Does SB 543's 15-day completeness rule apply if my ADU application is actually incomplete?

Yes. SB 543 requires the city to determine completeness within 15 days regardless of whether the application is actually complete. If incomplete, the city must provide a written list of missing items within 15 days. You then resubmit only those items, and the city reviews only what they previously identified—they cannot raise new incompleteness issues. If the city fails to respond within 15 days on either the initial submission or resubmittal, your application is deemed complete by operation of law.

Can I use AB 712 to sue San Diego if they miss the AB 1308 10-day final inspection deadline?

Yes. AB 1308 explicitly makes violations of the 10-day inspection deadline violations of the Housing Accountability Act. AB 712 allows developers to sue agencies for violating any 'housing reform law' and recover attorney fees. However, to trigger the $10,000-per-unit penalty under AB 712, the Attorney General or HCD must have previously warned San Diego about similar violations, and the city must have failed to correct within 60 days. Even without the penalty, you can sue to compel the inspection and recover your legal costs.

When will San Diego's AB 920 online permit portal be available?

San Diego must implement the online portal by January 1, 2028, or begin formal procurement by that date to qualify for a two-year extension to 2030. To delay until 2030, the city council must make written findings that implementing by 2028 would substantially increase permitting fees. The city has not yet publicly announced which timeline it will pursue. Builders should monitor city council agendas throughout 2026-2027 for AB 920 implementation discussions.

Does AB 1050 allow me to eliminate restrictive covenants on any commercial property?

AB 1050 allows elimination of covenants that prohibit or restrict residential use, but only if your proposed housing project complies with all state housing laws and local zoning regulations. You cannot use AB 1050 to override zoning restrictions—only to eliminate private covenant restrictions on properties already zoned for residential use. The process involves filing a Restrictive Covenant Modification Document with the county recorder, who forwards it to county counsel for approval within 15 days. Covenant beneficiaries have only 35 days to challenge the modification in court.

How do I combine SB 543 and AB 1308 to accelerate my Pacific Beach ADU from permit to occupancy?

The combined strategy: (1) Submit a complete ADU application with all required documents. (2) SB 543 forces completeness determination within 15 days. (3) Once deemed complete, AB 462 requires coastal CDP approval within 60 days (total 75 days from submission). (4) Complete construction. (5) Request final inspection, triggering AB 1308's 10-day completion requirement. (6) Receive certificate of occupancy. Total timeline: approximately 18 weeks (4.5 months) versus the previous 35-40 weeks (8-10 months)—a time savings of 17-22 weeks.

Do these laws apply in the Coastal Zone or does the Coastal Commission override them?

SB 543's 15-day completeness rule and AB 1308's 10-day inspection deadline apply statewide, including the coastal zone—neither statute contains coastal exemptions. However, coastal ADUs still require Coastal Development Permits under AB 462 (which mandates 60-day CDP approval). The California Coastal Commission's authority focuses on regional coastal policy, not individual ADU project appeals (AB 462 eliminated CDP appeals for ADUs). SB 1077, effective July 1, 2026, directs the Commission to develop further ADU streamlining guidance for coastal zones.

What is the $10,000 per unit penalty under AB 712 and when does it apply?

AB 712 imposes a $10,000 fine per housing unit (minimum $50,000 for projects with 1-4 units) when three conditions are met: (1) The California Attorney General or HCD sends the local agency written warning that their action violates housing law, (2) the agency fails to correct the violation within 60 days, and (3) you prevail in litigation against the agency. If the agency violates the same statute multiple times within the same housing element cycle, the court must multiply the fine by five—reaching $50,000 per unit. The penalty is paid by the agency, not awarded to the developer.

How much faster will ADU permits be processed under SB 543 in Pacific Beach?

Before SB 543, cities could take 6-8 weeks to determine application completeness before starting the 60-day review clock. SB 543 compresses this to 15 business days (3 weeks). Combined with AB 462's 60-day coastal CDP requirement, total approval time drops from 14-16 weeks to approximately 11 weeks—a time savings of 3-5 weeks on the front end. When combined with AB 1308's 10-day final inspection requirement (saving 2-4 weeks on the back end), total ADU project timelines compress by 5-9 weeks (35-60 days).

