San Diego Municipal Code Div. 13 Inclusionary Affordable Housing Regulations

The purpose of this Division is to encourage diverse and balanced neighborhoods with housing available for households of all income levels. The intent is to ensure that when developing the limited supply of developable land, housing opportunities for persons of all income levels are provided. (Added 6-3-2003 by O-19189 N.S.)

This Division applies to all residential development of 10 or more dwelling units outside of the Coastal Overlay Zone, five or more dwelling units within the Coastal Overlay Zone, and to all condominium conversion development of two or more dwelling units, except as provided in Section 142.1303. The requirements of this Division shall not be cumulative to state or other local affordable housing requirements where those dwelling units are subject to an affordability restriction recorded against the property by the state or local agency. To the extent that state or local regulations are inconsistent with the requirements of this Division for the amount of the fee, length of the restriction, or the level of affordability, the more restrictive shall apply. (Added 6-3-2003 by O-19189 N.S.) (Amended 11-21-2011 by O-20107 N.S.; effective 12-21-2011.) (Amended 1-28-2020 by O-21167 N.S; effective 7-1-2020.) (Amended 2-23-2022 by O-21432 N.S; effective 8-10-2022.)

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This Division is not applicable to the following:

(a) Residential development located in the North City Future Urbanizing Area
that is within Proposition A Lands of the City of San Diego or any project
located in an area of the City that was previously located in the North City
Future Urbanizing Area and has been phase shifted into the Planned
Urbanized Communities, and is subject to the inclusionary zoning
requirements contained in the North City Future Urbanizing Area Framework
Plan, San Diego Municipal Code section 143.0450(d), the Subarea Plans,
Development Agreements, Affordable Housing Agreements, or conditions of
approval of a development permit, as applicable.

(b) Rehabilitation of an existing building that does not result in a net increase of
dwelling units on the premises.

(c) Density bonus units constructed in accordance with the provisions of
Chapter 14, Article 3, Division 7.
(Amended 3-8-2004 by O-19267 N.S.)
(Amended 4-8-2008 by O-19734 N.S; effective 5-8-2008.)
(Amended 11-21-2011 by O-20107 N.S.; effective 12-21-2011.)
(Retitled from “Exemptions From the Affordable Housing Inclusionary Regulations”
to “Exemptions From the Inclusionary Affordable Housing Regulations” and
amended 1-28-2020 by O-21167 N.S; effective 7-1-2020.)

From July 1, 2020 through June 30, 2024, the requirements of subsections (a) and (b) of this Section shall be implemented incrementally as set forth in the Inclusionary Affordable Housing Implementation and Monitoring Procedures Manual on file with the San Diego Housing Commission (Procedures Manual). Effective July 1, 2024, all residential development subject to this Division shall include inclusionary dwelling units as follows:

(a) Rental residential development:

At least 10 percent of the total dwelling units in the development shall be
made available for rent by very low income households or low income
households at a cost, including an allowance for utilities, that does not exceed
30 percent of 60 percent of median income.

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(b) For-sale residential development:

(1) At least 10 percent of the total dwelling units in the development shall
be made available for purchase at a cost affordable to median income
households; or

(2) At least 15 percent of the total dwelling units in the development shall
be made available for purchase at a cost affordable to moderate
income households.

(c) The applicant may propose a combination of inclusionary dwelling units
required by this Division. The proposal shall be considered by the San Diego
Housing Commission in accordance with this Division and the Procedures
Manual. The proposal shall be approved if the combination provides
substantially the same or greater level of affordability as required by this
Division and provides the same or greater number of inclusionary dwelling
units required by this Division.

(d) For any partial inclusionary dwelling unit calculated, the applicant shall pay a
prorated amount of the Inclusionary In Lieu Fee in accordance with
Section 142.1306 or provide an additional inclusionary dwelling unit.

(e) Development of inclusionary dwelling units shall be subject to the following:

(1) The inclusionary dwelling units shall be constructed at the same time as the market-rate dwelling units and receive final inspection approval from the Building Official no later than the date that the market-rate dwelling units receive final inspection approval from the Building Official. The applicant may seek an alternative development schedule in accordance with Sections 142.1310 and 142.1311.

