San Diego reins in controversial bonus ADU incentive

The San Diego City Council voted 5-4 Monday to implement stricter regulations on accessory dwelling units, capping the number of backyard apartments that can be built on single-family lots.

The decision addresses concerns over developers exploiting loopholes in the city's ADU incentive program, which had allowed construction of dozens of units on relatively small residential lots.

ADUs are secondary housing units built on single-family properties, often in backyards, and have become a key tool for addressing California's housing shortage.

The new restrictions require developers to pay infrastructure fees, mandate parking spaces for ADUs not located near public transit, and establish minimum setbacks from property lines.

Additional changes limit ADUs to two stories with a maximum size of 1,200 square feet, prohibit construction on cul-de-sacs in high wildfire risk areas, and allow the units to be sold rather than just rented.

State housing officials had warned that rolling back the program could jeopardize San Diego's status as a pro-housing city and potentially violate state housing laws.

However, city officials expressed confidence that the modifications maintain compliance while preventing excessive development on individual lots.

The changes represent a significant shift for property owners and developers who had previously operated under San Diego's more permissive ADU policies, considered among the most aggressive in California.