![]() ![]() San Diego’s ordinance requires developers of multifamily buildings to set aside 10 percent of units on-site for people with low incomes, or to cut the city a check that officials call an “in-lieu fee.” The court rulings have limited the city’s options to just collecting the fees. San Diego has actually had an inclusionary housing ordinance since 2003, but appellate court rulings in 2009 have prevented the city from enforcing much of it and discouraged discussions about making it more aggressive.īut a new state law enacted in January, Assembly Bill 1505, authorizes cities and counties to require inclusionary development as a condition of development of residential rental units. “We understand that every possible idea must be on the table,” she said.Ĭalifornia’s other large cities have taken widely varying approaches to their inclusionary housing laws, so there’s not one obvious model for San Diego to follow. She acknowledged that officials need to explore all options amid the local housing shortage, which has pushed the average monthly rent for a one-bedroom apartment above $1,500, and the average home price above $600,000. “The chamber remains concerned about proposals that make building homes, and thereby the cost of purchasing or renting a home, more expensive,” Benvenuto said. Stefanie Benvenuto, a policy analyst for the San Diego Regional Chamber of Commerce, said her organization would like to be formally included in discussions about the legislation. Kreuzberger said it’s crucial for the city to conduct a financial analysis to avoid scaring housing developers off. “Inclusionary housing promotes integration and mixed-income communities that serve all residents,” said Charles Kreuzberger of Circulate San Diego, an advocacy group for pedestrians, bicyclists and transit users. Others have offered more tempered support. “You have the ability to make a difference in San Diego.” “You have the ability to change the game,” said Tom Lemmon, business manager of the San Diego Building and Construction Trades Council. Local labor leaders say they support new inclusionary legislation in San Diego, urging the council to take an aggressive approach. “We are putting poor people in some communities and allowing the wealthy to live in other neighborhoods.” “We are segregating communities,” Alvarez told his colleagues. Those racial and economic trends could shift when new apartment complexes and other rental projects are required to include a significant percentage of subsidized units for low-income residents, probably somewhere between 15 percent and 30 percent. “It’s not just a conversation for conversation’s sake.”Ĭouncilman David Alvarez of Logan Heights said inclusionary housing may not just help solve San Diego’s housing crisis, it could also reshape the demographics of a city where low-income minorities dominate southeastern areas and whites dominant northern neighborhoods. “This is definitely something extremely critical that has to occur,” Gomez told her colleagues. ![]() Gomez said she will work with City Attorney Mara Elliott to craft legislation that she plans to present to the council’s Smart Growth and Land Use Committee in October. This is about making sure we are housing San Diegans.” “It’s definitely got to pencil out for the developers – I get that,” Gomez said. “You simply can’t raise the requirements and fees and call it a day.”Ĭouncilwoman Georgette Gomez of City Heights, who is spearheading the legislation along with Councilman Chris Ward of University Heights, said she is aware of the risk that overly aggressive legislation could stifle construction. “Inclusionary housing is certainly not the panacea,” said Adams, warning that housing construction has dipped sharply in some other cities adopting such laws. Matt Adams, vice president of the local chapter of the Building Industry Association, said city officials appear to be overly optimistic. “San Diego is far less profitable per unit.” “San Diego is not San Francisco, it’s not San Jose and it’s not Oakland when it comes to market rate rents,” Bishop told the council. San Diego officials are analyzing similar legislation in Los Angeles, San Francisco, San Jose, Oakland and Sacramento.ĭeveloper Gilman Bishop said it would be a mistake for San Diego to use those cities as a model because they have significantly higher housing costs, which means much higher profit margins for developers. “Avoid making the impact too high such as to restrict the amount of homes being built,” said local developer Bob Cummings of Chelsea Investment Corporation. They say San Diego must be careful not to approve inclusionary housing legislation that is too aggressive, suggesting that developers and city officials should jointly craft a moderate approach. ![]() But developers are sounding the alarm bell about inclusionary legislation, which the City Council discussed during San Diego’s second annual “housing day” on July 31. ![]()
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