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Mayor’s Latest “Housing SD” Reform Receives Unanimous Council Approval

12th Code Update Clears Hurdles to Building Permanent Supportive and Transitional Housing

Monday, August 12, 2019 - NEWS RELEASE

San Diego – Mayor Kevin L. Faulconer won unanimous City Council approval last week for the latest “Housing SD” reform aimed at removing the barriers to building more permanent supportive and transitional housing.

The City Council adopted a series of changes to the Land Development Code – also known as the 12th Code Update – that make it easier to build new housing projects for the homeless and formerly homeless by eliminating burdensome regulations.

“We’re removing the hurdles that often result in quality housing projects getting significantly reduced in scope or killed altogether,” Mayor Faulconer said. “We need more housing combined with supportive services for folks who are struggling to make it on their own and that’s exactly the type of housing that these changes will make easier to build.”

Increasing the housing supply for all income levels has been a top priority for Mayor Faulconer. This year, Mayor Faulconer won support from the City Council on significant “Housing SD” reforms, including new moderate-income regulations, parking reform and mixed-used zoning.

An overview of the reforms in the 12th Code Update include:

  • Permanent Supportive Housing By-Right (PSH): Allows for a streamlined process by-right to construct housing with accompanying supportive services for those experiencing homelessness. Additional updates to these regulations contain:
    • An increase in potential for PSH units to be incorporated by-right into a variety of both affordable and market-rate developments across the City.
    • Provides PSH developers greater flexibility within a by-right approval process and encourages construction of more units throughout the city.
    • Includes a waiver of development impact fees for PSH and Transitional Housing Facilities – a move that goes beyond state law.
  • Transitional Housing By-Right: Update eliminates burdensome regulations placed on developers to encourage more projects by right. These projects are designed to help formerly homeless individuals.
  • Employment Overlay Zones: Update allows for more residential land use areas in mixed-use projects. The zones give more flexibility to mix employer and residential uses in future projects.
  • Streamlined Regulations for Companion Units: Update makes it easier and more affordable to permit "granny flats" and other companion units.
  • Zoning Updates: Update provides 14 amendments to the Land Development Code that would help streamline the approval process for future affordable housing projects.
  • Affordable Housing Density Bonuses: The added incentives go beyond what the current state law mandates to help spur the development of affordable housing for seniors, military personnel, former foster youth, disabled veterans and homeless individuals.