Division 4 — Interim School Facilities Financing Ordinance

(“Interim School Facilities Financing Ordinance” added 11–18–1985 by O–16541 N.S.)

This Division shall be known as the “Interim School Facilities Financing Ordinance.” (“Title” added 11–18–1985 by O–16541 N.S.)

The City Council finds and declares as follows:

• (a) Adequate public school facilities should be available for school–age children residing in new residential developments.

• (b) New public and private residential developments may require the expansion of existing schools or the construction of new school facilities.

• (c) In many areas of the city, the funds for construction of new school facilities are not available when new residential development occurs resulting in the overcrowding of existing schools.

• (d) New residential developments frequently cause conditions of overcrowding in existing school facilities which cannot be alleviated under existing law within a reasonable period of time.

• (e) For the reasons recited above, new and improved methods of financing for interim school facilities necessitated by new residential developments are urgently needed in the city.

• (“Findings” added 11–18–1985 by O–16541 N.S.)

This Division is intended to provide authority whereby the City, affected school districts, and applicants for residential developments may undertake such reasonablesteps as the City Council determines necessary to alleviate overcrowding of school facilities.

• (“Purpose and Intent” added 11–18–1985 by O–16541 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

This Division is adopted pursuant to the provisions of Chapter 4.7 (commencing with Section 65970) of Division 1 of Title 7 of the California Government Code. In the case of any conflict between the provisions of this Division and those of Chapter 4.7, the latter shall prevail.

(“Authority–Conflict” added 11–18–1985 by O–16541 N.S.)

The City Council may, by resolution, issue regulations to establish procedures, interpretations, and policy directions for the administration of this Division. (“Regulations” added 11–18–1985 by O–16541 N.S.)

This ordinance shall have been in effect for a period of 30 days prior to the implementation of the dedication or fee requirements provided herein. (“Implementation Date” added 11–18–1985 by O–16541 N.S.)

The Progress Guide and General Plan of The City of San Diego designates the location of existing and future public schools. The school facilities to be provided from the land to be dedicated or the fees to be paid, or both, required by this Division shall be consistent with that plan.

(“General Plan” added 11–18–1985 by O–16541 N.S.)

“Conditions of overcrowding” means that the total enrollment of a school, including enrollment from proposed residential development, exceeds the capacity of the school as determined by the governing body of the school district.

(“Conditions of Overcrowding— Defined” added 11–18–1985 by O–16541 N.S.)

“Dwelling Unit” means a building, or portion thereof, or a mobile home designed for residential occupancy by one or more persons living together as a domestic unit. (“Dwelling Unit— Defined” added 11–18–1985 by O–16541 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

For the purposes of Section 98.0419, “interim facilities” shall include “classroom facilities,” “classroom and related facilities,” and “elementary, junior high, or high school facilities,” and shall be limited to the following:

• (a) Temporary classrooms not constructed with permanent foundations and defined as structures containing one or more rooms, each of which is designed, intended, and equipped for use as a place for formal instruction of pupils by a teacher in a school.

• (b) Temporary classroom toilet facilities not constructed with permanent foundations.

• (c) Reasonable site preparation and installation of temporary classrooms. (“Interim Facilities— Defined” added 11–18–1985 by O–16541 N.S.)

“Residential development” means a project containing one or more dwelling units, including mobile homes.

(“Residential Development— Defined” added 11–18–1985 by O–16541 N.S.)

The City shall notify affected school districts of any application for residential development proposed for location within their boundaries.

(“Notice to School Districts” added 11–18–1985 by O–16541 N.S.)

The governing body of a school district which operates an elementary, junior high, or senior high school in the city shall notify the City Council if the governing body makes both of the following findings supported by clear and convincing evidence:

• (a) That conditions of overcrowding exist in one or more attendance areas within the district which impair the normal functioning of educational programs, including the reasons for the existence of those conditions; and

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• (b) That all reasonable methods of mitigating the conditions of overcrowding have been evaluated and no feasible methods for relieving those conditions exist.

• (“School District Findings” added 11–18–1985 by O–16541 N.S.)

• The notice of findings sent by a school district to the City Council shall specify:

• (a) The findings listed in Section 98.0413, together with the supporting documentation;

• (b) The methods for mitigating conditions of overcrowding considered by the district, and the reason why each was found infeasible to relieve the overcrowded conditions;

• (c) The precise geographic boundaries of the overcrowded attendances area or areas; and

• (d) Such other information as may be requested by the City Council. (“Notice of Findings” added 11–18–1985 by O–16541 N.S.)

