The City Council voted 5-1 Tuesday to approve amendments to the land development code that give incentives to developers to include affordable housing units in residential projects, some of which may remain affordable for 30 years.
The council approved the mayor’s recommendations for the so-called “density bonus” following hours of debate. Councilmember Donna Frye voted no, and councilmembers Toni Atkins and Brian Maienschein were absent.
The coastal 30-foot height limit would not be affected by the changes to the density bonus law, according to District 2 Councilman Kevin Faulconer’s office.
“If we don’t adopt (bonus) density, it will be done for us … from Sacramento,” said Councilmember Jim Madaffer.
“I think today is the time to act. It’s important to move forward. Let’s put our money where our mouth is,” said Madaffer, who made the motion to approve version 1A that was opposed by many in the audience.
“This goes a long way. This is a start,” said Councilmember Ben Hueso, who seconded the motion.
Council President Scott Peters expressed concern during the hearing that council adopt something in support of broader development in light of the council’s repeated state of emergency declaration it has passed for several years declaring the city has a severe shortage of affordable housing.
“If we don’t do this in the face of a housing emergency, I don’t see how we can say we favor (affordable housing),” said Peters. “You can be against density and against sprawl, but … (then) you’re not supporting any development.”
The state density bonus law requires cities to grant density bonuses as incentives to developers in residential projects. The state amended its affordable housing density bonus four times since 2003, and the amendments passed by the City Council are intended to bring the city’s regulations into compliance with current state requirements. The density bonus units built as a result of the amendments will be exempt from the Inclusionary Housing Ordinance, a controversial measure the council passed several years ago that gave incentives to developers to set aside affordable units for condominium owners.
Developers could pay in-lieu fees to the city if they decided not to set aside any units for lower-income residents.
The amendments will allow for an applicant with a residential development permit to donate and transfer land to the city with affordable housing in exchange for a density bonus.
The dwelling units set aside for affordable housing must remain so for at least 30 years, according to the version the council passed.
Attorney Corey Briggs told the council he was "most concerned" the amendments eventually passed by the Council favored moderate-income residents rather than low-income residents.