04/19/2024

San Diego shrinks ‘granny flat’ fees to spur construction amid housing crisis

Fees to build “granny flats,” which are often nearly equal to construction costs, will shrink sharply under legislation the San Diego City Council unanimously approved this week.

The goal is to help alleviate a severe local shortage of affordable housing by spurring construction of more granny flats, which are additional housing units on an existing property.

Granny flats are being increasingly viewed across the nation as an innovative way to create more housing without more land or infrastructure, making them the fastest and cheapest way to increase the local supply of affordable housing.

. . . Fees to build a granny flat in San Diego, which vary by neighborhood, typically range from $30,000 to $49,000 per unit. The new legislation lowers that by as much as 50 percent depending on a variety of factors.

The legislation eliminates water and sewer hook-up fees and a development fee based on the city’s general plan.

It also shrinks, but doesn’t eliminate, fees to help fund amenities needed to serve new housing, such as fire stations, library branches, parks and widened roads.

City officials also plan to seek permission from the county’s regional planning agency, the San Diego Association of Governments, to waive contributions to the Regional Transportation Congestion Improvement Program.

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