Exciting News in California’s ADU Laws: What You Need to Know

Posted on December 05, 2024

The California real estate market is in for a significant shift with four new Accessory Dwelling Unit (ADU)-related laws signed by Governor Newsom last week. These laws are designed to streamline ADU development, provide more financing options, and offer pre-approved plans. If you’re a homeowner or a real estate professional in California, these changes could open up a world of opportunities. Let’s break down what you need to know.

1. AB 1033: Streamlining ADU Approvals

In a nutshell: AB 1033 simplifies the ADU approval process.

– Local agencies can approve ADUs without complex reviews if they meet specific criteria.

– They can no longer force homeowners to replace lost parking spaces due to ADU construction.

– Local agencies are required to develop ADU ordinances in line with state law.

– Compliance with the standards set by the Department of Housing and Community Development (HCD) is essential.

2. AB 434: ADU Financing

In a nutshell: AB 434 makes financing ADUs easier.

– Homeowners can use home equity lines of credit (HELOC) or opt for a cash-out refinance to fund their ADU projects.

– It promotes flexibility by removing restrictions on financing options.

3. AB 1332: Pre-Approved ADU Plans

In a nutshell: AB 1332 introduces pre-approved ADU plans.

– Local agencies can create pre-approved ADU plans for homeowners to choose from.

– These plans must adhere to state standards and be made available to the public.

4. AB 976: Height and Setback Standards

In a nutshell: AB 976 adjusts height and setback standards for ADUs.

– Local agencies cannot limit the height of detached ADUs to less than 16 feet.

– Local agencies cannot limit the height of attached ADUs to less than 14 feet.

– The bill eases setback requirements, giving homeowners more flexibility in positioning their ADUs.

These new laws represent a significant change in California’s approach to ADUs. They simplify the process, make financing more accessible, and offer pre-approved plans. Whether you’re a homeowner looking to add an ADU to your property or a real estate professional navigating these new developments, these changes offer exciting opportunities.

Keep in mind that while these laws aim to simplify the process, it’s essential to stay informed and consult legal experts or local authorities as needed. These changes are expected to have a profound impact on the California real estate market, creating more housing options for Californians and opportunities for those in the real estate industry.

It’s an exciting time for ADUs in California, and we’ll be here to keep you updated on the latest developments in the real estate market.