HCD offers two types of incentives to developers who wish to construct new affordable housing units: Density Bonus and the Low Cost Financing for the Development of Affordable Housing.
Density Bonus Program
The Density Bonus Program allows housing developers to build more units on a property than are otherwise permitted, provided that a certain percentage of the total number of the additional units are reserved for low- or moderate-income households. The County of San Diego has four specific density bonus policies.
- State Density Bonus Law allows from a 20 percent up to a 35 percent increase in the number of housing units with the requirement that for the next thirty years, at least
- 5 percent of total units be reserved for very low-income households, or
- 10 percent of total units be reserved for low-income households, or
- A senior citizen housing development as allowed under existing law.
- Affordable Housing for the Elderly (Policy I-79) targets senior citizens requiring that all units house elderly households with 35 percent of total units reserved for very low-income elderly households. Although the increase in the number of allowable units is negotiated on a case-by-case basis, this policy allows up to 45 units per acre within designated areas.
- Mobile-home Park Density Bonus (Policy 3.8) permits mobile home park developments a density of up to 8 units per acre within and beyond established urban service areas.
- Housing for Lower Income Families (Policy I-88) allows the development of low-income housing with up to 20 units per acre in designated areas, provided that all of the units are affordable to low-income families
Eligibility
The County administers the Density Bonus program in the unincorporated area of San Diego County and a few smaller cities. For information on income limits, click here.
Contact
Call Gail Wright with the Department of Planning and Land Use at (858) 694-3003 for information on the Density Bonus Program.
Call Hugo Mora at (858) 694-4877 for information on the Density Bonus housing agreement.
Low-Cost Financing for the Development of Affordable Housing
The County of San Diego also provides affordable housing developers with low-cost financing opportunities.
Tax-Exempt Multifamily Housing Revenue Bond Program
Under this program, the County issues tax-exempt revenue bonds and the proceeds of the bond sales provide below-market construction and permanent financing for rental housing developments. Bond-financed developments must reserve either 20 percent of total units for households whose annual income is at or below 50% of San Diego's AMI or 40 percent of total units for households whose annual income is at or below 60% of San Diego's AMI. The rent restrictions are in place a minimum of 20 years or while bonds are outstanding. For information on income limits, click here.
Contact
Call Hugo Mora at (858) 694-4877 for information on the Tax-Exempt Multifamily Housing Revenue Bond Program.
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