California ADU 2024: The Complete Guide to Laws, Benefits, and Costs
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What is an Accessory Dwelling Unit or ADU?
ADUs or Accessory Dwelling Units are residential units with complete independent living facilities, such as sleeping, kitchen, and bathroom provisions, attached or detached from primary dwellings or single-family homes.
Originally, ADUs were designed to accommodate relatives, caregivers, or elderly family members who needed to be close to loved ones while maintaining their own separate living space. Today, ADUs have evolved into a sustainable and affordable alternative to traditional housing. Their flexibility and versatility make them attractive options for new families, young professionals, and retirees seeking convenient and cost-effective living arrangements.
What are the benefits of having Accessory Dwelling Units (ADUs) in California?
California ranks the second-largest tenant population in the country, with roughly 17 million people or 44% of its residents are renters. Property owners can capitalize on this demand by renting out their ADUs, creating an additional income stream.
In addition to rental income, ADUs can now be sold separately from the main home under the newly enacted AB 1033. San Jose pioneers this initiative as the first city in California to allow homeowners to sell their ADUs as separate properties.
ADUs require fewer resources for both construction and maintenance compared to traditional homes. In California, the standard maximum size of an ADU is 1,200 square feet. Though some local municipalities have the authority to adopt their own ADU size requirements, these homes have a considerably lower size than the state's average of around 1,900 square feet. This indicates that ADUs consume less energy for heating and cooling, leading to lower utility expenses and diminished carbon emissions.
Additionally, building ADUs is quicker and minimizes disruptions for homeowners, allowing them to make use of their investments sooner.
ADUs offer an affordable housing alternative in California due to their lower construction costs compared to traditional homes. This affordability makes ADUs a practical solution for individuals and families seeking cost-effective housing while remaining close to workplaces, schools, and other amenities.
ADUs can significantly increase property values in California by adding functionality and appeal. The additional living space they provide enhances the versatility of a property, making it more attractive to a broader range of potential buyers and renters.
ADUs are highly adaptable and can serve various functions beyond just being rented or sold. They can be used as guest houses, home offices, residences for caretakers, or even studios. This flexibility makes ADUs an excellent option for property owners looking to meet their evolving needs.
What are the ADU Laws in California?
Over the past decade, ADU construction has experienced a surge throughout California, accounting for approximately 20% of newly constructed housing units in 2023.
The substantial rise in ADUs can be traced back to California's proactive measures to actively refine ADU laws to reduce barriers, streamline approvals, and allow homeowners to share ADUs with family members or use them as additional income streams.
Here are the significant reforms in ADU policies in California from 2016 to 2023:
Frequently Asked Questions about ADU in California
Permits are necessary to construct an ADU in California. Typically, this includes building permits, ADU permits, and Zoning Administrator Permits. However, it's essential to consult your local building department for the most accurate and specific requirements. If you're constructing an ADU in San Jose, you can visit their building permit website for more information.
The cost of building an ADU varies based on its size and type. According to the City of San Jose, converting an existing garage or basement may cost between $80,000 and $150,000, depending on its size, existing plumbing, and design complexity. Alternatively, constructing a custom detached ADU could range from $250,000 to $350,000, depending on size, features, and materials chosen.
Additionally, it is important to know that building an ADU in California involves standard fees for plan review, permits, development impacts, and utility connections. It's advisable to consult your local city for specific fee details before starting your ADU project.
The CalHFA ADU Grant Program offers up to $40,000 grant to support homeowners in the pre-development phases of ADU construction. These predevelopment costs include site prep, property surveys, soil tests, permits, architectural designs, impact fees, and energy reports. The program aims to increase the availability of accessory dwelling units throughout California.
Here are some of the potential state grants and financial incentives for ADUs:
For a more comprehensive guide to ADU grants in California, visit the California Department of Housing and Community Development website.
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Yes, a new policy effective July 18th, 2024, under Assembly Bill 1033 (AB 1033) in 2023. passed in 2023, presents exciting opportunities for homeowners and potential ADU buyers in California. This legislation empowers California cities and counties to permit homeowners to sell their ADUs as separate properties.
San Jose is pioneering this initiative as the first city in California to allow the independent sale of ADUs.
California allows you to make your ADU available for rent. However, there's an important regulation to keep in mind: the minimum rental period for ADUs is 30 days. This means platforms like Airbnb, which often facilitate short-term rentals under 30 days, might not be suitable options for renting out your ADU.
Effective January 1st, 2024, California has completely removed all owner-occupancy rules for ADUs statewide. Assembly Bill 976 has solidified this change, ensuring that ADUs built both before 2020 and after 2025 are no longer subject to owner-occupancy requirements. These changes are intended to streamline ADU construction and expand rental housing options throughout California.
Generally, ADUs in California can share the main house's address or request a separate address. However, this depends on the local regulations. For instance, in Los Altos, every ADU will be assigned a new address before receiving a building permit. This address will be the existing property number followed by 'A' (e.g., 1234A Main St).
However, according to LA County, if a separate address is needed for your ADU, you may file a request to the mapping division in your California city. The new address would typically be a fractional number (?) added to the main address. For instance, if the main house is at 1234 Main Street, the ADU might be assigned 1234 ? Main Street. If the ADU has its own driveway or street access separate from the main house, it requires a distinct address. The new address is solely for the ADU and cannot be used until all relevant agencies have approved it.
Additionally, in San Jose, an address will be assigned to your ADU as part of the building permit process.
While both JADUs and ADUs offer additional living space, a key distinction lies in their size and integration with the main dwelling unit. JADUs in California are compact, limited to 500 square feet, and must fit entirely within an existing single-family home, such as a basement or garage conversion.
Unlike standard ADUs, JADUs can share a bathroom with the main house and have smaller kitchen amenities like plug-in appliances and a modest food preparation area. Due to their smaller size, JADUs are typically used as studio dwellings, and only one JADU is allowed per single-family lot. This setup minimizes the strain on utility services and infrastructure compared to larger ADUs.
To start your ADU and JADU projects in California, explore these recommended websites and resources:
You can also subscribe to our informative newsletter for the latest updates on California's ADU.
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Disclaimer: This article provides a general overview of ADU in California. Always check with your local ADU and housing department to confirm specific laws, guidelines, and permitting processes for building an ADU.
References: HCD, CALHFA, San Jose, Los Altos, NBC Bay Area, LA County, California Budget & Policy Center, California Department of Housing and Community Center ADU Handbook
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