San Diego ADU Bonus Program Ended: New Lot-Size Caps Mean Most Pacific Beach Lots Are Limited to 4 Units in 2026

San Diego's unlimited ADU Bonus Program is over. On June 16, 2025, the City Council voted 5-4 to roll back the program that once allowed developers to stack unlimited market-rate ADUs on a single lot. The new ordinance, which took effect August 22, 2025 for areas outside the California Coastal Zone, replaces the unlimited stacking model with hard unit caps tied directly to lot size. For Pacific Beach, Bird Rock, Mission Beach, and Tourmaline-area homeowners — where the overwhelming majority of single-family lots measure under 8,000 square feet — that means a maximum of 4 total units per property under the new rules.

This guide answers the questions Pacific Beach homeowners and builders are asking right now: exactly how many units fit on a specific lot size, what changed from the prior program, how the coastal zone status affects timing, and what paths remain open for maximizing a coastal lot under the rules that govern 2026 projects.

Did San Diego End the ADU Bonus Program?

Yes, and the vote was close. On June 16, 2025, the San Diego City Council voted 5-4 to adopt significant amendments to the City's ADU and JADU regulations. The vote was approved on the council's consent calendar a second time on July 22, 2025, and the ordinance took effect 30 days later — on August 22, 2025 — for properties outside the California Coastal Zone.

The prior ADU Bonus Program was a local San Diego incentive that allowed developers to build unlimited market-rate ADUs on a property in exchange for creating one deed-restricted affordable unit. In practice, this meant a single residential lot — with no hard density ceiling — could theoretically support dozens of units if a developer was willing to deed-restrict one of them. A proposed 120-unit ADU project in Pacific Beach became a high-profile example of exactly this kind of outlier development, and community pressure over infrastructure strain and neighborhood character drove the policy change.

The amended ordinance eliminates the unlimited stacking model entirely. In its place are tiered unit caps based on lot size. California's statewide ADU baseline remains intact — state law still guarantees every property owner the right to build at least one ADU and one Junior ADU regardless of local rules — but the local Bonus Program that previously removed all density ceilings is gone.

According to the City of San Diego Information Bulletin 400 (IB 400), which is the operative reference document for current ADU rules, the new caps represent a fundamental shift in how density bonus development works for ADUs in the City of San Diego.

What Are the New ADU Lot-Size Caps in San Diego?

The new tiered system in San Diego establishes maximum unit counts based on the total square footage of the lot. All units count toward the cap — the primary home, any ADU, and any Junior ADU are all included in the total. Councilmember Henry Foster III's motion established the following tiers:

• Lots under 8,000 sq ft: Maximum 4 total units (primary residence + ADU + JADU, plus one additional unit)
• Lots between 8,001 and 10,000 sq ft: Maximum 5 total units
• Lots over 10,000 sq ft: Maximum 6 total units

The standard San Diego residential lot is approximately 5,000 square feet — well under the 8,000 sq ft threshold. For the vast majority of homeowners in Pacific Beach, Bird Rock, Mission Beach, and the Tourmaline Surfing Park area, this makes the 4-unit ceiling the governing rule. A typical scenario on a 5,000 sq ft Pacific Beach lot under the new rules: the existing single-family home counts as Unit 1, a detached ADU in the backyard is Unit 2, a JADU carved out of the primary home is Unit 3, and one additional unit brings the total to 4 — the cap.

The new rules also include additional restrictions that did not apply under the prior Bonus Program. These include a two-story height maximum on bonus units, increased setbacks from property lines in some configurations, a 1,200 sq ft unit size limit, parking requirements for properties not within a defined transit zone, and prohibitions on certain cul-de-sac configurations in wildfire hazard areas. Detached ADUs that stand 16 feet or under may still qualify for zero-foot side and rear setbacks under state law, which is an important pathway for maximizing a compact Pacific Beach lot.

Does the Rollback Apply to Pacific Beach Right Now?

This is the question most Pacific Beach homeowners and builders get wrong, and the answer requires understanding California Coastal Zone rules. Pacific Beach — along with Bird Rock, Mission Beach, and most properties west of Interstate 5 in San Diego — sits within the California Coastal Zone. The City of San Diego's ADU Bonus Program rollback took effect August 22, 2025 for areas outside the Coastal Zone. For properties inside the Coastal Zone, the new regulations are pending certification by the California Coastal Commission.

