ADU bonus density in San Diego

[Wai Chan]

I have a MF site in City Height that is CUPD-CT-5-4 which I can build 5 units + 1 ADU legally. The site is in transit priority area so technically I can utilize the ADU bonus density to build unlimited number of ADU. The zoning has a 1.1 FAR right now. Does anyone know if I use the ADU bonus density will I get more FAR? I also read that my land is zoned in Complete Communities Plan and it does say that the FAR will be higher but I don't know if it can be used in conjunction with the ADU bonus density. Does anyone know anything about this regulation?

I understand that I would need to make the units to be affordable housing if I want to use the ADU bonus density. Does anyone know how does it work actually? Once I have built the units I would need to rent out those units through the Housing Department? If the units are put on the free market how do the government make sure the rent is affordable for the low income family?

Appreciate all the feedback and guidance. Thanks in advanced. 

[Justin R.]

Originally posted by @Wai Chan:

I have a MF site in City Height that is CUPD-CT-5-4 which I can build 5 units + 1 ADU legally. The site is in transit priority area so technically I can utilize the ADU bonus density to build unlimited number of ADU. The zoning has a 1.1 FAR right now. Does anyone know if I use the ADU bonus density will I get more FAR? I also read that my land is zoned in Complete Communities Plan and it does say that the FAR will be higher but I don't know if it can be used in conjunction with the ADU bonus density. Does anyone know anything about this regulation?

I understand that I would need to make the units to be affordable housing if I want to use the ADU bonus density. Does anyone know how does it work actually? Once I have built the units I would need to rent out those units through the Housing Department? If the units are put on the free market how do the government make sure the rent is affordable for the low income family?

Appreciate all the feedback and guidance. Thanks in advanced. 

Lots of questions here.

- CUPD is not a favorable zoning for doing straight up traditional residential development at density. "Why" is beyond the scope of how much my fingers want to type right now.

- I don't know the answer about how bonus ADU density and FAR interplay. I can't @mention Matt D, who could probably answer that question.

- Complete Communities only makes sense if you're building a really big project. The affordable unit count requirement is set based on the base zoning and lot size, so in order to recover the financial hit from the affordable component, you need to amortize it across a large number of units. For example, a base density of 7 may require 5 affordable units. To make 5 affordable units pencil out in a traditional market rate project with normal capital stack, you'll need to be building 25+ units in the project.

- When you have deed-restricting affordable units, you are required to verify the income of potential renters. You can be audited. While it's possible to play games, ignore rules, or forge documents, it's not a good idea. I don't know what the penalties are if caught. The deed restriction stays in place when the property is sold, so it'll be valued based on the decreased income.

I would add that "affordable" doesn't necessarily mean low income. The same AGI level is used throughout the City (and maybe the County?), meaning that an affordable apartment Kensington is the same rent as an affordable one in a low-rent area. The affordable rent in a low-rent area might be close enough to market rent to still be palatable when underwriting a project.