Overview

In a market where buildable land is scarce and replacement costs are high, San Diego property owners and developers are increasingly unlocking value without selling or tearing down.

Thanks to a wave of new policies and overlay zones, the city’s evolving zoning framework is creating real, measurable upside—especially for those who know how to leverage incentive programs.

Below is a breakdown of the key programs reshaping infill development in San Diego—and where they’re already gaining traction:

1. Transit Priority Areas (TPA)

Properties located within ½ mile of major public transit—such as trolley stations or high-frequency bus lines—qualify for:

• Reduced parking requirements

• Flexible development standards

Where It’s Happening:
North Park, Hillcrest, University Heights, Barrio Logan, Ocean Beach, etc

Reference Map:

• SANDAG TPA Map Viewer

2. Complete Communities (Housing Solutions Program)

One of the most powerful incentive programs in California, offering:

• FAR increases (up to 6.5x lot size)

• Height limit waivers

• Impact fee reductions or waivers

Where It’s Happening:
City Heights, Normal Heights, Golden Hill, Bankers Hill

Reference Map:

• Complete Communities Interactive Map

3. Opportunity Zones (OZ)

Designed to attract long-term investment in underserved areas by offering:

• Deferral of capital gains taxes through a Qualified Opportunity Fund (QOF)

• Tax-free appreciation if held for 10+ years

Where It’s Happening:
Encanto, Grant Hill, Lincoln Park, Logan Heights

Reference Map:

• California Opportunity Zone Map

4. Promise Zones (PZ)

Federally designated areas aimed at driving economic revitalization through coordinated investment in housing, education, and workforce development. While they don’t offer direct tax breaks like OZs, they provide:

• Priority access to federal grants and funding

• Preference points for housing, infrastructure, and education-related projects

• Technical assistance and streamlined permitting for qualifying developments

Where It’s Happening:
East Village, Logan Heights, Sherman Heights, Grant Hill, Encanto

Reference Map:

• San Diego Promise Zone Overview – City of San Diego

5. Sustainable Development Areas (SDA)

SDA-designated parcels receive:

• Streamlined permitting – Faster approvals with reduced red tape

• Reduced CEQA exposure – Less intensive environmental review

• Accelerated discretionary reviews – City departments prioritize SDA projects

Where It’s Happening:
North Park, South Park, Golden Hill, Pacific Beach, Ocean Beach, Mission Hills

Reference Map:

• City of San Diego SDA Viewer

6. Transit Area Overlay Zones (TAOZ)

TAOZ areas promote transit-oriented infill by enabling:

• Higher densities

• Lower parking requirements

• Increased unit flexibility

Where It’s Happening:

• El Cajon Blvd Corridor (University Heights to Rolando)

• Morena Blvd Corridor (Bay Park to Clairemont)

Reference Map:

• City of San Diego General Plan TOZ Map (PDF)

How Today's Investors Are Unlocking Value

Today’s investors aren’t just buying land—they’re buying entitlements and zoning upside.

Unlocking that value starts with knowing what’s buildable today—and how far you can stretch it with the right incentives.

Key Zoning Levers:

• Base Zoning: RM zones (e.g., RM-1-1, RM-2-5, RM-3-7) determine baseline density per lot size

• Bonus Programs: Incentive stacking (TPA + SDA + Complete Communities) can 2–3x unit count

• Height Limits: Often waived under Complete Communities if affordability criteria are met

• Parking: Reduced or eliminated in TPAs and TOZs—unlocking dense, cost-efficient builds

• Lot Size/Unit Minimums: Can be reduced depending on overlay and incentive program

Insight:
In high-demand corridors like Golden Hill, North Park, and Normal Heights, developers are turning 6,000–7,000 SF RM-2-5 lots into 15–20 unit projects by leveraging FAR bonuses and stacking transit incentives.

Permitting & ADU Feasibility: What to Know

Understanding the permitting landscape is key to underwriting any infill project. Here’s a streamlined look at timelines, opportunities, and feasibility factors:

Estimated Timelines

• By-Right ADUs: 3–6 months for standard, code-compliant additions

• Discretionary Permits: 9–18+ months (e.g., tentative maps, CUPs)

• SDA/Complete Communities: 4–9 months if aligned with affordability targets

ADU Build Potential

• Single-Family Lots: Typically 1 detached ADU + 1 JADU

• Multifamily Lots: Up to 2 detached ADUs + interior conversions (garage, storage)

• TPAs: Often no parking required—streamlining design (Note: subject to ongoing review)

Key Feasibility Factors

• Lot size, setbacks, and existing coverage

• Utility load capacity (sewer, water, electrical)

• Parking exemptions via TPA or TOZ overlays

• Mobility Zone compliance (bike lanes, sidewalks, TDM)

Insight:
Projects located in RM zones with SDA and TPA overlays are often the quickest path to high-yield ADU additions with minimal permitting friction.

Final Take

These programs aren’t just incentives—they're practical tools actively shaping San Diego’s future.
When layered strategically, they have the ability to triple a site’s buildable potential, lower soft costs, and accelerate project timelines.

For owners and developers serious about maximizing their San Diego portfolio, understanding how to analyze zoning, layer incentives, and navigate permitting is essential to optimize growth. 

Explore What Others Overlook

Some of the best opportunities in San Diego aren’t publicly listed. They're found through relationships, local knowledge, and a sharp understanding of where policy meets potential.

That’s why it’s crucial to stay close to brokers who consistently uncover off-market properties tied to zoning advantages and incentive overlays—like our team does every week.

We help investors:

• Spot off-market development upside 

• Strategize around zoning and permitting

• Make smarter acquisitions—or reposition what they already own

If you're wondering what you might be overlooking in your portfolio—or what to add next—we're here when you're ready to explore it.

📅 Book a Time with CCG Here

Sources: 

SANDAG “Transit Priority Area Map Viewer”
City of San Diego “Complete Communities Housing Solutions Program Map”
California Governor’s Office of Business and Economic Development “California Opportunity Zones Map”
City of San Diego “Sustainable Development Areas (SDA) Viewer”
City of San Diego “General Plan Transit Priority Areas and Transit Overlay Zones Map”