The Evolution of the ADU Code in City of San Diego

By Sean Canning

As the Principal Architect at Ten Seventy Architecture, I've been on the front lines of San Diego's evolving approach to Accessory Dwelling Units (ADUs).

Our housing crisis continues to challenge residents and city planners alike, and ADUs have emerged as one potential solution to increase housing density within existing neighborhoods. Since their mainstream introduction in 2020, ADU regulations in San Diego have undergone significant changes that affect homeowners, developers, and architects like myself.

In this comprehensive analysis, I'll examine how San Diego's ADU code has evolved from its original 2020 version to the current 2025 regulations, highlighting key changes and their implications for housing development in our city.

Background: What Are ADUs and Why Do They Matter?

Accessory Dwelling Units, commonly known as ADUs, are secondary housing units located on residential properties that already have a primary dwelling. Often called granny flats, in-law suites, or casitas, these structures serve as independent living spaces with their own kitchen, bathroom, and entrance.

In my years of architectural practice, I've seen how ADUs represent a promising approach to addressing housing shortages in urban areas like San Diego, where available land for new development is increasingly scarce. By allowing homeowners to build additional units on their existing properties, ADUs can:

  • Increase housing supply without significant infrastructure changes
  • Provide rental income opportunities for homeowners
  • Create housing options for extended family members
  • Enhance property values
  • Contribute to more sustainable urban density

The City of San Diego initially embraced ADUs with regulations that went beyond state requirements, positioning itself as a leader in progressive housing solutions. However, as I'll explore in this analysis, recent changes to the code suggest a potential shift in the city's approach.

The Original Vision: San Diego's 2020 ADU Regulations

When San Diego first implemented comprehensive ADU regulations in November 2020, the city made several bold moves that demonstrated a strong commitment to housing development. As someone who was designing and building ADUs right from the start of these regulations, I witnessed firsthand how these initial rules created exciting opportunities:

Zero Setback Allowances

One of the most significant features of the 2020 code was the allowance for ADUs to be built with zero setbacks from side and rear property lines. This was more permissive than the state requirement of 4-foot setbacks and provided homeowners with maximum flexibility to utilize their available space.

Back in 2020 and probably through 2022, maybe even 2023, we were permitted in the City of San Diego to build ADUs and JADUs right up to the lot line. I've personally designed and built structures that sit just two inches from property lines, which allowed for maximizing the usable space on smaller lots.

Elimination of Parking Requirements

The 2020 regulations completely eliminated parking requirements for ADUs, removing what had historically been one of the biggest obstacles to building companion units (the predecessor to ADUs). In my previous work with companion units, I saw countless promising projects die on the vine simply because the parking requirements couldn't be met on the property.

Removal of Development Impact Fees

Development impact fees, which had previously been a major financial barrier to building companion units, were completely eliminated for ADUs in the 2020 regulations. These fees could add tens of thousands of dollars to a project, often making them financially unfeasible, especially for homeowners looking to add a small rental unit or space for family members.

No Owner-Occupancy Requirement for ADUs

While Junior Accessory Dwelling Units (JADUs) required owner occupancy on the premises, standard ADUs did not carry this restriction, allowing rental property owners to add units to their investment properties.

This opened up significant opportunities for increasing housing supply through investment properties.

Flexible JADU Placement

The original code allowed for Junior Accessory Dwelling Units (JADUs) to be constructed not only within the primary dwelling but also within an attached or detached garage or even within an ADU itself, creating unique design opportunities.

I've designed several creative solutions using this flexibility, including ADU/JADU combinations that provided homeowners with options for housing multiple generations or creating multiple income streams.

The Shifting Landscape: Key Changes in the 2025 Code

The current ADU regulations, as of February 2025, reveal significant changes that suggest a more restrictive approach to ADU development in San Diego. Let me walk you through the most important modifications I've observed:

1. Setback Requirements Reinstated

Perhaps the most substantial change is the reintroduction of setback requirements. The current code states:

  • One-story ADU structures with a height of 16 feet or less may still have zero-foot setbacks at interior side and rear yards
  • One-story ADUs exceeding 16 feet in height and multi-story ADUs must observe a 4-foot setback (or the minimum setback of the applicable base zone, whichever is less) if the property line abuts residentially zoned or developed premises

This change significantly impacts design possibilities, especially on smaller lots where every foot matters.

