San Diego’s Complete Communities Incentive Sparks Debate

By The Registry Staff

San Diego’s housing landscape is undergoing a seismic shift spurred by the Complete Communities Housing Solutions initiative. However, its evolution has sparked fervent debate among stakeholders, revealing the program’s potential and pitfalls, according to a recent report from the San Diego Union Tribune.

The initiative received City Council approval three years ago, and has since gained momentum among developers. Its allure lies in enabling projects that would otherwise be financially unviable under traditional density bonus programs or city housing incentives.

Notably, the number of approved apartments under this initiative has surged, tripling from 169 in 2022 to 653 in 2023. City officials report 1,452 approved apartments, with an additional 2,500 units in the approval pipeline, per the San Diego Union Tribune.

Mayor Todd Gloria’s proposed housing incentive package aims to bolster the program further. However, controversy looms over proposed changes, particularly regarding the spatial allocation of mandated rent-restricted apartments for low-income residents.

The debate centers on whether these rent-restricted units should be integrated within market-rate developments or dispersed to different areas. 

Critics advocate for a cautious approach, expressing reservations about modifying what they perceive as an already radical program. Concerns also surround the program’s actual impact, especially in delivering the promised amount of rent-restricted housing.

Key to the controversy is the program’s basis on floor area ratio, enabling developers to construct significantly larger projects than permitted by zoning regulations. The multiplier system sets different ratios for distinct neighborhoods, encouraging denser developments in transit-rich areas.

However, the program’s execution has been criticized for approving projects vastly exceeding zoning limits. Instances include a 1,315-unit project in University City, zoned for 108 units, and a 262-unit project in Bankers Hill, zoned for 52 units.

Despite criticisms, developers herald the initiative as a potential catalyst to meet San Diego’s ambitious state-mandated housing target. With only a fraction of the required units constructed thus far, there’s mounting pressure to bridge the substantial gap.

Challenges remain, including the timeframe for project completion, the actual percentage of mandated rent-restricted units, and ongoing debates around spatial planning.