San Diego Reins in Controversial Bonus ADU Incentive
In early 2025, San Diego officials began reining in the controversial Bonus ADU incentive, a policy initially launched in 2020 that went well beyond California’s standard. Here's an in‑depth look:
What Was the Bonus ADU Program?
Allowed homeowners near transit to build multiple accessory dwelling units (ADUs) in addition to standard limits.
Homeowners adding income‑restricted ADUs could also add market‑rate ADUs—with no hard cap on total units, subject only to floor‑area ratio, transit proximity, and zoning.
By 2023, it was recognized as a national housing innovation, accounting for about 20 % of all new housing permits (1,907 ADUs vs. 4,500 new units)
Why the Pushback?
Local residents voiced strong concerns during city hearings:
Traffic, parking shortages, neighborhood character changes, and strain on infrastructure and fire‑safety.
Some homeowners built large backyard “granny‑flat complexes”—one in Encanto proposed up to 148 units; another in Clairemont built dozens.
NIMBY opposition emerged, especially in affluent or under‑resourced areas — many calling it “targeted at low‑density zones” and lacking proper community input.
What’s Changing (March–June 2025)
Council votes & directives:
March 4, 2025 – Council (6‑3) directed planning staff to eliminate bonus ADUs in eight single‑family zones with large lots (RS‑1‑1, RS‑1‑2, RS‑1‑3, RS‑1‑4, RS‑1‑8, RS‑1‑9, RS‑1‑10, RS‑1‑11); retained in zones RS‑1‑5, RS‑1‑6, RS‑1‑7.
Ordered revisions to include parking requirements, infrastructure fees, fire‑safety setbacks, story limits (2 stories), and lot size/floor‑area limits.
May 2025 – Planning Commission endorsed 24 reforms; LU&H Committee approved them May 15; scheduled for June 2 full Council vote.
Key changes under consideration:
Eliminate bonus ADUs in high‑fire‑hazard and cul‑de‑sac zones; impose off‑street parking if outside transit zones.
Cap number of ADUs per lot (pending exact limit).
Enforce deed‑restriction fines, developer impact fees, FAR setbacks, and two‑story caps.
Impact & Future Outlook
For Homeowners & Developers
Projects in eight zones may lose bonus eligibility—standard limit only.
In other eligible zones, stricter costs, design, and fire safety requirements now apply.
Bonus ADUs remain possible—but with caps on size and quantity.
For Housing Goals
ADUs still form an estimated 20% of building permits—supporting the housing supply .
But limiting the program may ease neighborhood disruption while reducing ADU volume and diversity.
The city still commits to other pro-density tools like density bonuses, Complete Communities, and affordable housing permits, aiming to balance growth and livability.
What to Watch Next
June 2 Council Vote – Will finalize the reforms package after Planning Commission and LU&H endorsement.
Summer/Fall 2025 – Timeline for full rollout, including fee schedules, parking formulas, and official ADU caps.
Lot‑by‑lot impact – Homeowners in retained zones can still build ADUs but need to monitor approval times, setbacks, and cost impact.
Conclusion
San Diego’s rollback of its aggressive Bonus ADU program marks a shift toward more controlled, neighborhood-sensitive housing growth. The city seeks to retain the ADU benefits—needed to ease the housing crisis—while addressing real-world challenges of parking, safety, aesthetics, and infrastructure strain. The next few months will clarify how homeowners, developers, and communities adapt to these changes.
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