San Diego’s real estate market continues to evolve, and recent policy changes could significantly impact property investing and development opportunities. The City Council has passed the Affordable Housing Preservation Ordinance, a new regulation aimed at protecting deed-restricted affordable housing. For investors, developers, and property owners, understanding these changes is crucial when navigating San Diego real estate.

The ordinance strengthens existing state protections to prevent the loss of deed-restricted affordable housing. Its goal is to maintain housing options for low- and moderate-income residents and ensure these units are not permanently removed from the housing supply.

Key provisions include:

• Early notification requirements for property owners planning to sell or transition an affordable housing property.
• A right of first offer and right of first refusal, allowing qualified entities (such as nonprofit organizations and affordable housing developers) the chance to purchase properties before they enter the open market.
• Extended offer and negotiation periods to give affordable housing buyers a fair opportunity to acquire and preserve these properties.

This local ordinance builds upon existing state laws but introduces stricter San Diego real estate requirements by mandating notices at any point a property owner decides to sell—not just when affordability restrictions are set to expire.

How This Impacts Property Investing and Development

For those involved in property investing or property development in San Diego, this ordinance introduces new steps in the transaction process:

• If you own a deed-restricted affordable property, you must notify qualified buyers before listing it for sale.
• Investors and developers interested in affordable housing properties must be aware of potential delays and offer submission requirements.
• Traditional market-rate buyers may have to compete with nonprofit housing entities under these new rules.

While these regulations may alter timelines for certain sales, they are designed to protect San Diego’s real estate market by preserving affordable housing and preventing displacement.

The Bigger Picture for San Diego Real Estate

With housing affordability being a critical issue, the Affordable Housing Preservation Ordinance plays a key role in property development policies moving forward. It aligns with the city’s broader strategy to maintain long-term affordable housing options while balancing market-driven growth.

For those engaged in property investing, it’s essential to stay informed on how these regulations impact potential acquisitions, sales, and development strategies.

Need Guidance on Property Investing or Development?

At ACI Apartments, we’ve been navigating the complexities of San Diego real estate for over 40 years. Whether you’re looking to buy, sell, or develop, our team provides expert insights to help you make informed decisions in this evolving market.

Contact us today to discuss how this ordinance may affect your property investments and development projects.