San Diego’s Federal Settlement for Affordable Housing Equity

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Illustration of diverse housing in San Diego reflecting equitable living.

News Summary

San Diego has reached a pivotal settlement to ensure equitable distribution of affordable housing across the city. A federal judge approved a plan requiring at least 70% of future developments in higher-resource neighborhoods, addressing past complaints of concentration in lower-income areas. The city has three years to demonstrate progress and will pay $650,000 in legal fees. Furthermore, over 160 new affordable units have been introduced through a recent project, Presidio Palms, which also offers supportive services to residents.

San Diego has reached a significant milestone in its efforts to address affordable housing distribution. A federal judge, Jinsook Ohta, has approved a settlement that mandates a more equitable distribution of affordable housing projects across the city. The agreement comes in response to allegations that the city has concentrated affordable housing efforts in lower-income areas, violating federal housing laws.

The approved settlement stipulates that at least 70% of future affordable housing developments must be located in moderate-, high-, and highest-resource neighborhoods. This shift aims to enhance integration and provide quality housing options to all residents, regardless of their income levels. Furthermore, the city has been directed to revise community plans to increase residential densities in these higher-resource areas, reinforcing the commitment to affirmatively further fair housing.

San Diego has been given a three-year timeframe to demonstrate measurable progress in distributing affordable housing projects more evenly throughout the city. As part of the settlement, the city will also be required to report annual developments to the City Council to monitor progress. In addition, the city has agreed to pay $650,000 in legal fees to the plaintiffs’ lawyers involved in the case.

The lawsuit was initially filed in 2019 by residents from Encanto and southeastern San Diego, who accused the city of violating the U.S. Fair Housing Act and the California Fair Employment and Housing Act. The plaintiffs asserted that the city had been unfairly allocating affordable housing developments into poorer neighborhoods, exacerbating existing inequalities. It took six years to resolve the case, resulting in this newly approved settlement.

To further bolster the initiative, the city plans to incentivize grocery store openings in lower-income neighborhoods through a program that offers five-year sales tax rebates of up to 45%. This move aims to enhance access to essential services in communities that have been historically underserved.

The settlement also allows the federal judge to maintain jurisdiction over the case to enforce compliance with the agreement, ensuring that the city adheres to the new distribution plan effectively.

In tandem with the settlement, the San Diego Housing Commission has announced the opening of over 160 affordable housing units at a new project named Presidio Palms, which converts an extended-stay hotel into rental apartments. This endeavor was made possible through California’s Homekey program, which is designed to provide housing for individuals experiencing homelessness. The initial move-in date for residents occurred on May 27, marking a significant addition to the city’s affordable housing stock.

Each unit at Presidio Palms is accompanied by on-site supportive services, including mental health support and job training, to assist residents in transitioning to stable housing. Additionally, San Diego has opened a total of 608 supportive housing units using Homekey funds, with more projects currently underway.

Expanding the efforts of affordable housing further, the County of San Diego has plans to develop 224 affordable homes on surplus County-owned land. These projects are set to take place in areas such as Mid-City and downtown Escondido, with construction expected to begin in 2028. This initiative aligns with the County’s strategic goals for increasing affordable housing availability and addressing homelessness in the region.

The recent developments in San Diego highlight a critical shift toward more equitable housing policies and a commitment to ensuring that all residents have access to quality housing, regardless of their socioeconomic status.

Deeper Dive: News & Info About This Topic

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San Diego City Council Approves New Restrictions on ADUs
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Additional Resources

HERE San Diego
Author: HERE San Diego

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