AB 2345 vs. SB 35: Which Applies to Your Los Angeles Development Project?
California has fundamentally changed the entitlement landscape for residential development over the past several years. Two of the most important tools available to developers in Los Angeles are AB 2345 (the enhanced Density Bonus Law) and SB 35 (Streamlined Ministerial Approval). Both can dramatically accelerate timelines and increase project feasibility — but they work differently, apply in different situations, and require careful planning to use effectively.
What Is AB 2345?
AB 2345, enacted in 2020, significantly expanded California's Density Bonus Law (Government Code Section 65915). The Density Bonus Law has existed since 1979, but AB 2345 made it materially more powerful by increasing the density bonus available to qualifying projects.
How AB 2345 Works
Under AB 2345, a developer who agrees to include a certain percentage of affordable units in a project can receive:
- A density bonus of up to 50% above the base zoning (previously capped at 35%)
- Reduced parking requirements, sometimes eliminating parking minimums entirely near transit
- Incentives and concessions — waivers of specific development standards like setbacks, height limits, and floor-area ratios
The affordability thresholds that trigger the bonus are tiered. A project with 5% of base units restricted to very low-income households qualifies for a density bonus. A project with 24% of total units at lower-income thresholds qualifies for the maximum 50% bonus.
What AB 2345 Does Not Do
AB 2345 does not eliminate discretionary review. A project using the Density Bonus Law still goes through the standard entitlement process, including public hearings and CEQA review if otherwise required. What it does is give you more units to work with and eliminate certain development standards that would otherwise constrain the project — within that process.
What Is SB 35?
SB 35, enacted in 2017 and significantly strengthened by SB 423 in 2023, provides ministerial, by-right approval for qualifying multifamily residential projects in jurisdictions that have not met their Regional Housing Needs Allocation (RHNA) targets.
Ministerial approval means there is no public hearing, no discretionary decision-maker, and no opportunity for neighbors or community groups to block the project on policy grounds. If your project meets the objective standards, the city must approve it.
"If your project meets the objective standards, the city must approve it — no public hearing, no appeals, no discretionary conditions."
Why SB 35 Applies Almost Everywhere in Los Angeles
Los Angeles — both the City and the County — has dramatically underproduced housing relative to its RHNA targets for decades. This means SB 35 is broadly applicable across nearly all of the city, making it one of the most powerful tools available to residential developers in LA today.
SB 35 Eligibility Requirements
Not every project qualifies. To use SB 35, your project must:
- Be located in a jurisdiction that has not met its RHNA targets (applicable in most of LA)
- Include at least 10% affordable units for projects with 10 or more units
- Meet objective zoning standards — design standards that don't involve discretion
- Use prevailing wage labor on projects of 50 or more units
- Not be located on certain protected sites (wetlands, high fire hazard zones, historic districts)
- Not involve demolition of deed-restricted affordable housing or rent-controlled units without replacement
What SB 35 Does for Your Project
If your project qualifies, SB 35 converts a discretionary entitlement process into a ministerial one. The city has 60 to 90 days (depending on project size) to review your application against objective standards. There are no public hearings. No appeals. No discretionary conditions.
For complex infill projects in neighborhoods with organized opposition, SB 35 can eliminate what would otherwise be a two-to-three-year entitlement process and a high degree of political risk.
AB 2345 vs. SB 35: Side-by-Side Comparison
| AB 2345 (Density Bonus) | SB 35 (Streamlined Ministerial) |
|---|
| Primary benefit | More units, reduced parking, waived standards | Eliminates discretionary review entirely |
| Affordability requirement | 5%–24% depending on bonus level | 10% minimum |
| Discretionary review | Yes — still required | No — ministerial approval |
| Public hearing | Yes | No |
| CEQA | Still applies if otherwise required | Exempt from CEQA |
| Prevailing wage | Not required | Required for 50+ unit projects |
| Best for | Maximizing unit count within entitlement process | Eliminating entitlement risk and timeline |
Can You Use Both AB 2345 and SB 35 Together?
Yes — and this is often the most powerful combination.
A project can use SB 35's ministerial pathway while simultaneously invoking the Density Bonus Law under AB 2345. This means you can design a project that exceeds base zoning density by up to 50%, reduce or eliminate parking requirements, waive height and setback standards — and have all of it approved ministerially, without a public hearing or CEQA review.
The combination of SB 35 + AB 2345 has become one of the most effective strategies for large infill residential projects in Los Angeles, particularly in high-opposition neighborhoods where discretionary approval would be unreliable.
How to Determine Which Strategy Is Right for Your Project
Start with site analysis. Confirm whether your site is in a jurisdiction that has not met RHNA targets (this applies to most of Los Angeles), and verify that it is not on a protected site category that would disqualify SB 35 use.
Evaluate affordability economics. Both tools require affordable unit commitments. The key question is whether the affordability burden is financially feasible given your proforma — and whether the additional density or process certainty offsets the affordable unit cost.
Assess the entitlement risk environment. If your project is in a neighborhood where discretionary opposition is likely, SB 35's ministerial pathway may be worth a significant premium even if the economics of density bonus alone were sufficient.
Model the density bonus impact. Run the numbers on what a 50% density bonus actually means for your specific site. On a site with a base zoning allowance of 20 units, AB 2345 could yield 30 units — which changes the project economics entirely.
Consult early. Both SB 35 and AB 2345 involve complex eligibility questions that need to be resolved before you design the project. Consulting with an entitlement advisor early in feasibility can save significant time and money.
The Evolving Legislative Landscape
California's housing legislation continues to evolve rapidly. SB 423 (2023) extended and strengthened SB 35 through 2036 and expanded its applicability. Additional legislation affecting density bonus, ADU regulations, and ministerial approval pathways is introduced in Sacramento every year.
Staying current on state housing law is essential for anyone actively developing or investing in residential real estate in California.
Working With an Advisor on State Law Pathways
The mechanics of AB 2345 and SB 35 are complex, and the eligibility analysis requires detailed knowledge of both state law and local zoning. An experienced entitlement advisor can evaluate your specific site and project against the applicable criteria, model the density and affordability scenarios, and design an entitlement strategy that maximizes certainty and speed.
FOCAL advises investors, landowners, and developers on land use strategy and entitlements across Los Angeles, Ventura, and Santa Barbara counties. For a broader view of the approval framework these state laws sit within, see our deep-dive on how entitlements work in the City of Los Angeles, our analysis of bridge and construction loan structures for entitlement-period financing, or explore our land use and entitlement advisory services.