California’s laws surrounding Accessory Dwelling Units (ADUs) have undergone significant changes in 2024.
These new laws make it easier to get ADU plans approved and pave the way for faster development.
For homeowners and developers, understanding these updates is crucial for taking advantage of the new opportunities.
In this guide, we’ll take a look at what’s new for 2024 and recap the changes in 2023 that are still making a big impact into the ADU landscape.
Significant Changes in 2024
Let’s start off with what’s changed in 2024 specifically.
AB 1033: Separate Sales Now Possible
AB 1033 was approved on October 11, 2023, and introduces a way for homeowners to sell one or more ADUs separately from their primary residence.
It authorizes local agencies to adopt ordinances, assuming approval from the Department of Real Estate, that allow ADUs to be sold as condominiums separate from the primary dwelling.
AB 434: Pre-Approved Plans Easier Than Ever
AB 434 is a significant change to the ADU landscape.
It requires all Californian cities and municipalities to have pre-approved ADU plans in place by Jan 1, 2025.
Cities can choose to charge a fee for access to the designs and modifications, but it now means that pre-approved plans must be available to everybody by next year.
AB 976: Extension of Owner-Occupancy
AB 976 has extended the prohibition of local agencies from imposing ‘owner-occupancy’ conditions on ADUS that were permitted between Jan 1, 2020, and Jan 1, 2025.
This essentially means that this will continue with ADUs or converted ADU projects that are permitted after Jan 1, 2025.
A Recap of the Changes During 2023
A lot of the changes made in 2023 will still have a big impact in 2024.
Here’s a recap of the significant changes to the ADU landscape in 2023 and how they impact the ADU building process.
AB 2221: 60-Day Rule & Height Restrictions
AB 2221 brought some significant changes to the application timeline, as well as height restrictions on ADUs.
All agencies involved in reviewing ADU plans in Califrornia must now respond withing 60 days of submission of plans, which is a reduction in time.
In terms of height changes, ADUs under 16 ft are allowed under any circumstance. ADUs of 18 ft are allowed if within ½ mile of public transit or if the property already has a multi-family dwelling that is two stories high.
25 ft ADUs are allowed if they are attached to the primary dwelling and permitted via the underlying zoning code of the property.
AB 881: No Owner-Occupancy Requirement
AB 881 removed the owner-occupancy requirement for ADUs until 2025. This change encouraged more investment in ADUs by allowing property owners to rent out both the main house and the ADU without needing to live on-site.
Residency Requirement Has Changed
Recent legislative changes have meant that homeowners are no longer to reside in the primary home or ADU that they build.
This is significant because it means that landlords or investors can construct ADUs on investment properties.
This has led to an increase in the number of ADUs being built, and is helping to provide more housing options. There has been some backlash to this for obvious reasons, but it has generally been well-accepted.
Lower Impact Fees
Recent changes have also meant that ADUs not exceeding 750 aq ft are not exempt from impact fees which are imposed by local agencies.
This has a direct impact on the financial feasibility of ADU build projects.
Impact fees are still charged on ADUs larger than 750 sq ft and are done according to the size.
Financial Assistance for ADU projects
Another positive change for the ADU landscape is new laws mandating for state grants and financial incentives for affordable ADU development.
An ADU grant from the Housing Finance Agency offers up to $40,000 towards pre-development and non-recurring closing costs associated with the construction of an ADU.
Other Notable Changes
Here are some extra changes that occurred to the ADU landscape in 2023:
- Fire sprinklers are no longer a requirement for the main dwelling when an ADU is permitted.
- Attached JADUs no longer need a bathroom if there is one accessible in the primary dwelling.
- If an ADU is under 800 sq ft, the front setback requirement can no longer prevent the build.
The Future Of The ADU Landscape
ADU laws and legislation in California keep changing all the time, and will continue to do so for the foreseeable.
Luckily for us, the majority of these changes are making it easier and more affordable to build an ADU, both from a planning point of view but also during construction and after.
Stay tuned for the 2025 version of this guide to see what updates are introduced.