Council Votes to Increase Inculsionary Housing Requirement
By Matt Adams
The San Diego City Council voted to increase its Inclusionary Housing Mandate and require all new home developments to set aside 10% of their units to households making 50% of the Area Median Income. The vote followed 3 ½ hours of testimony that included building industry and business leaders who argued the change would only make new homes more expensive and do little to crack the housing crisis. Home builders electing not to provide the units would be required to pay a $22 per square foot fee once fully implemented in four years. The fee would add more than $55,000 to the cost of a new single family home. Mayor Kevin Faulconer has stated that he is reserving the right to veto the mandate. The council must hold a second reading of the measure before it is finalized. That won’t come until sometime in September when the council returns from summer recess. The new rules come at a time when home production is falling in San Diego with production off by 48% compared to the same period last year.