February 21, 2025

The San Diego City Council recently voted to initiate a review of the City’s highly successful ADU Density Bonus Program. The program allows additional ADUs to be built on a property after the owner has maximized the number allowed by-right, provided that half of the total number of ADUs are deed restricted as affordable for very-low-, low-, or moderate-income households. The program has been lauded by the State of California as an incredibly successful way to boost housing supply without the use of taxpayer funding. It provided 239 housing units between 2021-2023, 116 of which are deed-restricted as affordable.

Unfortunately, during a recent hearing the City Council directed City staff to review the entire program due to concerns regarding community character and come back to Council for further discussion. Council may consider modifying or even discontinuing it. This would be a blow to the San Diego region’s recent progress on increasing housing supply. A lack of housing continues to be one of the top issues preventing San Diego employers from attracting and retaining talent. The Chamber signed onto a coalition letter urging the Council to preserve the program and is engaging with other stakeholders as the City begins its review of the program. Additionally, Chamber staff is beginning to engage with councilmembers and their offices to educate them regarding potential ramifications of modifying or repealing the program, and why keeping this tool is critically important for San Diego’s housing supply.