§ 15.10

A. Purpose

the Downtown community Benefts Fee (Downtown cBF) is a voluntary fee paid in exchange for development incentives provided in the community Benefits Program Subarea of the Downtown community Plan implementation Overlay (Downtown cPiO) District and collected to fund public amenities, programs, and services that benefit disadvantaged communities within the Downtown community Plan Area and the areas within its 1.5-mile radius.

B. Applicability

A project located in the Downtown cPiO District community Benefits Subarea (Subarea A) is eligible to pay the fee (Downtown cBF) described in this Subsection (Applicability) , provided all applicable requirements in the Downtown cPiO District are met.

c. Definitions

Whenever the following terms are used in this Section (Downtown Community Benefits Fee) , they shall be construed as defined below. Words or phrases not defined in this Section (Downtown Community Benefits Fee) shall be construed as defined in this chapter or the Downtown cPiO.

Applicant is defined as any individual, person, firm, partnership, association, joint venture, corporation, limited liability company, entity, combination of any of the above, or an authorized representative of any of the above, who submits a proposal for a Downtown community Benefts Project for consideration to receive funding allocation from the Downtown community Benefts trust Fund.

Downtown community Benefits Area is defined as the area within the boundaries of the Downtown community Plan and the area within its 1.5-mile radius. Any site of contiguous ownership that is partially within a 1.5-mile radius of the Downtown community Plan Area, shall be considered part of the Downtown community Benefts Area.

Downtown community Benefits Fee (Downtown cBF) is defined as the fee calculated pursuant to Subsection D. (Fees) below.

Downtown community Benefits Project is defined as a public amenity, program, or service, authorized for use of the Downtown cBF monies pursuant to Subsection H. (Eligible Community Benefits Project) below.

Downtown community Benefits trust Fund (Downtown cBtF) is defined as the trust fund established in Sec. 5.115.19. (Downtown Community Benefits Trust Fund) of the lAAc.

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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City of Los Angeles Zoning Code Chapter 1A

D. Fees

1. Fee Rate

the Downtown cBF shall be 50 dollars per square foot of additional foor area incentive granted, up to the project’s maximum bonus floor area ratio (FAr), subject to an annual adjustment pursuant to Paragraph 3. (Annual Indexing) below.

2. Time of Fee Payment

the Downtown cBF shall be paid prior to the issuance of any cPiO Approval for a project seeking development incentives under Section ii-6 (community Benefits Fund incentive) of the Downtown cPiO District.

3. Annual Indexing

the Downtown cBF rate shall be adjusted as follows:

• a. the fee shall be increased (or decreased) as of July 1 of each year by the amount of the percent increase (or decrease) in the engineering News-record (“eNr”) Building cost index for los Angeles, or other comparable city Building cost index as determined by the Department of city Planning.

• b. if the Department of city Planning determines that the city’s Building cost index described in Subparagraph a. above, does not adequately reflect the actual increase or decrease in costs, then the Department of city Planning shall recommend to the city council, based on a written report, that the city council adopt different cost figures for purposes of this Section (Downtown Community Benefits Fee) . Upon receipt of a report, and after public hearing, the city council may, by resolution, adopt these different cost figures to be used for the annual adjustment of the Downtown cBF.

4. Community Benefits Trust Fund

All Downtown cBF monies shall be deposited into the Downtown community Benefts trust Fund (Downtown cBtF), established in Sec. 5.115.19. (Downtown Community Benefits Trust Fund) of the lAAc, and shall be used to award Downtown community Benefts Projects pursuant to this Section (Downtown Community Benefits Fee) .

e. Downtown CBF Oversight Committee

1. Establishment

the Downtown community Benefit Fund Oversight committee (Oversight committee) is hereby established for the purpose of making recommendations for the appropriate disbursement of the monies in the Downtown cBtF consistent with this Section (Downtown Community Benefits Fee) .

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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2. Membership

the Oversight committee shall be composed of members who meet the requirements in the by-laws adopted by the Oversight committee pursuant to Paragraph 3. (By-laws) , below, and the following criteria:

• a. One official or employee, from each of the following city offices or departments:

  • i. the Mayor’s Office, (appointed by the Mayor);

  • ii. the Office of the city Administrative Officer (appointed by the city Administrative Officer);

  • iii. the Office of the chief legislative Analyst (appointed by the chief legislative Analyst);

  • iv. Department of city Planning (appointed by the Director of city Planning);

  • v. lAHD (appointed by the General Manager of lAHD); and

• b. Public members, to be appointed as follows:

  • i. One public member, appointed by each council District within the Downtown community Plan area to serve as representative stakeholders from the Downtown community Plan area;

  • ii. One public member, appointed by the Mayor’s Office to serve as a representative stakeholder from the Downtown community Plan area; and

• iii. three “lived experience” public members who serve as representatives of Downtown’s multiple neighborhoods and have been affected by the affordable housing and eviction crisis. these members will apply and be selected by the other members and shall reside in the Downtown community Benefts Area.

