To address the shortage of affordable housing in the City of San Diego, it is essential to preserve existing housing units that have deed restrictions that require their rents to remain affordable for households at specified levels of low income. New construction alone cannot keep up with the growing need for homes people can afford.
On October 27, 2020, the San Diego City Council approved seven actions to implement a strategy for affordable housing preservation in the City of San Diego, including the development of an affordable housing preservation ordinance.
Deed-Restricted Affordable Housing Preservation Ordinance
On February 3, 2025, the San Diego City Council adopted an ordinance to encourage the preservation of deed-restricted affordable housing.
The Ordinance Applies to:
- Owners of multifamily rental housing developments of five or more dwelling units that receive governmental assistance under any of the programs listed in California Government Code Section 65863,10(a)(3) (Assisted Housing Development)
The Ordinance requires Owners to:
- Submit a Notice of Intent to Sell to SDHC and all State-identified Qualified Entities at least three months before offering to sell to a third party.
State Qualified Entities List
When a property owner provides SDHC a “Notice of Intent to Sell” their deed-restricted affordable housing, SDHC will post that notice here.
- No current notices
Qualified Entities may:
- Submit a Letter of Interest to acquire the Assisted Housing Development.
- Submit a bona fide Offer to Purchase the Assisted Housing Development and, if applicable, a Right of First Refusal.
Qualified Entities are required to:
- Meet certain conditions to preserve the affordability of the Assisted Housing Development before closing escrow. See Obligation to Preserve Affordability template below.
This Ordinance does not apply to:
- Any owner of an Assisted Housing Development that is within the five-year period before the expiration of rental restrictions or within five years of being eligible for prepayment or termination, as described in California Government Code Section 65863.11(c).
Exemptions from this Ordinance
- This Ordinance exempts certain transactions involving an Assisted Housing Development and does not apply to properties with affordability restrictions required by local affordable housing land use programs where 30 percent or fewer of the dwelling units within the property are restricted as affordable. For a full list exemptions, see San Diego Municipal Code 98.1004(a) and (b)
Templates
Property owners and Qualified Entities may use the following templates as guides to fulfill the requirements in the deed-restricted affordable housing ordinance.
- Notice of Intent to Sell
- Letter of Interest
- Right of First Refusal
- Offer to Purchase
- Qualified Entity Obligation to Preserve Affordability
Additional Information
- Preserving Affordable Housing in the City of San Diego (SDHC study, May 2020)
- City Council Resolution R-313276 (October 27, 2020)
- Opinion: “Commission working to preserve existing affordable housing” (San Diego Union-Tribune, January 29, 2025)