Upon receipt of a notice of findings complying with Section 98.0414, the City Council shall review those findings for the purpose of determining whether it concurs. If the City Council concurs in those findings, it shall, by resolution, establish an Impacted Attendance Area covering the area designated by the school district. Once such an area is established and until it is terminated in accordance with Section 98.0431, the provisions of Section 98.0416 shall be applicable to the issuances of residential building permits within the Impacted Attendance Area. (“Establishment of Impacted Attendance Area” added 11–18–1985 by O–16541 N.S.)

Except as provided in Section 98.0417, no building permit shall be issued for residential development within an Impacted Attendance Area established pursuant to this Division, unless one of the following findings is made:

• (a) That action has been taken pursuant to this Division to provide for the dedication of land, the payment of fees in lieu thereof, or a combination of both, to mitigate the conditions of overcrowding;

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• (b) That pursuant to Council Policy 600–22, “AVAILABILITY OF SCHOOLS,” the applicant for the proposed residential development has entered into an agreement with the school district to mitigate the conditions of overcrowding; or

• (c) That there are specific overriding fiscal, economic, social, or environmental factors which in the judgment of the City Council would benefit the City, thereby justifying the approval of a residential development otherwise subject to the provisions of this Division.

(“Restriction on Approval of Residential Developments” added 11–18–1985 by O– 16541 N.S.)

A residential development shall be exempt from the requirements of this Division when it consists only of one or more of the following:

• (a) The modification or remodeling of an existing legally– established dwelling unit or units where no additional dwelling units are created.

• (b) The rebuilding of a legally–established dwelling unit or units destroyed or damaged by fire, flood, explosion, act of God or other accident or catastrophe.

• (c) The rebuilding of an historical building or buildings designated as such by the City.

• (d) The conversion of an existing apartment building or buildings into a condominium where no additional dwelling units are created.

• (e) A residential complex which, through special use permit, is designated and restricted for senior citizens’ housing.

• (“Exemptions” added 11–18–1985 by O–16541 N.S.)

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The schedule for the amount of dedicated land or fees to be required pursuant to this Division shall be determined by the City Council and set by resolution. The governing board of each school district where a determination has been made pursuant to Section 98.0413 that conditions of overcrowding exist shall recommend a schedule for their attendance areas to the City Council. The district’s

recommendation and the facts supporting it shall be transmitted to the City Council concurrently with the notice specified in Section 98.0414. The schedule shall be based on the cost per pupil to provide an acceptable school facility, prorated on the basis of the pupil yield for the type or size of housing within the attendance area. The schedule may include an appropriate factor which can be applied annually to reflect the anticipated rate of inflation. The factor shall be adjusted from time to time to reflect the actual inflation rate. The schedule established by the City Council shall, until revised, be used by the school district where dedications of land and/or payment of fees are required pursuant to this Division.

(“Land Dedication and Fee Schedule” added 11–18–1985 by O–16541 N.S.)

• (a) For the purpose of establishing an interim method of providing classroom facilities where overcrowded conditions exist, as determined necessary pursuant to Section 98.0415, and notwithstanding Section 66478 of the California Government Code, the City may require the dedication of land, the payment of fees in lieu thereof, or a combination of both, for classroom and related facilities for elementary, junior high, or senior high schools as a condition to the approval of residential developments.

• (b) The location and amount of land to be dedicated or amount of fees to be paid, or both, shall bear a reasonable relationship and will be limited to the needs of the community for interim elementary, junior high, or senior high school facilities and shall be reasonably related and limited to the need for schools caused by the proposed development. However, the value of the land to be dedicated or the amount of fees to be paid, or both, shall not exceed the amount necessary to make five annual lease payments for the interim facilities.

• (c) In lieu of the dedication of land or the payment of fees, or both, the applicant for a residential development may, at his or her option and at his or her expense, provide interim facilities, owned or controlled by the applicant, acceptable to and at the place designated by the school district, and at the conclusion of the fifth school year the applicant shall, at his or her expense, remove the interim facilities from that place.

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• (d) Only the payment of fees shall be required in residential developments containing 50 dwelling units or less.

• (“Requirement of Dedications and/or Fees” added 11–18–1985 by O–16541 N.S.)

Upon receipt of a building permit application for residential development located 101.0201 within an Impacted Attendance Area, the Development Services Department shall inform the applicant of the requirements of this Division. It shall be the applicant’s responsibility to contact the appropriate school districts to secure the required clearance.

