On December 10, 2019, the San Diego City Council approved updates to the City of San Diego’s Inclusionary Housing Ordinance, culminating efforts led by City Council President Georgette Gómez. SDHC worked with the Council President’s office to facilitate meetings to obtain input from stakeholders and analyze the impacts of potential updates to the ordinance.
These provisions will be phased in over five years, beginning on July 1, 2020.
SDHC administers the Inclusionary Housing Fund on behalf of the City of San Diego and monitors rental housing units to ensure compliance with the Inclusionary Housing Ordinance.
The Inclusionary Housing Ordinance applies to all residential developments with 10 or more units or condominium conversions of two or more units.
The updated ordinance will require new residential and mixed-use developments to include 10 percent of the on-site rental units as affordable housing for individuals with income up to 60 percent of the Area Median Income. This requirement also will be phased in over five years.
Alternative compliance measures include:
- the ability to pay a fee per square foot:
- July 1, 2020 – June 30, 2021: $15.18/square foot
- July 1, 2021 – June 30, 2022: $17.64/square foot
- July 1, 2022 – June 30, 2023: $20.09/square foot
- July 1, 2023 – June 30, 2024: $22.55/square foot
- July 1, 2024: $25.00/square foot
- development of inclusionary units off-site,
- rehabilitation of existing units, and
- land dedication.
Rental housing units are required to remain affordable for at least 55 years pursuant to the Inclusionary Housing Ordinance.
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.
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).