For 25-foot wide lots, if you have a four-foot setback on both sides, the interior of that building is going to end up being 16 feet wide, which makes it very challenging to add multiple bedrooms. This is because you typically need to run a hallway past one bedroom to access a second bedroom, and with such limited width, your bedrooms end up extremely small.

2. Return of Development Impact Fees

The new code reintroduces development impact fees after the first or second ADU (depending on whether the property is in single-family or multi-family zoning). While these fees are now applied on a scaled basis rather than as flat fees, they still represent a financial obstacle to maximizing housing development.

As someone who has helped clients analyze the financial feasibility of ADU projects, I can tell you that these impact fees often make the difference between a project penciling out or not.

The claim that these fees pay for services already covered by property taxes is particularly frustrating. If the city is serious about addressing the housing crisis, eliminating development fees would be the first step - not reintroducing them.

3. Changes to Transit Priority Areas

The code has shifted from using "Transit Priority Areas" (defined as areas within one mile as the crow flies from major transit) to "Sustainable Development Areas" (defined as areas within a half-mile walking distance of mass transit).

Interestingly, this change actually resulted in approximately a 25% net gain in eligible properties, making this one of the few changes that potentially supports increased housing development. This was a sensible adjustment, as the previous "as the crow flies" measurement didn't account for physical barriers like canyons that might make transit effectively inaccessible despite appearing close on a map.

4. Limitations on JADU Placement

The 2025 code restricts JADUs to being built only within a single dwelling unit or an attached garage, eliminating the previous option to place them within an ADU. This removes a design solution that had allowed for larger combined structures. I've designed several projects utilizing the previous flexibility, including a 1,200 square foot ADU with an attached 500 square foot JADU, creating a 1,700 square foot structure that provided excellent housing options. This creative approach is no longer possible under the current code.

5. Front Yard ADU Allowance

One positive change in the current code is the explicit permission to build ADUs in front yards, which was not allowed in the 2020 regulations. This opens up possibilities for properties with limited backyard space and can potentially reduce costs by placing units closer to existing utility connections. In my practice, I've found this to be particularly valuable for properties where the backyard space is limited or where topography makes backyard construction challenging.

6. Clarifications and Technical Adjustments

The current code includes numerous clarifications and technical adjustments that affect how we design and permit ADUs:

  • Better definitions of single dwelling unit zones and multiple dwelling unit zones, which has helped eliminate confusion I encountered in early ADU projects
  • Clarification that converting a garage to an ADU doesn't require replacement parking (except in specific overlay zones)
  • Explicit statement that ADU construction doesn't require correction of previously conforming conditions on the premises - though in my experience, the building department doesn't always honor this provision
  • Clarification that ADUs converted from existing structures are not subject to the 1,200 square foot size limitation - a valuable loophole for properties with larger existing structures

The Contentious ADU Bonus Program

One of the most significant ongoing discussions revolves around the ADU Bonus Program, which allows for additional ADUs beyond the base allowance when certain affordability requirements are met.

In the original 2020 code, the program stated:"One additional ADU shall be permitted for every ADU on the premises that is set aside as affordable to very low income, low income, and moderate income persons or families for a period of not less than 15 years."

The 2025 code maintains this program but modifies it to allow for either a 10-year or 15-year affordability period. This is one positive change, offering more flexibility to property owners.

However, I've been following the recent city council meetings where this program has come under intense scrutiny and may face significant changes or potential elimination. In my professional opinion, if the city is truly serious about adding housing, they should be serious about preserving the ADU bonus program.

I've worked with several clients who were able to create multiple housing units through this program, adding much-needed housing stock to San Diego. While some adjustments might be reasonable (nothing stays version 1.0 forever), eliminating the program entirely would be a significant step backward in addressing our housing crisis.

One aspect of the program that I find puzzling is the tiered income level requirements. The code offers options for very low income, low income, and moderate income designations - but there's no practical reason anyone would choose the more restrictive very low income option when moderate income provides the same bonus with more flexibility. This is one area where the code could use some clarification and refinement.

