Encinitas Approves Updates to Inclusionary Housing Program

The City of Encinitas recently approved updates to its Inclusionary Housing Program, based on recommendations outlined in KMA’s analyses. 
As background, City Council directed staff to undertake studies in June 2018 in support of program updates.  KMA was retained as the City’s consultant and completed a nexus study, a gap analysis, and an economic feasibility study to fully evaluate opportunities for increasing affordable housing units citywide along with sites to be upzoned to 30 dwelling units per acre.
KMA’s feasibility study evaluated the impacts that various potential inclusionary requirements would have on the financial feasibility of new residential development in Encinitas, both Citywide and on select R-30 Overlay upzoned sites. The nexus study was prepared to support adoption of a potential new affordable housing fee applicable to Residential Care facilities and to support in-lieu fees that apply to residential development projects.
Highlights of the update include:
• Citywide inclusionary requirements of either 15% (Very Low Income) or 20% (Low Income), consistent with KMA’s feasibility study
• No special requirements for Housing Element R30 upzone sites
• Residential in-lieu fee of $20 per square foot (7+ unit developments) and residential care facility impact fee of $20 per square foot, consistent with KMA’s feasibility and nexus studies.  Collected fees will be placed into the City’s Affordable Housing Fund. 
• Residential developments with 1-6 units will pay a varying percentage of the calculated fee