According to the recently passed policy, developers will now be required to build 10% of their residential properties as affordable. Under the new legislation, affordable rental units will be based on a family of four earning less than $29,051 per year. Affordable "for sale" units will be priced for a family of four earning up to $60,100. Developers will have an option of paying an "in lieu" fee rather than building affordable units, but the fee will ultimately rise to $2.50 per sf over the next three years.

"An inclusionary policy tells developers that if they want the right to develop land in the City of San Diego, than they have to do more than just build for the highest-end, most profitable segment of the market," says Toni Atkins, councilmember for the Third District. "What this provides is affordable housing in every neighborhood – not just our older, urban communities."