If you’re planning a development or construction project in San Diego, you already know that California’s legal landscape can be complex. Now, in 2025, recent legislative changes have introduced new standards, deadlines, and compliance requirements that are reshaping how builders, developers, and investors approach every stage of a project—from permitting to design to workforce management.
At Artemis Law Group, we understand the legal intricacies behind California’s evolving construction laws. As a San Diego-based construction and real estate law firm, we help you stay ahead of regulatory changes so you can mitigate risk and keep your projects moving forward. In this article, we break down how new laws are impacting construction in San Diego and what you can do to stay compliant and competitive in 2025.
Stricter Building Standards for Logistics and Warehouse Projects
New legislation, such as Assembly Bill 98, introduces sweeping building and site requirements for logistics developments. If your San Diego project involves new warehouse construction or an expansion of 20% or more, expect to comply with design criteria involving:
- Truck routing plans and anti-idling signage
- Entry gate stacking depth (50–70 feet)
- Location restrictions near schools, homes, and parks
- Environmental buffers and landscape screening
If your site is within 900 feet of a sensitive area, you may be subject to Tier 1 warehouse design elements, energy efficiency standards, and significant setbacks. These requirements are pushing developers to rethink site selection, design layout, and permitting timelines.
Increased Transparency in Development Fees
Developers in San Diego often face uncertainty around impact fees and exactions. With Assembly Bill 1820 and AB 3012, local governments must now:
- Provide a written estimate of fees within 30 days of final approval
- Publish a fee estimate tool on their websites (by 2031 or 2032, depending on population size)
- Use a standardized template issued by the Department of Housing and Community Development
These changes are designed to improve visibility and predictability in project budgeting. While the estimates are non-binding, they are valuable for early-stage feasibility analysis.
Expanded Balcony Inspection Requirements
If your project involves a multifamily building with three or more units, you must comply with new structural safety inspection mandates. SB 721 and AB 2579 now require:
- Regular inspections of balconies, decks, and walkways
- A deadline extension for the initial inspection to January 1, 2026
- Re-inspections every six years
Failing to meet these deadlines could result in civil penalties or liens. For property owners and developers, early compliance helps maintain asset value and avoid legal disputes related to tenant safety.
Modernized Excavation Safety Laws
California’s updated “Call Before You Dig” law under SB 778 now mandates that:
- Excavators must cease work immediately if their ticket has expired
- A new ticket must be obtained before work resumes
- If damage is caused to a pipeline or critical subsurface installation, 911 must be called immediately
For San Diego contractors operating in dense urban areas or near critical infrastructure, these rules raise the stakes for safety and compliance.
Expanded ADU Development and Sales Flexibility
AB 1033 allows for the separate sale of Accessory Dwelling Units (ADUs). Paired with SB 9, which supports lot-splitting and duplex construction, these changes unlock new opportunities for small-scale, high-density development in residential zones.
Whether subdividing a single-family lot or converting an existing structure, you must review zoning, permitting, and HOA constraints to take full advantage of these changes.
How to Prepare:
- Review your entitlement timelines: Evaluate whether your housing project qualifies for the AB 2729 extension or is subject to tolling due to litigation. Don’t assume local agencies will notify you.
- Audit structural elements proactively: If you own or are developing multifamily housing, schedule balcony inspections early to meet the January 1, 2026, deadline and avoid last-minute contractor shortages.
- Conduct fee planning at the pre-application stage: Request itemized fee estimates and use the city’s fee tools (once published) to prepare accurate pro forma projections before committing to a site.
- Adjust site plans for sensitive area proximity: If you’re building warehouses or logistics hubs near residential areas or schools, consult with legal and environmental experts to ensure your plans align with AB 98 requirements.
- Update excavation protocols: Ensure your project team is trained on the latest “Call Before You Dig” obligations. Set reminders for ticket expirations and document your compliance protocols.
- Rethink your ADU investment strategy: Explore the option of selling ADUs separately, especially in neighborhoods with strong demand for entry-level ownership. This can unlock new profit models for single-lot infill development.
From warehouse design to affordable housing entitlements and safety, California’s 2025 construction laws are reshaping the legal and operational framework for projects across San Diego. At Artemis Law Group, we specialize in helping developers, contractors, and property owners navigate California’s dynamic construction and real estate laws. Contact us to ensure your 2025 project meets every legal requirement while maximizing your development potential.