIP Pathways Are Projects Actually Using?
Not all three CHIP Los Angeles subprograms carry equal weight: AHIP leads by project count at 48%. The State Density Bonus Program makes up 27% of projects but 42% of proposed homes. MIIP accounts for 20% of projects.
Size explains the Los Angeles density bonus gap. Projects with more than 500 homes supply 28% of that program’s total. Here’s how each pathway is playing out:
AHIP and 100% Affordable Projects
AHIP serves projects that are 80% to 100% affordable. In return, they get the strongest incentives in CHIP. That includes up to five incentives for 100% affordable projects. Also, 53% of AHIP projects were proposed alongside ED 1.
Take 3509 S. Western Avenue in South Los Angeles:
Base zoning allowed 34 homes. The approved project has 70 homes in seven stories, all affordable. It used five incentives and one waiver. It still earned ministerial approval through Expanded Administrative Review (EAR) on December 9, 2025.
Mixed-Income Projects in Transit-Oriented Incentive Areas
MIIP builds on the older TOC program. Most of its projects (80%) use Transit Oriented Incentive Areas (TOIA).
As an example, consider 5469 W. Adams Boulevard:
Base zoning allowed 71 homes and 45 feet. The approved plan delivers 142 homes in six stories, all affordable. The developer set aside at least 10% of homes as three bedrooms or larger.
All this helped unlock extra FAR and height. The project cleared EAR, and its Letter of Compliance was issued February 20, 2026.
Opportunity Corridors and Corridor Transition Areas
The other 20% of MIIP projects use the Opportunity Corridors program. These Corridor Transition areas tell a different story. No projects were proposed there in year one. Feasibility limits held them back. City Planning has since revised those rules, so this pathway is one to watch.
What Incentives Does CHIP Offer Developers?
CHIP works on a sliding scale. The more affordable homes you provide, the more relief you can access. Three types of relief matter most, and those are:
Density, Height, and Floor Area Bonuses
Every CHIP program scales density, height, and floor area ratio (FAR) with affordability. AHIP delivers the biggest bonuses. MIIP comes next, followed by the State Density Bonus Program.
Fortunately, the results are visible. The Western Avenue site went from 34 allowed homes to 70. The Adams Boulevard site doubled from 71 to 142.
Parking, Setback and Open Space Relief
More importantly, all three programs include parking relief. AHIP projects average 0.41 spaces per home, and many provide none. MIIP projects average 0.62. State Density Bonus projects average 0.97.
Yard (setback) reductions are the most requested incentive. About two-thirds of projects ask for them. Open space relief comes second, at around 60%.
Waivers and Off-Menu Incentives
Some relief sits on a pre-vetted Menu of Incentives. Requests beyond the menu are still possible. You just need to show the request is necessary to build the affordable housing proposed.
That said, projects can request up to four incentives, or five if they are 100% affordable. Waivers sit on top of that. Popular combinations are one on-menu incentive, two or three off-menu incentives, or one waiver.
Remember that each choice affects the review path, which the next section covers.
How Are CHIP Projects Being Approved?
Every CHIP project starts with a Preliminary Application Referral (PAR). From there, your requests decide the review path.
Ministerial vs. Administrative Review
CHIP offers three levels of review:
- Level 1 is by-right. Projects using only base incentives and the Menu of Incentives go straight to Zoning Review to file for a building permit.
- Level 2 is Expanded Administrative Review (EAR). It’s still ministerial. Projects land here when they seek public benefit options or incentives off the menu. AHIP projects can also add one waiver.
- Level 3 is discretionary. The Director of Planning or the City Planning Commission decides. Waiver requests beyond EAR limits go this route.
Why the Streamlined Approval Process Matters
The filing data shows how this plays out: Of 137 formal applications, 49 were by-right, 75 went through EAR, and 13 were discretionary. That means 91% moved ministerially. Ministerial applications have also risen 18% since the six-month mark.