(Amended 7–25–1994 by O–18088 N.S.)

Upon receipt of a building permit application for residential development located within an Impacted Attendance Area, the Development Services Department shall notify the affected school districts thereof. The notification shall be made at least 30 days prior to the issuance of a building permit for the proposed development. (Amended 7–25–1994 by O–18088 N.S.)

• (a) Within 30 days of receipt of the notice provided under Section 98.0421, the school district shall determine whether a dedication of land within the proposed development, payment of fees in lieu thereof, or a combination of both, should be required pursuant to this Division. When the district has either received or accepted an offer to receive from the applicant for the proposed residential development the required dedication of land or payment of fees, or both, the district shall so inform the City Development Services Department in writing.

• (b) If the school district, pursuant to Council Policy 600–22, “AVAILABILITY OF SCHOOLS,” had previously entered into an agreement with the applicant for the proposed residential development to mitigate conditions of overcrowding within the attendance area covered by the application or to eliminate the need to provide school facilities, the district shall within 30 days of receipt of the notice provided under Section 98.0421 so inform the City Development Services Department in writing. Once the district and the applicant have entered into such an agreement, no additional dedication of land or payment of fees, or both shall be required pursuant to this Division.

• (Amended 7–25–1994 by O–18088 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

Following the establishment of an Impacted Attendance Area, the school district shall submit to the City Manager a schedule specifying how it will use the land or fees, or both, to relieve the conditions of overcrowding. The schedule shall include the school sites to be used, the classroom facilities to be made available, and the times when those facilities will be available. If the district cannot meet the schedule, it shall submit modifications to the City Manager and the reasons for the modifications. The City Manager shall make a finding that the facilities to be provided from the fees to be paid or the land to be dedicated, or both, are consistent with the Progress Guide and General Plan of The City of San Diego.

(“Schedule for Use of Land or Fees” added 11–18–1985 by O–16541 N.S.)

When land is to be dedicated, the dedication or an offer for dedication shall be made to and accepted by the school district prior to the issuance of a building permit for the proposed development. Dedicated land which subsequently is determined by the district to be unsuitable or unnecessary for school facilities may be sold and the funds derived therefrom shall be used in accordances with this Division.

(“Land Dedication” added 11–18–1985 by O–16541 N.S.)

When fees are to be paid, the payment or an offer for payment shall be made to and accepted by the school district prior to the issuance of a building permit for the proposed development.

(“Free Payment” added 11–18–1985 by O–16541 N.S.)

(Retitled to “Fee Payment” and amended 5-5-2015 by O-20481 N.S.; effective 6-4-2015.)

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Chapter 9: Building, Housing and Sign Regulations

The land or fees, or both, received by a school district pursuant to this Division shall be used only for the purpose of providing interim elementary, junior high, or senior high school classroom and related facilities within the Impacted Attendance Area from which the land or fees were collected.

(“Use of Land or Fees” added 11–18–1985 by O–16541 N.S.)

Whenever a school district has received approval under the State School Building Lease–Purchase Law of 1976 (Chapter 22 commencing with Section 17700 of the California Education Code) of a school project to be constructed in an attendance area where fees have been collected pursuant to this Division all or a portion of the fees so collected for interim facilities may be used by the district to provide its ten percent of the project as required by item (1) of Section 17761 of the California Education Code. Nothing in this section shall increase the amount of fees that would otherwise be collected pursuant to this Division.

(“Use of Fees for Local Match Requirement” added 11–18–1985 by O–16541 N.S.)

Whenever a school district has received approval under the State School Building Lease–Purchase Law of 1976 (Chapter 22 commencing with Section 17700 of the California Education Code) of a school project to be constructed in an attendance area where land has been received pursuant to this Division, the district may use the fair market value of the land to provide all or a portion of its ten percent of the school project as required by item (1) of subdivision (a) of Section 17761 of the California Education Code. In order to use the value of land to meet the ten percent match requirement, the district shall construct the capital outlay project on the land used to make the match, and shall provide the full ten percent of the project cost at one time as provided in item (1) of subdivision (a) of Section 17761 of the California Education Code.

(“Use of Value of Land for Local Match Requirement” added 11–18–1985 by O– 16541 N.S.)

