Housing development: density bonuses: rent

Existing leases cannot value hotel or motel land based on unapproved density increases available under the Density Bonus Law. The added development capacity must be fully entitled and vested by the valuation date.

What the law does ​

• Bars ground-rent valuations for land with an operating hotel or motel from relying on density bonuses, incentives, concessions, or waived standards unless the resulting density increase is entitled and vested.
• Requires all discretionary land-use approvals and permits for that density increase to have been issued by the valuation date.
• Leaves unchanged the requirements for obtaining a density bonus.

Who it affects ​

• Owners and lessees of land with operating hotels or motels under existing ground leases.
• Parties establishing, adjusting, or resetting rent under those leases.