Planning Commission to Hear Inclusionary Zoning Proposal

The San Diego Planning Commission will consider changes to the city’s Inclusionary Zoning Ordinance when it convenes on Thursday, July 11th.  It’s the next step for the controversial plan that has been making its way through the city for the several months. The BIA, joined by the San Diego Regional Chamber of Commerce, NAIOP, the Downtown San Diego Partnership and other members of the regulated community has expressed concerns with the plan that would mandate that 10% of units in a development be set aside as affordable housing. The plan would also dramatically increase the in-lieu fee paid to the San Diego Housing Commission for projects choosing not to build the units. The proposed $22 per square foot fee would more than double the current fee and would equate to about $26,000 for a typical size new home.

Home builders and economists alike question the results of Inclusionary Programs citing other jurisdictions that have attempted similar requirements only to see overall housing production plummet in the face of strict inclusionary mandates. The push comes at a time when home production is facing severe head winds with city-wide production off by 48% compared to the same period last year.  Following the Planning Commission hearing, the full city council is expected to take up Inclusionary at a special meeting scheduled for July 30th.