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HousingSet by city fee ordinanceCitation Information Bulletin 532

Inclusionary Affordable Housing in-lieu fee

Levied by City of San Diego on new development in San Diego. Authorized under the Mitigation Fee Act - Gov. Code Sec. 66000 et seq. Collected at building permit.

This is an in-lieu option, not a charge every house pays. It is what a builder pays INSTEAD of doing something else - building the affordable units, or providing the artwork on site. A builder who does that thing pays none of it, so it is never summed into San Diego's one-time total. It is levied per sq ft of market-rate unit; every published rate is in the table below.

The record

Why it exists

“The purpose of this Division is to encourage diverse and balanced neighborhoods with housing available for households of all income levels. The intent is to ensure that when developing the limited supply of developable land, housing opportunities for persons of all income levels are provided.”

SDMC § 142.1301 "Purpose of Inclusionary Affordable Housing Regulations", (7-2026), file p. 1 · source document ↗
What it pays for

“All funds collected pursuant to this Section 142.1306 shall be deposited into the Affordable Housing Fund.”

SDMC § 142.1306(d) "Inclusionary In Lieu Fee", (7-2026), file p. 9 · source document ↗
Where it applies

“This Division applies to all residential development of 10 or more dwelling units outside the Coastal Overlay Zone, five or more dwelling units within the Coastal Overlay Zone, and to all condominium conversion development of two or more dwelling units, except as provided in Section 142.1303.”

SDMC § 142.1302 "When Inclusionary Affordable Housing Regulations Apply", (7-2026), file p. 1 · source document ↗
When it was adopted

2003-06-03

“Division 13: Inclusionary Affordable Housing Regulations (Added 6-3-2003 by O-19189 N.S.)”

San Diego Municipal Code Ch. 14, Art. 2, Div. 13, edition dated (7-2026), division heading, file p. 1 · source document ↗
Who adopted it

Ordinance No. O-19189 N.S.

“Division 13: Inclusionary Affordable Housing Regulations (Added 6-3-2003 by O-19189 N.S.)”

San Diego Municipal Code Ch. 14, Art. 2, Div. 13, edition dated (7-2026), division heading, file p. 1 · source document ↗
When it is paid

at building permit

“The Inclusionary In Lieu Fee shall be paid on or before the issuance of the first residential Building Permit for the development.”

SDMC § 142.1306(b), (7-2026), file p. 9 · source document ↗
Who collects it

City of San Diego, the agency that levies it

“The Chief Executive Officer of the San Diego Housing Commission shall be responsible for determining affordability standards and occupant qualifications for any affordable units provided pursuant to this Division. The San Diego Housing Commission shall also monitor compliance with any documentation created as a result of an applicant's compliance with this Division.”

SDMC § 142.1312(a) "General Rules for Inclusionary Affordable Housing Regulations", (7-2026), file p. 16 · source document ↗
Who is exempt

“This Division is not applicable to the following: (a) Residential development located in the North City Future Urbanizing Area that is within Proposition A Lands of the City of San Diego or any project located in an area of the City that was previously located in the North City Future Urbanizing Area and has been phase shifted into the Planned Urbanized Communities, and is subject to the inclusionary zoning requirements contained in the North City Future Urbanizing Area Framework Plan, San Diego Municipal Code section 143.0450(d), the Subarea Plans, Development Agreements, Affordable Housing Agreements, or conditions of approval of a development permit, as applicable. (b) Rehabilitation of an existing building that does not result in a net increase of dwelling units on the premises. (c) Density bonus units constructed in accordance with the provisions of Chapter 14, Article 3, Division 7.”

SDMC § 142.1303 "Exemptions From the Inclusionary Affordable Housing Regulations", (7-2026), file p. 2 · source document ↗
Credits and offsets

“A variance, adjustment, or reduction from the provisions of this Division may be requested and decided in accordance with Process Four. A waiver from the provisions of this Division may be requested and decided in accordance with Process Five. Any variance, waiver, adjustment or reduction shall require either that the findings in Section 142.1311(a) or in Section 142.1311(b) be made.”

SDMC § 142.1310(a) "Variance, Waiver, Adjustment or Reduction of Inclusionary Affordable Housing Regulations", (7-2026), file p. 15 · source document ↗
How it changes

“From July 1, 2020, through June 30, 2024, the Inclusionary In Lieu Fee requirements shall be implemented incrementally. This fee is the product of the applicable square foot charge (rate) as shown below, multiplied by the net building area defined in the San Diego Municipal Code (SDMC).”

Information Bulletin 532, "Requirements for Inclusionary Affordable Housing", August 2026, section "Inclusionary In Lieu Fee" · source document ↗

Every published rate

Every rate below applies to single-family detached.

RateBasisEffectiveAmount
per sq ft of market-rate unit 1 Jul 2025 $25.92
the line this rate was read from

“Applicable Square Foot Charge (Rate) to Calculate Fee … July 1, 2025 - June 30, 2026 | $25.92 … July 1, 2026 and after | $25.92(1) … (1)The Inclusionary In Lieu Fee shall be updated annually in accordance with SDMC §142.1306. The current (Fiscal Year 2026-2027) Inclusionary In Lieu Fee remains the same as the prior (Fiscal Year 2025-2026) fee of $25.92.”

Information Bulletin 532, "Requirements for Inclusionary Affordable Housing", August 2026, section "Inclusionary In Lieu Fee", rate table column heading, last two rows and footnote 1 · source document ↗

About these figures

Quoted, not summarized. Every amount and fact on this page is copied from the official document it links to. If we couldn’t find something in a document, we leave it blank instead of guessing.

Before any discounts. Some fees offer credits, waivers or phase-ins. They’re listed above but not subtracted, because whether you qualify depends on your project.

Check the date. Fees change. This page shows what was in force on the date at the top, with a link to the document that set it, so you can confirm the current amount yourself. How all of this is put together.

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