San Diego City Council to vote on inclusionary housing amendments

SAN DIEGO (KUSI) – The San Diego City Council will hold a second vote Tuesday on a set of amendments to the city’s regulations on what percentage of a housing development’s units must be reserved for low- and moderate-income tenants.

The amendments to the inclusionary housing regulations would require developers to lease 10% of developments with 10 or more rental units at or below 50% of the county area median income for a family of four, $53,500, or 15% of units at or below 80% of the AMI for a family of four, $85,600.

In addition, developments with units for sale would be required to make 10% of them available for a family of four making at or below 100 percent of the AMI or 15% for a family of four making at or below 120% of the AMI. Developers also have options to build the requisite affordable units at a separate site, albeit with fewer incentives.

The city has similar rules in place, but developers can pay a $12.73 “in-lieu” fee per square foot to avoid offering units below market rate or to families who make less than the area median income. The proposal would also offer incentives for building affordable housing on-site and the in-lieu fee would increase to $22 per square foot by the start of fiscal year 2023.

City Councilwoman Georgette Gomez first proposed inclusionary housing amendments in 2017 but lacked the council president’s power to docket agenda items until the council unanimously appointed her to the position last December.

The city’s justification for the amendments is based on a study by the consulting group Keyser Marston Associates, which found that the ordinance would be economically feasible due to its three-year phase-in and incentives for development like the elimination of the city’s development impact fee on affordable housing units that are built on-site.

A separate study completed by economists at Point Loma Nazarene University found the opposite to be true and that the ordinance would decrease housing units built annually by about 5% and increase home prices 2.5% and rents 3%.

The council would require six votes to override a potential mayoral veto. City Council members Scott Sherman and Chris Cate called on Mayor Kevin Faulconer to do so after the council first approved the amendments at the end of July. Faulconer has not taken a public stance on either side of the amendments.

The council is expected to hold the required second vote during its 10 a.m. session. The council will meet in the City Administration Building’s 12th floor Council Chambers at 202 C St.

Categories: Local San Diego News, Politics