Do you have or plan to have an Accessory Dwelling Unit? If so, you should know about the new ADU laws California 2024. After all, they impact the construction and pricing of ADUs and your overall property. Do you know what the latest regulations specify? Whether or not, we have you covered. Read till the end to learn about the key pointers of 2024 California ADU law and how it impacts the world of real estate.
All About the New ADU Laws in California, 2024
Wondering what are the new ADU regulations in CA? How will they impact the whole ADU scene in the state? Well, the only way to find out is to know about the rules.
| 2024 ADU Laws and their Impact | ||
| Law | What does it offer? | Impact |
| AB 1033 | Independent Sale of ADUs | Increased ADU sales |
| AB 1332 | Pre-approval of ADU plans | Local authorities must have a pre-approval ADU scheme |
| AB 976 | No owner-occupancy | No-owner occupancy implies after Jan 1, 2025 |
| AB 60 | Addition of more units | Homeowners can have up to two additional units |
What is an ADU in California?
An accessory dwelling unit refers to a secondary living space constructed on the same land as your primary residence. Many experts say that ADUs are a cost-efficient twist to traditional family homes. Moreover, they can be detached, attached, or convertible. Apart from these, Junior Accessory Dwelling Units (JADUs) have also become quite popular. This is all because of their ease of construction and enhanced perks. Here are some of the perks of both ADUs and JADUs:
- Increased property value
- Increased living space
- Extra rental income
“An ADU is an independent residence built on the same grounds as the primary residence. It offers complete living facilities for one or two individuals.” – California Department of Housing and Community Development
In other words, an ADU offers a lot of residential and financial opportunities. Moreover, the new ADU Laws, California, 2024, lifted several limitations. As a result, there is a prominent increase in ADU construction all around California. Whether you’re a builder, investor, or just a homeowner, keeping up with California ADU laws 2024 is a smart move. So, here we have compiled some key takeaways from you.
The Highlights of new ADU laws, California, 2024
Now, let’s move on to the main topic: what do the latest California ADU laws offer? Well, surely major shifts were noted. Let’s find out everything you should know:
1. Independent Sale of Units
The recent Assembly bill 1033 for ADU was all good news. After all, it lifted a state-level restriction on the sale of ADUs. Before, they couldn’t be sold separately, and had to come as a package with the whole property. However, this is not the case now.
“The local government can now allow the independent selling of ADUs as condominium units. – Assembly Bill 1033, California Law.
The officials have authorized this practice but not all local agencies have adopted it. If implemented, there will be more opportunities for buying and selling ADUs. This way, homeowners and investors can even avail of inter-city investment opportunities throughout the state of California. Whenever you decide to buy or sell an ADU, it is better to consult a real estate professional first. They have the experience and expertise to help you make the right choice.
2. Pre-Approved ADU Plans
Another assembly bill, AB 1332, required the local authorities to establish regulations for the preapproval of ADU construction plans. Moreover, these plans should provide a thorough review of the construction process and project execution. Also, the plan will be posted on the local government’s website where the relevant officials can review it. As soon as it receives the application for ADU with pre-approved plans, the authority has 30 days to approve or reject it. The main reason for proposing and passing the bill was to make ADU construction easy and streamlined for the homeowners.
“All the cities and municipalities of California must have a scheme for the pre-approval of ADU plans, effective Jan 1, 2025 and onwards” – Assembly Bill 1332, California Law.
3. No Owner-Occupancy
Previously, the California law has restricted the imposition of owner-occupancy conditions on ADUs built between the period of 1st January, 2020 – 1st Jan, 2025. The good news is that this period has been extended – permanently. According to AB 976, you can now build ADUs for rental purposes even after 2025. This was a great move to promote the construction of accessory dwelling units and rental opportunities in California.
“Property owners may continue to build rental ADUs even after Jan, 2025 without the restrictions of owner-occupancy imposed by the local government – Assembly Bill 976, California Law.
4. Improved Front Setback
The new ADU laws, California, 2024 also resulted in leniency in the setback conditions. You should know that setbacks refer to the distance between the ADU or independent living unit from the main residence. Because of the previous restriction in front setback, ADU approvals had to face disapproval. However, the California law has redefined these setbacks. Moreover, the rules are even more easy for properties with limited backyard space.
| Important!!
An ADU construction under 800 square feel doesn’t need to comply with the front setback requirements. |
How Many ADUs Can You Add in 2024?
According to this Assembly Bill 2024, homeowners can now have up to two additional units other than their existing lot. Do you know what that means? It means increased living spaces and more profitable opportunities. Moreover, the bill allows the following ADU construction conditions:
- Single-family properties to have an ADU (attached or detached) with an area of 1200 square feet.
- Junior ADU can take up to 500 square feet of space.
- Multi-family have the option to convert their non-habitable structures, such as basement, garages, or attics in ADUs.
Interesting, right? Well, it’s practical too. Those who want more space for their family members or want to have an extra rental income can surely benefit from this regulation. You can say that it is one of the most efficient new ADU laws, California, 2024.
What is the Impact of the 2024 ADU Laws in California?
Undoubtedly, the new ADU laws in California came with several changes. Some of them were not so great, while many were pretty beneficial, including these:
- Flexible construction
- Investment opportunities
- Rental opportunities
Moreover, all these laws impacted homeowners, investors and developers differently. Want to know how? Here are some of the ways how the new laws impacting the ADU scene in California:
- Increased Rental Opportunities
With the new laws effective, homeowners can now build additional units and rent them out independently of the main residence. This means, you can earn more income. Great, right? This is a huge change as it will expectedly lead to an increased number of ADUs in California. This is not just good for the homeowners but tenants too.
- More opportunities for Developers
With less restrictions, developers and investors have more construction opportunities. Because you can sell your ADU separately, you can maximize your profit. Moreover, the selling process also becomes easy. So, if you are interested in owning, investing in, or renting an accessory dwelling unit, now is your chance.
- Flexible Designs and Placement
The new ADU laws California 2024 offers more flexibility in the construction of ADUs and JADUs. How so? Well, the improved front setbacks allow more versatile design and placement of units. Rather than sticking to limitations, you can go for innovation and functionality now. This way, you can get yourself more valuable – financially and aesthetically – for yourself, investors or renters.
How Can Professional Guidance Help?
Navigating through the complexities of ADU laws can be overwhelming, if you do it all alone. So, it is always better to have professional advice by your side. Moreover, investing in or selling your ADU is a matter of profit and loss. And with an expert by your side, you can surely make the right decision. They’ll walk you through the latest regulations and relevant amendments. Anyway, if you have any real estate concerns, Evelyn Baez is your girl!
Final Take on the new ADU laws, California 2024
If you have read the guide till here, you now know the major updates that came along with the new ADU laws, California, 2024. Moreover, this year gave us so much good news regarding the construction and inhabitation of ADUs. The authorities lifted so many restrictions on the sale, construction and placement of these units. Besides, you can even build up to two additional units on your property now. You can see that ADUs in California are in a win-win situation this year and the future as well.
