§143.1010 Incentives in Exchange for Affordable Housing and Infrastructure Amenities
An applicant proposing development that is consistent with the criteria in Section 143.1002 shall be entitled to the following incentives:
(a) Waiver of the existing floor area ratio and a new floor area ratio based upon whether the development is located in FAR Tier 1, FAR Tier 2, FAR Tier 3, or FAR Tier 4. If a mixed-use development is proposed, the floor area ratio of the non-residential portion of the development shall not exceed the maximum floor area ratio of the applicable base zone or Planned District.
Development located within the Coastal Overlay Zone and the Coastal Height Limit Overlay Zone as shown on Map No. C-380, filed in the office of the City Clerk as Document No. 743737, shall be limited to a maximum floor area ratio of 2.5, and to a maximum height of 30 feet, with the exception of those areas located within the FAR Tier 1.
(1) Within FAR Tier 1, there shall be no maximum floor area ratio for residential development.
(2) Within FAR Tier 2, the new maximum floor area ratio shall be 8.0.
(3) Within FAR Tier 3, the new maximum floor area ratio shall be 6.5.
(4) Within FAR Tier 4, the new maximum floor area ratio shall be 4.0.
(5) An additional floor area ratio bonus of 1.5 shall be added to the maximum floor area ratio identified in Section 143.1010(a)(2)-(4) if:
(A) At least 10 percent of the total dwelling units in the development are at least two bedroom dwelling units;
(B) An additional 10 percent or more of the total dwelling units in the development are at least three bedroom dwelling units; and
(C) Each dwelling unit is under only one lease agreement per dwelling unit.
(b) Waiver of the maximum permitted residential density of the land use designation(s) in the applicable land use plan. Density shall be limited by the allowable floor area ratio and the requirements of the California Building Code as adopted and amended by the City of San Diego.
(c) Waiver of the following applicable base zone or Planned District regulations:
(1) Maximum structure height.
(2) Maximum lot area.
(3) Street frontage requirements, if safe and adequate access to the premises can be provided to the satisfaction of the City Building Official and the Fire Department.
(4) Maximum lot coverage.
(5) Floor Area Ratio (FAR) Bonus for Residential Mixed-Use. Development utilizing the regulations in this Division shall not be eligible for other FAR or density bonuses.
(6) Maximum front setback or street side setback if the maximum is less than 20 feet and the development is constructing a public space, in accordance with Section 143.1020.
(d) Waiver of any of the following applicable overlay zone regulations:
(1) Maximum permitted residential density.
(2) Outside the Coastal Height Limit Overlay Zone and the Airport Land Use Compatibility Overlay Zone, maximum structure height.
(3) The requirement to obtain a Site Development Permit in areas mapped as CPIOZ Type A or CPIOZ Type B, if the development complies with the development standards or criteria in the applicable community plan. Compliance with the development standards or criteria in the applicable community plan does not include compliance with maximum permitted residential density and/or maximum structure height.
(e) Waiver of the private exterior open space requirement in Section 131.0455 for all dwelling units in the development if at least 10 percent of the total dwelling units in the development are at least three bedroom dwelling units, and each dwelling unit in the development is under only one lease agreement per dwelling unit.
(f) Waiver of Development Impact Fees if the development provides a residential density that is at least 120 percent of the maximum permitted density of the applicable base zone or Planned District for the following:
(1) All covenant-restricted affordable dwelling units.
(2) Up to 30 percent of the total number of dwelling units that do not exceed 500 square feet, provided that at least 10 percent or more of the total dwelling units in the development are at least three bedroom dwelling units.
(3) All dwelling units that contain at least three bedrooms that meet the following requirements:
(A) The dwelling units are covenant-restricted to households earning no more than 150 percent of the area median income; and
(B) Each dwelling unit is under only one lease agreement.
(g) Waiver of the Neighborhood Enhancement Fee for development that meets the affordable housing requirements set forth by this Division and restricts 100 percent of the dwelling units, not including any managers units, to households earning no more than 50 percent of the area median income.
(h) Use of up to five Affordable Housing Incentives. An applicant utilizing the regulations in this Division shall be entitled to incentives as described in Section 143.1010(h) for any development for which a written agreement and a deed of trust securing the agreement is entered into by the applicant and the President and Chief Executive Officer of the San Diego Housing Commission. The City shall process an incentive requested by an applicant in accordance with Section 143.1010(h).
(1) An incentive means any of the following:
(A) A deviation to a development regulation, with the exception of any regulations or requirements of this Division;
(B) Any other incentive proposed by the applicant, other than those identified in section 143.1010(h)(2), that results in identifiable, actual cost reductions.
(2) Items not considered incentives by the City of San Diego include, but are not limited to the following:
(A) A waiver of a required permit;
(B) A waiver of fees or dedication requirements, except as allowed under Section 143.1010(f);
(C) A direct financial incentive;
(D) Approval of mixed-use zoning in conjunction with a residential development;
(E) A waiver of any of the requirements, regulations or standards of this Division.
