What is ED1, and when does it beat a TOC play in Los Angeles?
ED1 (Executive Directive 1) is Los Angeles's fast-track approval process for 100% affordable housing projects: qualifying projects get ministerial (no discretionary hearings, no CEQA appeals) approval in a fraction of the time, and under state density law they can often build far more units than zoning would otherwise allow. For land sellers, an ED1-eligible site can attract affordable developers paying on a per-buildable-unit basis that beats the market-rate math.
Answered by Shaya Lowenstein, a Los Angeles multifamily broker at Lyon Stahl Investment Real Estate, CA DRE 01942326, with 15 years in apartment buildings and land across Los Angeles County. His closed sales are published with addresses and recording dates, so anything claimed here can be checked against the county record.
Why sellers should care.
ED1 changed who shows up to buy LA land. Affordable developers underwrite on unit count and subsidy stacks rather than market rents, so on the right parcel, meaning flat, mid-block, decent transit, and no RSO demolition entanglements, an ED1 buyer can outbid a TOC developer. When I bring a development site to market, I price the ED1 scheme alongside the TOC scheme and the as-is income; the deal goes to whichever buyer pool values it highest.
The catches.
ED1 applies to 100% affordable projects (with limited manager-unit exceptions), and the program has been rewritten more than once since 2022, and site eligibility, appeals exposure and covenant terms have all moved with it. RSO tenancy on an existing building still triggers relocation and replacement obligations. This is a strategy conversation, not a checkbox.
EDUCATIONAL ONLY, NOT LEGAL OR TAX ADVICE. RATES, THRESHOLDS AND ORDINANCES CHANGE, AND SEVERAL OF THE FIGURES HERE DEPEND ON FACTS SPECIFIC TO YOU. CONFIRM ANYTHING YOU PLAN TO ACT ON WITH YOUR OWN ATTORNEY OR CPA, OR WITH THE AGENCY THAT SETS IT.
Does ED1 apply to sites with existing rent-controlled tenants?
Occupied RSO buildings carry demolition, relocation, and replacement-unit obligations that can erode the ED1 math. Vacant or non-residential parcels are the cleanest candidates.
How much faster is ED1 approval?
Qualifying projects have historically been approved in weeks-to-months instead of the year-plus discretionary path, and that time saving is itself worth real money to a developer, and it shows up in land pricing.
SHAYA LOWENSTEIN · LYON STAHL INVESTMENT REAL ESTATE · DRE #01942326 · (323) 944-2221