New California ADU Legislation Taking Effect

As we all know California has needed, and has been pushing for, the construction of more housing across the state. Over the last few years, we at In Balance Green Consulting have seen a significant rise in the construction of accessory dwelling units (ADUs) in our Central Coast area. This has been widespread throughout the state since ADU laws changed and became more viable for existing lots. The cost value proposition of adding an ADU has become more favorable both to adding income-earning dwelling units and to avoiding high rent rates for a family member. At the end of 2024 Governor Newsom signed three more ADU bills that all took effect January 1st this year. Based on our work and how these will play into new projects, we thought it timely to provide a quick overview.

AB 2533 – Unpermitted ADUs and JADUs

The previous code 66332 prohibited local agencies from denying a permit for unpermitted ADUs constructed before 2018 due to non-compliance with building, state or local ADU standards. AB 2533 is an amendment to 66332 which:

·       Adds JADUs to this exception

·       Moved the construction cutoff to January 1st 2020

·       Replaced an exception that allowed denial of a permit based on health and safety of the public and/or occupants. The exception now requires that the project correct any violation of the Health and Safety Code section 17920.3 (substandard buildings) before it can be permitted.

·       Mandates new public notification requirements about the limits on local regulation, pre-application inspection by a private contractor, and substandard-building criteria.

·       Defines the scope of city inspections and limits on remedial action (Gov. Code, § 66332(a)-(f))

Our initial opinion is that much of this legislation will fall on the shoulders of public sector staff to update and improve their county’s and city’s compliance. However, the inclusion of JADUs should make the permitting process and improvement of the many unpermitted JADUs currently in use.

SB 1211 – Replacement Parking Requirements and Multifamily

The replacement parking section of SB 1211 amends the existing 66314(d)(11), which prohibited local agencies from requiring off-street parking spaces to be replaced when an existing parking structure is demolished or converted to an ADU. The amendment also prohibits replacement parking being required when an uncovered space is demolished or replaced with an ADU.

Also under SB1211, the term “livable space” was previously not defined by state ADU law, creating a difficult gray area that local jurisdictions had to navigate when addressing new ADUs proposed in basements, garages, passageways, etc. SB1211 now defines “’Livable space’… [as] a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” (Gov. Code 66313€).

SB 1211 also increased the quantity of detached ADUs allowed on existing multifamily dwellings from up to two detached ADUs to now up to eight detached ADUs (or as many detached ADUs as there are primary dwelling units on the lot, whichever is less, see 66323(a)(4)(A)(ii)). A new construction multifamily project remains limited to two detached ADUs.

We always appreciate when California’s legislating bodies issue clarification within their amendments; consistency between jurisdictions and projects makes the permitting and design process much easier. We also anticipate many existing multifamily projects will be adding more ADUs in the near future.

SB 1077 – State Coastal Zone Guidance

Coastal Commission approval is a process that has proved difficult for many projects in the Central Coast and until now has been providing conflicting guidance. With SB 1077, the Coastal Commission must work with Housing and Community Development (HCD) to “develop and provide guidance for local governments to facilitate the preparation of amendments to a local coastal program to clarify and simplify the permitting process” by July 1st, 2026.

There will be at least one “public workshop to receive and consider public comments.” We recommend any interested parties participate in that workshop. Watch the Coastal Commission’s and HCD’s websites for when it will be held.

Although July 2026 seems far off, and we anticipate many projects looking for this resolution sooner, the fact it is being addressed should be reassuring.