Inclusionary Housing
All submitted housing development projects in the unincorporated area with ten or more units must satisfy the inclusionary housing requirement by building affordable housing or supporting affordable housing in another way. All housing projects building 10 or more housing units must complete an inclusionary affordable housing plan.
Exemptions
The following projects are exempt from the inclusionary housing requirements
- Projects submitted prior to October 22, 2026
- Projects with fewer than 10 housing units. Density bonus units and accessory dwelling units do not count towards this minimum project size.
- Projects providing 100% affordable housing
Inclusionary Housing Requirement
For-sale projects must provide one of the following affordable housing set-asides:
- 5% very-low income
- 10% low income
- 15% moderate income
Rental projects must provide one of the following affordable housing set-asides:
- 5% extremely-low income
- 5% very-low income
- 10% low income
General Plan Amendment projects must provide 20% low income.
Incentives
Projects that satisfy the inclusionary housing requirements without using alternative compliance will be eligible for the following benefits.
- Density Bonus – double the state density bonus, up to a 50% increase
- Incentives – one additional incentive beyond the state and county density bonus programs
In addition, projects that provide 50% more low-income housing than required can request priority review.
- For Sale: Provide an additional 5% Low (i.e. total: 15% Low)
- For Rent: Provide an additional 5% Low (i.e. total: 15% Low)
- GPA: Provide an additional 10% Low for a total of 30% Low)
Alternative Compliance Methods
For projects unable to provide the required affordable housing units onsite, use of alternative compliance methods may be requested. These include:
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Land Donation
Suitable land may be donated to the County for affordable housing. The property must be in one of the following areas:
- In the same Community Plan Area as the project
- Within a High or Highest Resource Area as defined by the California Tax Credit Allocation Committee
- Within a VMT Efficient or Infill Area
- Within a General Plan-designated Village
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ADU Condominiums
Half of the required affordable housing units, up to 5 units, can be built as for-sale accessory dwelling units
There are guidelines for ADUs to be sold separately as condominiums.
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In-Lieu Fee
Up to half of the inclusionary housing requirement can be met by paying an in-lieu fee. The fee calculation is:
- For-Sale Projects: $21.37/sqft x 0.9 x Total Interior sqft
- Rental Project Fee: $18.69/sqft x 0.95 x Total Interior sqft
- General Plan Amendment Projects: $41.82/sqft x 0.8 x Total Interior sqft
In addition, up to all of the inclusionary housing requirement can be met by paying an in-lieu fee. The fee calculation is:
- For-Sale Projects: $21.37/sqft x 0.9 x Total Interior sqft
- Rental Project Fee: $18.69/sqft x 0.95 x Total Interior sqft
- General Plan Amendment Projects: $41.82/sqft x 0.8 x Total Interior sqft
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Offsite Development
The required affordable housing units may be developed at suitable location offsite. The property must be in one of the following areas:
- In the same Community Plan Area as the project
- Within a High or Highest Resource Area as defined by the California Tax Credit Allocation Committee
- Within a VMT Efficient or Infill Area
- Within a General Plan-designated Village
Inclusionary Housing Ordinance
The Inclusionary Housing and In Lieu Fee ordinances were passed on June 24, 2026 and are in effect as of October 22, 2026.
Ordinance Documents
Implementation Webinar
On September 22, 2026, we hosted a webinar to explain the Inclusionary Housing Ordinance and how it will be implemented starting October 22, 2026.
Future Updates
An update to the inclusionary housing ordinance is anticipated in 2028. To stay informed, sign up for project updates!
Ordinance Development
The County conducted an inclusionary housing study to assess feasible options for requiring housing projects to provide affordable housing. Staff developed an inclusionary housing ordinance that addresses local housing needs. The overall goal is to expand the supply of affordable housing for households of lower- and moderate-income.
POD 20-007
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Board of Supervisors Hearing: June 24, 2026
On June 24, 2026 the Board of Supervisors heard and adopted amendments to the Zoning Ordinance to adopt an Inclusionary Housing Ordinance which would apply to new housing development in the unincorporated areas of the County.
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Board of Supervisors Hearing: August 28, 2024
On August 28, 2024 the Board of Supervisors heard and considered proposed amendments to the Zoning Ordinance to adopt an Inclusionary Housing Ordinance which would apply to new housing development in the unincorporated areas of the County. The Board of Supervisors directed staff to return following presentations on the Development Feasibility Analysis (DFA) and Vehicle Miles Travelled (VMT) with options that include the following considerations:
- Ensure overall housing production is not negatively impacted.
- Align with state density bonus law.
- Include considerations for phasing-in the program to allow time for land values to adjust to the program.
- Continue to Engage with experts and community.
- Provide inclusionary housing production estimates for each of these options, including middle income home ownership.
- Development incentives that include infrastructure that can be provided in Option 3 to maximize units in the VMT Efficient and Infill areas, concurrent with the Development Feasibility Analysis for these areas.
- Off-site development should be within a radius of 3 miles or the vicinity of the community planning area.
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Planning Commission Hearing: April 19, 2024
On April 19, 2024 the Inclusionary Housing Ordinance was presented at the Planning Commission Hearing. The Commission voted 3-1 to recommend that the Board of Supervisors defer the consideration of the Inclusionary Housing Ordinance until after the Vehicle Miles Traveled Policy is adopted in the County. The staff presentation and Planning Commission Report are both available online.
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Planning Commission Workshop: March 24, 2023
Staff held a workshop with the Planning Commission to discuss the Draft Inclusionary Housing Ordinance and Criteria Options. This meeting provided an opportunity for the Planning Commission and the public to review and give additional input on the program components, including items such as the proportion and affordability level of the required affordable units, as well as alternative compliance options such as in-lieu fees, land donations, and allowing offsite affordable housing development. The input received will be used to refine the Draft Ordinance and Criteria options which will be presented to the Planning Commission and Board at a future hearing. For additional information, please visit the Planning Commission website.
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Public Review: January 20, 2023 to March 7, 2023
The Draft Inclusionary Housing Ordinance (Draft Ordinance) was made available for public review for a 45-day period from January 20, 2023, until March 7, 2023.
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Board of Supervisors Hearing: August 31, 2021
On August 31, 2021 (7), the Board added to this direction and requested that staff also evaluate and identify options to for the Inclusionary Housing Ordinance to capture value tied to significant upzonings as a part of GPAs.
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Board of Supervisors Hearing: February 10, 2021
On February 10, 2021 (4), staff presented the results of the economic analysis (Phase I). During this meeting, the Board directed staff to staff to develop an Inclusionary Ordinance with predetermined set-aside applicable to all housing projects of all sizes above a minimum threshold. Inclusionary Housing Study Phase I – February 10, 2021 (4):
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Board of Supervisors Hearing: October 10, 2018
With rising housing costs and increasing numbers of San Diegans spending more than thirty percent of their income on housing, in 2018, the Board directed staff to investigate options to further promote the expedient building of homes in the unincorporated area. On October 10, 2018 (2), the Board directed staff to prepare an economic analysis and criteria and return to the Board for consideration for a GPA Affordable Housing Program and a GPA Inclusionary Ordinance.
Report on Options to Improve Housing Affordability in the Unincorporated Area (Report)
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