§143.1212 Replacement of Protected Dwelling Units
Development subject to this Division that proposes demolition of vacant or occupied protected dwelling units on the premises shall comply with all the following:
(a) The development shall include at least as many dwelling units as the greatest number of permitted dwelling units that existed on the premises within the five-year period preceding the application submittal date. In the Barrio Logan Community Plan Area, development shall include at least as many dwelling units as the greatest number of permitted dwelling units that existed on the premises within the seven-year period preceding the application submittal date.
(b) The development shall replace all existing or demolished protected dwelling units on the premises. If the development does not include residential development, the replacement dwelling units may be provided off-site on a different premises, subject to the following:
(1) The replacement dwelling units shall be located on a receiver site that is located within:
(A) A Sustainable Development Area; and
(B) The following Resource Opportunity Areas identified by the California Tax Credit Allocation Committee when the development application is deemed complete:
(i) High Resource Opportunity Area;
(ii) Highest Resource Opportunity Area;
(iii) Moderate Resource Opportunity Area if the new development is located within a Moderate or Low Resource Opportunity Area; or
(iv) A Low Resource Opportunity Area if the new development is located within a Low Resource Opportunity Area.
(2) Prior to the issuance of the Certificate of Occupancy for any development that provides replacement dwelling units off-site, the applicant shall provide the City Manager with a Certificate of Occupancy or similar documentation demonstrating that the replacement dwelling units have been constructed; and
(3) An applicant may enter into an agreement with another applicant, to the satisfaction of the City Manager, to construct the off-site replacement dwelling units. These replacement dwelling units shall not be rent-restricted under any other program or policy by any entity and shall not have received a loan or project-based vouchers from the San Diego Housing Commission or City of San Diego.
(c) The protected dwelling units shall be replaced as follows:
(1) For developments containing any protected dwelling units, the development must contain at least the same number of replacement protected dwelling units, with at least the same total number of bedrooms as the dwelling units being replaced. If the development contains any occupied protected dwelling units on the application submittal date, each occupied replacement protected dwelling unit shall provide the same bedroom mix as the occupied protected dwelling units. The replacement protected dwelling units shall be made affordable to and occupied by persons and families in the same or a lower income category as the occupied protected dwelling units. For unoccupied protected dwelling units in the development, the replacement protected dwelling units shall be made affordable to and occupied by persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household is unknown, it is rebuttably presumed that the protected dwelling units were occupied by very low income and low income renter households in the same proportion of very low income and low income renter households to all renter households within the City of San Diego, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database, and replacement protected dwelling units shall be provided in that same percentage. A development consisting of one single dwelling unit on a site with a single protected dwelling unit may replace the protected dwelling unit with a dwelling unit of any size at any income level.
(2) If all the protected dwelling units are vacant or have been demolished within the five years preceding the application submittal date, the development must contain at least the same number of replacement protected dwelling units, of equivalent size, with at least the same total number of bedrooms, as existed at the highpoint of those units in the five-year period preceding the application submittal date, and shall be made affordable to and occupied by persons and families in the same or a lower income category as those in occupancy at that same time. In the Barrio Logan Community Plan Area, if all the protected dwelling units are vacant or have been demolished within the seven years preceding the application submittal date, the development shall contain at least the same number of replacement protected dwelling units, with at least the same total number of bedrooms, as existed at the highpoint of those units in the seven-year period preceding the application submittal date, and shall be made affordable to and occupied by persons and families in the same or lower income category as the last household in occupancy.
If the income categories are unknown for the highpoint, it is rebuttably presumed that the protected dwelling units were occupied by very low income and low income renter households in the same proportion of very low income and low income renter households to all renter households within the City of San Diego, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database, and replacement protected dwelling units shall be provided in that same percentage. A development consisting of one single dwelling unit on a site with a single protected dwelling unit may replace the protected dwelling unit with a dwelling unit of any size at any income level.
(3) All replacement protected dwelling unit calculations resulting in fractional units shall be rounded up to the next whole number.
(4) All rental replacement protected dwelling units shall be affordable for at least 55 years through a recorded affordability restriction documented by written agreement, and a deed of trust securing the agreement, entered into by the applicant and the President and Chief Executive Officer of the San Diego Housing Commission.
(5) All for-sale replacement protected dwelling units shall be subject to the following provisions:
(A) The initial occupant of all for-sale affordable protected dwelling units shall be a very low income or low income household.
(B) Prior to, or concurrent with, the sale of each protected dwelling unit, the applicant shall require the buyer to execute and deliver a promissory note in favor of the San Diego Housing Commission so that the repayment of any initial subsidy is ensured.
