San Diego Municipal Code Div. 12 Dwelling Unit Protection Regulations

(“Dwelling Unit Protection Regulations” added 10-30-2020 by O-21254 N.S.; effective 11-29-2020.)

The purpose of these regulations is to specify when and how a residential development that proposes demolition of existing dwelling units or protected dwelling units must replace those dwelling units. These regulations are intended to implement California Government Code Section 66300(d) and the City of San Diego’s pro- housing policies by requiring replacement of dwelling units and protected dwelling units for any residential development subject to this Division. (“Purpose of the Dwelling Unit Protection Regulations” added 10-30-2020 by O-21254 N.S.; effective 11-29-2020.) (Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.)

This Division applies to the following developments with a complete development application submitted on or after January 1, 2020:

(a) Single dwelling unit development;

(b) Multiple dwelling unit development;

(c) Mixed-use developments consisting of residential and non-residential uses;

(d) Transitional housing facilities and permanent supportive housing; and

(e) Commercial development in zones that permit residential development.
(“When the Dwelling Unit Protection Regulations Apply” added 10-30-2020 by
O-21254 N.S.; effective 11-29-2020.)
(Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.)

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

The following definitions apply to this Division in addition to the definitions in Chapter 11, Article 3, Division 1 of the Land Development Code. Each word or phrase that is defined in this Division or in Chapter 11, Article 3, Division 1 of the Land Development Code appears in the text in italicized letters.

(a) Protected dwelling unit means any of the following:

(1) Dwelling units located outside of the Barrio Logan Plan Area that are
or were subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to very low income or low income households
during the five year period preceding the development application.

(2) Dwelling units located outside of the Barrio Logan Plan Area that are
or were rented by very low income or low income households during
the five year period preceding the development application.

(3) Dwelling units located within the Barrio Logan Plan Area that are or
were subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to very low income or low income households
during the seven-year period preceding the development application.

(4) Dwelling units located within the Barrio Logan Plan Area that are or
were rented by very low income or low income households during the
seven-year period preceding the development application.

(5) SRO hotel rooms or other dwelling units that were withdrawn from
rent or lease in accordance with California Government Code
Sections 7060 through 7060.7 during the 10 year period preceding the
development application.
(“Definitions” added 10-30-2020 by O-21254 N.S.; effective 11-29-2020.)
(Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.)

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

Development subject to this Division shall include at least as many dwelling units as the most recent permitted development on the premises. (“Replacement of Dwelling Units” added 10-30-2020 by O-21254 N.S.; effective 11-29-2020.)

Development subject to this Division that proposes demolition of vacant or occupied protected dwelling units on the premises shall comply with all the following:

(a) The development shall include at least as many dwelling units as the greatest
number of permitted dwelling units that existed on the premises within the
five-year period preceding the application submittal date. In the Barrio Logan
Community Plan Area, development shall include at least as many dwelling
units as the greatest number of permitted dwelling units that existed on
the premises within the seven-year period preceding the application submittal
date.

(b) The development shall replace all existing or demolished protected dwelling
units on the premises.

(c) The protected dwelling units shall be replaced as follows:

(1) For a development containing any occupied protected dwelling units,
the development must contain at least the same number of replacement
protected dwelling units, of equivalent size and bedrooms, and must be
made affordable to and occupied by persons and families in the same
or a lower income category as the occupied protected dwelling units.
For unoccupied protected dwelling units in the development, the
replacement protected dwelling units shall be made affordable to and
occupied by persons and families in the same or lower income
category as the last household in occupancy. If the income category of
the last household is unknown, it is rebuttably presumed that the
protected dwelling units were occupied by very low income and low
income renter households in the same proportion of very low income
and low income renter households to all renter households within the
City of San Diego, as determined by the most recently available data
from the United States Department of Housing and Urban
Development’s Comprehensive Housing Affordability Strategy
database, and replacement protected dwelling units shall be provided
in that same percentage.

