Required Provision of Affordable Dwelling Units
San Diego Municipal Code § 143.1015
in effect§143.1015 Required Provision of Affordable Dwelling Units
(a) In accordance with Section 143.1002(a)(1), an applicant requesting application of the regulations in this Division shall provide a written agreement to provide affordable dwelling units, entered into by the applicant and the President and Chief Executive Officer of the San Diego Housing Commission and secured by a deed of trust, that meets the following requirements:
(1) Provides at least 15 percent of rental dwelling units in the development, excluding any additional dwelling units allowed under a floor area ratio bonus, for rent by very low income households at a cost, including an allowance for utilities, that does not exceed 30 percent of 50 percent of the area median income, as adjusted for household size.
(2) Provides at least 15 percent of the rental dwelling units in the development, excluding any additional dwelling units allowed under the floor area ratio bonus, for rent by moderate income households, including an allowance for utilities, that does not exceed 30 percent of 120 percent of the area median income, as adjusted for household size.
(3) Provides at least 10 percent of the rental dwelling units in the development, excluding any additional dwelling units allowed under the floor area ratio bonus, for rent by low income households, including an allowance for utilities, that does not exceed 30 percent of 60 percent of the area median income, as adjusted for household size.
(4) As an alternative to the requirements in Section 143.1015(a)(1)-(3), an applicant may meet one of the following requirements:
(A) Provide at least 40 percent of the rental dwelling units in the development, excluding any additional dwelling units allowed under a floor area ratio bonus, for rent by very low income households at a cost, including an allowance for utilities that does not exceed 30 percent of 50 percent of the area median income, as adjusted for household size; or
(B) Provide 100 percent of the total dwelling units, excluding any managers units, in the development for rent by low income households, including an allowance for utilities that does not exceed 30 percent of 60 percent of the area median income, as adjusted for household size; or
(C) Provide 100 percent of the rental dwelling units in the development, excluding any additional dwelling units allowed under a floor area ratio bonus, for rent by moderate income households at a cost, including an allowance for utilities that does not exceed:
(i) 30 percent of 80 percent of the area median income, as adjusted for household size for at least 50 percent of the required rental dwelling units; and
(ii) 30 percent of 120 percent of the area median income, as adjusted for household size for the remainder of the required rental dwelling units.
(5) The number of required affordable dwelling units for development located in FAR Tier 1 shall be determined by multiplying the proposed number of dwelling units in the development with the maximum base floor area ratio, illustrated in Figure H of the Centre City Planned District Ordinance in Chapter 15, Article 6, Division 3, then dividing by the proposed floor area ratio of the development and multiplying by the percentages of affordable dwelling units required in Section 143.1015(a)(1-3) or 143.1015(a)(4).
(6) For rental dwelling units to be counted as affordable and meet the requirements of this Division, the following qualifying criteria shall be met:
(A) The affordable dwelling units shall be designated be comparable in bedroom mix and amenities to the market-rate dwelling units in the development, as determined by the San Diego Housing Commission, except that the affordable dwelling units shall not be required to exceed three bedrooms per dwelling unit. The affordable dwelling units shall have access to all common areas and amenities provided by the development if the affordable dwelling units are provided in the development. The square footage and interior features of the affordable dwelling units shall be good quality and consistent with current building standards for new housing in the City of San Diego.
(B) The affordable dwelling units shall remain available and affordable for a period of at least 55 years, unless 100 percent of the dwelling units in the development are affordable and the development is owned and operated by an institution of higher education, including a community or junior college, college or university, or a religious institution-affiliated housing development project, as defined in California Government Code Section 65913.6, in which case the affordable dwelling units shall remain available and affordable for a period of at least 25 years.
(7) As an alternative to the requirements in Section 143.1015(a)(1)-(3) or 143.1015(a)(4) to provide the required rental dwelling units onsite, the required rental dwelling units may be provided on a different premises from the development subject to all the following requirements:
(A) The required rental dwelling units shall be located on a receiver site that is located within a Sustainable Development Area and one of the following Resource Opportunity Areas identified by the California Tax Credit Allocation Committee when the development application is deemed complete:
(i) High Resource Opportunity Areas;
(ii) Highest Resource Opportunity Areas;
(iii) Moderate Resource Opportunity Areas located in the same community planning area and Council District of the premises of the development; or
(iv) Moderate Resource Opportunity Area within three miles of the premises of the development.
(B) The required affordable dwelling units shall be comparable in bedroom mix to the market-rate dwelling units in the development and the affordable dwelling units shall have access to generally comparable amenity types offered in the development, as reasonably determined by the San Diego Housing Commission. The interior features of the affordable dwelling units shall be good quality and consistent with current building standards for new housing in the City of San Diego. Amenities shall meet or exceed California Tax Credit Allocation Committee requirements for common areas and play/recreational facilities, if applicable, as reasonably determined by San Diego Housing Commission.
(C) The applicant shall pay a fee to the “Neighborhood Enhancement Fund,” as established by San Diego Resolution R-313282 (Nov. 17, 2020), calculated based on the square feet of lot area for the development premises and the premises for the receiver site for the required rental dwelling units. The fee to the “Neighborhood Enhancement Fund” for the receiver site shall not exceed the amount of the fee for the development premises.
(D) A final inspection shall not occur for the development until a deed of trust for the affordable dwelling units located at the receiver site has been entered into by the applicant and the President and the Chief Executive Officer of the San Diego Housing Commission.
(E) The applicant shall record a deed restriction prior to the issuance of the first Building Permit for the development that:
(i) Documents the required number of affordable dwelling units to be provided; and
(ii) Assigns foreclosure rights of the development premises to the San Diego Housing Commission as follows: For new development, if the affordable dwelling units have not received a certificate of occupancy within 54 months of the issuance of the first Building Permit. For an existing structure, if the affordable dwelling units have not received a certificate of occupancy within 36 months of the issuance of the first Building Permit.
(b) Nothing in this Division shall preclude an applicant from using affordable dwelling units newly constructed or rehabilitated by another applicant to satisfy the requirements of this Division, including contracting with an affordable housing developer with experience obtaining tax-exempt bonds, low income housing tax credits, and other competitive sources of financing, upon approval by the San Diego Housing Commission. The applicant shall cause the off-site affordable deed-restricted dwelling units to be newly constructed or rehabilitated in accordance with Section 142.1304(c)(5) or Section 142.1307.
(“Required Provision of Affordable Dwelling Units” 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.) (Amended 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 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 ]
Source: City of San Diego Office of the City Clerk, San Diego Municipal Code and City Charter (docs.sandiego.gov PDFs)URL: https://docs.sandiego.gov/municode/MuniCodeChapter14/Ch14Art03Division10.pdf#page=15Fetched: 10/28/2026