(C) Each for-sale protected dwelling unit shall be occupied by the initial owner at all times until the resale of the protected dwelling unit.
(D) Upon the first resale of a protected dwelling unit, the seller shall comply with all conditions regarding the sale of a dwelling unit, as applied by the San Diego Housing Commission, and as set forth in California Government Code Section 65915(c)(2).
(d) The applicant shall provide existing residents of protected dwelling units with all of the following:
(1) The ability to occupy their dwelling units until six months before the start of construction activities with proper notice, pursuant to California Government Code Sections 7260 through 7277. In the Barrio Logan Community Plan Area, any existing residents shall be allowed to occupy their dwelling units until six months before the start of construction activities with proper notice, which shall occur at least 12 months prior to the anticipated termination of residency. The applicant shall deliver a notice of intent to terminate residency to the San Diego Housing Commission and to each resident household.
(2) The ability to rent their dwelling units at the prior rental rate if the demolition does not proceed and the dwelling unit is returned to the rental market.
(3) To those households that remain in a protected dwelling unit, the applicant shall provide:
(A) Relocation benefits consistent with the requirements of California Government Code Sections 7260 through 7277 for public agencies or the Residential Tenant Protection Regulations located in Chapter 9, Article 8, Division 7, whichever provides greater relocation benefits. The applicant for development in the Barrio Logan Community Plan Area shall engage a qualified third-party contractor or consultant to oversee the provision of the required relocation benefits. The third-party contractor or consultant shall provide a letter to the San Diego Housing Commission certifying compliance with the relocation benefits requirements after completion of the relocation process.
(B) A right of first refusal for a comparable dwelling unit available in the new development affordable to the household at an affordable rent or affordable housing cost based on household income in accordance with Table 143-12A.
(C) For development located within the Barrio Logan Community Plan Area, residents living within one mile of the development at the time of application shall receive priority for 75 percent of the affordable dwelling units in the development that are reserved for very low income, low income, or moderate income households.
Table 143-12A Affordability Levels for Replacement Protected Dwelling Units
Rental Dwelling Units | For-Sale Dwelling Units
shall be affordable, including an allowance for utilities, at a rent that does not exceed: | shall be affordable at an affordable housing cost that does not exceed:
Very Low Income households | 30 percent of 50 percent of the area median income, as adjusted for household size appropriate for the unit. | 30 percent of 50 percent of the area median income, as adjusted for household size appropriate for the unit.
Low Income households | 30 percent of 60 percent of the area median income, as adjusted for household size appropriate for the unit. | 30 percent of 70 percent of the area median income, as adjusted for household size appropriate for the unit.
(e) Any protected dwelling units replaced in accordance with this Division may be counted toward compliance with the Inclusionary Affordable Housing Regulations in Chapter 14, Article 2, Division 13, the Affordable Housing Regulations in Chapter 14, Article 3, Division 7, and the Coastal Overlay Zone Affordable Housing Replacement Regulations in Chapter 14, Article 3, Division 8.
(f) Very low income, low income, and moderate income households located within an area identified as a Low Resource or High Segregation and Poverty Opportunity Area by the California Tax Credit Allocation Committee when the development application is deemed complete, shall receive priority preference for new covenant-restricted dwelling units created under this Division.
(“Replacement of Protected Dwelling Units” added 10-30-2020 by O-21254 N.S.; effective 11-29-2020.) (Amended 1-27-2022 by O-21411 N.S.; effective 2-26-2022.) (Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.)
Note: The priority preference for households that qualify for affordable homes as set forth in Sections 142.1304(e)(3), 143.0720(p), 143.0860(e), 143.1005(b)(4), and 143.1212(f) will not be implemented until a program can be developed and a funding source can be approved as part of a future action of the Housing Authority or City Council to ensure successful implementation. For Sections 143.0860(e) and 143.1005(b)(4), only portions applicable to the priority preference are delayed. (Retitled from “Replacement of Protected Dwelling Units” to “Replacement of Protected Dwelling Units” and amended 6-15-2026 by O-22109 N.S.; effective 7-15-2026.)
[Editors Note: Amendments as adopted by O-22109 N.S. will not apply within the Coastal Overlay Zone until the California Coastal Commission certifies it as a Local Coastal Program Amendment. Click the link to view the Strikeout Ordinance highlighting changes to prior language http://docs.sandiego.gov/municode_strikeout_ord/O-22109-SO.pdf ]
