San Diego ADU Fee Waiver: What You Need to Know

Why the San Diego ADU Waiver Program Ended

San Diego’s ADU Waiver Program was always intended to be a temporary effort. It ultimately ended in 2023 for several reasons, the first being funding constraints. While it would be wonderful to permanently waive all permit costs and other fees associated with the ADU development process, it isn’t realistic. The city council relies on these additional costs to fund other public efforts.

The ADU Waiver Program also ended because other housing policies, like SB13, had been passed into law, which provided more sustainable statewide incentives for ADU development.

Early project planning and understanding of changing city policies can help you anticipate costs and avoid delays in ADU construction.

How SB13 Impacts ADU Construction in California

Even though the ADU Waiver Program has ended, SB13 still guarantees specific incentives to homeowners building a companion unit alongside their single-family home. In many ways, these incentives are more robust. They apply whether or not you plan on using your ADU as a granny flat or a source of rental income and even apply to JADUs, or junior accessory dwelling units, built inside the home’s existing footprint.

The incentives outlined in SB13 include a streamlined permitting process, development fee waivers for ADUs under 750 square feet, and utility connection fee reductions.

Streamlined ADU Development

SB13 stipulates that a board of supervisors must review an accessory dwelling unit permit application and either approve or deny the building permit within 60 days. Though no fees are explicitly waived, this aspect of the bill shortens overall project timelines. And when it comes to construction, a smooth project is a more cost-effective project.

Fee Waivers for Smaller ADUs

While most municipalities allow ADUs to be as large as 1200 square feet, SB13 encourages the building of smaller units by waiving impact fees for any floor plans under 750 square feet. This includes Junior ADUs (also called JADUs).

JADUs differ from ADUs in that they’re independent living spaces built within the existing boundaries of the primary dwelling. For example, a homeowner may convert their basement or attached garage into a JADU, so they add an additional living space without increasing the home’s overall footprint. Like ADUs,

JADUs must also contain a separate entrance, but they don’t have to have a full kitchen. They can utilize what’s called an efficiency kitchen, which includes more limited appliance options.

JADUs are capped at 500 square feet, which is why they’re eligible for the same fee waivers as smaller ADUs. For units larger than 750 square feet, SB13 does not offer an explicit reduction in development impact fees, but it does place a cap on these fees so that they’re not too burdensome on homeowners.

Utility Connection Fee Reductions

As with impact fees, SB13 waives utility connection fees for units under 750 square feet, significantly reducing the overall utility expenses for smaller ADUs. For larger ADUs, SB13 also caps the fees associated with utility connections, as it does with impact fees.

Statewide Legislation

While San Diego’s ADU Waiver Program was unique to the Southern California area, SB13 is a statewide bill, which means its provisions apply no matter what area of California you live in.

However, local regulations, building codes, and incentive programs do vary by county and municipality. An experienced ADU contractor, especially one local to your area, will be up-to-date on the ever-changing regulations where you live.

Smaller ADUs (under 750 sq ft) not only qualify for fee waivers but are also faster to build, helping you achieve affordable housing goals efficiently.

ADU Fee Waivers in Encinitas, Vista, and La Mesa

While the San Diego ADU Waiver program ended in 2023, fee waiver programs in Encinitas, Vista, or La Mesa are ongoing and offer many of the same perks as the San Diego program.

If you live in any of these cities, look into the details of your specific program to determine if your additional dwelling unit is eligible and how to apply. The links we provided in the above paragraph are a good start and include important information regarding setback requirements, parking spaces, and other logistics you must keep in mind when planning your ADU project.

Please note, too, that while these programs were active at the time of posting, they were also intended to be temporary measures, which may mean they are no longer active at the time of reading.

Local fee waivers combined with California’s SB13 can significantly reduce overall ADU costs, allowing you to prioritize design and functionality.

General Requirements for ADU Fee Waivers

While eligibility requirements for ADU fee waivers vary from city to city and program to program, here are some common requirements that extend across programs.

Affordability Requirements

Affordable housing advocates across the state view ADUs as a way to help California’s housing crisis. As such, some local fee waiver programs require that the rental prices for ADUs remain at a certain rate for a set number of years to receive a fee waiver.

Housing for Family Members

While some localities prioritize affordable housing incentives, others prioritize waivers for ADUs that will ultimately house extended family members, especially seniors or caretakers.

Impact Fees for Larger ADUs

While smaller ADUs and junior units are typically fully exempt from certain fees, larger ADUs may still be eligible for potential fee reductions. While these are not the major fee waivers smaller units enjoy, they are still designed to help homeowners save on ADU projects, especially when compared to other types of construction.

Thoughtfully designed ADUs not only meet fee waiver requirements but can also enhance your property’s value by blending utility with aesthetics.

Get Personalized ADU Advice from Experts

As ADUs continue gaining traction throughout California, keeping up with zoning laws, safety regulations, and fee waiver programs can be difficult. And not being up-to-date on the latest ordinances and incentive programs can cost you thousands of dollars.

At Better Place Design & Build, our attention to detail extends far beyond our finishing work. Our expertise in the ADU building process shines at every stage of the construction process, saving our homeowners unnecessary stress and fees.

If you are curious about what your ADU project might cost, check out our cost calculator tool, or you can reach out for a free custom estimate.