Affordable / bonus ADU program in San Diego

[Nate Wiger]

I've been looking into the low income bonus ADU program and it seems if you buy a reasonably priced SFR with a good sized yard, you can construct at least 2 but up to an almost unlimited number of ADUs in a transit priority zone if you designate 50% of them as low income. Essentially build row homes in an SFR zone. Summary from the SD Housing Commission

Is anyone experimenting with this? 

[Matt Devincenzo]

I do land development and site civil almost exclusively in San Diego. The rule is actually 3 ADUs on a SFR....it is your SFR, your regularly allowed ADU, your affordable ADU and your bonus ADU for providing an affordable. Then as you note the TPA allows for a 1/1 continued increase of affordable and bonus ADUs.

The issue becomes you're essentially subsidizing the project as a 50% affordable project. So the economics quickly erode as your rent base is extremely low....but the other benefit of this, is the affordable agreement is only 10 years where typically they are 55 years for inclusionary affordable units. So it just becomes a question of how much subsidy you are offering for how long as to whether it is worth it or not.