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Affordable units in new housing (inclusionary) in Carlsbad

Developments of 7 or more units must restrict at least 15% of the total units to lower-income households.

Key points

  • Affordable units: Developments of 7 or more units must restrict at least 15% of the total units to lower-income households.

Each rule below links to the section of the Carlsbad Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Carlsbad's code says

Carlsbad code What Carlsbad's code adds
How long units stay affordable
  • Affordable for 55 years.
    Applies: Inclusionary rental units.
    § 21.85.040 · code text
    Inclusionary rental units shall remain restricted and affordable to the designated income group for 55 years.
  • Affordable for 30 years.
    Applies: Inclusionary ownership units subject to a resale restriction.
    § 21.85.040 · code text
    inclusionary ownership units shall remain affordable to subsequent income eligible buyers pursuant to a resale restriction with a term of 30 years
Exemptions
  • Altering, improving, restoring, repairing, expanding or extending existing residences is exempt if units do not increase.
    Applies: Exception: subdivision of land to convert apartments to condominiums.
    § 21.85.030 · code text
    Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums;
  • Conversion of a mobile home park under the referenced section is exempt.
    § 21.85.030 · code text
    Conversion of a mobile home park pursuant to Section 21.37.120 of the code;
  • Replacing a structure destroyed or demolished within 2 years before building permit application is exempt if units do not increase.
    § 21.85.030 · code text
    The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two years prior to the application for a building permit for the new residential structure, provided that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished residential structure;
  • Any accessory residential unit is exempt.
    § 21.85.030 · code text
    Any residential unit which is accessory as defined in Section 21.04.020 of this code;
  • Accessory dwelling units not built to fulfill inclusionary housing requirements, and developed under the code's ADU section, are exempt.
    § 21.85.030 · code text
    Accessory dwelling units not constructed to fulfill inclusionary housing requirements and developed in accordance with Section 21.10.030 of this code;
Fee instead of units
  • 15% of the subsidy needed to make one newly constructed, typical attached-housing unit affordable to a lower-income household.
    Applies: Qualifying residential development or development revision of fewer than 7 units.
    § 21.85.110 · code text
    The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen percent of the subsidy needed to make affordable to a lower-income household one newly constructed, typical attached-housing unit.
  • A schedule adopted from time to time by City Council resolution.
    Applies: Dollar amount and method of payment.
    § 21.85.110 · code text
    The dollar amount and method of payment of the in-lieu fees shall be fixed by a schedule adopted, from time to time, by resolution of the City Council.
Projects it applies to
  • 7 or more units.
    § 21.85.030 · code text
    For any residential development or development revision of seven or more units as set forth in subsection A, not less than fifteen percent of the total units approved shall be constructed and restricted both as to occupancy and affordability to lower-income households.
Share of affordable units
  • At least 15% of the total units, restricted to lower-income households.
    Applies: Residential development or development revision of 7 or more units.
    § 21.85.030 · code text
    For any residential development or development revision of seven or more units as set forth in subsection A, not less than fifteen percent of the total units approved shall be constructed and restricted both as to occupancy and affordability to lower-income households.

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Does Carlsbad require affordable units in new housing?

Developments of 7 or more units must restrict at least 15% of the total units to lower-income households.

General information, not legal advice.

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