Land Use and Housing Committee Meeting – May 15, 2025

The Land Use and Housing Committee of the San Diego City Council met on May 15, 2025, to consider several items, including the FY2026 Affordable Housing Fund Annual Plan, declaring the old central library surplus land, and a comprehensive package of amendments to the Accessory Dwelling Unit (ADU) and Junior ADU regulations. The meeting lasted approximately six hours and included extensive public testimony on the ADU amendments.

Consent Calendar

• The committee approved the consent agenda, which included item 1: approval of the committee minutes from April 10, 2025. The motion passed 3-0 (Councilmember Moreno absent). Public comment on the consent agenda raised concerns about the operations of homeless services providers and the need for audits.

Public Comments & Testimony

• Consent Agenda: Cesar Javier criticized the meeting minutes and referred to a "political virus." A virtual speaker alleged racketeering by homeless service providers and called for audits. Other speakers addressed smoke-free public places and expressed appreciation for the committee's work.
• Item 2 (Affordable Housing Fund): Speakers included Cesar Javier (criticized the program), Vicky Estrella (opposed a senior housing project on Market Street, citing concentration of poverty), and virtual commenters who questioned the effectiveness of homelessness spending, requested more transparency on fee-paying projects, and expressed concerns about ADU policies and property rights.
• Item 3 (Old Central Library Surplus Declaration): Multiple speakers urged using the property as a homeless shelter or for affordable housing, criticized the city for not doing so, and questioned financial details about operating costs and the process.
• Item 4 (ADU Amendments): Over 160 speaker slips were submitted, with testimony continuing for several hours. Opponents of the bonus ADU program described projects as "monstrosities," raised concerns about fire safety, parking, neighborhood character, and the concentration of development in lower-resource communities like Encanto, Linda Vista, Claremont, and City Heights. Supporters argued the program provides much-needed housing, including for moderate-income families, and warned that overly restrictive amendments would worsen the housing crisis. The Community Planners Committee (CPC), Neighbors for a Better San Diego, and the San Diego Community Coalition advocated for a citywide cap of four units per single-family lot, deeper and longer affordability, and elimination of the Sustainable Development Area (SDA) distinction. The building industry, Casita Coalition, and some YIMBY groups supported the program with modifications but opposed unit size minimums and new fees.

Discussion Items

• Item 2: FY2026 Affordable Housing Fund Annual Plan – Sikat Theal (SDHC CFO) and Matthew Higgins presented the proposed plan, funded by housing impact fees and inclusionary fees, with an estimated $9.1 million fund balance and $5.2 million in new revenues. The plan allocates $15.8 million for prior-year commitments, $9.8 million for a new NOFA (as part of a $22.8 million total NOFA), and $5.8 million for homelessness programs. Total commitments are $32.8 million. Councilmember Ila Rivera asked about dedicated local revenue sources; Chair Lee noted a potential housing impact fee on short-term vacation rentals. The committee approved staff’s recommendation 3-0.
• Item 3: Declaring Old Central Library Surplus Land – Mark Frederick and Kip Aishin (Economic Development Department) presented the proposal. The property (820 E Street) is a historic site that served as a temporary shelter until 2024. The action would initiate the Surplus Land Act process; a sale or lease agreement would require future council approval. Councilmember Ila Rivera expressed concern about the Notice of Availability (NOA) being issued without council input and amended the motion to require the NOA to be presented to council. The committee approved the amended motion 3-0.
• Item 4: ADU and JADU Regulation Amendments – Liz Said Kanye, Heidi Von Bloom, Tate Galloway, and Seth Litcheny (Planning Department) presented a comprehensive package of 25 items, including state law alignment, a two-story height limit, fire safety setbacks, parking requirements, and modifications to the ADU Density Bonus Program. Key debate centered on development scale (Item 16). Chair Lee made a motion to approve staff’s recommendations with an amendment to use Option 2 (a unit cap approach) for Item 16. Councilmember Ila Rivera offered two amendments: (1) exempt from the community enhancement fee any ADU deed-restricted at very low or low income (30-60% AMI) in moderate, high, or very high opportunity areas (CTCAC map); (2) model the use of the community enhancement fee after the climate equity fund. The committee discussed the 475 sq. ft. minimum size; staff indicated that with the unit cap, the minimum size requirement would be unnecessary. The motion passed 3-1, with Councilmember Moreno voting no.

Key Outcomes

• Consent Agenda (Item 1): Approved 3-0.
• Affordable Housing Fund Annual Plan (Item 2): Recommended for council approval 3-0.
• Old Central Library Surplus Declaration (Item 3): Recommended for council approval 3-0, with an amendment requiring the Notice of Availability to be presented to council.
• ADU Amendments (Item 4): Recommended for council approval 3-1 (Moreno dissenting). The motion directed staff to use a unit cap approach for development scale, incorporate the two fair housing amendments by Councilmember Ila Rivera, and include an owner-occupant right of first refusal for AB 1033 sales. The package will be heard by the full City Council in early June 2025.