What happens if San Diego delays the AB 920 online portal until 2030?

If San Diego delays until 2030, builders continue using the current in-person submittal process at the Development Services Center through 2029. However, the delay requires city council findings that 2028 implementation would substantially increase permitting fees, and procurement must begin by January 1, 2028. Builders can advocate for 2028 implementation through public comment at city council meetings, emphasizing that digital portals reduce long-term processing costs and improve transparency. The delay does not affect SB 543, AB 1308, or AB 712 requirements—those remain fully enforceable regardless of portal availability.

California's 2026 Housing Laws: How SB 543, AB 1308, and AB 712 Accelerate ADU Timelines for Pacific Beach Builders

Q: Can I recover attorney fees if I sue the city under AB 712?

Yes. AB 712 requires courts to award reasonable attorney fees to developers who successfully sue agencies to enforce any 'housing reform law,' defined broadly to include the Housing Accountability Act, SB 330, density bonus law, SB 79, and streamlining statutes like SB 35 and AB 2011. This includes violations of SB 543's 15-day completeness rule and AB 1308's 10-day inspection deadline. Previously, developers rarely sued due to litigation costs; AB 712's mandatory fee recovery makes enforcement economically viable.

On January 1, 2026, five transformative housing laws took effect across California, fundamentally reshaping how builders in Pacific Beach, La Jolla, and Mission Beach navigate the permit process. For the first time, local agencies face strict 15-day deadlines to review ADU applications, 10-day final inspection requirements, and enforceable penalties of $10,000 per unit for violations. Combined, these laws compress ADU timelines from 8-10 months to as little as 4-5 months while giving coastal builders powerful enforcement tools against city delays.

This comprehensive guide examines all five laws—SB 543 (ADU processing), AB 920 (online portals), AB 1308 (inspection timelines), AB 1050 (restrictive covenants), and AB 712 (developer enforcement)—with specific focus on how Pacific Beach builders can leverage these statutes to accelerate projects and hold San Diego Development Services accountable.

SB 543: The 15-Day Completeness Determination Revolution

Before January 1, 2026, California's ADU law required cities to approve or deny applications within 60 days—but only after deeming the application complete. State law was entirely silent on how long cities could take to make that completeness determination, creating a loophole that delayed projects for months. San Diego's average ADU permit timeline was 3-5 months, but that didn't include the pre-review limbo period.

SB 543, authored by Senator Jerry McNerney and signed October 10, 2025, closes this loophole permanently. The law requires local agencies to determine application completeness within 15 business days of receipt. If the city misses this deadline, the application is automatically deemed complete, and the 60-day approval clock starts immediately.

How SB 543 Works in Practice

When you submit an ADU application to San Diego Development Services after January 1, 2026, the city has exactly 15 business days to either (1) confirm the application is complete and start the 60-day review period, or (2) provide a written list of missing items preventing completeness. Critically, when you resubmit, the city can only review the specific items they previously identified as incomplete—not introduce new requirements.

For Pacific Beach coastal zone projects, SB 543 pairs perfectly with AB 462 (which took effect October 15, 2025, mandating 60-day Coastal Development Permit approvals for ADUs). The combined effect: submit your complete application, receive confirmation within 15 days, and receive your coastal ADU permit within 60 days—a total predictable timeline of 75 days from submission to approval.

Pacific Beach Builder Advantage

The 15-day rule eliminates the most frustrating aspect of coastal ADU development: indefinite "your application needs more information" delays that previously stretched for 6-8 weeks before the real review even began. Now, if San Diego Development Services fails to respond within 15 days, your application is deemed complete by operation of law. SB 543 also provides ADU applicants a statutory right to appeal incompleteness determinations to the planning commission or city council, adding an extra layer of accountability.

