On January 1, 2020 a series of new laws went into effect that revise and relax the laws pertaining to Accessory Dwelling Units (ADU’s). California regulators see these Accessory Dwelling Units as a possible answer to the housing shortage in the State. They provide a potential income opportunity for current homeowners while providing an affordable place to live for people in the Golden State. For builders, investors and homeowners these laws will open up a host of opportunities and increase the potential to earn additional recurring income.
In 2019, Governor Gavin Newsom signed five bills into law regarding ADUs. These bills make ADUs more accessible for renters across the state. Whether you’re looking to build an ADU or you’re looking to rent one, you’re going to want to know about the changes that went into effect Jan. 1.
The five laws that have the most impact on Accessory Dwelling Unit (ADU) development are Assembly Bill (AB 881 & AB 68), Assembly Bill (AB 670 & AB 671), Senate Bill 13 (SB 13). These are our key takeaways to the new regulations.
Assembly Bill No. 881
AB-881, “Accessory Dwelling Units” and AB-68, “Land use Accessory Dwelling Units” will arguably have the most significant impact on the state’s housing market. These two bills will make California ADUs much simpler to build because it makes many of the current restrictions that cities place on ADUs obsolete. It also provides for a streamlined process for approvals.
These bills require permits for ADUs added to single-family and multi-family homes to be approved or denied faster. Current law permits these decisions to take 120 days, but this new law requires decisions within 60 days. These approvals or denials must be issued so that way, there are fewer potential issues to encounter. Cities and counties may establish minimum and maximum ADU size requirements.
Assembly Bill No. 68
AB 68: This law allows for Accessory Dwelling Units (ADU’s) as well as Junior Accessory Dwelling Unit (JADU) on lots where certain access, setback and other criteria are met. This means that there could be up to three units on a single property.
Most importantly, these bills prohibit any lot coverage, minimum lot size, etc. requirements that municipalities have. Cities have enacted these laws to have the effect of making it impossible to build an ADU. Cities cannot require the correction of nonconforming zoning conditions as part of the approval process.
To summarize, municipalities won’t have the ability to block the construction of ADU places like they used to. These bills will make it significantly easier to build an ADU, no matter how your lot and home are situated.
Assembly Bill No. 670
AB-670, Any deed or covenant prohibiting Accessory Dwelling Units (ADU’s) is void and unenforceable on a single-family lot. A HOA, CC&R or neighborhood group cannot prevent you from building an Accessory Dwelling Unit (ADU) on a single-family lot.
This bill is going to have a big impact in many of the coastal communities of Southern California. Most of these communities have strict HOAs or CC&Rs that restrict Accessory Dwelling Unit’s (ADU’s). Bill 670 will make these unenforceable.
Assembly Bill No. 671
AB-671, Accessory Dwelling Units; Incentives” requires that general plans incentivize homeowners in some way to construct these ADUs and make them available for low-to-moderate-income households to rent. While it doesn’t specify what these incentives will be, it does require local agencies to think about financial incentives and construct a plan.
Senate Bill No. 13
SB 13, Agencies cannot impose impact fees on Accessory Dwelling Unit’s under 750 SQFT. The applicant on the application to build the Accessory Dwelling Unit (ADU) does not have to be an “owner-applicant” of either the primary residence or the Accessory Dwelling Unit (ADU).
What will result from these new laws? We would expect more homeowners and investors building ADUs on their properties. The reduced restrictions in the permitting process and relaxed code requirements means increased potential to earn supplemental income, increase your property value and explore new investment strategies.
If you are interested in exploring how you can add an ADU to your property, Blok Studio offers a California State Approved Modular Container ADU. Visit www.blokstudio.com to see our ADU options. Customization and site planning are also available for your unique lot. Contact us at www.blokstudio.com for more information.
Preliminary Site Analysis
What are the options for an Accessory Dwelling Unit (ADU) on your property? We offer a preliminary site analysis package to see our recommended location, size and orientation for your Accessory Dwelling Unit (ADU). Our team reviews your property and presents our best option for your Accessory Dwelling Unit (ADU) taking into account your unique site conditions, applicable codes, and your desired use of the structure. We present the positives and negatives so you can make the best decision. You can choose to continue with the project or consider alternative options. Cost of the analysis varies based upon customer location. Please contact Blok Studio for details www.blokstudio.com