A straight answer
Can I add and finance an ADU in San Clemente?
The direct answer
Yes. San Clemente allows accessory dwelling units on residential lots, and the City Council adopted Ordinance No. 1810 on June 16, 2026. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. I arrange the financing; parts of the city in the coastal zone may need a coastal permit.
I arrange the financing side: a home equity line drawn as the stages are permitted and built, a renovation loan, or a construction loan. The permit timeline comes first and the loan is shaped around it.
I grew up here and I still live here. This page quotes the ordinance itself so you can check it, and it gives no permitting advice; the city’s planning staff decide what is approved. Based in San Clemente. Branch office in Irvine.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-17
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What the 2026 ordinance is
The minutes of the June 16, 2026 City Council meeting record that the Council adopted Ordinance No. 1810 approving Zoning Amendment 26-064 “to amend San Clemente Municipal Code sections 17.28.270, relating to accessory dwelling units, and 17.88.030, relating to zoning code definitions, to be consistent with Housing Element commitment and State law,” by a motion carried five to none. The first reading was June 2, 2026.
Everything below is quoted from the ordinance text in the city’s June 16 agenda report. The published municipal code had not yet been updated with it when this page was written, so this page cites the ordinance rather than the code, and it states no effective date because the city has not published one.
Size, setbacks and height
Size. “The maximum size of a detached or attached accessory dwelling unit shall be eight hundred fifty (850) square feet of interior livable space for a studio or one (1) bedroom unit and one thousand (1,000) square feet of interior livable space for a two (2) or more bedroom unit.” The size limits “shall not apply to an accessory dwelling unit that is converted from the existing space of a single-family dwelling or existing accessory structure.” For a junior unit, “The maximum size of a junior accessory dwelling unit shall be five hundred (500) square feet of interior livable space.”
Setbacks. “Attached and detached accessory dwelling units shall provide a minimum setback of four (4) feet from all side property lines and rear property lines not abutting an alley unless the setback requirements of the underlying zoning district are less restrictive.”
Height. “Detached accessory dwelling units shall not exceed a height of sixteen (16) feet,” with two exceptions: a detached unit “constructed on a lot with an existing or proposed multi-family, multi-story dwelling shall not exceed a height of eighteen (18) feet,” and a detached unit “constructed above a detached garage shall not exceed two (2) stories and the maximum allowable height of the underlying zoning district.”
Who can live there, selling, and renting
Owner occupancy. The ordinance requires it in one case: “JADUs that share sanitation facilities with a single-family dwelling are subject to an owner-occupancy requirement. If the JADU has its own bathroom, then the property owner is not required to reside on the property.” A regular ADU carries no owner-occupancy requirement in the ordinance.
Selling. An ADU or junior ADU “may be rented, but no accessory dwelling unit or junior accessory dwelling unit may be sold or otherwise conveyed separately from the lot and the principal dwelling,” except “as allowed under California Government Code section 66341.”
Renting. The ordinance says an ADU or junior ADU “shall not be rented for periods of thirty (30) days or less.” If you are counting on rental income from the unit, it is monthly rental income, and whether a lender counts it depends on the program.
What Fannie Mae and FHA count from an existing accessory unit, and the limits, are on can I count basement apartment rent when I buy a house in Utah?; the agency rules there are not Utah-specific.
Parking, and the coastal zone
Parking. “One (1) parking space shall be required for each accessory dwelling unit,” which may be tandem or on an existing driveway, and no additional parking is required in listed cases, including a junior unit, a unit converted from existing space, a unit within one-half mile walking distance of public transit, and others the ordinance lists.
Two of those exemptions apply only “Outside the coastal zone”: building the ADU together with a new home on the same lot, and not replacing parking when a garage, carport or covered parking structure is demolished or converted for the ADU. Inside the coastal zone, replacement parking can still be required.
Parts of San Clemente are in the coastal zone, which the city says “generally extends inland to Interstate 5,” and an ADU there may need a coastal development permit before city permits move forward. Which agency issues it and how long it takes depend on the parcel and on the status of the city’s coastal program, so ask the city’s planning staff about your address before you set a construction calendar. The Pier Bowl, downtown and North Beach page covers the neighborhoods this affects most.
Taxes after you build
The Orange County Assessor says a supplemental assessment follows completion of new construction, and the Treasurer-Tax Collector says a supplemental tax bill “cannot be billed to a lending agency.” That means a bill in your name after the unit is finished. Plan for it as a cash item. Nothing here is tax advice.