AB 1308: 10-Day Final Inspection Deadline Accelerates Project Closeout

While SB 543 accelerates the front end of the ADU process, AB 1308 (authored by Assembly Member Josh Hoover, signed October 10, 2025) revolutionizes the back end. AB 1308 requires building departments to complete final inspections within 10 business days after being notified that permitted construction is finished.

Applicable Projects

The law applies to:

New residential projects with 10 or fewer units and no taller than 40 feet
Additions to existing residential buildings with nine or fewer units, where the addition contains 10 or fewer units

This covers virtually every ADU, single-family remodel, and small multi-unit project in Pacific Beach, La Jolla, and Mission Beach. The 40-foot height limit encompasses standard two-story construction common in coastal neighborhoods.

Enforcement Mechanism

Here's what makes AB 1308 powerful: violations of the 10-day deadline constitute violations of the Housing Accountability Act (HAA). This means if San Diego misses your final inspection deadline, you now have grounds to pursue legal action under AB 712's enforcement provisions (detailed below), including attorney fee recovery and per-unit penalties.

Real Timeline Impact

Before AB 1308, final inspection delays of 3-6 weeks were common in San Diego, particularly during peak construction seasons. For builders, this meant:

Extended general contractor overhead costs
Delayed certificate of occupancy
Postponed rental income or homeowner move-in
Continued construction loan interest payments

The 10-day requirement compresses this critical path item by 66-83%, accelerating project closeout and cash flow by 2-4 weeks per project. For a Pacific Beach builder completing 12 ADUs annually, AB 1308 saves 24-48 weeks of cumulative project duration—equivalent to one full additional project per year.

AB 920: San Diego's Digital Transformation Coming 2028

While SB 543 and AB 1308 address timeline bottlenecks, AB 920 tackles process modernization. The law requires cities and counties with populations exceeding 150,000 to establish centralized online housing application portals enabling digital submission and real-time status tracking.

San Diego Implementation Timeline

San Diego, with a population of 1.4 million, must implement AB 920's online portal by January 1, 2028—or begin a formal procurement process by that date to qualify for a two-year extension to 2030. To delay until 2030, the city council must make written findings that implementing by 2028 would require substantial permitting fee increases.

What the Portal Will Include

AB 920 mandates that portals allow:

Online submission of all application materials (plans, environmental documents, supporting studies)
Real-time tracking of application status and assigned reviewer
Digital communication between applicant and city staff
Automated routing to appropriate departments (Planning, Building, Fire, Utilities)

This replaces the current system requiring in-person visits to the Development Services Center at 1222 First Avenue, physical plan check submittals, and phone calls to track application status.

Strategic Implications for Builders

Pacific Beach builders should begin digitizing standard submittal packages now—CAD files, geotechnical reports, drainage studies, coastal impact assessments—to be portal-ready when San Diego launches the system. The transition period will likely see processing delays as staff adapt to new software, making early 2028 a potentially slower period. Projects with hard deadlines should aim for Q4 2027 submission or wait until Q3 2028 after the portal stabilizes.

AB 1050: Unlocking La Jolla's Commercial-to-Residential Conversion Potential

AB 1050, signed October 10, 2025, dramatically expands the ability to eliminate restrictive covenants that prohibit converting commercial buildings to residential use. The law amends California Civil Code Section 714.6, previously limited to 100% affordable housing projects, to now cover any housing development complying with state laws and local zoning.

La Jolla Historic District Applications

Many commercial buildings in La Jolla Village contain deed restrictions from the 1960s-1980s prohibiting residential conversion. These covenants were designed to preserve commercial tax base but now block adaptive reuse projects. AB 1050 provides a statutory pathway to eliminate these restrictions via a Restrictive Covenant Modification Document (RCMD) filed with the county recorder.

