The City of West Hollywood is exploring an amendment to the Zoning Ordinance to allow developers to request approval of a Development Agreement for new off-site signage in conjunction with an affordable housing project.

Under the most recent 6th Cycle Regional Housing Needs Assessment, or RHNA, the City must plan for 3,933 new housing units across various income levels. Strategies to increase housing production should consider all options for removing potential barriers to development, particularly cost.

Cost has been identified as one of the major barriers to the provision of housing, in particular affordable housing, in West Hollywood. Developers often cite increased costs of materials, labor, and financing as deterrents. Off-site signage has been identified as a substantial revenue generator and a potentially valuable tool to help make housing projects feasible. New off-site signage has been permitted with a development agreement within the Sunset Specific Plan Area since the revised Sunset Boulevard Off-Site Signage Policy was adopted in 2019. Since then, 13 new or replacement billboard projects have been approved, including nine that are currently operational. Each new billboard project on Sunset Boulevard provides the City with substantial public benefits including revenue sharing, arts programming, and public realm enhancements.

On October 7, 2024, the City Council directed staff to draft a zone text amendment and policy to permit the replacement of existing off-site signage or the development of new off-site signage in commercial zones in conjunction with a new housing or mixed-use development that is at least two-thirds housing and includes a higher percentage of permanently affordable units than what would have otherwise been required on the site.