City Lowers Affordable Housing Fee

By Matt Adams

The San Diego Housing Commission has reduced its Inclusionary Affordable Housing fee for new developments and condo conversions.  The fee drops to $7.03 per square foot for projects with 10 or more units.  Projects with fewer than 10 units will also pay less but on a sliding scale. The Commission says the 25 percent cut follows a Keyser Marston Report that found a 6.8% drop in the sales price for a new home compared to last year, and a nearly 6% square footage increase in the average size  new home.  Market price and unit size are key components in the fee calculation methodology. The fee reduction goes into effect on July 1st.

(Continued from the Weekly)

FY2017 FY2018
Market Sales Price, City of San Diego $663,681 $618,577
Affordable Sales Price @ 100% AMI ($346,951) ($367,154)
Difference $316,730 $251,423
Portion of Affordability Gap @ 50% $158,365 $125,711
Inclusionary Obligation @ 10% $15,836 $12,571
Average Unit Square Feet (SF) 1,692 SF 1,788 SF
Inclusionary Housing Fee $9.36 /SF $7.03 /SF