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San Diego Municipal Code (1-2016)

Chapter 9: Building, Housing and Sign Regulations

One year after receipt of an apportionment pursuant to the State School Building Lease–Purchase Law of 1976 (Chapter 22 commencing with Section 17700 of the California Education Code) for the construction of a school, the City shall not be permitted thereafter, pursuant to this Division or any other school facilities financing arrangement the district may have with builders of residential development, to levy any fee or to require the dedication of any land within the attendance area of the school for which the apportionment was received. However, any time after receipt of the apportionment there may be a determination of overcrowding pursuant to Section 98.0415, if there is the further finding that (1) during the period of construction additional overcrowding would occur from continued residential development, and (2) that any fee levied and any required dedication of land levied after the receipt of the construction apportionment can be used to avoid the additional overcrowding prior to the school being available for use by the district. Any amounts of fees collected or land dedicated after the receipt of the construction apportionment and not used to avoid overcrowding shall be returned to the person who paid the fee or made the land dedication.

(“Limits Upon Receipt of State School Construction Apportionment” added 11–18– 1985 by O–16541 N.S.)

Any school district receiving funds pursuant to this Division shall maintain a separate account for any fees paid, and shall file a report with the City Council on the balance in the account at the end of the previous fiscal year; the facilities leased, purchased, or constructed during the previous fiscal year; and the dedication of land during the previous fiscal year. The report shall also identify any apportionment of funds received by the district pursuant to the State School Building Lease–Purchase Law of 1976. In addition, the report shall specify which attendance areas will continue to be overcrowded when the fall term begins and where conditions of overcrowding will no longer exist. The report shall be filed by October 15 of each year and shall be filed more frequently at the request of the City Council. The City Council may approve a 30–day extension for the filing of the report in the case of extenuating circumstances, as determined by the City Council. During the time that the report has not been filed in the manner prescribed in this section, there shall be a waiver of any performance of the payment of fees or the dedication of land.

(“Fund Accounts and Reports” added 11–18–1985 by O–16541 N.S.)

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When it is determined by the City Council, in consultation with the school district, that conditions of overcrowding no longer exist in an attendance area, the City and school district shall cease levying any fee or requiring the dedication of any land for that area pursuant to this Division. Action under this section shall not affect the validity of conditions already imposed for levy of fees and dedications of land, and such conditions shall remain binding.

(“Termination of Fee and Dedication Requirements” added 11–18–1985 by O– 16541 N.S.)

If a residential development approval is vacated or voided prior to use of the fees and/or land by the school district and if the applicant so requests within 60 calendar days of the development being vacated or voided, the governing board of the school district shall order the fees and/or land returned to the person who paid the fees or made the land dedication.

(“Refunds” added 11–18–1985 by O–16541 N.S.)

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Article 8: Housing

Division 5: San Diego Housing Trust Fund (“San Diego Housing Trust Fund” added 4–16–1990 by O–17454 N.S.)

• (a) It is the intent of the City Council to create an Affordable Housing Fund as a permanent and annually renewable source of revenue to meet, in part, the housing needs of the City’s very low , low , and median income households. There are households which are income eligible and also possess one or more of the following characteristics; (1) they are burdened by paying more than thirty percent (30%) of their gross income for housing costs; (2) they live in overcrowded conditions; (3) they live in substandard housing units; (4) they are homeless individuals and families; or (5) they consist of individuals and families with special housing needs such as the elderly, the developmentally disabled, the mentally ill, the physically disabled, single parent households and large families.

• (b) The Affordable Housing Fund will serve as a vehicle for addressing very low, low, and median income housing needs through a combination of funds as provided for in these regulations.

• (c) It is the intent of the City Council to address a significant portion of the City’s current and projected very low, low, and median income housing need by leveraging every one dollar of City funds allocated to the Fund with two dollars of non–City subsidy capital funds.

• (d) It is further the intent of the Council to foster a mix of family incomes in projects assisted by the Fund and to disperse affordable housing projects throughout the City, in accordance with its Balanced Communities Policy and its intent to achieve a balance of incomes in all neighborhoods and communities so that no single neighborhood experiences a disproportionate concentration of housing units affordable to very low, low, and median income households.

• (e) It is the purpose and intent of this part to preserve and maintain renter and ownership housing units which are affordable to low, very low, and moderate income households and are located within the City, including federally assisted units and units located in mobile home parks.

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• (f) It is the further intent of the City Council to foster and encourage the private sector to join with the public sector and the nonprofit sector to further the goals of this ordinance.

(Amended 6–3–2003 by O–19190 N.S.)

