California Gov. Gavin Newsom recently signed a series of housing laws aimed at speeding up residential construction. Many measures target areas where building is particularly difficult, meaning their impact in the city of San Diego—often viewed as easier to build in than other parts of the state—may be limited.

However, real-world impacts can be difficult to predict. SB 9 (passed in 2021 to allow up to four homes on single-family lots) became a widely acknowledged policy failure due to financial and structural hurdles. Conversely, state and local ADU incentives proved far more successful than anticipated.

Here is a look at what the latest batch of legislation means for San Diego County.

Lower ADU Fees (SB 1117)

• The Change: Under previous statewide rules, ADUs up to 750 square feet were exempt from impact fees—which help cities fund infrastructure like roads and sewer lines—but units larger than that were charged impact fees on their entire square footage. SB 1117 ensures builders are charged impact fees only on the portion exceeding 750 square feet.
• Local Impact: Most regional communities cap ADUs at 1,200 square feet, so the law will encourage somewhat larger units rather than high-rises. In La Mesa, a 1,200-square-foot ADU could save roughly $2,800. The law will have less effect in the city of San Diego, which already exempts a property’s first two ADUs from impact fees regardless of size.
  

Townhouses in Single-Family Neighborhoods (SB 1116 & AB 1751)

• SB 1116: Aims to streamline for-sale townhouses and condos on small, vacant residential lots in single-family zones by requiring cities to approve qualifying projects automatically. However, local impact may be modest: properties must have been vacant for five years, and empty lots are rare and costly in San Diego.
  
• AB 1751: Grants automatic approvals for specific townhouse projects that reserve 10% of units for low-income buyers. It faces hurdles locally, including financial strain on developers, local safety overrides, and restrictions against building in high fire-hazard zones (which cover ~45% of the region).
• Key Distinction: Land-use attorney Bo Peterson notes that unlike most recent state housing laws focused on rentals, these bills specifically encourage for-sale starter homes.

Housing Near Transit (AB 2074)

• The Change: Applies only to cities with populations over 400,000. It requires San Diego to designate a "transit-hub district" of at least one square mile, streamline approvals within it, and allow building heights up to 450 feet across 25% of the zone.
• Local Impact: Likely minimal. San Diego already promotes high-density transit development through its Complete Communities program and updated trolley-station plans. A proposed $500 million state loan fund for high-rise financing was removed from the bill prior to passage.

Infrastructure Fee Transparency (SB 1014)

• The Change: Requires cities to give developers nonbinding, good-faith infrastructure cost estimates (e.g., utility upgrades, sidewalk improvements) within 30 days of application submission to prevent surprise expenses mid-construction.
• Local Impact: Expected to aid developers primarily in smaller San Diego County municipalities, where unexpected, large-scale infrastructure demands later in the approval process often derail projects.

Paving the Way for Midway Rising (SB 344 & SB 958)

• The Change: Removes major environmental legal hurdles for the multibillion-dollar Midway Rising project. SB 344 establishes that certifying its environmental impact report satisfies state environmental law, while SB 958 prevents height increases from triggering environmental reviews.
• Local Impact: These are among the most consequential local bills passed, potentially allowing construction to start next year. The massive development features a 16,000-seat arena and 4,254 apartments—including 2,000 subsidized affordable units—making it the largest planned rental and affordable housing complex in San Diego County history.