The City submitted the ADU and JADU amendments to the Coastal Commission for certification on July 29, 2025. As of early 2026, that certification is still pending. City planning staff have stated that obtaining Coastal Commission approval is a priority. Until certification is granted, the new lot-size caps technically do not apply in the Coastal Zone under the amended local ordinance.

However, this does not mean Pacific Beach homeowners are operating under the old unlimited Bonus Program. California's statewide ADU baseline — which allows one ADU and one JADU as a matter of right on any single-family lot — applies everywhere. The practical effect in early 2026 is a regulatory gray area: the unlimited Bonus Program has been administratively wound down, the new caps are not yet formally certified for the coastal zone, and builders should consult directly with the City of San Diego Development Services Department to confirm current rules for any specific Coastal Zone parcel before submitting plans.

One significant bright spot: Assembly Bill 462, effective October 15, 2025, now requires coastal zone cities like San Diego to approve or deny ADU Coastal Development Permits within 60 days, running concurrently with the standard ministerial land use review. The bill also eliminates California Coastal Commission appeals for ADUs, removing a process that previously added 4 to 7 months to coastal ADU timelines. This means Pacific Beach ADU permits that were once a 9 to 12-month ordeal can now move through the system in as little as 60 to 90 days. See our detailed guide on AB 462 and 60-day coastal ADU permits for the full breakdown.

How Many Units Can I Build on My Pacific Beach Lot?

The honest answer depends on three things: your lot size, your lot's location within or outside the Coastal Zone, and what structures already exist on the property. For most Pacific Beach homeowners, the practical calculation under the new rules looks like this:

On a standard Pacific Beach lot of 5,000 to 7,500 sq ft with an existing single-family home, state law guarantees the right to build one ADU and one JADU as a matter of right — bringing the total to 3 units. The new San Diego ordinance (once Coastal Commission certified) would allow one additional unit to reach the 4-unit cap. Detached ADUs must respect setback requirements, but ADUs at or under 16 feet in height may qualify for zero-foot side and rear setbacks, which significantly expands buildable area on tight Pacific Beach lots where every foot matters.

A JADU must be created within the existing structure or an attached garage — it is not a separate stand-alone building. It must include its own sleeping area and kitchen efficiency, and it shares a wall with the primary residence. For a Pacific Beach homeowner with an attached two-car garage, converting half of that garage into a JADU while building a detached ADU in the rear yard is a common strategy that gets a 5,000 sq ft lot to 3 habitable units without requiring significant additional square footage on the ground floor.

Homeowners who submitted plans under the prior Bonus Program before the August 22, 2025 cutoff retain eligibility under the prior rules. If you have a pending application that predates the ordinance change, confirm your grandfathering status directly with Development Services before making any amendments to the application, as amendments can trigger re-review under current rules.

Can I Sell My ADU as a Separate Condo in Pacific Beach?

Yes — this is one of the most significant new financial tools available to Pacific Beach homeowners who build ADUs. Assembly Bill 1033, signed into California law in 2023, authorizes local governments to allow ADUs to be subdivided and sold as standalone condominiums, separate from the primary residence. The City of San Diego formally implemented AB 1033 as part of its August 22, 2025 ADU amendments for properties outside the Coastal Zone.

For Coastal Zone properties, including most of Pacific Beach, implementation is again pending Coastal Commission certification. Once certified, a Pacific Beach homeowner who builds a detached ADU could potentially sell it as an independent unit with its own title, its own address, and its own mortgage — while retaining ownership of the primary residence. This changes the economics of ADU development substantially: instead of functioning purely as a rental income asset, the ADU becomes a potentially sellable property with market value as a standalone condominium.

There are meaningful requirements attached to AB 1033. Every lender holding a lien on the parent property must provide written consent to the subdivision. The process requires a formal condominium map, which involves additional permit filings and fees. And the ADU itself must be a legal permitted structure meeting all current building code requirements — a buyer's lender will require a clean title. For existing unpermitted units, this pathway is not available without first completing a permit legalization process through the AB 2533 legalization program. Homeowners considering this strategy should work with a builder experienced in the AB 1033 process and consult a real estate attorney to structure the subdivision correctly.

How Does SB 79 Affect ADU Projects Near Transit Stops in Pacific Beach?

