Comprehensive New Construction Cost and Green Affordable Housing Studies

Project Contacts: Enrique Flores | Paola Garcia-Betancourt

PDS.LongRangePlanning@sdcounty.ca.gov | (858) 505-6677

To sign up for updates on the project please subscribe to the mailing list

Background

On August 31, 2021, the Board of Supervisors (Board) heard agenda item 7, Transformative Housing Solutions that Advance Equity, Sustainability, and Affordability for All. The Board directed County staff to research and evaluate seven (7) general pathways for transformative housing solutions and report back on options for increasing “equitable housing” (i.e., very low-income, low-income, moderate-income housing).

The seven pathways are categorized under three groups which include:

Addressing the High Cost of Land

Assessing opportunities to acquire land along key corridors to support future transit-oriented development
Capture up zoning land value windfalls through an inclusionary housing program focused on County general plan amendments (GPAs)

Addressing the High Cost of Construction

Comprehensive New Construction Cost Study
Reducing the Cost of Green Affordable Housing
Reducing VMT and EIR requirements for projects that include affordable housing

Addressing Incomes that are Too Low

Expand Preservation of Existing Affordable Housing, including Naturally Occurring Affordable Housing
Investigate Opportunities to Create a Regional Perennial Affordable Housing Trust Fund

As a result of that direction, County staff was directed to conduct two studies:

Comprehensive New Construction Cost Study
Reducing the Cost of Green Affordable Housing Study

The purpose of these studies is to provide the Board a set of recommendations for County policies and programs that will help in reducing the cost of new construction as well as implementing sustainable building practices that will help address the climate crisis and the region’s ongoing housing crisis.

Timeline

Staff anticipates completing these studies with policy recommendations and programmatic approaches from the Comprehensive New Construction Cost and Green Affordable Housing studies in Spring 2024.

Comprehensive New Construction Study

The Board directed staff to perform a quantitative assessment and to develop policy recommendations to address the localized inputs and factors that drive new construction costs in the unincorporated communities and across the region.

The purpose of this assessment is to compare the various input costs associated with new construction across the County compared to similar regions across the State and nation and include several sample project typologies including high-density and medium-density multi-family infill development under different land cost assumptions.

The assessment will research best practices from other jurisdictions and analyze:

Cost associated with new construction across the County for housing types such as: high and medium density, and multi family.
Regulatory factors such as zoning, land use, design regulations and environmental review, etc
Cost related to land, labor, materials, permitting, impact fees, etc.

The outcome of this assessment is to provide policy recommendations for regulatory and programmatic approaches to reduce the cost of new construction development.

Green Affordable Housing Study

The Board directed staff to identify opportunities to expand incentives and remove barriers to increase green affordable housing development and rehabilitation, as well as, to address housing and climate crisis in coordination

The purpose of this assessment is to address the cost of green affordable housing.

The assessment will analyze:

Data related to expedited review and permitting processes, density and height bonuses and other zoning relief.
Fee reductions and waivers, tax incentives, green building code mandates, grants, rebates, reimbursements and revolving loan funds.
Technical assistance, and marketing and publicity considerations

The outcome of this assessment is to provide policy recommendations to address the region’s housing and climate crisis.