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Inclusionary Housing

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The City of Encinitas is dedicated to creating and maintaining safe, clean and affordable housing for all residents. The City achieves this in part through Inclusionary Housing Ordinance.

Background and History

On June 13, 2018, the Encinitas City Council adopted Resolution No. 2018-57 which approved an off-cycle budget appropriation to prepare a nexus study, gap analysis, and economic feasibility analysis to evaluate an in-lieu fee and evaluate increasing the percentage requirements for affordable units citywide and on sites to be up-zoned to 30 dwelling units per acre (du/ac). See below for more

On August 8, 2018, the Encinitas City Council adopted Ordinance No. 2018-03 which repealed the affordable housing regulations from Title 24 (Subdivisions) and added Chapter 30.41 (Affordable Housing) to Title 30 (Zoning) of the Municipal Code. Applicable for projects that were deemed complete prior to May 12, 2022.

The Inclusionary Housing requirements:

Residential development projects (ownership or rental developments) of seven units or more to provide:
a. Twenty percent (15%) of the dwelling units designated in perpetuity to low-income households; or
b. Fifteen percent (10%) of the dwelling units designated in perpetuity to very low-income households.
Residential development projects of six (6) or fewer units are exempt.

On October 13, 2021, the Encinitas City Council adopted Ordinance No. 2021-02 amending the City’s Affordable Housing Municipal Code Chapter 30.41. The code amendment also required a local coastal program amendment and on May 11, 2022, the California Coastal Commission approved the changes to Chapter 30.41, which go into effect immediately on May 12, 2022.

Current Applicable Inclusionary Requirements

The following inclusionary requirements are applicable to projects that were deemed complete after May 12, 2022:

Residential development projects (ownership or rental developments) of seven units or more to provide:
a. Twenty percent (20%) of the dwelling units designated in perpetuity to low-income households; or
b. Fifteen percent (15%) of the dwelling units designated in perpetuity to very low-income households.
Residential development projects of six (6) or fewer units, and expansions of 500 square feet or greater to existing residential units (includes single-family residential homes) are required to provide:
a. An Affordable ADU designated in perpetuity to a low- or very low-income household; or
b. Pay and Affordable Housing In-Lieu Fee (City Council Resolution No. 2021-77).

The City offers alternative compliance options that are outlined in Section 30.41.080 of the Zoning Code such as an in-lieu fee and off-site compliance. The applicability, requirements, and exemptions can be found in Chapter 30.41 Affordable Housing.

The City annually adjusts the incomes, rents and sales prices for inclusionary units as they are updated by the State Department of Housing and Community Development. View the updated rent and income schedule

Residential Care Facilities

Qualifying residential care facilities pursuant to EMC 30.41.085 shall pay the Affordable Housing Impact Fee- Residential Care Facilities, that was established through Resolution 2021-78.

Studies

Following the City Council's review of the findings in October 2018, additional analysis was requested. The City's consultant, Keyser Marston Associates, Inc. (KMA), has completed the requested studies. The feasibility study evaluates 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 up-zoned 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. The findings of these studies were presented to City Council and Planning Commission for direction to staff on December 11, 2019.

The final studies are available here:

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