What are California’s New ADU Rules for 2024?

In January 2024, California homeowners and housing enthusiasts are navigating a sea of changes in the ADU (Accessory Dwelling Unit) landscape. These modifications, though complex, are stirring excitement for the potential growth and transformation they promise for housing in the Golden State. Let’s delve into the core changes, understand their impact, and explore how these could reshape the way ADUs contribute to California’s housing market.

AB 976 – Easing Owner Occupancy Restrictions:
Initially, many local authorities imposed owner occupancy conditions on ADUs, creating hurdles for homeowners and complicating financing options. However, AB 976 aims to change this narrative by indefinitely extending the ban on owner occupancy requirements for ADUs. It signifies a significant shift, empowering more homeowners to consider ADU development without the binding condition of owner-occupancy. However, tread carefully, as cities may still impose these restrictions on Junior ADUs.

AB 1332 – Streamlining Plan Reviews:
This bill introduces a game-changer for builders and architects. If you’re using standardized plans for your ADU, AB 1332 ensures that once a plan is reviewed and approved by a local agency, subsequent submissions of the identical plan should sail through a streamlined process. This approach could drastically reduce review times, accelerating the ADU construction process.

AB 434 – Clarifying State Oversight:
AB 434 aims to demystify the role of the state’s Housing and Community Development agency in the ADU process. This bill provides clarity on various procedural aspects, from permit application response times to the enforcement of compliance. It’s a step towards more structured and transparent governance in the ADU landscape.

AB 1033 – Revolutionizing ADU Ownership (Condo-like Model):
Perhaps the most groundbreaking of all, AB 1033 allows for the separate sale of ADUs, akin to condos. This opens up new avenues for property owners, providing the flexibility to sell ADUs independently. It’s a move that’s expected to inject vibrancy into the housing market, offering more choices to homeowners and potential buyers alike.

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