You’ve found the perfect site for your next real estate development in San Diego. But as your due diligence unfolds, unexpected challenges begin to surface, contaminated soil from a prior use, stormwater runoff concerns, or zoning restrictions tied to environmental sensitivity. Suddenly, what looked like a straightforward investment starts to feel far more complex.
At Artemis Law Group, we know how deeply environmental regulations can influence real estate development in San Diego County. From oceanfront properties to inland redevelopment zones, environmental compliance plays a crucial role in determining a project’s timeline, feasibility, and profitability. This guide outlines the most common environmental challenges developers face in San Diego and the key California laws that shape the process.
Common Environmental Issues Affecting Real Estate in San Diego
Soil Contamination and Site History
Many San Diego properties sit on land that once housed industrial operations, gas stations, or agricultural sites. Contaminants such as petroleum residues, solvents, or pesticides may remain in the soil, requiring careful investigation before any development begins.
Conducting Phase I and Phase II Environmental Site Assessments (ESAs) is essential to identify risks early and prevent disputes over remediation costs later in the process.
Water Quality and Stormwater Management
With its extensive coastline and watersheds, including areas near the San Diego River, Mission Bay, and Otay Reservoir, developers must account for stormwater runoff, drainage, and flood management. Projects often require Storm Water Pollution Prevention Plans (SWPPPs) and must comply with state and local water board regulations.
Failure to plan for runoff and erosion can result in delays, fines, or costly retrofits once construction is underway.
Hazardous Building Materials
Older buildings throughout San Diego, especially those built before 1980, may contain asbestos, lead-based paint, or PCBs in insulation or fixtures. Both federal and state law require proper testing, abatement, and disclosure before demolition or renovation. Overlooking these materials can trigger liability for unsafe work conditions or environmental violations, stalling your project’s progress.
Air Quality and Emissions
San Diego falls under the San Diego Air Pollution Control District (SDAPCD), which enforces strict emission standards to protect regional air quality. Construction, demolition, and industrial projects must obtain the necessary air quality permits and comply with dust control and emissions limits. Noncompliance can result in project shutdowns or significant fines.
Wildfire and Brush Zone Risks
Many parts of San Diego County, such as Poway, Rancho Bernardo, and areas bordering Cleveland National Forest, lie within high fire hazard severity zones. Developers must follow building codes requiring defensible space, fire-resistant materials, and safe access routes for emergency vehicles. Real estate transactions also require disclosure of wildfire risk zones to buyers and tenants.
Zoning and Environmental Overlays
San Diego’s environmental overlays can affect everything from building height to grading limits in real estate law. Coastal zones, habitat conservation areas, and hillside overlay districts impose unique restrictions that may limit development density or require additional environmental review. Before finalizing a purchase or design plan, review zoning maps and consult with planning authorities to understand applicable constraints.
Key Environmental Laws Impacting San Diego Real Estate
California Environmental Quality Act (CEQA)
CEQA requires environmental review for development projects that could significantly affect the environment. Depending on the scope and location of the project, this may involve an Initial Study, Negative Declaration, or Environmental Impact Report (EIR). CEQA ensures that developers address concerns like traffic, air quality, and habitat disruption before permits are issued.
California Coastal Act
San Diego’s extensive coastline makes the Coastal Act especially relevant. Developments near the ocean, from La Jolla to Imperial Beach, may require Coastal Development Permits (CDPs) and must align with the California Coastal Commission’s policies protecting public access and coastal ecosystems.
Proposition 65 (Safe Drinking Water and Toxic Enforcement Act)
Under Prop 65, businesses and developers must provide clear warnings if a property exposes individuals to chemicals known to cause cancer or reproductive harm. This is particularly important for sites near industrial zones, ports, or high-traffic corridors where exposure risks may be elevated.
Hazardous Waste Management and Liability
California’s hazardous waste laws hold property owners responsible for proper waste storage, transport, and disposal. Acquiring land with existing contamination may transfer cleanup liability to the new owner. Performing environmental due diligence and negotiating indemnification clauses during acquisition can help reduce future financial exposure.
Leaking Underground Storage Tank (LUST) Regulations
Old service stations, auto repair shops, or industrial parcels in San Diego may have underground fuel or chemical tanks that leaked over time. State law requires verification of proper removal and soil testing before redevelopment can move forward. Unaddressed contamination can lead to costly remediation orders.
Lead-Based Paint Disclosure
Any residential or mixed-use project involving structures built before 1978 must include lead-based paint disclosures for buyers, tenants, and contractors. This requirement protects public health and ensures transparency during real estate transactions or adaptive reuse projects.
Work with Experienced Real Estate Attorneys in San Diego
Environmental compliance in San Diego real estate isn’t simply about following the law , it’s about identifying risks early, securing the right permits, and preventing costly project disruptions. Each development site presents unique challenges shaped by its geography, zoning overlays, and environmental history.
At Artemis Law Group, we help developers, investors, and property owners navigate this intricate regulatory landscape. Our team reviews environmental assessments, manages compliance documentation, and coordinates with consultants to ensure your project meets California’s environmental and real estate standards. With deep experience in construction and real estate law, we protect your investment while keeping your project compliant, efficient, and moving forward. Contact us today to get started.