Updated October 2026
Since February 11, 2025, Los Angeles’s transit-area housing incentives run through the Citywide Housing Incentive Program (CHIP). CHIP codified and updated the old TOC incentives as Transit Oriented Incentive Areas (TOIA), and added new programs around them. If you’re planning a project near transit today, plan it under CHIP.
The short version
- TOC began in 2017 under Measure JJJ. It traded density, floor area and parking relief near transit for affordable units.
- CHIP took effect February 11, 2025, together with the Housing Element Rezoning Program and the Resident Protections Ordinance.
- CHIP has three parts: the State Density Bonus Program, the Mixed Income Incentive Program (TOIA, Opportunity Corridors and Corridor Transition Areas), and the Affordable Housing Incentive Program for 80% to 100% affordable projects.
- First year: 242 projects proposing 28,526 homes, 38% of them covenanted affordable. That compares with 9,479 homes proposed under TOC over a comparable period, per City Planning.
- Single-family zones are excluded from the mixed-income program.
What it is
TOIA covers sites within half a mile of major transit. It builds on TOC and in many cases goes further: more density, floor area and height, with incentives scaled to the area. Higher Opportunity Areas get the most. Parking minimums drop away near transit, consistent with state law (AB 2097).
Opportunity Corridors allow mid-rise mixed-income buildings on major streets in higher-opportunity areas. Corridor Transition Areas step down to lower buildings next to them.
AHIP serves 80% to 100% affordable projects, including those by public agencies, faith-based organizations and community land trusts.
What to watch out for
- Set-asides vary. The affordable percentage depends on the area and income level, and CHIP allows mixed affordability. Run the options side by side, including the plain state density bonus.
- Exclusions. Very high fire hazard severity zones, sea level rise areas and the Coastal Zone don’t get CHIP menu incentives.
- Existing tenants. The Resident Protections Ordinance, effective the same day, applies to sites with existing units. Check it before you price the land.
- Old TOC research. Tier maps and set-aside tables from the TOC era don’t describe today’s incentives. Start from the CHIP maps on planning.lacity.gov.
How we use it
Courtyard 55 in Alhambra (concept) groups 55 homes around one shared courtyard, with retail at the street, the scale where transit and density incentives decide the building. Our Cuckoo Complex in San Diego is a six-unit building whose density is shaped by light, air and courtyards.
See how we run these numbers on our TOC and density bonus page, or browse our multifamily work.
Have a lot in mind?
Send us the address and we’ll tell you what it can hold. Book a free consultation → · Follow @ydsarch on Instagram
