Inclusionary Debate Returns To City Hall

By Matt Adams
The second reading of the controversial Inclusionary Zoning mandate is scheduled to go before the San Diego City Council on Tuesday. The amendments to the city’s existing ordinance would require homebuilders to set aside 10% of their units to low income households or pay a $22 per square foot fee. A coalition including the BIA and other business and housing interests have sought changes to the proposal to limit the negative economic impacts the mandate would create. The fee increase alone translates to a $50,000 fee for every new single family home built putting middle income housing further out of reach of San Diego residents. This comes as the city and state face a major housing production downturn due to high costs, regulations and fees. Housing production is off by 48% across the county with the city of San Diego experiencing a 40% drop compared to the same time last year. If the trend continues San Diego County will see housing production fall by over 2,000 units by years end.