3. By-Laws

the Oversight committee, once comprised, shall adopt by-laws to establish criteria and the process for the appointment and selection of the public members of the Oversight committee consistent with this Section (Downtown Community Benefits Fee) ; Oversight committee membership terms; meeting schedules; training program(s); application requirements for seeking Downtown cBtF monies; procedures for use of awarded Downtown cBtF monies; and other roles and responsibilities of the Oversight committee.

4. Authority

the Oversight committee shall make recommendations to the city council on the approval, approval with conditions, or disapproval of a proposed Downtown community Benefit Project with the recommendation to be based solely upon the degree that the project complies with the findings in Subsection G. (Findings) below.

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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City of Los Angeles Zoning Code Chapter 1A

5. Meetings

this chief legislative Analyst shall convene the Downtown community Benefit Oversight committee within six months of receipt of Downtown cBF monies into the Downtown cBtF. All Oversight committee meetings shall be open to the public and comply with California Government Code, Title 5, Sec. 54950 (Ralph M. Brown Act) .

F. Procedure For Awarding Downtown CBTF Funds

1. Application

An application for a Downtown cBtF award for a Downtown community Benefit Project shall be filed with the Department of city Planning. the Director of city Planning shall prepare and make available the application for an award of Downtown cBtF monies, subject to the requirements of the Oversight committee by-laws, if any.

2. Oversight Committee Application Review

the Oversight committee shall review all applications that comply with any requirements established by the Oversight committee by-laws.

3. Oversight Committee Recommendations

the Oversight committee may recommend to the city council to disburse Downtown cBtF monies for any application for which the Oversight committee has made written findings that meet the requirements of Subsection G. (Findings) below. in prioritizing multiple applications during a disbursement period that seek greater monies than available, the Oversight committee shall give priority to Downtown community Benefit Projects within the Downtown community Plan area over those projects in the Downtown community Benefts Area but outside of the Downtown community Plan area.

4. Council Action

the city council shall consider any recommendations of the Oversight committee to disburse Downtown cBtF monies to a Downtown community Benefit Project. the city council shall award Downtown cBtF monies by resolution provided monies are available in the Downtown cBtF and the Oversight committee has recommended granting the monies to the Downtown community Benefit Project with written findings that meet the requirements of Subsection G. (Findings) below.

G. Findings

Prior to making any recommendation to the city council for the award of Downtown cBtF monies for a Downtown community Benefit Project, the Oversight committee must make all of the following findings, as applicable:

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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1. the Downtown community Benefit Project is in conformance with the Downtown community Plan, zoning, and any other relevant guidelines or other policy documents adopted pursuant to the City Charter or this code.

2. the Downtown community Benefit Project is eligible for Downtown cBtF monies as identified in Subsection H. (Eligible Community Benefits Projects) below;

3. the Downtown community Benefit Project serves a need or service that is not adequately available within 1.5 mile of the site of the Downtown community Benefit Project;

4. the Downtown community Benefit Project is located in the Downtown community Benefts Area;

5. the Downtown community Benefit Project is located in an area with a higher “Population characteristics Percentile” score, as indicated in the “calenviroScreen,” in comparison to other Downtown community Benefit Project applications. in the event this score is not available, a proposed Downtown community Benefit Project in an area with lower educational attainment, higher housing cost burden, higher linguistic isolation, higher poverty, and higher unemployment scores as identified in the most recent American community Survey data by the US census Bureau, shall receive priority over other proposed community Benefit Projects;

6. the applicant has provided adequate assurances, covenants, and/or documentation, to ensure the Downtown community Benefit Project will do the following, as applicable:

   • a. Funds will be expended within three years of receipt pursuant to any process established in the Oversight committee by-laws.

   • b. if Downtown cBF monies are proposed for at-risk affordable units pursuant to Subsections H. (Eligible Community Benefits Project) below, covenants guaranteeing affordability to acutely low households, extremely low households, very low households, or low-income households will be recorded in a manner consistent with Sec. 9.2.1.D.3. (Records and Agreements) . if existing tenants do not meet the income restriction above, the unit shall not be income restricted until the unit is vacant.

(Eligible Community Benefits Project)_ below, covenants guaranteeing affordability to acutely low households, extremely low households, very low households, or low-income households will be recorded in a manner consistent with Sec. 9.2.1.D.3. (Records and Agreements) . if existing tenants do not meet the income restriction above, the unit shall not be income restricted until the unit is vacant.

• c. if Downtown cBtF is proposed for a legacy Small Business, the business while still in operation will maintain the physical features or traditions that define the business, including craft, culinary, or art forms, subject to any term and conditions established in the Oversight committee’s by-laws, including length of commitments or exceptions. the legacy small business shall meet at least four of the following standards:

  • i. Has been in continuous operation in the Downtown community Benefts Area for at least 20 years with no break in its operations exceeding two years;

  • ii. Has no more than 50 full-time employees and/or shareholders;

  • iii. Has contributed to the neighborhood's history or the identity of a particular neighborhood or community;

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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• iv. Has one or more employees that can serve multi-lingual members of the community;

• v. Accepts government issued assistance such as electronic Benefits transfer (eBt); and/ or

• vi. Pays employees wages equivalent to or greater than those specified in Article 11 (Living Wage), Sec. 10.37.2. (Payment of Minimum Compensation to Employees) of the lAAc.

