The San Diego City Council rejected Mayor Todd Gloria’s package of incentives for new housing development in a heated, five-hour public meeting on Monday night.
Gloria’s Housing Action Package 2.0 sought to spur more housing for homeless individuals, college students and middle-income residents.
The plan drew controversy because it would allow developers to build market-rate and required affordable housing in different areas, potentially reinforcing existing patterns of low-income housing.
Councilmember Monica Montgomery Steppe said she couldn’t vote for the package unless affordable housing was built alongside market-rate units to ensure “true integration” in communities.
The package also drew criticism from residents of single-family neighborhoods who oppose higher-density development.
Gloria’s plan also included incentives for building new single-room-occupancy hotels, which would cater to homeless individuals, and convert underutilized commercial sites and public land for new housing.
City officials expect a revised version of the housing package to return to the council next year with revisions.