A lawsuit that accused San Diego of using its housing policy to concentrate low-income housing in certain neighborhoods has been settled. The city has committed to adopting a new policy directing at least 70% of affordable housing to moderate and higher-income areas by 2028.

The city also has agreed to prioritize and increase housing density in more affluent areas of the Pacific coast of California and to promote city-funded affordable housing in higher-income communities, the San Diego Union-Tribune reported.

Under the agreement, which was approved by the City Council last week in an 8-0 vote, officials pledged to offer a sales-tax rebate to promote new grocery stores in lower-income neighborhoods and to allocate up to $500,000 to a first-time homebuyers program run by the San Diego Housing Commission.

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