(2) The inclusionary dwelling units shall be comparable in bedroom mix,
design, and overall quality of construction to the market-rate dwelling
units in the development, as determined by the San Diego Housing
Commission, except that the inclusionary dwelling units shall not be
required to exceed three bedrooms per dwelling unit. The square
footage and interior features of the inclusionary dwelling units shall be
good quality and consistent with current building standards for new
housing in the City of San Diego. For purposes of calculating total
bedroom count for inclusionary dwelling units on a different premises
from the development, the applicant may provide different bedroom
mixes to meet the total dwelling unit and bedroom count minimums as
follows:

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(A) An affordable studio dwelling unit or a micro unit shall count
as 60 percent of an affordable bedroom;

(B) An affordable SRO hotel room shall count as 40 percent of an
affordable bedroom; and

(C) Any calculations resulting in fractional units shall round up to
the next whole number.

(3) Sale or lease of the inclusionary dwelling units shall follow the
marketing requirements and procedures in the Procedures Manual.

Very low income, low income, and moderate income households located in an area identified as a Low Resource or High Segregation and Poverty Resource California Tax Credit Allocation Committee (CTCAC) Opportunity Area when the development application is deemed complete shall receive priority preference for new covenant- restricted dwelling units created under this section.

(4) Development of the inclusionary dwelling units shall follow all other
requirements in the Procedures Manual.

(5) When the inclusionary dwelling units are located on a different
premises from the development, the applicant shall record a deed
restriction prior to the issuance of the first Building Permit that:

(A) Documents the required number of affordable dwelling units to
be provided; and

(B) Assigns foreclosure rights of the development premises to the
San Diego Housing Commission as follows:

(i) For new development, if the affordable dwelling units
have not received a certificate of occupancy within
54 months of the issuance of the first Building Permit.

(ii) For an existing structure(s) if the affordable dwelling
units have not received a certificate of occupancy
within 36 months of the issuance of the first Building
Permit.

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(f) Rental inclusionary dwelling units shall remain affordable for a period of not
less than 55 years from the date of final inspection for the development or
applicable phase of the development.

(g) For-sale inclusionary dwelling units shall be owner-occupied and the
San Diego Housing Commission shall cause the for-sale inclusionary dwelling
units to be subject to documentation ensuring the following:

(1) The owner and the San Diego Housing Commission shall share equity in a for-sale inclusionary dwelling unit. For the purpose of this Section 142.1304, equity shall be defined in the Procedures Manual. Shared equity shall be measured by the difference between the unrestricted fair market value of the inclusionary dwelling unit on the date of the first resale and the original unrestricted fair market value of the inclusionary dwelling unit at the time of its initial acquisition. Any equity calculation shall be based on an appraisal approved by the San Diego Housing Commission and shall consider the actual costs of any San Diego Housing Commission-approved improvements to the inclusionary dwelling unit. If the San Diego Housing Commission’s calculation results in a negative number, the equity is deemed to be zero.

(2) The owner and the San Diego Housing Commission shall share the
equity earned during the owner’s first 15 years of ownership at the
time of the first resale, refinance, or transfer of the for-sale
inclusionary dwelling unit in accordance with the table in the
Procedures Manual. The San Diego Housing Commission may waive
the requirement to share equity if the for-sale inclusionary dwelling
unit is sold to another median income household or moderate income
household in compliance with the Procedures Manual.

(3) Upon any sale or transfer of the inclusionary dwelling unit by the
original owner, whenever it occurs, the San Diego Housing
Commission shall also receive that sum calculated as the difference
between the original unrestricted fair market value of the inclusionary
dwelling unit and the restricted value of the inclusionary dwelling unit
at the time of the original sale, as determined by an appraisal approved
by the San Diego Housing Commission.

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(4) The owner shall sell the inclusionary dwelling unit at no less than fair market value unless sold to another median income household or moderate income household in compliance with the Procedures Manual.

(5) Unless otherwise required by law, all promissory note repayments,
shared equity payments, or other payments collected under this
Section 142.1304(g) shall be deposited into the Affordable Housing
Fund.

(h) Residential development that intends to provide affordable dwelling units as a
condition of the development and has an application for a development permit,
for a subdivision, or for a Building Permit deemed complete before July 1,
2020 shall be subject to the version of these Inclusionary Affordable Housing
Regulations in effect prior to July 1, 2020, as set forth in the Procedures
Manual.
(“Inclusionary Affordable Housing Requirements” added 1-28-2020 by
O-21167 N.S; effective 7-1-2020. Former Section 142.1304 “Inclusionary Affordable
Housing Fee” retitled, amended, and renumbered to Section 142.1306.)
(Amended 1-27-2022 by O-21416 N.S.; effective 2-26-2022.)
(Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.)