• (a) There is established a fund to be known as the San Diego Affordable Housing Fund. The Affordable Housing Fund shall consist of funds received from the commercial development linkage fees paid to the City pursuant to Chapter 9, Article 8, Division 6 of the San Diego Municipal Code; revenues from the Transient Occupancy Tax as provided in Section 35.0128 of the San Diego Municipal Code; funds received from the Employee Housing Incentive Program Fee paid to the City pursuant to Section 143.0742 of the San Diego Municipal Code; funds received from in lieu fees paid to the City and revenues received from promissory note repayments, shared equity payments, or other payments collected pursuant to Chapter 14, Article 2, Division 13 of the San Diego Municipal Code; and any other appropriations as determined from time to time by legislative action of the City Council. The Affordable Housing Fund shall be administered by the San Diego Housing Commission pursuant to the provisions of this Division, the appropriation ordinances and applicable Council policies.

• (b) There is also established within the Affordable Housing Fund, a San Diego Housing Trust Fund account. Except for funds received from the Employee Housing Incentive Program Fee paid to the City pursuant to Section 143.0742 of the San Diego Municipal Code and funds received from in lieu fees paid to the City and revenues received from promissory note repayments, shared equity payments, or other payments collected pursuant to Chapter 14, Article 2, Division 13 of the San Diego Municipal Code, all funds received by the Affordable Housing Fund, either from special funds or general fund appropriations, shall be deposited in the Housing Trust Fund account. The administration and use of monies from the San Diego Housing Trust Fund shall be subject to all provisions under this Division related to the Affordable Housing Fund.

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• (c) There is also established within the Affordable Housing Fund, an Inclusionary Housing Fund account. Funds received from the Employee Housing Incentive Program Fee paid to the City pursuant to Section 143.0742 of the San Diego Municipal Code, funds received from in lieu fees paid to the City, and revenues received from promissory note repayments, shared equity payments, or other payments collected pursuant to Chapter 14, Article 2, Division 13 of the San Diego Municipal Code shall be deposited in the Inclusionary Housing Fund account. The administration and use of monies from the Inclusionary Housing Fund shall be subject to all provisions under this Division related to the Affordable Housing Fund.

(“Definitions” repealed; “Establishment of the San Diego Housing Trust Fund and Trust Fund Account” renumbered from Sec. 98.0503, retitled and amended 6-3-2003 by O–19190 N.S.)

(Amended 1-28-2020 by O-21167 N.S; effective 7-1-2020.) (Amended 3-11-2022 by O-21439 N.S.; effective 4-10-2022.)

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Chapter 9: Building, Housing and Sign Regulations

• (a) The Affordable Housing Fund shall be used solely for programs and administrative support approved by the City Council in accordance with Section 98.0507 to meet the housing needs of very low income , low income and median income households. In addition, for homeownership purposes only, these funds may be utilized to meet the housing needs of moderate income households where moderate income has the same meaning as in San Diego Municipal Code Section 113.0103. These programs shall include those providing assistance through production, acquisition, rehabilitation and preservation.

• (b) Principal and interest from loan repayments, proceeds from grant repayments, forfeitures, reimbursements, and all other income from Affordable Housing Fund activities, shall be deposited into the Affordable Housing Fund. All funds in the account shall earn interest at least at the same rate as pooled investments managed by the Treasurer. All interest earnings from the account shall be reinvested and dedicated to the account. All appropriated funds in the Affordable Housing Fund account shall be available for program expenditures as directed by the Commission and pursuant to Section 98.0507. The City’s Annual Appropriation Ordinance shall provide for the transfer of designated funds to the Affordable Housing Fund. Transfers shall be made quarterly or upon direction of the City Manager. Transferred funds shall accrue interest from the time of transfer.

(“Establishment of the San Diego Housing Trust Fund and Trust Fund Account” renumbered to Sec. 98.0502; “Purpose and Use of Housing Trust Fund and Monies” renumbered from Sec. 98.0504, retitled and amended 6–3–2003 by O–19190 N.S.) (Amended 1-23-2009 by O-19825 N.S; effective 2-22-2009.)

• (a) The San Diego Housing Trust Fund may be used in any manner, through loans, grants, or indirect assistance for the production and maintenance of assisted units and related facilities. The San Diego Housing Trust Fund monies shall be distributed to the target income groups according to the following guidelines:

  • (1) No less than ten percent (10%) of the funds in the San Diego Housing Trust Fund account shall be expended to provide transitional housing for households who lack permanent housing;

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• (2) Not less than sixty percent (60%) of the funds in the Trust Fund account shall be expended to provide housing to very low income households at affordable housing costs .