How I finance an ADU
A home equity line behind the first mortgage you want to keep, drawn as stages are permitted and built, so interest runs on what you have drawn rather than on the whole budget from day one. The fund a project page covers a staged draw, and the keep your mortgage, get cash page shows the line itself.
A renovation loan, including FHA 203(k) and Fannie Mae HomeStyle, which ties the loan to the plans and the permit and pays the contractor as work is inspected. I place both. The construction and land loans page covers a construction loan for a detached unit built from the ground up, which I also place.
A cash-out refinance, when your current first-mortgage rate is close to today’s rates or the budget is large enough to justify replacing the first mortgage.
No option is promised in advance, and the lender’s appraisal reads the plans and the permit. Tell me where the permit stands and I will say which structure fits the timeline. I work with homeowners in California, Utah, Oregon and Arizona, and eligibility depends on the property, your credit and your income.
What to bring to the first text
The address and whether it is west of the freeway. Whether the unit is a conversion of existing space or new construction, attached or detached. Where the permit stands: nothing yet, a city application in, a coastal permit in hand, or a building permit in hand. A rough budget and a contractor’s estimate if you have one. Your first mortgage statement and any second loan.
That is enough for me to say which loan fits the calendar and what has to be true first.
Questions people ask next
Did San Clemente adopt a new ADU ordinance in 2026?
Yes. The city’s minutes of the June 16, 2026 City Council meeting record that the Council adopted Ordinance No. 1810, approving Zoning Amendment 26-064 to amend Municipal Code section 17.28.270 on accessory dwelling units and section 17.88.030 on definitions, by a vote of five to none. This page quotes the ordinance itself; the published code had not yet been updated with it when this page was written.
How big can an ADU be in San Clemente?
Under Ordinance No. 1810, 850 square feet of interior livable space for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms, with the limits not applying to a conversion of existing space, and 500 square feet for a junior ADU.
What are the setback and height rules for a detached ADU?
A minimum setback of four feet from side property lines and from rear property lines that do not abut an alley, unless the zoning district is less restrictive, and a height limit of sixteen feet for a detached unit, with eighteen feet allowed on a lot with a multi-family, multi-story dwelling and a two-story unit allowed above a detached garage within the zone’s height limit.
Do I have to live on the property, and can I rent the ADU short term?
Owner occupancy is required only when a junior ADU shares a bathroom with the main house. An ADU or junior ADU may be rented, but not “for periods of thirty (30) days or less,” and it cannot be sold separately from the lot and the main dwelling except as California Government Code section 66341 allows.
Do I need a coastal permit for an ADU in San Clemente?
Parts of the city are in the coastal zone, and an ADU there may need a coastal development permit before city permits move forward. Two of the ordinance’s parking exemptions apply only outside the coastal zone. Ask the city’s planning staff about your specific address.
What loan fits an ADU if I want to keep my first mortgage?
A home equity line drawn in stages or a renovation loan, depending on how the permit and the contractor schedule line up. The line leaves the first mortgage exactly as it is; the renovation loan ties the money to the plans. The fund a project page covers the staged draw.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
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Sources and checked dates
Sources: City of San Clemente, City Council regular meeting minutes, June 16, 2026 (checked 2026-09-26) · City of San Clemente, Ordinance No. 1810 (Zoning Amendment 26-064), agenda report for second reading, June 16, 2026 (checked 2026-09-27) · City of San Clemente, Coastal Planning (checked 2026-09-26) · Orange County Assessor, Supplemental Assessments and Notices (checked 2026-09-26) · Orange County Treasurer-Tax Collector, Supplemental Property Taxes (checked 2026-09-26) · Confirmed by Zach, Sept 2026 (checked 2026-09-26) · CFPB, What is a HELOC? (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (9)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| The minutes of the San Clemente City Council regular meeting of June 16, 2026 record that the Council, by a motion carried 5-0 (Consent Calendar item 11D), adopted Ordinance No. 1810 approving Zoning Amendment 26-064 “to amend San Clemente Municipal Code sections 17.28.270, relating to accessory dwelling units, and 17.88.030, relating to zoning code definitions, to be consistent with Housing Element commitment and State law.” | City of San Clemente, City Council regular meeting minutes, June 16, 2026 | 2026-09-26 |