Ministerial review checks a project against set rules. It leaves little room for subjective calls. As a result, you get more certainty on the outcome.
The takeaway is practical here: Your incentive requests shape your review path. Keeping requests within EAR limits can keep you out of discretionary review.
What the First Year of CHIP Tells Developers
The year one report shows clear patterns. Some are obvious, and others are easy to miss. So let’s take a look at what the numbers mean for your next project:
Affordable Housing Is Central to the Incentive Structure
Affordability drives everything in CHIP. Incentives grow as you add affordable homes. That’s why 38% of proposed homes are covenanted affordable, and why AHIP drew the most projects.
Additionally, the income mix matters. Of the 10,804 affordable homes proposed, 64% serve low-income households and 19% serve moderate-income households. Another 12% target very low income.
The verdict: If your pro forma can support deeper affordability, CHIP gives you real capacity in return.
Site Selection Matters
Remember that location shapes your options. That’s why you should always consider where your proposal lands. Keep in mind that:
- 57% of proposed homes sit in Higher Opportunity Areas.
- Over 60% are in Central Los Angeles and the South San Fernando Valley.
- Over half of the projects need no demolition.
- The most common project size is 26 to 50 homes.
Demolition, on the other hand, deserves a closer look. Sites with existing housing trigger the Resident Protections Ordinance. It requires replacement homes, relocation assistance, and a right of return for lower-income tenants. Sites without existing homes skip that step.
The Incentive Strategy Should Be Determined Early
Here’s the catch: Every incentive you request shapes your review path. You must stay within the menu and EAR limits to remain ministerial. Push into extra waivers, and you may land in discretionary review.
For instance, the Western Avenue project shows this balance. It used five incentives and one waiver and still cleared EAR. Yard and open space relief lead requests, so build those into your plan early.
That’s why many developers work with a permit expediter in Los Angeles before filing a PAR. A PAR is required for every CHIP project. It’s your first chance to test your incentive mix. As a result, you can adjust before formal filing.
What Else Is Changing for Los Angeles Developers?
CHIP isn’t the only shift occurring. SB 79 took effect July 1, 2026. It sets state height, density, and FAR standards near major transit. Within a half mile of a qualifying stop, it allows maximum densities of 80 to 160 homes per acre, depending on transit type and distance.
Los Angeles also adopted phased implementation and low-rise ordinances on June 23, 2026. Together, they push broad rollout to around 2030, and the state still has to review the city’s approach. City Planning also expanded its Corridor Transition program.
AB 2097 works differently. It bars minimum parking requirements within a half-mile of a major transit stop. Hotels and motels are excluded, though. Cities can only reinstate minimums with specific findings. They can’t do so for projects with 20% or more affordable units or fewer than 20 units.
As such, check your parcel in ZIMAS for AB 2097 eligibility. Then compare it against CHIP before you commit to a path. By doing so, you know which incentives stack before you file.
Planning a CHIP Project in Los Angeles?
CHIP rewards early planning. The right incentive mix can shape how smoothly your project moves from filing to approval. That’s where Pattern Planning & Development comes in.
Pattern is a California land use consulting firm. Our team pairs years of entitlement experience with strong relationships across local agencies. As a permit expediter that Los Angeles developers rely on, we tailor a strategy to your site. We also guide LA development projects through CHIP, from the first PAR to final approval.
Ready to start? Call (818) 253-4319 or email contact@pattern.la, and let us get your project moving!
FAQs
Is CHIP the Same as ED1?
No. ED 1 is an executive directive from Mayor Bass. CHIP is a city ordinance with three subprograms. In year one, 53% of AHIP projects were also proposed with ED 1.
Can CHIP Be Combined With the State Density Bonus Law?
Yes. CHIP’s State Density Bonus Program localizes state law. MIIP and AHIP offer more generous incentives on top of the state baseline.
How Long Does CHIP Approval Take?
It depends on your review path. Your incentives decide that. By-right projects file straight for building permits. EAR stays ministerial. Discretionary review adds decision markers and more time.