The Los Angeles City Council has approved the revised Citywide Adaptive Reuse Ordinance (Citywide ARO), which is planned to take effect in 2025. Building on the success of the 1999 ordinance, which facilitated the creation of over 12,000 housing units in Downtown LA, the updated policy aims to address the city's ongoing housing crisis and repurpose underutilized buildings.
The revised ordinance is part of the Citywide Housing Incentive Program (CHIP), a broader strategy to increase housing availability and help Los Angeles meet its state Housing Element obligations. Key updates include expanding adaptive reuse incentives citywide and reducing eligibility requirements. While the original ordinance applied only to buildings constructed before 1974, the new policy allows conversions of structures at least 15 years old. Projects involving newer buildings or those seeking additional zoning flexibility will be eligible for approval through a streamlined process.
These changes come as Los Angeles grapples with mounting challenges, including a housing emergency and post-pandemic economic recovery. As the city faces two interrelated issues: a shortage of housing supply and high vacancy rates.
Adaptive reuse projects, which convert non-residential buildings into residential spaces in this context, offer a solution to these challenges. The most common approach involves transforming vacant office spaces into multifamily housing. This aligns with the city's goals of increasing housing supply sustainably, preserving architectural character, and minimizing resource waste. However, questions around affordability remain, considering most of the sites are privately owned, and it is highly costly to convert underutilized buildings. The LA Conservancy has also emphasized the importance of financial incentives like the Mills Act and Federal/State Historic Rehabilitation Tax Credits in supporting the conversion of historic buildings, ensuring the future success of these projects.
Los Angeles' approach also mirrors efforts in other US cities to address housing shortages through policy reform. New York City, for instance, has launched the "City of Yes" initiative, which aims to modernize zoning laws to unlock new housing opportunities. Similarly, San Francisco has already introduced research exploring the viability of office-to-residential conversions in the city. These examples can highlight how cities across the US are rethinking land-use policies to meet growing housing demands.
By implementing the revised ordinance this year, Los Angeles intends to make significant progress in alleviating its housing crisis. With the expansion of adaptive reuse incentives, the city aims to increase housing supply while repurposing vacant or underutilized spaces, contributing to the city's long-term resilience.