The Process

Identify target property with restrictive covenant prohibiting residential use (revealed in title report)
Prepare RCMD demonstrating compliance with zoning and housing laws
Submit to San Diego County Recorder
Recorder forwards to County Counsel within 5 business days
County Counsel approves or rejects within 15 days
Once recorded, covenant becomes unenforceable

Notice to covenant beneficiaries triggers an extremely short 35-day statute of limitations to challenge the modification—significantly reducing legal risk compared to traditional covenant removal litigation.

Case Study Context

The December 2025 approval of the Sarah Beckwith House conversion at 836 Prospect Street demonstrated market demand for commercial-to-residential adaptive reuse in La Jolla. AB 1050 removes one of the primary legal barriers to replicating this model across similar historic properties.

AB 712: Enforcement Tools That Give Builders Real Power

The most transformative 2026 housing law may be AB 712 (authored by Assembly Member Buffy Wicks, signed October 10, 2025), which fundamentally shifts the power dynamic between builders and non-compliant agencies. AB 712 provides three enforcement mechanisms: mandatory attorney fee recovery, substantial financial penalties, and indemnification prohibition.

1. Attorney Fee Recovery

Previously, housing applicants struggled to justify the legal cost of enforcing housing laws—the economics rarely made sense for individual projects. AB 712 requires courts to award reasonable attorney fees to developers who successfully sue agencies for violating any "housing reform law," defined broadly to include the Housing Accountability Act, SB 330, density bonus law, SB 79, and streamlining statutes like SB 35 and AB 2011.

This makes enforcement economically viable. If San Diego violates SB 543's 15-day completeness rule or AB 1308's 10-day inspection deadline, you can now sue and recover your legal costs—removing the financial barrier to holding the city accountable.

2. $10,000 Per Unit Penalties

AB 712 imposes $10,000 fines per housing unit (minimum $50,000 for projects with 1-4 units) when agencies violate housing laws after specific conditions are met:

The California Attorney General or HCD sends the agency written warning of a housing law violation
The agency fails to correct the violation within 60 days
The applicant prevails in subsequent litigation

If the agency violates the same statute multiple times within the same housing element cycle, courts must multiply the fine by five—potentially reaching $50,000 per unit for repeat offenders.

3. Indemnification Prohibition

Some cities previously required housing applicants to sign indemnification agreements, forcing developers to pay the city's legal defense costs if third parties sued to challenge project approvals. AB 712 explicitly prohibits agencies from requiring indemnification when the developer is suing to enforce housing reform laws, eliminating this economic deterrent.

San Diego Context: June 2025 HCD Warning

AB 712's penalty provisions became immediately relevant in San Diego. On June 13, 2025, HCD sent a sternly worded letter to San Diego Planning Director Heidi VonBlum warning that proposed ADU ordinance amendments could violate state housing laws and threaten the city's "prohousing" designation. The letter warned potential loss of state funding and HCD findings of violation.

Under AB 712, if San Diego had proceeded with the ordinance changes despite HCD's warning, failed to correct within 60 days, and a developer prevailed in litigation, the city would face mandatory $10,000-per-unit fines plus attorney fee awards. This enforcement mechanism gives builders leverage beyond individual project disputes—HCD warnings create citywide penalty exposure that affects all housing applicants.

Combined Impact: ADU Timeline Compression Case Study

How do these five laws work together in practice? Consider a typical Pacific Beach coastal zone ADU project:

Pre-2026 Timeline (8-10 months)

Weeks 1-6: Application submitted; city takes 6 weeks to review for completeness
Weeks 7-16: Application deemed complete; 60-day coastal CDP review begins
Weeks 17-28: Construction (foundation, framing, MEP, finishes)
Weeks 29-34: Final inspection scheduling and completion (3-6 week delay)
Week 35: Certificate of occupancy issued
Total: 35-40 weeks (8-10 months)

Post-2026 Timeline (4-5 months)

Week 1: Submit complete ADU application
Week 3: SB 543 forces completeness determination within 15 days; AB 462 starts 60-day coastal approval clock
Week 11: Coastal Development Permit approved within 60 days
Weeks 12-16: Construction (same 12-week build schedule)
Week 17: Request final inspection
Week 18: AB 1308 mandates completion within 10 business days; certificate of occupancy issued
Total: 18 weeks (4.5 months)

