By Novo Real Estate
For many homeowners in neighborhoods like Presidio Heights and Glen Park, the potential to expand a property’s footprint is a major factor in long-term investment planning. We have seen how recent changes to state and local laws have transformed Accessory Dwelling Units (ADUs) from simple "in-law units" into sophisticated, high-value assets.
Understanding the current landscape of the city’s development standards is the first step toward unlocking your lot's true potential.
Key Takeaways
- Capitalize on ministerial approval processes that eliminate public hearings and neighborhood notifications.
- Understand increased height limits and reduced setback requirements for modern detached units.
- Explore the new "Family Zoning Plan" that allows for more units and vertical flexibility on transit-proximate lots.
- Use the 2026 pre-approved plan programs to slash permitting timelines and design costs.
Decipher the Latest Permitting and Approval Changes
The most impactful shift for our clients has been the transition to ministerial approval, which has effectively removed the notorious "311 notification" requirement for most ADU projects.
Why Ministerial Approval is a Game Changer
- Use the streamlined 60-day review shot-clock to move your project from the drafting board to the construction phase with minimal delay.
- Make sure you take advantage of the administrative process that bypasses the Planning Commission hearings, saving you thousands in legal and consultant fees.
- Select from the newly mandated pre-approved plan libraries that local agencies must now offer, which can reduce your initial permit review time to just 30 days.
- Look for the "deemed approved" status that applies if the city fails to act on a completed application within the state-mandated timeframe.
Expand Your Building Envelope with Eased Standards
The current SF zoning rules now permit detached structures to reach heights of up to 25 feet in certain scenarios, allowing for stunning two-story designs or ADUs built over garages.
Critical Standards for Detached and Attached Units
- Use the 4-foot side and rear setback minimums to tuck your ADU into corners of your lot that were previously considered unbuildable.
- Make sure to check if your lot is within a half-mile of a major transit stop, which can trigger additional height allowances up to 18 or 25 feet.
- Look for the 800-square-foot "state-exempt" unit size, which cannot be denied based on lot coverage or open space requirements in your specific zoning district.
- Choose to build a unit up to 1,200 square feet for two-bedroom layouts, providing an actual secondary home experience for guests or long-term tenants.
High-Value Opportunities for Multifamily Properties
If you own a duplex or a larger apartment building in neighborhoods like Pacific Heights, the latest SF zoning rules have opened the door for "unlimited" ADUs in some contexts.
Strategies for Multifamily ADU Development
- Use the "25% rule" to add interior units equal to a quarter of your existing apartment count by converting non-habitable spaces like garages.
- Make sure to explore the new state law that allows for up to eight detached ADUs on a multifamily lot, provided they don't exceed the number of primary dwellings.
- Look for opportunities to convert carports into units without requiring the replacement of lost parking spaces, a huge relief in transit-rich areas.
- Consider combining converted interior units with detached units on the same lot for the ultimate density play.
Invest in Long-Term Value and Sustainability
Beyond simply adding square footage, an ADU built in accordance with current SF zoning rules can significantly increase your property's resale value.
Maximize the Resale and Rental Market
- Use the AB 1033 framework to explore selling your ADU as a separate condominium, a model that is gaining traction in cities looking to diversify homeownership.
- Make sure to install separate utility meters for your ADU to simplify property management and ensure tenants are responsible for their own consumption.
- Look for fee waivers on utility connections and school impact fees for units under 500 or 750 square feet, respectively.
FAQs
How much does it cost to permit an ADU in San Francisco today?
Permit fees vary by the size and complexity of the project, but for units under 750 square feet, many impact fees are waived by law. We recommend budgeting for a comprehensive architectural and engineering set to ensure your 60-day shot-clock review is as smooth as possible.
Can I build an ADU in a historic district?
Yes, you can build an ADU in a historic district, but you must make sure your design adheres to the specific aesthetic standards of the neighborhood. While the city cannot deny you an ADU based solely on its historic status, it can require the unit to be architecturally compatible with the primary residence.
Is parking required for a new ADU in the city?
In the vast majority of cases, the answer is no. If your home is within a half-mile of public transit (which covers much of San Francisco), state law prohibits the city from requiring any new parking for an ADU or a converted garage.
Reach Out to Novo Real Estate Today
At Novo Real Estate, we take a data-driven approach to every listing and project, ensuring you have the expert guidance needed to maximize the benefits of current SF zoning rules. Whether you are looking to purchase a property with ADU potential or want to maximize the value of the lot you already own, we are here to provide the local insights that make a difference.
Contact us today to discuss your vision for your property and to see how we can help you navigate the 2026 housing landscape.
Contact us today to discuss your vision for your property and to see how we can help you navigate the 2026 housing landscape.
