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Affordable units in new housing (inclusionary) in San Marcos

San Marcos's own rules on affordable units in new housing (inclusionary), with the code text for every value.

Each rule below links to the section of the San Marcos Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What San Marcos's code says

San Marcos code What San Marcos's code adds
How long units stay affordable
  • Affordable for a minimum of 55 years.
    Applies: Rental restrictions for inclusionary units.
    § 20.310.040 · code text
    Such rental restrictions shall be effective for a minimum of fifty-five (55) years.
  • At least 55 years.
    Applies: Initial sale price of for-sale units in condominium projects and condominium or cooperative conversions.
    § 20.310.040 · code text
    The initial sale price of for-sale inclusionary units shall be restricted to ensure that the price is affordable to target households within the definition of Section 20.310.040.B (Requirements for Rental Units) for a minimum of fifty-five (55) years.
Exemptions
  • Non-residential uses are exempt, except single-room-occupancy hotels.
    § 20.310.030 · code text
    Non-residential uses, except in the case of single-room-occupancy hotels.
  • Replacing a structure destroyed or demolished in the prior 2 years is exempt if residential unit count is not increased.
    § 20.310.030 · code text
    The construction of a new residential structure that replaces a residential structure that was destroyed or demolished within two (2) years prior to the application for a building permit, provided that the number of residential units is not increased.
  • Accessory dwelling units developed under the city's ADU chapter are exempt.
    § 20.310.030 · code text
    Accessory dwelling units developed in accordance with Chapter 20.410 (Accessory Dwelling Units and Accessory Structures).
  • Projects under a development agreement made before the Zoning Ordinance took effect follow that agreement's inclusionary requirements, if any.
    Applies: Except at the discretion of the City.
    § 20.310.030 · code text
    Any project developed pursuant to the terms of an existing development agreement entered into pursuant to Government Code Section 65964 et seq. before the effective date of this Zoning Ordinance. Inclusionary requirements, if any, shall be as set forth in such development agreement.
Fee instead of units
  • Set by resolution of the City Council.
    Applies: Residential rental and for-sale projects where the City Council has approved payment.
    § 20.310.050 · code text
    The amount of the in-lieu fee shall be established by resolution of the City Council.
  • Amount set by City Council resolution, applied to the total number of housing units in the development.
    § 20.310.050 · code text
    The amount of the in-lieu fee shall be calculated by applying the in-lieu fee to the total number of housing units in the housing development.
  • Not less than the sum of the otherwise required in-lieu fee.
    Applies: Irrevocable dedication of land or other non-monetary contribution accepted as an alternative.
    § 20.310.050 · code text
    an irrevocable dedication of land or other non-monetary contribution of a value not less than the sum of the otherwise required in-lieu fee may be accepted as an alternative to paying the in-lieu fee
Projects it applies to
  • Rental projects of 6 or fewer units pay an in-lieu fee.
    Applies: Rental projects.
    § 20.310.040 · code text
    Rental projects of six (6) or less units shall pay an in-lieu fee.
  • Rental projects of more than 6 units must reserve 15% of units for target households, or pay the in-lieu fee.
    Applies: Rental residential projects subject to the chapter.
    § 20.310.040 · code text
    No rental residential project of more than six (6) units that is subject to this chapter shall be approved unless fifteen percent (15%) of such housing units are reserved for target households, unless a higher percentage is requested by the applicant/developer, or an in-lieu fee is paid to provide housing opportunities for target households in the City.
  • For-sale single-family projects of 1 or more units pay the fee or reserve units on or off site; Council decides.
    § 20.310.040 · code text
    No development plan for a for-sale single-family residential project of one (1) or more units subject to this chapter (including time extensions) shall be approved unless an in-lieu fee is paid to provide housing opportunities for target households in the City in accordance with Section 20.310.050 (In-Lieu Fee).
Share of affordable units
  • 15%.
    Applies: Rental residential projects of more than 6 units.
    § 20.310.040 · code text
    No rental residential project of more than six (6) units that is subject to this chapter shall be approved unless fifteen percent (15%) of such housing units are reserved for target households
  • At most 25% of inclusionary units may be for moderate-income households; no limit for extremely low-, very low- or low-income.
    Applies: Any residential project.
    § 20.310.040 · code text
    the number of inclusionary units reserved for moderate-income households in any proposed residential project may not exceed twenty-five percent (25%)
  • At least 15% of units.
    Applies: For-sale condominium projects or condominium/cooperative conversion projects.
    § 20.310.040 · code text
    No for-sale condominium project or condominium/cooperative conversion project subject to this chapter (including time extensions) shall be approved unless at least fifteen percent (15%) of such housing units are reserved for target households or an in-lieu fee is paid to provide housing opportunities for target households in the City.

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Does San Marcos require affordable units in new housing?

San Marcos's code: Affordable for a minimum of 55 years. (Rental restrictions for inclusionary units.) (§ 20.310.040); At least 55 years. (Initial sale price of for-sale units in condominium projects and condominium or cooperative conversions.) (§ 20.310.040).

General information, not legal advice.

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