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

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