Note: The priority preference for households that qualify for affordable homes as set
forth in Sections 142.1304(e)(3), 143.0720(p), 143.0860(e), 143.1005(b)(4), and
143.1212(f) will not be implemented until a program can be developed and a funding
source can be approved as part of a future action of the Housing Authority or City
Council to ensure successful implementation. For Sections 143.0860(e) and
143.1005(b)(4), only portions applicable to the priority preference are delayed.

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(a) The requirement to provide inclusionary dwelling units may be met in any of the following ways:

(1) On the same premises as the development;

(2) On a different premises from the development, but within the same
community planning area, or within one mile of the premises of the
development, as measured in a straight line from the property lines of
the development premises to the property lines of the proposed
premises where the inclusionary dwelling units will be constructed;

(3) On a different premises from the development that does not meet the
locational criteria in Section 142.1305(a)(2) but lies within the City of
San Diego, if the receiver site is within a Sustainable Development
Area, in an area identified as a High or Highest Resource California
Tax Credit Allocation Committee Opportunity Area according to the
most recent California State Treasurer TCAC/HCD Opportunity Area
Maps, and less than five percent of the existing dwelling units in that
community planning area are covenant-restricted to very low income,
low income, or moderate income households.

(4) By payment of an Inclusionary In Lieu Fee in accordance with
Section 142.1306 in lieu of constructing all or a portion of the
inclusionary dwelling units required in Section 142.1304(a) or
Section 142.1304(b);

(5) By rehabilitation of existing dwelling units or SRO hotel rooms, or by
the conversion of guest rooms in a motel or hotel located outside the
Coastal Overlay Zone to inclusionary dwelling units in accordance
with Section 142.1307; or

(6) By land donation in accordance with Section 142.1308.

(b) When a residential development includes both for-sale and rental dwelling
units, the provisions of this Division that apply to for-sale development shall
apply to that portion of the development that consists of for-sale dwelling
units, and the provisions of this Division that apply to rental dwelling units
shall apply to that portion of the development that consists of rental dwelling
units.

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San Diego Municipal Code Chapter 14: General Regulations (3-2026)

(c) Nothing in this Division shall preclude an applicant from using affordable dwelling units constructed by another applicant to satisfy the requirements of this Division, including contracting with an affordable housing developer with experience obtaining tax-exempt bonds, low income housing tax credits, and other competitive sources of financing, upon approval by the San Diego Housing Commission pursuant to the standards set forth in the Procedures Manual.

(“Methods of Compliance” added 1-28-2020 by O-21167 N.S; effective 7-1-2020.
Former Section 142.1305 “Election to Provide For-Sale Affordable Housing Units in
a For-Sale Development” retitled, amended, and renumbered to Section 142.1307.)
(Amended 3-11-2022 by O–21439 N.S.; effective 4-10-2022.)
(Amended 2-23-2022 by O-21432 N.S; effective 8-10-2022.)
(Amended 3-7-2023 by O-21618 N.S.; effective 5-6-2023.)
(Amended 7-22-2024 by O-21836 N.S.; effective 10-5-2024.)

[Editors Note: Amendments as adopted by O-21836 N.S. will not apply within the
Coastal Overlay Zone until the California Coastal Commission certifies it as a Local
Coastal Program Amendment.
Click the link to view the Strikeout Ordinance highlighting changes to prior language
http://docs.sandiego.gov/municode_strikeout_ord/O-21836-SO.pdf ]

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(a) From July 1, 2020 through June 30, 2024, the Inclusionary In Lieu Fee requirements shall be implemented incrementally as set forth in the Procedures Manual. Effective July 1, 2024, the Inclusionary In Lieu Fee shall be $25.00 per square foot of net building area of unrestricted market-rate residential development. The Inclusionary In Lieu Fee shall be updated annually based on the annual increase in the Construction Costs Index (CCI) published by Engineering News Record for Los Angeles, or similar construction industry index selected by the City Manager if the CCI index is discontinued.

(b) Except as provided in Section 142.1306(c), the Inclusionary In Lieu Fee shall
be determined using the rate in effect at the time the applicant’s development
permit application, application for subdivision under the Subdivision Map Act,
or Building Permit application is deemed complete, whichever is earlier. The
Inclusionary In Lieu Fee shall be paid on or before the issuance of the first
residential Building Permit for the development.

