Housing development: density bonuses: mixed-use developments.

Assembly Member Boerner's housing legislation modifies California's Density Bonus Law to restrict how development incentives can be applied to mixed-use projects containing hotels and visitor accommodations. The bill prohibits density bonus incentives or concessions from being used for portions of developments containing hotels, motels, bed and breakfast inns, or other visitor-serving uses.

The measure maintains existing density bonus provisions that allow developers to build additional market-rate units in exchange for including affordable housing, but creates a targeted limitation on applying these bonuses to the hospitality components of mixed-use projects. This change aims to ensure density incentives remain focused on increasing the supply of residential units rather than expanding hotel capacity.

The legislation makes conforming updates to cross-references in related housing statutes to align with the new restriction. It also includes a legislative finding that the changes address a matter of statewide concern and therefore apply to all cities, including charter cities.

This targeted modification to the state's density bonus program reflects an effort to more precisely direct development incentives toward addressing California's housing needs while maintaining local authority over hotel and visitor accommodation projects. The bill's provisions would take effect for new development applications submitted after January 1, 2026.