Nathan Sewell  •  December 2025  •  7 min read

If you own rental property in Los Angeles, you’ve probably heard about Executive Directive 1—Mayor Bass’s initiative to fast-track 100% affordable housing projects. What you may not have heard: it’s no longer just a directive. As of December 2025, the LA City Council has voted to make it permanent.

Here’s what that means and why it matters to you.

What Just Happened

On December 9, 2025, the LA City Council unanimously adopted the Affordable Housing Streamlining Ordinance. This takes ED 1—which was always a temporary emergency measure—and writes it directly into the Los Angeles Municipal Code.

The practical effect: the streamlined approval process for 100% affordable housing projects will survive beyond Mayor Bass’s tenure. Whether you like ED 1 or hate it, it’s now a permanent feature of LA’s housing landscape.

What ED 1 Actually Does

ED 1 creates a fast-track approval pathway for developments where 100% of units are deed-restricted affordable housing. “Affordable” here means restricted to tenants earning 80% or less of Area Median Income.

The numbers are significant. Standard housing projects in LA typically take six to twelve months just for entitlements. ED 1 projects are required to be approved within 60 days. In practice, the average has been around 22 days.

How does it achieve that speed? By making qualifying projects exempt from discretionary reviews—no City Council hearings, no environmental reports under CEQA, no neighborhood outreach meetings. It’s a ministerial process: meet the criteria, get approved.

Since ED 1 launched in December 2022, developers have filed plans for over 42,000 income-restricted units. Roughly 31,700 have been approved—more than double the city’s affordable housing approvals in the three years before ED 1.

What’s Exempt from ED 1

The ordinance carries forward the exemptions that were carved out over ED 1’s three-year run:

• Single-family zones (72% of LA’s land area)

• Historic districts (including areas of Highland Park and Lincoln Heights)

• Very High Fire Hazard Severity Zones (parts of Silver Lake, Hollywood Hills)

• Rent-controlled buildings with 12+ units (to limit tenant displacement)

That last exemption is a point of ongoing debate. Some council members are pushing to lower the threshold from 12 units to 5 units, which would protect more rent-stabilized tenants from displacement.

Why This Matters for Landlords

ED 1 has fundamentally changed the development economics in Los Angeles. Market-rate multifamily construction has essentially stalled because the numbers don’t work—high costs, long timelines, and uncertain approvals. Meanwhile, 100% affordable projects are racing through the system.

What does this mean if you own older rental property?

Your Property May Be a Target

Developers are actively looking for sites that can be redeveloped as 100% affordable projects. Older buildings in multifamily zones—especially those with deferred maintenance or compliance issues—are attractive acquisition targets.

If your property is in an ED 1-eligible area and isn’t exempt, expect to receive acquisition inquiries. Whether you’re interested or not, understanding your property’s position in this landscape is important.

Displacement Concerns Are Real

Housing advocates have documented that 157 rent-stabilized buildings with 856 units have been proposed for demolition under ED 1 projects. Most of these are smaller buildings—duplexes, triplexes, fourplexes—that fall below the 12-unit exemption threshold.

If you own a rent-stabilized building with fewer than 12 units, this is the environment you’re operating in.

Competition and Market Dynamics

The surge in affordable housing production will eventually affect the broader rental market. More supply—even if income-restricted—puts downward pressure on rents over time. For market-rate landlords, this is something to factor into long-term projections.

The Bigger Picture

ED 1 is part of a broader policy shift in Los Angeles. Combined with the recent RSO changes (tighter rent caps), SB 79 (transit-oriented upzoning), and ongoing RHHP enforcement, the regulatory environment for rental property owners continues to tighten.

The landlords who navigate this best are those who stay informed, maintain their properties proactively, and operate with enough margin to absorb regulatory changes.

What Smart Landlords Should Do Now

• Understand your property’s status. Is it in an ED 1-eligible zone? Is it exempt? Check the City Planning Department’s maps and ZIMAS.

• Address deferred maintenance. Properties with code violations or habitability issues are more attractive for redevelopment—and more vulnerable to enforcement actions.

• Know your compliance obligations. RHHP, SCEP, SB 721, habitability standards—make sure you’re meeting all requirements.

• Consider your long-term strategy. Hold, sell, improve, convert—each has different implications in the current environment.

The Bottom Line

ED 1 becoming permanent means the affordable housing fast-track is here to stay. Whether you view that as good policy or not, it’s the reality for LA landlords going forward.

The best response is preparation: understand where your property fits in this landscape, maintain it well, stay compliant, and make informed decisions about your long-term strategy.

If you’re not sure where your property stands from a compliance perspective—whether it’s RHHP readiness, habitability standards, or general condition—that’s what I do. A proactive inspection now costs a fraction of what reactive problems cost later.

Nathan Sewell

LA Building Inspections & Compliance

Certified home inspector specializing in RHHP preparation, habitability assessments, and rental property inspections throughout Los Angeles County.