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San Diego’s approach to accessory dwelling units (ADUs) is undergoing a major shift. This year brought proposed cuts to the ADU Bonus Program, scrutiny from state housing officials, and a series of ordinance changes still moving through council and mayoral review. Here’s what’s changing, what’s still pending, and why it matters if you own property, or plan to, in San Diego.
California state law gives property owners the right to build one ADU of up to 800 square feet on most residential lots, no matter what local zoning says. These rules are clearly laid out in the California Department of Housing and Community Development (HCD) ADU Handbook.
San Diego has built on these rules with additional programs and incentives. The city’s Development Services Department offers permit guidance, fee waivers for qualifying projects, and the ADU Standard Plan Program, a library of pre-approved designs meant to speed approvals and reduce design costs.
Launched in 2020, San Diego’s ADU Bonus Program allowed homeowners to build more ADUs than state law required, if at least one unit was deed-restricted as affordable housing. The policy helped power a surge in backyard housing. By 2023, nearly one in five new homes permitted in San Diego was an ADU, according to the Terner Center for Housing Innovation at UC Berkeley.
That picture began to change in mid-2025. On June 16, the City Council voted 5–4 to cap ADUs per lot:
The council also restricted the program in certain low-density zones, added fire-safety and parking measures, and blocked ADUs in certain cul-de-sacs.
After the June vote, the second reading of the ordinance (a required step for final approval) was delayed twice. In mid-July, HCD sent a letter warning that parts of the rollback might conflict with state housing laws and could jeopardize San Diego’s “Prohousing” designation, a status that makes the city eligible for certain housing grants and incentives.
The ordinance ultimately appeared on the City Council’s July 22 consent calendar, a list of items typically approved without debate unless pulled for discussion. That day, it passed in a 5–1 vote (with three councilmembers absent).
Once signed by the mayor, the new ordinance will take effect 30 days later. Key takeaways for homeowners:
Importantly, California’s statewide baseline remains intact. Even without bonus incentives, state law still guarantees at least one ADU, and often a junior ADU, per property, with streamlined approval if the project meets objective standards.
The city’s ADU Standard Plan Program still offers a way to cut design costs and shorten review times. Fee waivers remain available for certain qualifying projects, and permit staff continue to provide one-on-one guidance.
For homeowners planning a project now, the biggest shift will be in how many units you can add under the Bonus Program, not whether you can build an ADU at all.
How to Prepare If You’re Planning an ADU
San Diego’s changes reflect a larger balancing act happening in cities across California: encouraging ADU development to address the housing shortage while responding to infrastructure, safety, and neighborhood concerns. With ADUs representing a significant share of new housing locally, these tweaks could influence both the pace and type of backyard construction in the years ahead.
For homeowners, the takeaway is simple: ADUs are still very much allowed and encouraged, but the generous multi-unit bonuses that fueled rapid growth are being scaled back. If you’re ready to build, stay informed, move strategically, and use the city’s tools to keep your project on track.
Quick Tip: Even in the idea stage, it’s smart to flag potential zoning, utility, or fire access issues early, saving you time and costly redesigns later.
Looking for more ADU news? Continue exploring in-depth articles on California accessory dwelling unit laws, policy updates, and development trends.
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