(c) The Inclusionary In Lieu Fee applicable to residential development that has an
application for a development permit, for a subdivision, or for a Building
Permit deemed complete before July 1, 2020 shall be $12.73 per square foot
multiplied by the net building area of the unrestricted market-rate residential
development.

(d) All funds collected pursuant to this Section 142.1306 shall be deposited into
the Affordable Housing Fund.
(Added 6-3-2003 by O-19189 N.S.)
(Amended 8-15-2006 by O-19530 N.S.; effective 9-14-2006.)
(Renumbered from former Section 142.1310, retitled to “Inclusionary Affordable
Housing Fee” and amended 11-21-2011 by O-20107 N.S.; effective 12-21-2011.
Former Section 142.1304 repealed.)
(Renumbered from former Section 142.1304 to Section 142.1306, retitled from
“Inclusionary Affordable Housing Fee” to “Inclusionary In Lieu Fee” and amended
1-28-2020 by O-21167 N.S; effective 7-1-2020. Former Section 142.1306
“Inclusionary Affordable Housing Obligations for Condominium Conversions”
amended and renumbered to Section 142.1308.)

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Guest Rooms

(a) The requirements of this Division may be satisfied by the rehabilitation of
existing dwelling units for conversion to inclusionary dwelling units
affordable to very low income households or low income households at a cost,
including an allowance for utilities, that does not exceed 30 percent of 60
percent of median income, if the City Manager determines all of the
following:

(1) The San Diego Housing Commission is satisfied that the value of each
dwelling unit after the rehabilitation work is 25 percent or more than
the value of the dwelling unit prior to rehabilitation, inclusive of land
value. The Procedures Manual shall include criteria for the
determination of the value of the rehabilitation work;

(2) One dwelling unit shall be rehabilitated in lieu of each inclusionary
dwelling unit required pursuant to Section 142.1304(a) or
Section 142.1304(b);

(3) The rehabilitated dwelling units are located in an appropriate
residential zone that can accommodate at least the number of
rehabilitated dwelling units required by this Division, and if those
rehabilitated dwelling units are located within a Sustainable
Development Area, the number of dwelling units on the premises is at
least 60 percent of the base floor area ratio or density designated by
the zone in which the premises is located;

(4) The applicant provides evidence that the existing structure has a
remaining useful life of at least 55 years from the approval of the
dwelling unit as an inclusionary dwelling unit;

(5) The applicant provides evidence that the rehabilitation work complies
with California Building Code requirements to the satisfaction of the
Building Official;

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(6) The applicant provides a physical needs assessment to the satisfaction of the City Manager and the San Diego Housing Commission for each dwelling unit to be rehabilitated, for the premises where the dwelling units are located, and for any associated common area. All items identified in the physical needs assessment needing repair or replacement at the time of the assessment or that will likely require repair or replacement within three years of the assessment shall be completed by the applicant during the rehabilitation work; and

(7) On or before the time the applicant’s application is deemed complete,
the applicant complies with the State Relocation Act codified in
California Government Code Section 7260 and provides all costs of
notice to, and relocation of, any existing residents occupying the
dwelling units to be rehabilitated.

(b) The requirements of this Division may be satisfied by the rehabilitation of
existing dwelling units that are restricted for use and occupancy for very low
income households or low income households earning up to 60 percent of the
median income by agreement with a federal, state, or local government
agency, if the City Manager determines all of the following:

(1) The agreement restricting the use and occupancy of the dwelling units
for very low income households or low income households expires
within 10 years of completion of applicant’s rehabilitation of the
dwelling units;

(2) One restricted dwelling unit shall be rehabilitated in lieu of each
inclusionary dwelling unit required pursuant to Section 142.1304(a) or
Section 142.1304(b);

(3) The applicant provides evidence that the rehabilitation work complies
with California Building Code requirements to the satisfaction of the
Building Official;

(4) The applicant provides evidence that the existing structure has a
remaining useful life of at least 55 years from the approval of the
dwelling unit as an inclusionary dwelling unit; and

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(5) The applicant provides a physical needs assessment to the satisfaction of the City Manager and the San Diego Housing Commission for each restricted dwelling unit to be rehabilitated, for the premises where the dwelling units are located, and for any associated common area. All items identified in the physical needs assessment needing repair or replacement at the time of the assessment or that will likely require repair or replacement within three years of the assessment shall be completed by the applicant during the rehabilitation work.

