Los Angeles City Councilwoman Katy Yaroslavsky announced a new two-part plan this week, intended to make it easier and less expensive to build condominiums, townhomes, and other smaller for-sale homes in the city. The goal is to expand pathways for homeownership for Angelenos.
Only 36% of homes in Los Angeles are owner-occupied, according to Yaroslavsky’s office, even as the city's median home price has climbed past $1 million. For many in Los Angeles County, most residents are renters, and homeowners only begin to outnumber renters once they reach age 59. Councilwoman Yaroslavsky noted that for "too many Angelenos, the first rung of homeownership has disappeared."
The first part of the plan, introduced Wednesday, is a motion directing the Department of City Planning to develop a streamlined approval process for new condominium projects. Currently, even housing developments that are otherwise considered "by-right" can get caught in a lengthy discretionary subdivision process if the units are intended for individual ownership as condos. The motion specifically tasks the Department of City Planning, with assistance from the Department of Building and Safety and Bureau of Engineering, to draft an ordinance within 30 days. This ordinance would create simplified and expedited procedures for new-construction condominium projects that meet eligibility criteria.
The second part, expected to be introduced later this week, will focus on city fees that impact small-scale ownership housing. This companion motion seeks to address the issue of the city often charging more to build homes for individual ownership compared to building the exact same units as rental apartments. For example, a multifamily project can incur tens of thousands of dollars in additional city fees if its units are subdivided and sold as condominiums, rather than being held by one owner and rented out. These additional costs can include various charges such as park fees, the Affordable Housing Linkage Fee, and specific subdivision and mapping fees.
This second proposal would direct the city administrative officer and relevant city departments to identify these differing fee structures and evaluate options. These options could include fee reductions, credits, deferrals, or more proportional fee structures to lessen the financial burden on ownership projects. Councilwoman Yaroslavsky emphasized that in an economy where asset owners continue to build wealth, working and middle-class families often fall further behind. She stated that if the path to homeownership starts with a $1.5 million single-family home, many Angelenos are being excluded. Condos, townhomes, and other starter homes, she suggested, should offer first-time buyers a genuine opportunity to own a piece of Los Angeles and build wealth over time.
The councilwoman's proposals come as state and local housing laws are already shifting to allow more homes in more places, including the state’s Senate Bill 79, which created new housing standards near major transit stops. The city is also developing its “Missing Middle LA” program, aimed at expanding smaller-scale housing options like Accessory Dwelling Units (ADUs), small-lot subdivisions, and starter homes. Yaroslavsky highlighted the importance of ensuring homeownership remains part of the conversation, asking, "If our rules make a condo substantially harder or more expensive to build than the exact same home as an apartment, we shouldn’t be surprised when everything gets built for rent."