• (3) No more than twenty percent (20%) of the funds in the San Diego Housing Trust Fund account shall be expended to provide housing to low income households at affordable housing costs ;

• (4) No more than ten percent (10%) of the funds in the San Diego Housing Trust Fund account shall be expended to assist median income and moderate income first–time home buyers purchase a home at an affordable housing cost with special consideration given to those proposals (1) involving neighborhoods that are predominately low income with substantial incidence of absentee ownership, or (2) which further the goals of providing economically balanced communities. Affordable housing cost , as defined for moderate income home buyers, shall also be consistent with California Health and Safety Code section 50052.5 for those households at or exceeding 100 percent (100%) of area median income.

• (b) The San Diego Housing Commission shall ensure that a program to increase the capacity of nonprofit organizations to develop and operate housing for very low , low, median and moderate income households be included in the Affordable Housing Fund Annual Plan to be submitted to the City Council in accordance with Section 98.0507. Through such a program, the Housing Trust Fund may fund training programs for non-profit organizations, and provide funds for administrative support. Furthermore, the San Diego Housing Commission shall ensure that technical assistance related to the preparation of project proposals is made available to nonprofit organizations requesting such assistance.

• (c) Funds shall not be used for the operation of supporting services such as child care or social services unless:

  • (1) The funds are used in connection with transitional housing or in neighborhoods where the addition of units will create the need for supportive services.

  • (2) The recipient can demonstrate to the Commission that other funds are not available, and

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• (3) No more than twenty–five percent (25%) of the loan, grant or assistance is designated for such services. Whenever such funds are disbursed from the Trust Fund account, the San Diego Housing Commission shall determine the terms and conditions which shall be attached to the grant or loan of those funds.

(“Purpose and Use of Housing Trust Fund and Monies” renumbered to Sec. 98.0503; “Purpose and Use of San Diego Housing Trust Fund Account” added 6-3-2003 by O-19190 N.S.)

(Amended 1-23-2009 by O-19825 N.S; effective 2-22-2009.)

• (a) The Inclusionary Housing Trust Fund shall be used solely for programs and administrative support approved by the City Council pursuant to the provisions of Section 98.0507.

• (b) Priority for the expenditure of funds from the Inclusionary Housing Trust Fund shall be given to the construction of new affordable housing stock. The monies may also be allowed to be expended for other programs administered by the San Diego Housing Commission if approved by the City Council in the Affordable Housing Fund Annual Plan, pursuant to the provisions of this Division.

• (c) Priority for the expenditure of funds from the Inclusionary Housing Trust Fund shall be given to the Community Planning Area from which the funds were collected. The funds shall be used to promote and support the City’s goal of providing economically balanced communities.

(“Term of Affordability” renumbered to Sec. 98.0506; “Purpose and Use of San Diego Inclusionary Housing Fund Account” added 6-3-2003 by O-19190 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

• (a) Whenever funds from the Affordable Housing Fund are used for the acquisition, construction or substantial rehabilitation of an affordable rental or cooperative unit, the San Diego Housing Commission shall impose enforceable requirements on the owner of the housing unit that the unit remain affordable for the remaining life of the housing unit, assuming good faith efforts by the owner to maintain the housing unit and rehabilitate it as necessary. The remaining life of the housing unit shall be presumed to be a minimum of fifty–five (55) years.

• (b) Whenever funds from the Affordable Housing Fund are used for the acquisition, construction or substantial rehabilitation of ownership housing, the San Diego Housing Commission shall impose enforceable resale restrictions on the owner to keep the housing unit affordable for the longest feasible time, while maintaining an equitable balance between the interests of the owner and the interests of the San Diego Housing Commission.

• (c) For programs funded with funds from the Affordable Housing Fund which are not described in (a) or (b) above, the Commission shall develop appropriate mechanisms to ensure affordability which shall be described in the San Diego Housing Fund Annual Plan.

• (d) The affordability restriction requirements described in this section shall run with the land and the Commission shall develop appropriate procedures and documentation to enforce these requirements and shall record such documentation in the Official Records of the Recorder of San Diego County.

(“Three Year Program” renumbered to Sec. 98.0507; “Term of Affordability” renumbered from Sec. 98.0505 and amended 6–3–2003 by O–19190 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

Prior to the commencement of the fiscal year and annually thereafter, the San Diego Housing Commission shall adopt an Affordable Housing Fund Annual Plan for the use of the Affordable Housing Fund, including the Housing Trust Fund account and the Inclusionary Housing Fund account, and present it to Council for action. This document shall plan for the following fiscal year or other appropriate time frame to ensure for accurate and effective planning and budgeting of fund revenues. The Affordable Housing Fund Annual Plan shall include:

• (a) A description of all programs to be funded with funds from the Affordable Housing Fund account specifying the intended beneficiaries of the program including the capacity building program for nonprofit organizations;

• (b) The amount of funds budgeted for loans or grants to recipients who agree to participate in Commission approved Programs;

• (c) The amount of funds budgeted for administrative expenses, exclusive of legal fees. All disbursements from the Affordable Housing Fund shall be consistent with the Affordable Housing Fund Annual Plan.

