What is a TOC tier, and what is it worth to my LA property?
TOC (Transit Oriented Communities) is Los Angeles's density-bonus program for sites near major transit. Tiers run 1 through 4 — the closer and better the transit, the higher the tier — and grant residential density increases from roughly 50% (Tier 1) up to 80% (Tier 4), plus reduced parking and other incentives, in exchange for setting aside a percentage of affordable units. For a multifamily lot, a high TOC tier can make the land worth more than the building sitting on it.
How tiers are assigned.
Tier is determined by distance to a "major transit stop" — generally the intersection of two frequent bus lines or proximity to a Metro rail station. Tier 3 and Tier 4 sites cluster around rail stations in Koreatown, East Hollywood, Mid-Wilshire and along the Expo/E Line. You can confirm a parcel's tier through ZIMAS.
The land-value math.
A 7,500 SF R3 lot might support ~10 units by right. At TOC Tier 3 with a 70% bonus that becomes ~17 units — which changes the buyer from an operator pricing income to a developer pricing buildable units. When I value RSO buildings on high-tier lots, I price them both ways: as an income stream and as dirt. The higher number sets the strategy.
Does TOC require affordable units?
Yes — each tier requires a set-aside of extremely-low, very-low, or low-income units (the percentage varies by tier and income level chosen). The bonus only applies to housing projects that include them.
Is TOC the same as ED1?
No. TOC is a density bonus for mixed-income projects near transit; ED1 is a streamlined approval path for 100% affordable projects. On some parcels the ED1 scheme pencils to more units than TOC — worth pricing both.
SHAYA LOWENSTEIN · LYON STAHL INVESTMENT REAL ESTATE · DRE #01942326 · (323) 944-2221