Before delving into the legal aspects, it's important to understand the definition of an ADU in California. As per the California Department of Housing and Community Development's (HCD) ADU Handbook, an Accessory Dwelling Unit is a residential unit offering complete, self-contained living facilities for one or more individuals.
An ADU is an accessory to a primary residence and has complete independent living facilities for one or more persons and has a few variations:
- Detached: The unit is separated from the primary structure.
- Attached: The unit is attached to the primary structure.
- Converted Existing Space: Space (e.g., primary bedroom, attached garage (like garage conversion in San Jose), storage area, or an accessory structure) on the lot of the primary residence that is converted into an independent living unit.
- JADU: A specific type of conversion of existing space contained entirely within an existing or proposed single-family residence.
Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs) in California offer a cost-effective alternative to traditional single-family homes, addressing the state's housing crisis. They are cheaper to construct as they are built on existing properties, avoiding the cost of new land and infrastructure. These units can be made using affordable construction methods, including prefabrication, which reduces time and expense. ADUs provide viable living spaces for various demographics, including families, students, and seniors, and generate rental income for homeowners. Recent policies have further reduced costs by limiting development fees and relaxing zoning requirements, making ADUs a practical solution to improve housing availability and affordability in California.
You can familiarize yourself with the instructions by visiting the official website of the California Department of Housing and Community Development (HCD) at this link: Accessory Dwelling Units Handbook.
Key ADU Law Changes in 2023
Several key ADU (Accessory Dwelling Unit) laws have been enacted in recent years. These laws have been crucial in facilitating the development of ADUs, providing homeowners with more flexibility and easing the process of adding these secondary units to their properties. These legislative changes respond to the growing need for more diverse and affordable housing options. The California bills AB 68 and AB 881 have made significant changes to streamline and reduce the cost of building ADUs. These laws reduce the restrictions previously imposed by local agencies, standardizing rules in favor of homeowners statewide. Key changes include easing restrictions on lot size, parking, and unit size for ADUs, simplifying the approval process, and making ADU construction more accessible. These reforms aim to facilitate the creation of additional affordable housing units in response to California's housing crisis. For detailed information on each bill:- - AB 68 Summary (pluralpolicy.com)
- - AB 881 Summary (pluralpolicy.com)
Your Property Can Accommodate Two Additional Units
Under AB 68, the regulations for ADUs on single-family and multi-family lots in California have been significantly expanded. For single-family lots, approval is required for one ADU (either attached or detached) of up to 1200 sq ft and one Junior ADU (JADU) of up to 500 sq ft. Multiple ADUs attached to existing structures and up to two detached ADUs are permissible for multi-family lots. These changes represent a significant shift from previous laws, significantly increasing the potential for ADU development and addressing housing needs.
Residency Requirement for ADU Owners Eliminated
Under recent legislative changes, homeowners are no longer required to reside in the primary home or the ADU they build. This is a significant development for landlords and investors, allowing them to construct ADUs on rental or investment properties, thereby contributing to the increase of housing options. This adjustment in the law opens up more opportunities for housing development on existing properties without the constraints of owner occupancy.
Relaxed Regulations for ADU Size, Lot, and Setback Requirements
Under the new California ADU laws, the state has removed previous restrictions set by municipalities regarding minimum lot size, lot coverage, and floor area ratio for ADUs. Now, homeowners can build an ADU with a minimum size of 800 square feet and a maximum height of 16 feet, adhering to a 4-foot setback from side and rear yards. These changes significantly ease the process of ADU construction, allowing for more flexibility in design and placement on the property.
Reduced or Eliminated Impact Fees for ADUs
With California's recent ADU legislation, ADUs not exceeding 750 square feet (like Backyard Cottage In Sunnyvale) are exempt from impact fees imposed by local agencies. These fees are proportionately assessed for ADUs over 750 square feet, considering the size of both the ADU and the primary residence. This adjustment significantly enhances the financial viability of constructing ADUs for homeowners.
Expedited Approval Process for ADU Permits
The approval process for ADU permits has been expedited, requiring local agencies to approve or deny applications within 60 days, significantly faster than previous laws. Additionally, many ADUs now qualify for exemption from parking requirements. This includes ADUs close to public transit, in historic districts, integrated with primary residences, or where on-street parking permits aren't available to ADU occupants. Even when not exempt, parking requirements are capped at one space per unit or bedroom and cannot include guest parking.
Limitations Imposed by HOAs on ADUs Now Overridden
Following the enactment of bills in 2019 and 2020, Homeowner Associations (HOAs) in California cannot unreasonably restrict the construction or use of ADUs or JADUs, including their rental or lease on lots zoned for single-family residential use. If homeowners encounter issues with their local HOA regarding ADUs, they can seek guidance from the California Department of Housing and Community Development (HCD).
Expanded Financial Assistance for ADU Development Available
The new California laws mandate state and local agencies to foster ADU creation, with HCD outlining state grants and financial incentives for affordable ADU development. Notably, the California Housing Finance Agency (CalHFA) offers a $40,000 grant to offset ADU development costs, providing significant financial assistance to homeowners.
Future Legislation on ADUs in California
Despite new laws easing ADU development, many municipalities still pose challenges for homeowners. A UC Berkeley survey found that 50% of respondents struggled with obtaining ADU permits and meeting local standards. New bills, including SB 897 and AB 2221, aim to streamline the process further, offering additional benefits to homeowners once enacted.
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As you consider embarking on an ADU construction project, our team is here to assist you. We offer a free consultation to address all your ADU-related inquiries and help find solutions that best fit your needs. Don't hesitate to reach out and take the first step toward your ADU project. Call us for your consultation today.
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