(c) The requirements of this Division may be satisfied by the rehabilitation of
existing SRO hotel rooms affordable to very low income households, if the
City Manager determines all of the following:

(1) The San Diego Housing Commission is satisfied that the value of each
SRO hotel room after the rehabilitation work is 25 percent or more
than the value of the SRO hotel room prior to rehabilitation, inclusive
of land value. The Procedures Manual shall include criteria for the
determination of the value of the rehabilitation work;

(2) One SRO hotel room shall be rehabilitated and affordable to a very low
income household in lieu of each inclusionary dwelling unit required
pursuant to Section 142.1304(a) or Section 142.1304(b);

(3) All of the SRO hotel rooms located in the SRO hotel shall be
rehabilitated by the applicant;

(4) The SRO hotel is located in an appropriate residential zone;

(5) The applicant provides evidence that the existing SRO hotel has a
remaining useful life of at least 55 years from completion of the
rehabilitation work;

(6) The applicant provides evidence that the rehabilitation work complies
with California Building Code requirements to the satisfaction of the
Building Official;

(7) The applicant provides a physical needs assessment to the satisfaction of the City Manager and the San Diego Housing Commission for each SRO hotel room to be rehabilitated, for the SRO hotel where the SRO hotel rooms are located, and for any associated common area. All items identified in the physical needs assessment needing repair or replacement at the time of the assessment or that will likely require repair or replacement within three years of the assessment shall be completed by the applicant during the rehabilitation work; and

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(8) The applicant complies with the State Relocation Act codified in
California Government Code Section 7260 and provides all costs of
notice to, and relocation of, any existing residents occupying the SRO
hotel rooms to be rehabilitated at the time the application is deemed
complete.

(d) The requirements of this Division may be satisfied by the conversion of
existing guest rooms in a motel or hotel located outside of the Coastal Overlay
Zone to inclusionary dwelling units affordable to very low income households
or low income households at a cost, including an allowance for utilities, that
does not exceed 30 percent of 60 percent of median income, if the City
Manager determines all of the following:

(1) One guest room shall be converted to an inclusionary dwelling unit in
lieu of each inclusionary dwelling unit required pursuant to
Section 142.1304(a) or Section 142.1304(b);

(2) The motel or hotel is located in an appropriate residential zone that can
accommodate at least the number of converted guest rooms required
by this Division, and if the motel or hotel is located within a
Sustainable Development Area, the number of guest rooms in the
motel or hotel is at least 60 percent of the base floor area ratio or
density designated by the zone in which the motel or hotel is located;

(3) The applicant provides evidence that the existing structure has a
remaining useful life of at least 55 years from conversion of the guest
rooms;

(4) The applicant provides evidence that the construction or rehabilitation work complies with California Building Code requirements to the satisfaction of the Building Official; and

(5) The applicant provides a physical needs assessment to the satisfaction
of the City Manager and the San Diego Housing Commission for each
guest room to be converted, for the motel or hotel where the guest
rooms are located, and for any associated common area. All items
identified in the physical needs assessment needing repair or
replacement at the time of the assessment or that will likely require
repair or replacement within three years of the assessment shall be
completed by the applicant during conversion of the guest rooms.

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(e) Any inclusionary dwelling units or rehabilitated SRO hotel rooms provided
pursuant to this Section 142.1307 shall be completed no later than the date the
applicant’s market-rate dwelling units receive final inspection approval from
the Building Official. The applicant may seek an alternative development
schedule in accordance with Section 142.1310 and Section 142.1311.

(f) Inclusionary dwelling units and rehabilitated SRO hotel rooms provided
pursuant to this Section 142.1307 shall remain affordable for a period of not
less than 55 years from the date of final inspection or the date accepted by the
San Diego Housing Commission.

