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EXHIBIT 4 <br />inclusionary housing policies before AB 1505 was enacted, which tools significant political will to <br />get adopted. These cities appear to be currently focusing on implementing these measures and <br />monitoring their progress as opposed to contemplating adopting revised inclusionary zoning <br />policies in response to AB 1505. <br />However, both San Francisco and San Jose have already adjusted their policies in response to AB <br />1505. Prior to enactment of AB 1505, San Francisco allowed developers to build affordable rental <br />units on-site or off-site if they waive their Costa -Hawkins rights through an agreement. The city <br />has removed references to this requirement in municipal code as these agreements are no longer <br />necessary. <br />San Jose has had inclusionary requirements for rental units in law for many years but they have <br />not been operative because they were contingent upon a change in the Palmer ruling or a legislative <br />change. The enactment of AB 1505 makes these provisions operative. Also, San Jose used to place <br />a Housing Impact Fee on large rental unit projects but now these projects have been incorporated <br />into the requirements of the Inclusionary Housing Ordinance. <br />CONCLUSION <br />As evident in this report, inclusionary housing programs vary widely in structure and complexity. <br />The policies reflect the unique needs and priorities of each jurisdiction. <br />Los Angeles' Measure JJJ lead to the creation of an incentive program that is starting to see <br />preliminary positive results in encouraging affordable housing near major transit stops. San Jose <br />provides developers numerous incentives to provide affordable units on-site as well as many <br />alterative options. San Francisco targets middle and moderate incomes, because as stated in its <br />Housing Element Plan, "public subsidies tend to fund very low and low-income housing, with very <br />limited grants allocated for moderate -income home buyers." Sacramento's policy places value on <br />higher density development by exempting high density projects from fees. Chula Vista encourages <br />developers to develop in certain areas by not charging fees in areas that already have a high <br />concentration of affordable housing. It also provides additional incentives when units for low- <br />income households are provided over units for moderate -income households. Finally, San Diego's <br />policy is the most focused policy in comparison to other jurisdictions, targeting low and median - <br />income households. <br />Many of the policies reviewed in this report have been recently modified so it is difficult to assess <br />the outcomes of the programs and whether they are fulfilling their intended purpose. This report <br />can be used as a reference to compare the City of San Diego's inclusionary policy to how other <br />jurisdictions have structured their policies. Additional research could be done in the future to assess <br />whether the City of San Diego's policy is fulfilling its intended purpose and whether it reflects and <br />addresses our greatest local needs. <br />r i Kissee e <br />Fi l & Policy Analyst <br />APPROVED: Andrea Tevlin <br />Independent Budget Analyst <br />12 <br />65B-24 <br />