Practical Implications and Recommendations

These regulatory changes have real-world implications for property owners considering ADU development. Based on my experience designing numerous ADUs under both the old and new regulations, I'd like to offer some practical recommendations:

For Small Lot Owners:

  • Consider utilizing the new front yard ADU allowance, especially if utility connections are more accessible from the front. This can significantly reduce your construction costs since water, sewer, and electrical connections are typically closer to the street.
  • Take advantage of the clarification allowing 3-foot setbacks in zones where the base requirement is 3 feet. This is particularly important for those 25-foot wide lots where every foot of building width makes a difference.
  • Be aware that design options are more limited now for multi-story ADUs due to setback requirements. If you're considering a two-story ADU, we'll need to be more strategic about the layout.

To Avoid Unnecessary Expenses:

  • If proposing a zero-parking condition with an existing curb cut, I strongly recommend trying to accommodate at least one parking space. This will help you avoid the substantial costs (potentially $20,000+) of removing the curb cut, which requires a right-of-way permit, detailed plans, and hiring a Class A contractor.
  • Be strategic about ADU size and quantity to minimize development impact fees. Often the first ADU has no impact fees, but additional units will trigger scaled fees.
  • Understand that the 150 square feet allowance for "ingress and egress" is now being interpreted very narrowly by the city. Despite the code mentioning both ingress and egress, plan checkers are currently only allowing this additional space for entrances, not for egress windows.

For Design Flexibility:

  • Remember that ADUs converted from existing structures are not subject to the 1,200 square foot limitation. If you have a large garage or accessory structure, you can potentially convert it to a larger ADU.
  • Consider one-story designs under 16 feet in height to maintain zero setback options, which can maximize your buildable area.
  • Explore the ADU Bonus Program while it still exists, opting for the "moderate income" designation which provides the most flexibility. Why choose very low or low income when moderate income is an option with fewer restrictions?

The Big Picture: Is San Diego Pro-Housing?

After comparing the 2020 and 2025 codes and drawing on my 15 years of experience navigating San Diego's building department, I've reached a sobering conclusion about our city's housing policy direction:

I do not believe the City of San Diego is truly pro-housing based on the way the ADU regulations have slid in comparison to the way they were originally set up. While the city's leadership may use pro-housing rhetoric, the regulatory changes tell a different story.

Several factors support this assessment:

  1. The reintroduction of setback requirements that limit design options
  2. The return of development impact fees for additional ADUs
  3. The potential scaling back of the ADU Bonus Program
  4. The continued complexity and delays in the permitting process
  5. The increase in permit processing times from 2-3 months to 6-8 months, even after what the city calls "streamlining" efforts

In my professional experience, the building department continues to throw obstacles at these projects and add fees at various stages of development. When the city "streamlined" the permitting process by moving from paper to digital submissions, permit times actually increased substantially, yet they considered this a success. I guess we have different definitions of what constitutes "streamlined."

Navigating the Current Landscape

Despite the increasingly restrictive regulatory environment, ADUs remain a viable and potentially valuable addition to many properties in San Diego. Having guided dozens of clients through this evolving process, I can tell you that successful navigation of the current code requires:

  1. Expert guidance - The growing complexity of the regulations makes professional architectural assistance more valuable than ever. Many of my clients come to me after attempting to navigate the process themselves and encountering roadblocks that could have been avoided.
  2. Strategic planning - I help my clients carefully consider lot configuration, existing structures, and neighborhood context to maximize opportunities. Sometimes small adjustments to a design can make the difference between a project that flies through permitting and one that gets bogged down in reviews.
  3. Realistic expectations - I always prepare my clients to understand that the permitting process may be lengthy and potentially frustrating. When the city claims to have "streamlined" the process but permit times have actually increased from 2-3 months to 6-8 months, it's important to set proper expectations.
  4. Budget considerations - We account for potential impact fees and other costs that weren't present in earlier iterations of the code. I've seen too many projects stall halfway through because owners weren't prepared for expenses like curb cut removals or scaled impact fees for additional units.

