A San Diego plan to address the city’s housing crisis in a more holistic way by creating vibrant and complete communities is getting mixed reviews from the development industry and community leaders.
While there is nearly unanimous praise for the plan’s goal of encouraging housing projects that come with increased transportation options, infrastructure, parks and other amenities, there also have been many concerns raised.
They include views that the 400-page plan is too complex, it might accelerate gentrification in low-income areas, it appeals only to small-scale developers and it does not include transitional areas between low-density and high-density housing.
Other concerns are about a relative lack of input from neighborhood leaders, an incomplete analysis of the proposal’s financial viability for developers, and the potential that requirements for public promenades will deter developers.
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The Planning Commission Thursday decided to withhold its support for the plan, which is called Complete Communities Housing Solutions, and declined to forward it to the City Council’s Land Use and Housing Committee for further review.
City officials said they would continue adjusting and altering the plan, including completion of the financial analysis by consultant Keyser-Marston Associates.
“These proposals are not set in stone,” Planner Brian Schoenfisch told the commission.
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The plan was praised for encouraging developers to build more studio and one-bedroom apartments instead of larger units that are less affordable. It was also praised for potentially helping the city meet its climate action plan goals by adding transportation options.
Under the proposal, developers would be eligible for a variety of incentives if they meet a set of criteria.
The criteria include building their apartment or condominium projects near transit lines, including rent-restricted units for low-income residents and adding neighborhood amenities.
The site of a project must already be zoned for multi-family housing, but the proposal does not include any zoning changes.
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The neighborhood amenities proposed by a developer must help make the neighborhood what the city describes as a “complete community.” Examples could include pocket parks, urban plazas, playgrounds, multi-use paths, linear parks or green streets.
City officials say the number of units built each year will need to triple for San Diego to meet a state-mandated goal of 108,000 new units by 2029.
Matt Adams, vice president of the local chapter of the Building Industry Association, praised the plan as innovative and applauded the city for continuing to focus on the housing crisis despite the COVID-19 pandemic.
But Adams said there’s doubt that builders of larger, market-rate projects will use the incentives, which are optional for developers.
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“It remains to be seen if the incentives are attractive for large builders to use, but we can certainly see the value for smaller in-field developers,” he said.
Rebecca Lieberman, a policy analyst for the San Diego Regional Chamber of Commerce, said chamber officials are worried the plan could make projects more expensive for developers in some cases.
She said that would be a major problem during a recession prompted by the pandemic.
“We caution the city from adding costs to build, particularly in our changing economic circumstances,” she said.
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Lieberman also requested that the city agree to review the impact the new plan is having after one year, so it can be re-evaluated.
Planning commissioner James Whalen said such lukewarm responses from business leaders mean city officials need to revise some of the proposal.
“I didn’t get the pompoms and jumping up and down,” he said.
Developer Andrew Malick offered a more positive assessment.
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“I think this provides a great tool for developers to build projects that would otherwise be infeasible,” Malick said. “It’s very clever.”
Commissioner Kelly Moden said it might be too clever.
“My biggest concerns is there are too many layers,” she said.
Mike Hanson, the city’s planning director, said that while initial reaction has been more positive from small developers, city officials are still optimistic that large developers will embrace the plan.
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The plan would encourage construction of smaller units by changing the city’s formula.
Developers would be allowed to calculate their fees based on square footage instead of per-unit, so the fees for a larger apartment would be higher than the fees for a smaller one.
Commissioner Doug Austin said he is hopeful that the comprehensive plan will help solve the city’s housing crisis.
“There are a lot of things that are right with this,” he said. “I’m more encouraged by it than worried about it.”
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