Politics

West Hollywood Requires 20% Affordable Units in New Apartment Projects

The updated rules require 20 percent affordable units in qualifying developments, which means more below-market apartments become available to income-eligible West Hollywood residents starting with projects permitted after September.

By West Hollywood Policy Desk · Published July 8, 2026

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The West Hollywood City Council passed revisions to the Inclusionary Housing Ordinance on July 6. The changes apply to any residential project with 10 or more units that receives a building permit after September 1. Developers must now set aside 20 percent of units at rents affordable to households earning up to 60 percent of area median income.

The revision follows the city’s 2025 Housing Element filing with the state Department of Housing and Community Development. That filing identified a shortfall of 850 affordable units needed by 2029 to meet regional housing goals. Local staff prepared the ordinance update to align with updated state density bonus laws that took effect in January 2026.

Changes for Apartment Seekers and Current Tenants

Residents earning under $72,000 for a two-person household now qualify for the new set-aside units. A qualifying household could apply for a one-bedroom apartment in a building on Santa Monica Boulevard where the rent would be capped at $1,650 monthly instead of market rates above $2,800. Current tenants in older rent-stabilized buildings see no direct change, though city records show the added supply may ease pressure on the 4,800 rent-controlled units tracked by the Rent Stabilization Division.

City budget documents for fiscal year 2026-2027 allocate $425,000 to the Housing Department for monitoring compliance and processing applications. The funds cover two new staff positions that will review developer agreements and maintain a waitlist for the affordable units.

Next Steps in Implementation

City planning staff will release updated application forms and affordability covenants by August 15. Developers with projects already in the pipeline may request a one-time adjustment meeting before October 1. The first completed buildings under the new percentage are expected to open in late 2028, according to the city’s five-year housing production schedule.

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