• d. if Downtown cBF monies are proposed for public right-of-way improvements, the improvements received approval, as applicable from lADOt, the Department of Public Works, and Metro.

• e. Any other assurances necessary to accomplish the purpose and objectives of the Downtown community Benefits Program and this Section (Downtown Community Benefits Fee) , consistent with the Downtown cPiO and this Section (Downtown Community Benefits Fee) , and any Oversight committee by-laws.

H. Eligible Community Benefits Projects

to be eligible to receive funding from the Downtown cBtF, a Downtown community Benefts Project must be one of the following:

1. A program to support affordable housing, for one or more of the following purposes:

   • a. land acquisition for the purposes of establishing permanent, community-controlled affordable housing, by organizations, such as, community land trusts or similar non-profit organizations whose primary mission is to steward land and property for the benefit of lower income community members;

   • b. Acquisition of buildings in default or facing expiring affordability covenants in the next 10 years in order to preserve and extend housing affordability, where qualifying applicants include but are not limited to, owners of the said project; developers; non-profit organizations; organized tenant groups; community-based organizations; or lAHD;

• c. extensions of affordability covenants, set to expire in the next ten years, where qualifying applicants include but are not limited to, non-profit organizations; owners of the project; developers; Organized tenant Groups; community Based Organizations; or lAHD;

  • d. construction of new one hundred percent afordable housing projects, permanent supportive housing projects, or temporary shelters for people experiencing homelessness; or

  • e. construction of housing projects including accessory dwelling units that serve as restricted affordable units.

2. A program to support one or more legacy small businesses that meet the standards included in Subsection G. (Findings) above, and meets one of the following criteria:

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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• a. rent subsidies to a legacy Small Business, with priority for a business owned by an individual or individuals with annual household incomes equal to or less than the moderate-income category as defined by lAHD;

• b. Grants for low-income micro-entrepreneurs working in the Downtown community Benefts Area; or

• c. Subsidies for a sidewalk vendor commissary kitchen.

• d. Design and procurement of sidewalk vending carts for donation to sidewalk vendors whose annual household income is equal to or less than the low-income category as defined by lAHD and who work in the Downtown community Plan area. vending carts shall comply with the regulations of Chapter I. (General Provisions and Zoning), Sec. 42.13. (Sidewalk and Park Vending Program) of this code, and any regulations for food vending of the los Angeles county Department of Public Health.

3. construction of permanent or temporary resiliency centers or conversion of existing buildings or structures to serve as resiliency centers. A resiliency center eligible for Downtown cBtF monies shall meet the following requirements:

   • a. include free internet access, outlets for emergency cell phone and computer charging, free and adequate seating, space to provide disaster relief services and distribute emergency supplies, bathroom facilities, clean potable water, and have a dedicated space that can operate independently from the main electrical system of the larger complex. the independent system must have an onsite power system capable of reliably sustaining operations, defined as emergency heating and cooling capability, refrigeration of temperature-sensitive medicines, and emergency lighting, during an extended outage.

   • b. During periods of a non-emergency, resiliency centers may serve other uses identified in this Section (Downtown Community Benefits Fee) .

4. Amenities to serve people who are experiencing homelessness, including, but not limited to, amenities such as hygiene stations, drinking water fountains, shade structures, free electronic device charging stations, no-fee AtMs, free high-quality wireless internet, and libraries that lend out laptops, tablets, and other internet-ready devices.

5. Mobility and public right-of-way improvements limited to the following:

   • a. Projects that enhance safety or connectivity for people walking, bicycling, and accessing transit;

   • b. transit supportive infrastructure, including, access improvements to transit stations (new entrances to above-ground rail stations or portals to underground rail stations, where technically feasible), enhanced bus stops and shelters, protected bike lanes, sidewalks and crosswalk improvements, and other infrastructure that provides key connections to the transit system;

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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• c. Programs that are or will be identified by any lADOt capital improvement plan for the Downtown community Plan area; or

• d. Mobility hubs, as specified by lADOt.

6. Parks and open space, limited to the following:

   • a. Additions and improvements to existing public parks;

   • b. Operations and maintenance of existing public parks; or

   • c. Funds towards land acquisition or capital costs for the creation of new public parks, community gardens, play areas, pocket parks, plazas, walkways, or other types of public open spaces.

7. A program approved by the city council upon a recommendation by the Oversight committee that meets the intent of this Article (Fees) and the findings in Subsection G. (Findings) above.

i. Enforcement

in addition to any other remedy available for a violation of a covenant, binding agreement, or other assurances provided to the city by an applicant to obtain an award of Downtown cBF monies, such a violation is a violation of this code subject to any and all criminal, civil, and administrative remedies available for a violation of this code.

Sec. 15.10.1. (Downtown Community Benefits Fee) Established by Ord. 188,796, Eff. 02/23/2026

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