(“Solicitation of Program Suggestions” renumbered to Sec. 98.0508; “Three Year Program Plan” renumbered from Sec. 98.0506, retitled and amended 6-3-2003 by O-19190 N.S.)

Each year, the San Diego Housing Commission shall solicit suggestions on the programs to be funded by the Affordable Housing Fund account in the next fiscal year from any person who has indicated such a desire in writing to the Board of Commissioners of the San Diego Housing Commission.

(“Preparation and Funding of Three-Year Program Plan” renumbered to Sec. 98.0509; “Solicitation of Program Suggestions” renumbered from Sec. 98.0507 and amended 6-3-2003 by O-19190 N.S.)

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Chapter 9: Building, Housing and Sign Regulations

(9-2024)

Each year, the San Diego Housing Commission shall hold three (3) public hearings to solicit testimony from the general public on programs to be funded by the Affordable Housing Fund account in the next fiscal year. A hearing shall be held in the North, South and Central areas of the City. The San Diego Housing Commission shall consider the suggestions from the neighborhood groups and the testimony from the public hearings, and cause a draft Annual Plan to be prepared for its consideration. The San Diego Housing Commission shall hold a public hearing to obtain public comments on the draft Affordable Housing Fund Annual Plan, make modifications as it deems appropriate and submit it to the Council for action. The City Council shall consider the Affordable Housing Fund Annual Plan as submitted by the San Diego Housing Commission, modify it if it so elects; approve it no later than July 31 of each year; and appropriate to fund the Affordable Housing Fund Annual Plan from the Affordable Housing Fund account or an other funding sources it chooses to consider for this purpose. These procedures and dates may be adjusted as necessary for the preparation of the first Affordable Housing Fund Annual Plan after the enactment of this Division.

(“Project Selection and Disbursement of Funds” renumbered to Sec. 98.0510; “Preparation and Funding of Three-Year Program Plan” renumbered from Sec. 98.0508, retitled and amended 6-3-2003 by O-19190 N.S.)

The San Diego Housing Commission may notify potential recipients that specified funds from the Affordable Housing Fund are available to be distributed as loans or grants through issuing requests for proposals and notices of fund availability.

(“Support of Nonprofit Organizations” repealed; “Project Selection and Disbursement of Funds” renumbered from Sec. 98.0509 and amended 6-3-2003 by O–19190 N.S.)

(Amended 10-12-2022 by O-21546 N.S.; effective 11-11-2022.)

Ch. Art. Div. 9 8 5 9

San Diego Municipal Code (9-2024)

Chapter 9: Building, Housing and Sign Regulations

Every recipient shall enter into a written agreement with the San Diego Housing Commission which sets forth the terms and conditions of the grant or loan. The agreement shall contain at least the following provisions:

• (a) The amount of funds to be disbursed from the Affordable Housing Fund.

• (b) The manner in which the funds from the Affordable Housing Fund are to be used.

• (c) The terms and conditions of the grant or loan.

• (d) The projected and maximum amount that is allowed to be charged in order for the assisted units to maintain an affordable housing cost.

• (e) A requirement that periodic reports be made to the Commission to assist its monitoring of compliance with the agreement.

• (f) A description of actions that the Commission may take to enforce the agreement.

• (g) Restrictions on the return on equity and developers fee recipients may receive, where applicable.

(“Funding of Supporting Services” repealed; “Regulation of Recipients” renumbered from Sec. 98.0512 and amended 6–3–2003 by O–19190 N.S.)

The Commission shall publish such administrative rules and guidelines as are necessary and desirable to implement the programs approved by the City Council in the Annual Plan.

(“Regulation of Recipients” renumbered to Sec. 98.0511; “Publication of Program Documents” renumbered from Sec. 98.0522 and amended 6–3–2003 by O-19190 N.S.)

