New California ADU Laws in 2023
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Introducing California's New ADU Laws in 2023
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.
Over the past decade, ADU construction has experienced a surge throughout California, accounting for approximately 20% of newly constructed housing units. This number is expected to increase more in the following years as Gov. Gavin Newsom signed four new laws in October 2023 that make it easier and more beneficial for homeowners to build ADUs while ultimately addressing the housing crisis throughout the state.
Assembly Bill 1033
AB 1033, introduced by Assembly Member Phil Ting, is one of the newest ADU laws in California in 2023.
AB 1033 is set to make homeownership more affordable by allowing homeowners to sell their ADUs separately from their primary residences, repealing the existing law that only allows ADUs to be rented out.
This law provides opportunities, especially for the elderly or retirees to earn supplemental income while helping young families or first-time homeowners buy affordable housing.
Under AB 1033, the primary home and the ADU will have two different property taxes, following the same rules for selling a condominium. The law also mandates that homeowners building ADUs must inform the local utilities about the creation and separation of the units.
Assembly Bill 976
AB 976, which Assembly Member Phil Ting also introduced, enables homeowners to supplement their income and enhances the supply of rental housing throughout the state.
AB 976 eliminates the requirements mandating Californian property owners to live in their ADUs, making it easier for them to rent out their properties. While this provision was previously introduced under AB881 and SB13 in 2019, both laws carried a sunset date of January 1, 2025. With AB 976, the sunset date and owner-occupied requirements will be abolished and homeowners can rent out their ADUs permanently.
Assembly Bill 1332
Spearheaded by Assembly Member Juan Carrillo, AB 1332 seeks to streamline the process of constructing ADUs in California. This bill mandates cities and counties in the state to establish a program for pre-approved ADU plans, ensuring timely review and approval of these plans within a 30-day timeframe.
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Under AB 1332, the program needs to be ready by Jan 1, 2025, and must adhere to the following:
Some local governments in California already have pre-approved ADU programs, including Cupertino, Oakland, San Jose, Sacramento, Fresno, and Los Angeles.
Assembly Bill 671
AB 671, authored by Assembly Member Christopher Ward, is another ADU law that aims to provide more homeownership opportunities to low-income households throughout California.
Previously, community land trusts (CLTs) were allowed to build ADUs on residential properties, but they are not authorized to use CalHome funds for this purpose. AB 671 addresses this issue by allowing CLTs to use CalHOME state funds to build more ADUs.
AB 671 also grants CLTs the flexibility to rent or sell the main house, ADU, or JADUs separately.
As the demand for ADUs in California continues to surge, homeowners, builders, and renters must stay ahead of the evolving ADU regulations.
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