What’s ED1 and ED13? LA’s New Development Fast Tracks Explained
1. The Housing Problem and Why Speed Is Important
Los Angeles has a big housing problem. Rent is high, homes are hard to find, and building new ones takes too long and costs too much. For developers and investors, time is money. The longer it takes to get permits, the more interest you pay and the less profit you make.
To fix this, the city created special rules to speed up the process. These rules are called Executive Directives. Two of the most important ones are ED1 and ED13. These fast-track programs help builders get approvals quicker if their projects include affordable housing.
2. What Is ED1?
ED1 stands for Executive Directive 1. It was started by Mayor Karen Bass in late 2022. ED1 is designed to help developers who are building 100% affordable housing or homeless shelters.
What Makes ED1 Special?
With ED1, the city promises to approve qualified projects in about 60 days or less. The process skips public hearings, environmental reviews, and design board approvals. This saves developers a lot of time—sometimes even years.
Who Can Use ED1?
To qualify, your project must have 5 or more units, and all units must be rented at affordable rates. That usually means the tenants earn no more than 80% of the area’s median income. The project also has to be in the right location—it can’t be in a single-family neighborhood, a historic area, or a high fire-risk zone. If your project involves tearing down more than 12 rent-controlled units, it won’t qualify either.
What Has ED1 Done So Far?
Over 240 projects have already been submitted under ED1. That’s more than 20,000 new units in the pipeline. Some developers are building smaller apartments, or “micro-units,” which rent for less but allow more units to be built. Some projects have been approved in just 45 days.
Why It Matters for Investors
ED1 gives you speed and predictability. If you’re building all affordable units, you can skip the long wait. You also get to take advantage of other benefits, like adding more units or skipping parking, depending on the area. If your numbers work and you can make money from affordable rents, ED1 is a great opportunity.
3. What Is ED13?
ED13 stands for Executive Directive 13. This one was introduced in 2015 by a former mayor, Eric Garcetti. Unlike ED1, this rule is for mixed-income projects, where some units are affordable and the rest are market rate.
How Does ED13 Work?
With ED13, if at least 20% of your rental units are affordable or 30% of your for-sale units are affordable, your project can move through the approval process about 25% faster than normal. You still have to go through public hearings and environmental reviews, but you get priority in the planning process.
Who Can Use ED13?
To use ED13, your project must have at least 10 units, and you must meet the city’s affordability rules. You also have to provide proof that your project includes the right number of affordable units.
Why It Matters for Investors
ED13 is helpful for developers who want to build mostly market-rate housing but still offer some affordable units. You don’t skip all the approval steps, but you get a shorter wait. This can help you save money and get to construction faster.
4. ED1 vs. ED13: What’s the Difference?
Both ED1 and ED13 are about getting housing built faster, but they work in different ways. ED1 is for 100% affordable rental projects. It offers the fastest path—with no public hearings, no environmental review, and approvals promised within 60 days. On the other hand, ED13 is for projects that include both affordable and market-rate units. It still requires public hearings and reviews, but your project will be reviewed more quickly—about 25% faster than usual.
The kind of project you’re planning will determine which program is best. If you want to go fully affordable, ED1 gives you the fastest and most straightforward process. If you’re doing a mix of market and affordable housing, ED13 still gives you a boost without requiring every unit to be affordable.
5. What Developers and Investors Should Know
If you’re building 100% affordable housing, ED1 is likely your best choice. It helps you avoid delays and makes it easier to get your project off the ground. You can combine ED1 with state programs that allow for more units and fewer parking requirements, making your project more profitable.
If your plan is to build a mix of market-rate and affordable units, ED13 may be a better fit. It won’t remove all the red tape, but it can help you get through the process faster. This can be a big help if you’re working with lenders or trying to close deals on a tight schedule.
6. Real-World Wins (and Some Warnings)
Wins from ED1
Many developers have already used ED1 to get projects approved quickly. Some are building small apartments in dense areas like downtown. These micro-units are more affordable for renters and cost less to build. Projects that used to take 6 months or more are now getting approved in just over a month.
Things to Watch Out For
Not every property qualifies for ED1. If your site is in a single-family neighborhood, a historic area, or a high-fire zone, you won’t be able to use it. Also, if you’re removing more than 12 rent-controlled units, you’ll be disqualified.
Some people in neighborhoods are pushing back against ED1 projects. They’re worried about buildings that are too tall or have no parking. Also, while ED1 projects don’t have to pay union wages, this has caused concern from labor groups.
7. Tips to Make the Most of ED1 or ED13
- Check your site early. Use city zoning tools to see if your project qualifies for ED1 or ED13.
- Know your affordability numbers. Make sure your rents match the income rules for each program.
- Combine with other incentives. Use state bonus laws to add units, reduce parking, or go taller.
- Start conversations early. Talk with the city’s planning and building departments before you submit.
- Watch your paperwork. You’ll need to record affordable housing agreements or covenants to lock in your approvals.
- Plan for community feedback. Even if your project qualifies, neighbors may still complain. Be ready with good design and clear communication.
8. Final Thoughts
Los Angeles needs more housing, and the city is finally making it easier to build. ED1 and ED13 are powerful tools for developers and investors who want to move quickly and help solve the housing crisis.
ED1 is the fastest option, but it’s only for 100% affordable housing. If your project qualifies, it can be approved in two months or less. ED13 is a slower path but still faster than the normal process. It’s ideal for mixed-income projects that include some affordable units.
By understanding these programs and planning your project the right way, you can save time, reduce risk, and bring your development to market faster.
If you’re a seasoned builder or investor in L.A., now is a great time to explore what ED1 and ED13 can do for your next project.
Rana Real Estate Group specializes in affordable housing, offering expert assistance for all your property needs. Whether you’re buying, selling, or investing, their experienced team provides tailored solutions and personalized service to help you achieve your goals. With a focus on integrity and transparency, they guide you through every step of the process, ensuring a smooth and successful transaction. Whether you’re a beginner or seasoned in real estate, Rana Real Estate Group is here to support you every step of the way.
Rana Khanjani, MBA
Specializing in Commercial, Residential, and Land