Ch. Art. Div. 9 8 5 10

San Diego Municipal Code

Chapter 9: Building, Housing and Sign Regulations

(9-2024)

• (a) The Commission shall within ninety (90) days following the close of each fiscal year prepare and submit an annual report to the City Council on the activities undertaken with funds from the Affordable Housing Fund account. The report shall specify the number and types of units assisted, the geographic distribution of units and a summary of statistical data relative to the incomes of assisted households, the monthly rent or carrying charges charged the amount of state, federal and private funds leveraged, and the sales prices of ownership units assisted. The report shall specifically contain a discussion of how well the goals of the previous year’s Annual Plan were met. The report shall also contain the information necessary to support the findings specified in Section 66001 of Chapter 5, Division 1 of Title 7 of the California Government Code.

(“Annual Report” renumbered from Sec. 98.0523 and amended 6–3–2003 by O-19190 N.S.)

The Commission may establish and maintain a reserve fund account subject to approval of the City Council, adequate to preserve the ability of the Affordable Housing Fund to take maximum advantage of unforeseen opportunities in assisting housing and to ensure prudently against unforeseen expenses. The amount to be maintained in this reserve fund shall be determined by the San Diego Housing Commission. The San Diego Housing Commission shall establish procedures for maintaining such a fund.

(“Reserve Fund” renumbered from Sec. 98.0524 and amended 6–3–2003 by O-19190 N.S.)

Ch. Art. Div. 9 8 5 11

San Diego Municipal Code (9-2024)

Chapter 9: Building, Housing and Sign Regulations

• (a) The City Auditor shall maintain a separate Affordable Housing Fund and any required related subsidiary funds and transfer the balance on deposit from such funds to the San Diego Housing Commission on a quarterly basis upon the direction from the Financial Management Director.

• (b) The San Diego Housing Commission shall maintain and report within their accounts a separate Affordable Housing Fund and the subsidy funds of the Housing Trust Fund, the Inclusionary Housing Fund, and any other required related subsidiary funds for all related financing transferred from the City and any related income. Such funds shall be accounted for and reported separately on the San Diego Housing Commission’s annual audited financial report, and such funds shall be audited for compliance with the Affordable Housing Fund Ordinance, Inclusionary Housing Ordinance, and related policies and regulations.

The Commission shall also prepare any other reports legally mandated for financing sources of the Affordable Housing Fund.

(“Financial Management” renumbered from Sec. 98.0525 and amended 6–3–2003 by O–19190 N.S.)

The San Diego Housing Commission shall apply its equal opportunity program to assure that contractors doing business with and/or receiving funds from the Affordable Housing Fund will not discriminate against any employee or applicant for employment because of race, color, religion, sex, handicap, age, or national origin and that equal employment opportunity is provided to all applicants and employees without regard to race, religion, sex, handicap, age, or national origin. The goals of the equal opportunity program are to ensure that all contracts achieve parity in the representation of women, minorities, and the handicapped in each contractor’s work force with the availability of women minorities, and the handicapped in the San Diego County labor market. The program shall apply to all vendors, grantees, lessees, consultants, banks, and independent corporations under contract with the San Diego Housing Commission.

(“Equal Opportunity Program” renumbered from Sec. 98.0526 and amended 6-3-2003 by O–19190 N.S.)

Ch. Art. Div. 9 8 5 12

San Diego Municipal Code

Chapter 9: Building, Housing and Sign Regulations

(9-2024)

Each contractor shall submit certification of compliance with Executive Order 11246, Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practice Act, and other applicable federal and state laws and regulations hereinafter enacted. Such certification shall be on forms to be provided by the Commission and shall be submitted at the time the contractor submits a bid or proposal.

(“Compliance with Antidiscrimination Laws” renumbered from Sec. 98.0527 on 6-3-2003 by O–19190 N.S.)

The San Diego Housing Commission may institute any action or proceeding it deems appropriate, judicial or otherwise, against recipients or other persons to carry out the provisions of this Division, to enforce the terms of any agreement related to the use of funds from the Affordable Housing Fund, or to protect the interest of the City, the San Diego Housing Commission, or intended beneficiaries of programs operated pursuant to this Division. The San Diego Housing Commission may foreclose on property assisted with funds from the Affordable Housing Fund, seek to assume managerial or financial control over property financed with funds from the Affordable Housing Fund, directly or through a receiver, seek monetary damages or seek equitable or declaratory relief.

(“Commission Powers to Enforce” renumbered from Sec. 98.0528 and amended 6-3-2003 by O-19190 N.S.)

Ch. Art. Div. 9 8 5 13

San Diego Municipal Code (10-2024)

Chapter 9: Building, Housing and Sign Regulations

Article 8: Housing