California Just Passed a Ton of Housing Laws. Here’s How They Will Affect San Diego

California recently enacted a series of housing laws aimed at reducing development barriers and increasing housing production across the state. While many of the changes are expected to have a limited impact in San Diego, which already has several pro-housing policies in place, some measures could provide meaningful incentives. For example, SB 1117 reduces impact fees for larger accessory dwelling units (ADUs).

Several new laws also focus on expanding homeownership opportunities and streamlining approvals. SB 1116 and AB 1751 are designed to make it easier to build for-sale townhouses and condominiums, including on certain vacant sites in single-family neighborhoods.

Land Use Partner Bo Peterson noted that these laws are noteworthy because they promote for-sale housing rather than rentals. He also noted AB 1751 will allow some townhouse projects to be automatically approved if they meet strict requirements, such as leaving 10% of the project for low-income housing. That’s different from current law, which only allows automatic approval for some rental projects.

Other legislation focuses on housing near transit and greater predictability in development costs. Regarding AB 2074, which encourages higher-density development around transit hubs, Peterson said many of these laws are intended to limit local resistance to housing growth: “A lot of these laws are coming out to take the bat out of the hands of jurisdictions,” where local opposition has slowed densification around transit stations. He also noted that SB 1014, which requires cities to provide early infrastructure cost estimates, could be particularly valuable in smaller jurisdictions where developers sometimes face significant, unexpected infrastructure demands late in the approval process.

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