SAN DIEGO — A new housing proposal introduced by Assemblymember David Alvarez aims to expand access to homeownership across California by encouraging developers to build more affordable homes for sale.
.jpg)
The legislation, Assembly Bill 2433, proposes an expansion of existing incentives under the state’s density bonus framework. By enhancing benefits for developers who include affordable, for-sale housing in their projects, the bill seeks to rebalance a system that has largely favored rental apartment construction.
Currently, the California Density Bonus Law allows developers to build additional units beyond zoning limits if they include affordable housing. However, most developers have used this incentive to construct rental apartments rather than homes for purchase.
Under the proposed changes, developers would receive increased incentives when building homes intended for sale rather than rent. The value of these incentives would scale depending on the size of the development, creating more flexibility for builders.
"The idea is we want to entice more home builders into using this policy so that they do choose to build the affordable home and so that, as a result, build more homes overall," said Colin Parent, CEO and General Counsel at Circulate San Diego.
Parent emphasized that while the current policy is technically neutral, market behavior has skewed heavily toward rental housing.
"In practical reality, it's mostly being used currently for apartments that are made for rent, and so one of the elements of this bill is to add some additional incentives for projects that choose to be made for sale so that we can try to put a thumb on the scale a little bit to try to create more for sale opportunities for which they are just aren't very many of them today," said Parent.
A key provision in the bill would require that affordable homes remain permanently affordable, ensuring long-term access for future buyers in high-cost regions like San Diego.
Lawmakers say this is critical to maintaining workforce stability and keeping families in the region amid rising housing costs.
"We want to see housing that's available for sale, for first time home buyers for those who are trying to make their life in San Diego and right now they are thinking I have no choice I can't afford to live here this is something that we want to keep talent here, to keep our families those of us with children I know I hear that from a lot of parents like myself where are my kids going to live, that's what this is all about," said David Alvarez, Assemblymember CA.
If approved, the legislation would be renamed the Affordable Homes Bonus Program, signaling a broader policy shift toward supporting ownership opportunities rather than solely rental supply.
California continues to face a severe housing shortage, particularly in the for-sale segment. While rental construction has increased in recent years, entry-level homeownership remains out of reach for many residents due to high land costs, regulatory hurdles, and limited supply.
This bill attempts to directly address that imbalance by:
.jpg)
For developers, the proposal could reshape project economics by making for-sale housing more financially viable. Builders who previously focused on multifamily rentals may reconsider their strategies if incentives significantly offset costs.
For local governments, the bill aligns with broader efforts to:
Despite its goals, the bill may face hurdles, including:
Originally reported by Esmeralda Perez in CBS 8.