(3) An incentive requested as part of a development meeting the requirements of this Division shall be processed according to the following:
(A) Upon an applicant’s request, development that meets the applicable requirements of this Division shall be entitled to incentives pursuant to Section 143.1010(h) unless the City makes a written finding of denial based upon substantial evidence, of any of the following:
(i) The incentive is not required in order to provide for affordable housing costs, as defined in California Health and Safety Code Sections 50052.5 and 50053;
(ii) The incentive would have a specific adverse impact upon public health and safety as defined in California Government Code Section 65589.5, environmentally sensitive lands, or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low income and moderate income households;
(iii) The incentive would be contrary to state or federal law. Requested incentives shall be analyzed in compliance with the California Environmental Quality Act as set forth in Chapter 12, Article 8, and no incentive shall be granted without such compliance; or
(iv) Within the Coastal Overlay Zone, the incentive would be inconsistent with the resource protection standards of the City’s Local Coastal Program or the environmentally sensitive lands regulations, with the exception of density.
(B) The granting of an incentive shall not require a General Plan amendment, zoning change, a development permit, or other discretionary approval.
(C) When a development permit is otherwise required, the decision to deny a requested incentive shall be made by the decision maker for the development permit.
(4) The number of incentives available are as follows:
(A) Two incentives for a development that includes at least 20 percent of the pre-density dwelling units for lower income households.
(B) Three incentives for a development that includes at least 30 percent of the pre-density dwelling units for lower income households, with at least 20 percent reserved for very low income households.
(C) Four incentives for a development in which at least 40 percent of the covenant-restricted dwelling units are at least three bedrooms.
(D) Five incentives for a development that includes 100 percent of the total dwelling units, exclusive of a manager’s unit(s), for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the total dwelling units in the development may be for moderate income households, as defined in Section 50053 of the Health and Safety Code.
(i) Affordable Housing waivers may be granted, except that waivers cannot be used to deviate from the requirements of this Division. An applicant utilizing the regulations in this Division shall be entitled to a waiver as described in Section 143.1010(i) for any development for which a written agreement and a deed of trust securing the agreement is entered into by the applicant and the President and Chief Executive Officer of the San Diego Housing Commission.
(1) A waiver means a request by an applicant to waive or reduce a development standard that physically precludes construction of development meeting the criteria of this Division.
(2) Upon an applicant’s request, development that meets the applicable requirements of this Division shall be entitled to a waiver unless the City makes a written finding of denial based upon substantial evidence, of any of the following:
(A) The waiver would have a significant, quantifiable, direct, and unavoidable impact upon health or safety for which there is no feasible method to mitigate or avoid the impact;
(B) The waiver would have an adverse impact on any real property that is listed in the California Register of Historical Resources;
(C) The waiver would be contrary to state or federal law. Requested waivers shall be analyzed in compliance with the California Environmental Quality Act as set forth in Chapter 12, Article 8, and no waiver shall be granted without such compliance; or
(D) Within the Coastal Overlay Zone, the waiver would be inconsistent with the resource protection standards of the City’s Local Coastal Program or the environmentally sensitive lands regulations, with the exception of density.
(E) Within the Airport Land Use Compatibility Overlay Zone, the waiver would be inconsistent with any of the noise compatibility, safety compatibility, aircraft overflight notification requirements, or airspace protection compatibility regulations in Sections 132.1510 through 132.1525.
(3) The granting of a waiver shall not require a General Plan amendment, zoning change, development permit, or other discretionary approval.
(4) There is no limit on the number of waivers an applicant may request.
(j) Compliance with the regulations in this Division shall satisfy compliance with the City’s Inclusionary Affordable Housing Regulations in Chapter 14, Article 2, Division 13, and the applicant’s affordable housing obligations.
(“Incentives in Exchange for Transit Priority Area Affordable Housing and Infrastructure Amenities” added 12-9-2020 by O-21275 N.S.; effective 1-8-2021.) (Amended 1-27-2022 by O-21416 N.S.; effective 2-26-2022.) (Retitled from “Incentives in Exchange for Transit Priority Area Affordable Housing and Infrastructure Amenities” to “Incentives in Exchange for Sustainable Development Area Affordable Housing and Infrastructure Amenities” on 3-7-2023 by O-21618 N.S.; effective 5-6-2023.) (Amended 1-16-2024 by O-21758 N.S.; effective 3-16-2024.) (Amended 7-22-2024 by O-21836 N.S.; effective 10-5-2024.) (Amended 1-21-2026 by O-22050 N.S.; effective 3-22-2026.)
[Editors Note: Amendments as adopted by O-22050 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-22050-SO.pdf ]
(Retitled from “Incentives in Exchange for Sustainable Development Area Affordable Housing and Infrastructure Amenities” to “Incentives in Exchange for Affordable Housing and Infrastructure Amenities” 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 ]