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

(2) If all of the protected dwelling units are vacant or have been demolished within the five years preceding the application submittal date, the development must contain at least the same number of replacement protected dwelling units, of equivalent size and bedrooms, as existed at the highpoint of those units in the five-year period preceding the application submittal date, and must be made affordable to and occupied by persons and families in the same or a lower income category as those in occupancy at that same time. In the Barrio Logan Community Plan Area, if all of the protected dwelling units are vacant or have been demolished within the seven years preceding the application submittal date, development must contain at least the same number of replacement protected dwelling units, of equivalent size and bedrooms, as existed at the highpoint of those units in the seven-year period preceding the application submittal date, and must be made affordable to and occupied by persons and families in the same or lower income category as the last household in occupancy. If the income categories are unknown for the highpoint, it is rebuttably presumed that the protected dwelling units were occupied by very low income and low income renter households in the same proportion of very low income and low income renter households to all renter households within the City of San Diego, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database, and replacement protected dwelling units shall be provided in that same percentage.

(3) All replacement protected dwelling unit calculations resulting in
fractional units shall be rounded up to the next whole number.

(4) All rental replacement protected dwelling units shall be affordable for
at least 55 years through a recorded affordability restriction
documented by written agreement, and a deed of trust securing the
agreement, entered into by the applicant and the President and Chief
Executive Officer of the San Diego Housing Commission.

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

(5) All for-sale replacement protected dwelling units shall be subject to the following provisions:

(A) The initial occupant of all for-sale affordable protected
dwelling units shall be a very low income or low income
household.

(B) Prior to, or concurrent with, the sale of each protected dwelling
unit, the applicant shall require the buyer to execute and
deliver a promissory note in favor of the San Diego Housing
Commission so that the repayment of any initial subsidy is
ensured.

(C) Each for-sale protected dwelling unit shall be occupied by the
initial owner at all times until the resale of the protected
dwelling unit.

(D) Upon the first resale of a protected dwelling unit, the seller
shall comply with all conditions regarding the sale of a
dwelling unit, as applied by the San Diego Housing
Commission, and as set forth in California Government Code
Section 65915(c)(2).

(d) The applicant shall provide existing residents of protected dwelling units with
all of the following:

(1) The ability to occupy their dwelling units until six months before the
start of construction activities with proper notice, pursuant to
California Government Code Sections 7260 through 7277. In the
Barrio Logan Community Plan Area, any existing residents shall be
allowed to occupy their dwelling units until six months before the start
of construction activities with proper notice, which shall occur at least
12 months prior to the anticipated termination of residency. The
applicant shall deliver a notice of intent to terminate residency to the
San Diego Housing Commission and to each resident household.

(2) The ability to rent their dwelling units at the prior rental rate if the
demolition does not proceed and the dwelling unit is returned to the
rental market.

(3) To those households that remain in a protected dwelling unit, the
applicant shall provide:

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

(A) Relocation benefits consistent with the requirements of
California Government Code Sections 7260 through 7277 for
public agencies or the Residential Tenant Protection
Regulations located in Chapter 9, Article 8, Division 7,
whichever provides greater relocation benefits. The applicant
for development in the Barrio Logan Community Plan Area
shall engage a qualified third-party contractor or consultant to
oversee the provision of the required relocation benefits. The
third-party contractor or consultant shall provide a letter to the
San Diego Housing Commission certifying compliance with
the relocation benefits requirements after completion of the
relocation process.

(B) A right of first refusal for a comparable dwelling unit available
in the new development affordable to the household at an
affordable rent or affordable housing cost based on household
income in accordance with Table 143-12A.

(C) For development located within the Barrio Logan Community
Plan Area, residents living within one mile of the development
at the time of application shall receive priority for 75 percent
of the affordable dwelling units in the development that are
reserved for very low income, low income, or moderate income
households.

Table 143-12A
Affordability Levels for Replacement Protected Dwelling Units

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

(e) Any protected dwelling units replaced in accordance with this Division may be counted toward compliance with the Inclusionary Affordable Housing Regulations in Chapter 14, Article 2, Division 13, the Affordable Housing Regulations in Chapter 14, Article 3, Division 7, and the Coastal Overlay Zone Affordable Housing Replacement Regulations in Chapter 14, Article 3, Division 8.

(f) Very low income, low income, and moderate income households located
within an area identified as a Low Resource or High Segregation and Poverty
Opportunity Area by the California Tax Credit Allocation Committee when
the development application is deemed complete, shall receive priority
preference for new covenant-restricted dwelling units created under this
Division.
(“Replacement of Protected Dwelling Units” added 10-30-2020 by O-21254 N.S.;
effective 11-29-2020.)
(Amended 1-27-2022 by O-21411 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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San Diego Municipal Code Chapter 14: General Regulations (2-2025)

Article 3: Supplemental Development Regulations