California Construction News staff writer
A progress report released last week shows that nearly 30,000 new homes are moving forward across Los Angeles through the Citywide Housing Incentive Program (CHIP).
City officials describe CHIP as one of the “most significant” housing policy reforms enacted in Los Angeles in decades. The program, which became effective in February 2025, created zoning capacity for more than 500,000 potential housing units citywide while streamlining entitlement pathways for residential development.
“The number of proposed projects has doubled since the first six months, indicating continued interest in the program,” the report states.
The initiative combines three housing development tools: the State Density Bonus Program, the Mixed Income Incentive Program (MIIP), and the Affordable Housing Incentive Program (AHIP). Together, the programs offer developers incentives and expedited approval processes in exchange for providing affordable housing and locating projects near transit, employment centers, and designated opportunity areas.
More than 38 percent of the units proposed during CHIP’s first year are designated as covenanted affordable housing, a four-percentage-point increase from the program’s initial six-month period. The report also found that 57 percent of all proposed units are located in Higher Opportunity Areas, while 44 percent of affordable units are concentrated in those neighborhoods.
More than 90 percent of applications qualified for ministerial processing, including 35 percent that were handled over the counter through zoning review procedures. Streamlined approvals are intended to reduce entitlement timelines and provide greater certainty for developers pursuing multifamily housing projects.
Geographically, development activity has expanded beyond traditional affordable housing hotspots. While affordable housing production from 2009 through 2024 was heavily concentrated in neighborhoods such as Westlake and Wilshire, CHIP projects are now appearing across Central Los Angeles, West Los Angeles, South Los Angeles, and the San Fernando Valley. City planners say the trend suggests that the ordinance is helping unlock housing opportunities in areas where zoning restrictions historically limited multifamily development.
The report also compares CHIP’s performance with other major housing initiatives. During its first year, CHIP generated proposals for 28,526 units, exceeding the 10,151 units proposed through Mayor Karen Bass’ Executive Directive 1 program and substantially outpacing the approximately 9,479 units proposed through Transit Oriented Communities entitlements during a comparable period.
Read the full Citywide Housing Incentive Program progress report here.
