Inclusionary Zoning Changes Near Final Approval in San Diego

"The San Diego City Council tentatively approved a controversial set of amendments to the city’s inclusionary housing regulations Tuesday in an effort to increase housing development for low- and moderate-income families," reports Lauren J. Mapp.

The change to the city's inclusionary zoning ordinance would "increase the portion of a development’s units that are kept affordable for people earning a certain percentage of San Diego County’s area median income," according to Mapp.

After the change goes into effect on July 1, 2020, developers would be required 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 area median income for a family of four, $85,600."

A study by consulting group Keyser Marston Associates has been cited to make the case the increased inclusionary requirements would be financially feasible for developers, "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 by economists at Point Loma Nazarene University, however, raised warning flags about the consequences of the changes, predicting that the "ordinance would decrease housing units built annually by about 5% and increase home prices 2.5% and rents 3%."