(g) The affordability of inclusionary dwelling units and rehabilitated SRO hotel rooms provided pursuant to this Section 142.1307 shall be secured by a Declaration of Covenants, Conditions and Restrictions in favor of the San Diego Housing Commission, recorded against the market-rate residential development and the premises where the inclusionary dwelling units or rehabilitated SRO hotel rooms are located. The Declaration of Covenants, Conditions and Restrictions shall comply with the provisions of Section 142.1313 and shall include the method by which a capital reserve fund for repair, replacement, and maintenance of the inclusionary dwelling units or rehabilitated SRO hotel rooms shall be maintained with provision for sufficient initial capitalization and periodic contributions to the capital reserve fund. (Added 6-3-2003 by O-19189 N.S.) (Amended 8-15-2006 by O-19530 N.S.; effective 9-14-2006.) (Renumbered from former Section 142.1309, retitled to “Election to Provide For- Sale Affordable Housing Units in a For-Sale Development” and amended 11-21-2011 by O-20107 N.S.; effective 12-21-2011.) (Amended 4-5-2016 by O-20634 N.S.; effective 5-5-2016.) (Renumbered from former Section 142.1305 to Section 142.1307, retitled from “Election to Provide For Sale Affordable Housing Units in a For Sale Development” to “Rehabilitation of Existing Dwelling Units, SRO Hotel Rooms, or Conversion of Guest Rooms” and amended 1-28-2020 by O-21167 N.S; effective 7-1-2020. Former Section 142.1307 “Variance, Waiver, Adjustment or Reduction of Inclusionary Affordable Housing Regulations” amended and renumbered to Section 142.1310.) (Amended 2-23-2022 by O-21432 N.S; effective 8-10-2022.) (Amended 3-7-2023 by O-21618 N.S.; effective 5-6-2023.)

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The requirements of this Division may be satisfied by the donation of land, if the donation is completed in accordance with California Government Section 65915(g) and Chapter 14, Division 7, Article 3 of the San Diego Municipal Code and if the value of the land on the date of donation is equal to or greater than the Inclusionary In Lieu Fee applicable to the applicant’s development on the date of donation. (Amended 3-8-2004 by O-19267 N.S.) (Amended 7-5-2006 by O-19505 N.S.; effective 8-5-2006.) (“Inclusionary Affordable Housing Obligations for Condominium Conversions” added 11-21-2011 by O-20107 N.S.; effective 12-21-2011. Former Section 142.1306 repealed.) (Renumbered from former Section 142.1306 to Section 142.1308, retitled from “Inclusionary Affordable Housing Obligations for Condominium Conversions” to “Land Donation” and amended 1-28-2020 by O-21167 N.S; effective 7-1-2020. Former Section 142.0308 “Findings for Variance, Waiver, Adjustment or Reduction Approval” amended and renumbered to Section 142.1311.)

(a) An applicant may submit a written request for density bonus, waiver, or incentives pursuant to California Government Code Section 65915 and Chapter 14, Division 7, Article 3 of the San Diego Municipal Code if the development meets the minimum thresholds for density bonus pursuant to California Government Code Sections 65915 – 65918.

(b) If an applicant has complied with this Division by providing all the
inclusionary dwelling units required by this Division on the same premises as
the market-rate dwelling units, then the inclusionary dwelling units shall be
exempt from the payment of Development Impact Fees pursuant to
Section 142.0640 of the San Diego Municipal Code.

(“Incentives for On-Site Inclusionary Dwelling Units” added 1-28-2020 by
O-21167 N.S; effective 7-1-2020. Former Section 142.1309 “General Rules for
Inclusionary Affordable Housing Regulations” renumbered to Section 142.1312.)

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Regulations

(a) A variance, adjustment, or reduction from the provisions of this Division may
be requested and decided in accordance with Process Four. A waiver from the
provisions of this Division may be requested and decided in accordance with
Process Five. Any variance, waiver, adjustment or reduction shall require
either that the findings in Section 142.1311(a) or in Section 142.1311(b) be
made.

(b) An application for a variance, waiver, adjustment, or reduction shall be filed
in accordance with Section 112.0102 and shall include financial and other
information that the City Manager determines is necessary to perform an
independent evaluation of the applicant’s basis for the variance, waiver,
adjustment, or reduction.
(Added 6-3-2003 by O-19189 N.S.)
(Renumbered from former Section 142.1304, retitled to “Variance, Waiver,
Adjustment or Reduction of Inclusionary Affordable Housing Regulations” and
amended 11-21-2011 by O-20107 N.S.; effective 12-21-2011.)
(“Variance, Waiver, Adjustment or Reduction of Inclusionary Affordable Housing
Regulations” renumbered from former Section 142.1307 to Section 142.1310 and
amended 1-28-2020 by O-21167 N.S; effective 7-1-2020. Former Section 142.1310
“Declaration of Covenants, Conditions and Restrictions” amended and renumbered
to Section 142.1313.)