| Ordinance No. 1810, as adopted on June 16, 2026 (text in the city’s agenda report for the second reading), provides: “The maximum size of a detached or attached accessory dwelling unit shall be eight hundred fifty (850) square feet of interior livable space for a studio or one (1) bedroom unit and one thousand (1,000) square feet of interior livable space for a two (2) or more bedroom unit”; the size limits “shall not apply to an accessory dwelling unit that is converted from the existing space of a single-family dwelling or existing accessory structure”; “The maximum size of a junior accessory dwelling unit shall be five hundred (500) square feet of interior livable space”; ADUs “shall provide a minimum setback of four (4) feet from all side property lines and rear property lines not abutting an alley unless the setback requirements of the underlying zoning district are less restrictive”; “Detached accessory dwelling units shall not exceed a height of sixteen (16) feet,” except eighteen (18) feet on a lot with a multi-family, multi-story dwelling and two stories above a detached garage within the zone’s height limit; “JADUs that share sanitation facilities with a single-family dwelling are subject to an owner-occupancy requirement. If the JADU has its own bathroom, then the property owner is not required to reside on the property”; no ADU or JADU “may be sold or otherwise conveyed separately from the lot and the principal dwelling” except “as allowed under California Government Code section 66341”; an ADU or JADU “shall not be rented for periods of thirty (30) days or less”; “One (1) parking space shall be required for each accessory dwelling unit,” with listed exemptions, two of which apply only “Outside the coastal zone.” | City of San Clemente, Ordinance No. 1810 (Zoning Amendment 26-064), agenda report for second reading, June 16, 2026 | 2026-09-27 |
| The city says its Coastal Zone “generally extends inland to Interstate 5 and includes five miles of coastline”; its Local Coastal Program Land Use Plan was certified on August 10, 2018 and the Implementation Plan was still in development as of the page’s last update. The Housing Element notes that until the Implementation Plan is certified, development proposals within the Coastal Zone must also be approved by the California Coastal Commission, which it says typically adds 12 to 36 months. | City of San Clemente, Coastal Planning | 2026-09-26 |
| The Orange County Assessor says supplemental assessments “are value adjustments required by law when a property: Changes ownership or Undergoes new construction,” that “If a change of ownership or completion of new construction occurs between lien date (January 1) and May 31, there are two supplemental assessments because it impacts two fiscal years,” that supplemental bills are prorated from the date of transfer or completion to the end of the tax year (June 30) and mailed by the Tax Collector within a few weeks of the notice, and that “A taxpayer has sixty (60) days from the date of the mailing of the Notice of Supplemental Assessment within which to file an assessment appeal for that valuation.” | Orange County Assessor, Supplemental Assessments and Notices | 2026-09-26 |
| The Orange County Treasurer-Tax Collector says: “Supplemental taxes result from assessments adjusting taxes when new taxable values are determined following change of ownership of locally assessed property or completion of new construction on locally-assessed real property.” It says “Supplemental Tax Bills are separate from the regular property tax bill,” that “It is the owner’s responsibility to ensure payment of Supplemental Taxes as they cannot be billed to a lending agency,” that “You have the right to appeal the Supplemental Assessment within 60 days of the date of the Notice of Supplemental Assessment was mailed,” and that “If you have filed an appeal, you are still responsible for the payment of taxes.” | Orange County Treasurer-Tax Collector, Supplemental Property Taxes | 2026-09-26 |
| Zach places renovation loans, including FHA 203(k) and Fannie Mae HomeStyle. | Confirmed by Zach, Sept 2026 | 2026-09-26 |
| Zach places construction loans and land loans. | Confirmed by Zach, Sept 2026 | 2026-09-26 |
| Zach von der Linden says he moved to San Clemente at age 5 and grew up there, that he still lives there, and that a large share of the loans he does are for San Clemente homeowners. | Confirmed by Zach, Sept 2026 | 2026-09-26 |
| The CFPB describes a HELOC as an open-end line of credit for borrowing repeatedly against home equity, says draw and repayment periods vary, and warns that falling behind could cost you your home. | CFPB, What is a HELOC? | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-17.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
Two ways to take the next step
No credit pull happens from a conversation. The options check is a soft credit pull with no impact on your credit score for the first look. Text Zach first so he can review your situation. The online check covers one HELOC program, not every option he may be able to arrange. Texts go to Zach's cell.