Council adopts major Land Development Code update, including incentives and fee changes

The San Diego City Council voted May 11 to adopt a comprehensive 2026 update to the city’s Land Development Code (LDC), a package of more than 130 amendments city staff said are intended to align local rules with state law, advance housing and climate goals, and streamline permitting.

City planning senior planner Megan Cabrubias told the council the update includes citywide and downtown amendments grouped into five categories — policy alignment with climate and housing goals, clarifications, state-law compliance, corrections and regulatory reforms. Key provisions highlighted by staff included a new floor-area-ratio bonus to encourage on-site deed-restricted affordable housing, expanded Complete Communities Housing Solutions to allow for-sale units, and continued limited DIF (development impact fee) waivers for microunits with safeguards tied to three-bedroom housing.

The package also implements state mandates such as streamlined ministerial approval for certain small-lot subdivisions (implementing recent state bills) and changes to tentative map rules. On the downtown side, staff said the update adds incentives for rooftop community gardens, stronger protections for mature trees, and new pathways for temporary community-serving uses on private property.

The update proposes changes to administrative-citation and civil-penalty ranges, and also increases project and environmental appeal fees; staff said the higher appeal fees are intended to achieve full cost recovery but include a 50% reduction for projects located in low-resource census tracts. Councilmember Campillo noted community concerns about ability to pay and suggested returning fees when appellants prevail, a topic staff said was not before the council today.

Developers and industry groups largely supported the package. “This is a package that we are proud to support,” Amy Fawcett, president and CEO of the San Diego Building Industry Association, said in public comment. Proponents said the changes will help produce housing, revitalize downtown parcels and streamline approvals for small-scale infill.

Opponents and some community groups raised concerns about the fee increases, reductions in certain review levels for wireless facilities, and potential loss of noise protections if administrative discretion is expanded. The Downtown Community Planning Council urged the council to restore stronger noise enforcement, saying administrative overrides could erase protections for residents.

Council President Pro Tem Lee moved adoption of the citywide and downtown packages, and Councilmember Whitburn seconded. After council discussion about microunit DIF waivers, shared‑housing density bonuses, emergency shelter permitting and downtown incentives, the council approved the update as presented.