Conclusion

The evolution of San Diego's ADU regulations from 2020 to 2025 tells a story of initial bold commitment to housing development that has gradually been tempered by various interests and considerations. While some positive changes have emerged, such as the front yard allowance and transit area redefinition, the overall trajectory appears to be toward a more restrictive approach.

For property owners, developers, and housing advocates, understanding these changes is essential for navigating the current landscape and potentially advocating for future improvements. As our housing crisis continues, the effectiveness of ADU regulations will remain a critical component of San Diego's housing policy discussion.

At Ten Seventy Architecture, we specialize in modern and minimalist residential design, including ADUs. We've maintained our expertise through these regulatory changes and offer services ranging from complete design and permitting to consultation on existing plans. Many of my clients come to me thinking that building an ADU will be an easy, streamlined process, and I help them navigate the complex reality while still achieving their goals.

If you're considering an ADU project or have questions about how these regulatory changes might affect your property, I'm here to help. You can schedule a design consultation with me to discuss your ADU project or email me directly at sean@1070architecture.com. We can assist you at any stage of the process, whether you're just starting to consider an ADU or you're already in the permitting phase and encountering obstacles.

FAQ About San Diego ADU Regulations

From my experience working with numerous clients on ADU projects, here are answers to the most common questions I receive:

Q: Can I still build an ADU on my property in San Diego?A: Yes, ADUs are still permitted in all zones allowing residential use. Most single-family properties can build at least one ADU and possibly more depending on the zone and lot configuration. The regulations may have become more restrictive, but the fundamental opportunity remains.

Q: Do I need to provide parking for my ADU?A: Generally, no parking is required for ADUs in San Diego. However, if you're converting a garage to an ADU in specific overlay zones (beach impact area of parking impact overlay zone and outside the transit priority area), you may need to replace those parking spaces. As I mentioned earlier, if you have an existing curb cut, try to maintain at least one parking space to avoid expensive removal costs.

Q: How close to my property line can I build my ADU?A: For one-story ADUs under 16 feet in height, you can still build with zero setbacks on side and rear property lines. For taller or multi-story ADUs, a 4-foot setback (or the minimum setback of your zone, whichever is less) is required when the property line abuts residential properties. Remember that even with a "zero" setback, you'll typically want at least 2 inches to account for building sway.

Q: Can I build an ADU in my front yard?A: Yes, the 2025 code explicitly allows for ADUs in front yards, which was not permitted in the 2020 regulations. This can be advantageous for properties with limited backyard space or for easier access to utilities, which are typically located toward the front of the property.

Q: Is there a size limit for ADUs in San Diego?A: Standard newly constructed ADUs are limited to 1,200 square feet. However, ADUs converted from existing structures (like a garage) can exceed this limit if the existing structure is larger. This is an important loophole that many homeowners don't realize exists.

Q: Do I have to live on the property if I build an ADU?A: For standard ADUs, there is no owner-occupancy requirement. For Junior ADUs (JADUs), the 2020 code required owner occupancy, but this appears to have been removed in the 2025 regulations, which is a positive change for investment properties.

Q: What is the ADU Bonus Program?A: This program allows property owners to build additional ADUs beyond the base allowance if they designate certain units as affordable housing for a period of 10-15 years. The program is currently under review and may change. If you're interested in this program, I recommend moving forward sooner rather than later, as its future is uncertain.

Q: How long does it take to get permits for an ADU in San Diego?A: In my experience, permit times have increased from 2-3 months to 6-8 months in recent years, despite the city's "streamlining" efforts. Plan for this extended timeline when budgeting and scheduling your project.

Q: Can I build multiple ADUs on my property?A: The base allowance is typically one ADU for single-family zoned properties, but multiple ADUs may be permitted through the ADU Bonus Program or in multi-family zones. The specific number allowed depends on various factors including zone, lot size, and existing structures. This is where working with an experienced architect can really help maximize your property's potential.

Q: Do I need to pay impact fees for my ADU?A: For your first ADU (or first two in multi-family zones), impact fees are waived. Additional ADUs will be subject to scaled impact fees. These fees can be substantial, so factor them into your budget if you're planning multiple units.

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