Housing officials warn San Diego's ADU reforms may violate state law

California housing officials have warned San Diego that proposed reforms to the city's accessory dwelling unit bonus program may violate state housing laws, threatening significant consequences if the changes move forward.

The California Housing and Community Development Department sent a letter to San Diego's planning director raising concerns about new parking requirements, yard setbacks, fair housing compliance, and historic district restrictions.

The state agency threatened to revoke San Diego's "prohousing" designation and potentially find the city in violation of state housing laws, which could result in loss of state funding and suspension of local zoning authority.

The dispute centers around San Diego's ADU bonus program, which provides incentives for property owners to build accessory dwelling units on their lots.

ADUs are secondary housing units built on the same property as a primary residence, such as converted garages, basement apartments, or standalone backyard cottages.

California has aggressively promoted ADU development as a strategy to address the state's housing shortage by adding density to existing neighborhoods.

San Diego's program has generated hundreds of new housing units in single-family neighborhoods, but has faced pushback from homeowners concerned about neighborhood character changes.

The City Council is scheduled to vote on the proposed reforms Monday, with state officials requesting a response by July 11 regarding how the city plans to address their concerns.