Time saved: 17-22 weeks (4-5.5 months)—a 54% timeline reduction

Enforcement Backstop

If San Diego misses any deadline in the post-2026 timeline, AB 712 provides enforcement tools:

Miss the 15-day completeness determination? Sue to enforce SB 543 and recover attorney fees
Miss the 10-day final inspection? AB 1308 violation = Housing Accountability Act violation = AB 712 penalties apply
If HCD previously warned San Diego about similar violations, $50,000 minimum fine (for 1 ADU unit) plus attorney fees

Coastal Zone Applicability: Critical Clarifications

A common question among Pacific Beach builders: Do these state laws override California Coastal Commission authority in the coastal zone?

The answer is nuanced:

SB 543's 15-day completeness rule applies statewide, including coastal zones. The statute contains no coastal carve-out.
AB 1308's 10-day inspection deadline applies statewide to qualifying residential projects, regardless of coastal zone location.
AB 462 (2025) specifically addresses coastal ADUs, requiring 60-day CDP approvals and eliminating Coastal Commission appeals for ADUs. SB 543 complements this by ensuring the 60-day clock starts within 15 days of submission.
SB 1077 (effective July 1, 2026) directs the Coastal Commission and HCD to prepare new streamlined ADU guidance for coastal zones, further reducing review complexity.

The combined effect: state housing laws increasingly constrain local coastal zone discretion, with the Coastal Commission focused on regional planning rather than individual ADU appeals.

Compliance Checklist for Pacific Beach Builders

To maximize the benefits of California's 2026 housing laws:

Immediate Actions (January-March 2026)

Update submittal checklists to ensure ADU applications meet SB 543's completeness standard on first submission
Document submission dates precisely to track 15-day completeness deadlines
Schedule final inspections proactively to trigger AB 1308's 10-day clock as soon as construction completes
Review title reports on commercial properties for restrictive covenants eligible for AB 1050 elimination
Track all permit timeline violations for potential AB 712 enforcement action

Mid-Term Actions (2026-2027)

Monitor San Diego's AB 920 portal procurement to understand 2028 vs 2030 timeline
Digitize standard submittal packages (CAD, PDFs, geotechnical reports) for portal readiness
Establish relationships with construction attorneys experienced in housing law enforcement for AB 712 consultation
Advocate for 2028 portal implementation through building industry associations

Strategic Actions (Ongoing)

Communicate with city staff about new legal requirements—frame as collaborative compliance rather than adversarial enforcement
Join builder coalitions monitoring San Diego's housing law compliance and HCD warnings
Educate clients about accelerated timelines and enforcement options, differentiating your firm as regulatory experts

Conclusion: A New Era of Builder Accountability and Streamlined Processing

California's 2026 housing laws represent the most significant permit process reforms in decades. For Pacific Beach builders navigating coastal zone complexity, the combination of SB 543's 15-day completeness rule, AB 1308's 10-day inspection deadline, and AB 712's enforcement mechanisms creates unprecedented timeline predictability and agency accountability.

The laws don't eliminate legitimate review requirements—environmental analysis, building code compliance, coastal impact assessments remain mandatory. What they eliminate is bureaucratic delay, indefinite incompleteness determinations, and the economic impossibility of enforcing state housing laws against non-compliant cities.

As San Diego adapts to these new requirements throughout 2026, expect initial implementation challenges as Development Services staff adjust workflows and train on new deadlines. Early adopters who understand these laws, submit meticulous applications, and professionally document any violations will gain competitive advantage through faster project delivery and stronger negotiating position with city staff.

The message to local governments is clear: process housing applications efficiently and meet statutory deadlines, or face mandatory attorney fee awards and substantial financial penalties. For builders, the message is equally clear: you now have enforceable tools to hold agencies accountable—use them strategically to protect your projects and accelerate coastal development.