Over the past years, California policymakers have implemented proactive measures and reforms to simplify the ADU-building process, aiming to create more affordable housing options throughout the state.
California achieved its significant milestone towards expanding ADU opportunities in 1982 by enacting SB 1160, which encouraged localities to allow the construction of ADUs on single-family lots. Following this in 2002, AB 1866 required cities and counties to adopt a more straightforward approach to the ADU approval process, eliminating the need for special permits or extensive reviews. However, despite these initial efforts, the strict rules and standards implemented by most local governments led to a low approval rate for ADU permits.
To address these issues and combat the housing crisis throughout the state, policymakers introduced a series of laws in 2016 to streamline the approval permitting process and establish workable statewide standards. As a result, these laws have significantly boosted ADU construction, with permitting increasing by 42 to 76% each year since 2016.
Today, California policymakers continue to actively refine ADU laws to reduce barriers, streamline approvals, and provide homeowners with the flexibility to share ADUs with family members or use them as additional income streams.
Below is a summary of the ADU laws passed since 2016:
2016
- SB 1069 addresses the barriers surrounding ADU constructions. This legislation minimizes fees, reduces fire requirements, and limits parking to one space per unit.
- AB 2299 requires a local government to ministerially approve ADUs if the unit complies with certain parking requirements, the maximum allowable size of an attached ADU, and setback requirements.
- AB 2406 creates more flexible housing options by authorizing local governments to permit junior accessory dwelling units (JADU) through an ordinance.
2017
- SB 229 and AB 494 clarify various ambiguities from the earlier SB 1069 legislation and give the California Department of Housing and Community Development (HCD) greater oversight over how local jurisdictions handle ADU permitting processes.
2019
- AB 670 prevents local Homeowners Associations from prohibiting ADU or JADU constructions on single-family residential use zones. This means HOAs can no longer restrict homeowners from building ADUs and JADUs except for reasonable size, location, and appearance restrictions.
- AB 671 requires local agencies to provide financial assistance plans, such as grants and incentives, to encourage homeowners to build affordable ADUs for very low to moderate-income tenants.
- AB 68 and AB 881 allow homeowners to add 2 more ADU units to their properties, minimize impact fees, regulate a shorter time for ADU permit approval, and ease requirements on size, lot, and setback. These legislations also remove the owner-occupancy requirements on ADUs.
- AB 587 allows ADUs to be sold or conveyed separately from the primary residence to a qualified buyer under certain conditions, such as if the buyer is a person of low or moderate income.
- SB 13 deals with other major barriers to ADU development that AB 68 and 881 leave unaddressed. It eliminates all owner-occupancy requirements by local agencies for ADUs approved between January 1, 2020, and January 1, 2025. SB 13 also establishes impact fee exemptions and limitations and permits the delay of enforcement against qualifying substandard ADUs for five years to allow the owner to correct the violation.
2020
- AB 3182 addresses barriers to the development and use of ADUs and JADUs by allowing automatic approvals if local agencies make no decisions within 60 days. This legislation also allows up to one ADU and one JADU to be built per lot within a residential or mixed-use zone.
- SB 592 protects single-family and ADU projects by allowing homeowners to pursue legal action and seek compensation if their ADU application is unjustly denied by the city.
2021
- AB 345 requires local agencies to allow ADUs to be sold or transferred separately from the main house if the property has a special recorded ownership agreement and if the ADU was built by a nonprofit group or sold to a low-income buyer.
2022
- AB 157 allows homeowners to build ADUs without a dedicated parking space. It also creates financial assistance programs to help low- and moderate-income households build ADUs.
- AB 916 is a CalRHA-sponsored bill that provides financial incentives to homeowners who build ADUs. It also allows homeowners to convert existing interior space, such as basements and garages, into more bedrooms.
- AB 2221 removes limits on how close ADUs can be built to the front of a property and makes it easier to build ADUs in housing associations. Additionally, this legislation allows a 60-day timeline for the full review if ADU is denied or approved.
- SB 897 prevents local governments from posting unnecessary notices and prevents a local government from delaying or denying demolition permits if an ADU permit is issued. It also allows two-story ADUs in some places.
2023
- AB 1033 permits property owners in participating cities to construct an ADU on their land and sell it separately. It also gives homeowners more options for building ADUs on their property.
- AB 976 permanently allows homeowners to build affordable rental ADUs and construct rental ADUs on properties that already have rentals.
- AB 671 allows CalHOME Program funds to be used for the construction, repair, reconstruction, or rehabilitation of ADUs and JADUs.
- AB 1332 requires local agencies to develop a pre-approved ADU program by January 1, 2025, to streamline the process of ADU construction in California. Also, this legislation provides clear guidelines for how applications for detached ADUs should be approved or denied.
Conclusion
California has undergone significant reforms in ADU policies over the years, aiming to address the statewide housing crisis. These policies have also become a powerful tool that benefits both homeowners seeking additional income or space, and renters looking for more affordable options.
With ongoing improvements like pre-approval programs and streamlined permitting processes, building an ADU is becoming increasingly accessible and flexible for California homeowners and residents.
Please stay tuned to our upcoming newsletters to keep informed about the latest developments in California ADU policies and regulations.
Disclaimer: The information provided here is for informational purposes only and is not intended as legal advice. For specific legal inquiries or guidance on Accessory Dwelling Units (ADUs), please consult with a qualified legal professional. Learn more about ADUs here.