Senate Bill 79, signed by Governor Newsom and effective July 1, 2026, creates a transit-oriented development (TOD) overlay that can override local zoning restrictions for housing projects within a defined radius of major transit stops. San Diego is one of ten California counties explicitly covered by SB 79, and the law has the potential to unlock higher-density development near qualifying bus and rail stations throughout the city.

For Pacific Beach homeowners and builders, the practical question is whether any specific parcel falls within SB 79's transit overlay radius. The law applies to properties within a set distance of Tier 1 and Tier 2 transit stops — generally, stops served by frequent, high-ridership transit service. Pacific Beach has bus service along Garnet Avenue and connecting routes, but the neighborhood's transit profile differs from areas with rail access. Whether any specific Pacific Beach parcel falls within SB 79's qualifying transit overlay will need to be verified against the final TOD maps, which are required to be published before the July 1, 2026 effective date.

For properties that do fall within a qualifying SB 79 transit zone, the law can function as a significant density unlock, potentially allowing projects that would otherwise be blocked by local zoning or the new lot-size caps to proceed with higher unit counts. This is particularly relevant for properties on Garnet Avenue, Balboa Avenue, and other commercial corridors that blend residential and transit activity. Builders working on projects near potential transit corridors should flag this analysis in their pre-application consultation with Development Services, as SB 79 compliance is new territory for both applicants and city staff. See our full analysis of SB 79 transit-oriented development impacts for Pacific Beach.

What Does an ADU Cost to Build in Pacific Beach in 2026, and How Long Does Permitting Take?

Construction costs for ADUs in Pacific Beach run at the high end of San Diego averages, driven by coastal land values, premium labor markets, and the logistical complexity of building on tight infill lots in an established neighborhood. Based on current market data, a detached ADU in Pacific Beach in 2026 runs approximately $280 to $420 per square foot for construction costs alone — not including permit fees, design, or utility connections. A 600 sq ft detached ADU typically costs $168,000 to $252,000 to build. A 1,000 sq ft unit reaches $280,000 to $420,000 in construction cost. In La Jolla, where Pacific Beach Builder also builds ADUs, construction costs run at the top of this range or above, reflecting stricter design review requirements and the premium labor market serving coastal hillside and oceanfront lots.

Permit fees add a meaningful layer on top of construction costs. For a detached ADU, total permit fees in the City of San Diego range from approximately $10,000 to $21,000 depending on unit size. That breaks down roughly as follows: building permit and plan check fees of $3,000 to $8,000; development impact fees of $5,000 to $15,000, which are waived for units under 750 sq ft under SB 13; water and sewer capacity charges of $2,500 to $12,000 depending on whether a new connection is required; school fees of $5.17 per square foot for units over 500 sq ft; and a General Plan Maintenance Fee of $737. Using the City's pre-approved ADU plan program reduces plan check fees by 50% and can lock in a 4-week approval timeline, saving $2,000 to $4,000 in permit costs and months of calendar time. For more on pre-approved plans, see our guide to AB 434 pre-approved ADU plans and 30-day permits.

Total permit approval timelines for Pacific Beach ADUs in 2026 are significantly improved from prior years. For non-Coastal Zone projects, permit review typically runs 3 to 5 months from application to approval. For Coastal Zone projects — which includes most of Pacific Beach — AB 462 now mandates a 60-day concurrent review window for ADU Coastal Development Permits, reducing what was once a 9 to 12-month coastal permitting process to 60 to 90 days in most cases. Projects using pre-approved plans and working with an experienced Pacific Beach ADU builder can often complete the full design-through-permit cycle in 90 to 120 days before breaking ground.

The Pacific Beach ADU landscape in 2026 is genuinely more complex than it was two years ago — more legislation, more layers of coastal review, and harder unit caps that require accurate lot-by-lot analysis before any project begins. But the fundamentals remain strong: Pacific Beach lots hold significant value, rental demand is persistent, and the new AB 1033 condo-sale pathway opens an exit strategy that did not exist before. The builders who win projects in this environment are the ones who walk in knowing exactly how many units fit on a client's specific lot, what the coastal zone timeline looks like under AB 462, and how to build a detached ADU that maximizes buildable area within the 16-foot zero-setback window. Pacific Beach Builder works with homeowners in Pacific Beach, La Jolla, Bird Rock, Mission Beach, and the Tourmaline Surfing Park area on exactly these questions. If you want a lot-specific ADU analysis, reach out before you engage an architect — getting the unit math right at the front end saves thousands in redesign costs later.