City Looks to Increase Inclusionary Requirements
By Matt Adams
The San Diego City Council voted to revisit its Inclusionary housing requirement following calls by labor unions and activists to increase the requirement on new development. Adopted in 2003, Inclusionary requires new development to set aside 10% of units as deed restricted affordable or pay an in-lieu fee to the Housing Commission. BIA and others urged for the council to focus on housing production rather than place additional economic burdens on the limited number of units already being construction.
San Diego and the region as a whole faces a massive housing shortage due to excessive regulations and project processing times that has led to skyrocketing prices and huge rents. Labor used the hearing that focused on housing costs to renew its demand for prevailing wage and other union issues despite the fact that the wage mandate would increase construction costs by 25% – 30%. The council agreed to stakeholder talks that will include BIA, labor and others in pursuit of a workable program. Councilmember Georgette Gomez insisted on having a revised program before the Smart Growth and Land Use Committee in October followed by a council hearing in December.