(a) The decision maker may approve or conditionally approve an application for a variance, waiver, adjustment, or reduction of the applicability of the provisions of this Division only if the decision maker makes all of the following findings:

(1) Special circumstances, unique to that development, justify granting the
variance, waiver, adjustment, or reduction;

(2) The development would not be feasible without the modification;

(3) A specific and substantial financial hardship would occur if the
variance, waiver, adjustment, or reduction were not granted; and

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(4) No alternative means of compliance are available which would be
more effective in attaining the purposes of this Division than the relief
requested.

(b) The decision maker may approve or conditionally approve an application for a
variance, waiver, adjustment, or reduction to the provisions of this Division if
the decision maker makes findings that applying the requirements of this
Division would take property in violation of the United States or California
Constitutions.
(Added 6-3-2003 by O-19189 N.S.)
(Renumbered from former Section 142.1305, retitled to “Findings for Variance,
Waiver, Adjustment or Reduction Approval” and amended 11-21-2011 by
O-20107 N.S.; effective 12-21-2011. Former Section 142.1308 repealed.)
(“Findings for Variance, Waiver, Adjustment or Reduction Approval” renumbered
from former Section 142.1308 to Section 142.1311 and amended 1-28-2020 by
O-21167 N.S; effective 7-1-2020. Former Section 142.1311 “Reporting
Requirements” amended and renumbered to Section 142.1314.)

(a) The Chief Executive Officer of the San Diego Housing Commission shall be responsible for determining affordability standards and occupant qualifications for any affordable units provided pursuant to this Division. The San Diego Housing Commission shall also monitor compliance with any documentation created as a result of an applicant’s compliance with this Division.

(b) The San Diego Housing Commission shall determine the reasonable fee to be
paid by the applicant for the costs incurred by the San Diego Housing
Commission in connection with implementation of this Division.
(Added 6-3-2003 by O-19189 N.S.)
(Renumbered from former Section 142.1307, retitled to “General Rules for
Inclusionary Affordable Housing Regulations” and amended 11-21-2011 by
O-20107 N.S.; effective 12-21-2011.)
(“General Rules for Inclusionary Affordable Housing Regulations” renumbered from
former Section 142.1309 to Section 142.1312 on 1-28-2020 by O-21167 N.S; effective
7-1-2020.)

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All development of inclusionary dwelling units pursuant to this Division shall be subject to the following:

(a) Each inclusionary dwelling unit and the applicable portions of the premises
shall have recorded against them a Declaration of Covenants, Conditions and
Restrictions approved by and in favor of the San Diego Housing Commission.

(b) Any Declaration of Covenants, Conditions and Restrictions required by this
Division shall enjoy first lien position and shall be secured by a deed of trust
in favor of the San Diego Housing Commission recorded against the
applicable portions of the premises and dwelling unit, prior to construction or
permanent financing.
(Added 6-3-2003 by O-19189 N.S.)
(Amended 8-15-2006 by O-19530 N.S.; effective 9-14-2006.)
(Renumbered from former Section 142.1311 and amended 11-21-2011 by
O-20107N.S.; effective 12-21-2011.)
(“Declaration of Covenants, Conditions and Restrictions” renumbered from former
Section 142.1310 to Section 142.1313 and amended 1-28-2020 by O-21167 N.S;
effective 7-1-2020.)

The San Diego Housing Commission shall annually report to the City Council and the Housing Authority of the City of San Diego on the results of implementing this Division, including the following:

(a) The number of applicants and location of developments that came before the
City for ministerial or discretionary approval and the number of applicants
and location of developments that were subject to the requirements of this
Division;

(b) The number of applicants and location of developments that applied for a
waiver, variance, reduction, or adjustment in accordance with this Division,
and the number of applicants and location of developments that were granted
a waiver, variance, reduction, or adjustment and the terms of each; and

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San Diego Municipal Code Chapter 14: General Regulations (3-2026)

(c) The number of market-rate units developed subject to this Division, the
number of inclusionary dwelling units along with their location, the methods
of compliance with this Division, and the total Inclusionary In Lieu Fees paid.
(Added 6-3-2003 by O-19189 N.S.)
(Renumbered from former Section 142.1312 and amended 11-21-2011 by
O-20107 N.S.; effective 12-21-2011.)
(“Reporting Requirements” renumbered from former Section 142.1311 to
Section 142.1314 and amended 1-28-2020 by O-21167 N.S; effective 7-1-2020.)

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San Diego Municipal Code Chapter 14: General Regulations (4-2024)