Building Industry Association
of San Diego

The San Diego Planning Commission will consider a Housing Commission proposal to change the city’s Inclusionary Zoning Ordinance that requires homebuilders to provide a percentage of their units to low income households or pay a fee to the city.  The changes would require builders of 2 or more units to pay an ‘affordable housing fee’ or voluntarily agree to provide 10% of their units to low income households.

The move comes on the heels of  litigation by a Los Angeles builder who  successfully argued that requiring inclusionary zoning mandates on rental units violated state law. The Housing Commission believes their changes will allow them to get around the court ruling.

As part of the changes, condo conversion fees would be reduced by 50 percent, however, projects of fewer than 10 units would see their fee double.  The BIA has met with Housing Commission officials after expressing serious concern over the apparent fast-tracking of the ordinance.

The Planning Commission will hear the proposal on June 2nd with an anticipated city council hearing on July 12th.