BAF NEWS

Background: ED1 and Housing Pipeline Surge

Here’s the twist: a once‑temporary rule just rewired the housing pipeline. Since late 2022, Executive Directive 1 (ED1) has made all‑affordable approvals much faster.

According to available reports, ED1 cut waits from roughly a year to 60 days for qualifying projects. As a result, submissions soared and approvals followed.

By the numbers, plans for about 42,300 affordable units were submitted under ED1. Of those, about 31,700, or 75%, were approved.

That burst changed who participates. Market‑rate builders and new firms leaned in, even as financing slowed groundbreakings.

However, construction is trailing entitlements because subsidy sources are under pressure. Therefore, the pipeline is bigger, but delivery remains the question.

“plans for about 42,300 units… submitted… about 31,700—or 75%… approved.”

Permanent Streamlining Ordinance Advances

You might be surprised that the fast track did not fade with the emergency. On November 16, the City Planning Commission voted 5–1 to advance a permanent streamlining ordinance for affordable projects.

The draft now heads to Council committees for analysis and amendments. Public comments and Council file activity were logged days later.

“In a 5-1 vote, the Los Angeles City Planning Commission gave its approval on November 16 to a draft ordinance…”

Importantly, earlier draft language drew pushback and was softened after feedback. Still, the core bet remains speed for deeply affordable housing.

Key Provisions of the Draft Ordinance

What no one is mentioning: it’s not just a rubber stamp of ED1. The ordinance would codify 60‑day pre‑construction reviews for 100% affordable projects.

But the draft also narrows some ED1 elements compared with initial proposals. It threads prior feedback into more durable rules.

Crucially, the ordinance retains a streamlined, no‑hearing path for eligible projects. Consequently, timelines shrink, uncertainty drops, and carrying costs can ease.

Yet many details will live in implementation. Therefore, Council committees will shape exemptions, definitions, and monitoring.

The current draft integrates lessons from two years of use. However, it still needs clear alignment with state and tax credit rent schedules.

Stakeholder Concerns and Tenant Protections

Advocates warn about unintended incentives in the fine print. A public letter urges amendments to strengthen tenant protections in rent‑stabilized buildings.

“The RSO exclusion is drafted to incentivize bad behavior.” That concern centers on potential pressures to create vacancies.

“SAJE and Public Counsel… share our continuing concerns that the proposed… Ordinance will result in… displacement.” Their letter also seeks deeper affordability standards in exchange for speed.

Moreover, advocates ask for clear rent‑setting rules for subsidized units. They want consistency between state Health & Safety Code and tax credit guidelines.

Notably, they support streamlining while targeting loopholes that could harm low‑income tenants. Therefore, the Council’s edits will be pivotal.

Major Rent Control Reform Approved

Meanwhile, the City Council approved a significant overhaul of the Rent Stabilization Ordinance. The vote was 12–2 and sets a new cap tied to inflation.

Under the reform, annual increases will range from 1% to 4%, pegged to 90% of CPI. The action also removes certain utility surcharges and fees for dependents.

Importantly, the measure directs the City Attorney to draft final ordinance language. Therefore, final ratification and implementation steps still remain.

The update reaches roughly 650,000 regulated units citywide, according to available reports. And it is described as the first major update in decades.

“cap annual rent increases for regulated units at 4%… 12-2 vote… removes utility surcharges.”

Implications and Next Steps

Here’s the twist: speed and stability are arriving together. Faster approvals and tighter caps will hit the market at the same time.

For developers, a permanent 60‑day lane reduces entitlement risk. But construction financing and subsidy gaps still decide the real pace of delivery.

For tenants, the cap blunts volatility during a housing shortage. However, rent relief does not create units without subsidy or zoning capacity.

Therefore, the city’s success hinges on two levers moving together. Approvals must translate into starts, and rent rules must avoid displacement.

Additionally, Council committees will refine tenant safeguards in the streamlining bill. Expect debate on how RSO exclusions work in practice.

Crucially, the city will need transparency on outcomes. How many projects start on time, and at what affordability levels?

Moreover, the ordinance’s rent‑setting references require alignment to avoid confusion. Clear guidance prevents costly delays and compliance risks.

Advocates will keep pressing for deeper affordability. Meanwhile, builders will push for certainty and predictability.

If both groups engage early, fewer projects stall. Consequently, the city gets units faster, and tenants keep protections.

Finally, watch three milestones. First, Council committee markups on the streamlining ordinance.

Second, the City Attorney’s draft language for the rent control overhaul. Third, the vote to finalize both measures.

Because timing matters, the next eight to twelve weeks are critical. The pipeline is ready; now delivery needs proof.

And one more thing: ED1 proved speed changes behavior quickly. But only financing and enforcement will sustain results.