Inclusionary Housing

The City of San Diego’s Inclusionary Affordable Housing regulations require developers of two or more housing units to pay an Inclusionary Affordable Housing Fee.

Developments that set aside at least 10 percent of the housing units as affordable housing for at least 55 years are among the developments that are exempt from the Inclusionary Affordable Housing Fee, as specified by the San Diego Municipal Code.

The fee is calculated by multiplying the applicable charge per square foot by the aggregate gross floor area of all of the units in the development.

The San Diego Housing Commission (SDHC) determines the charge per square foot each year, based on the formula in the Inclusionary Affordable Housing Implementation and Monitoring Procedures Manual, as approved by the City Council.

The fee is determined based on the rate in effect at the time the building application is filed, and it is paid on or before the first residential building permit is issued for the development.

Funds from Inclusionary Affordable Housing Fee are deposited into the City of San Diego’s Affordable Housing Fund to help meet the housing needs of the City’s very low-, low-, and median-income households. SDHC administers the Affordable Housing Fund.

North City Future Urbanizing Area

The Inclusionary Affordable Housing requirement in the northern part of the City known as the North City Future Urbanizing Area requires housing developers to dedicate 20 percent of their units to affordable buyers or renters, as specified by the San Diego Municipal Code.

The North City Future Urbanizing Area includes the neighborhoods of Black Mountain Ranch, Del Mar Mesa, Pacific Highlands, and Torrey Highlands.

Condominium Conversions

Developers converting 20 or more rental housing units to for-sale condominiums are also required to set aside 10 percent of the units for residents with incomes at or below 100 percent of the San Diego Area Median Income (AMI).

For more information, please contact DC Navarrette at dcn@sdhc.org or (619) 578-7585.

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