July 1, 2025, marks a pivotal moment for Accessory Dwelling Unit (ADU) development in California, as key legislative changes take effect, further streamlining the process and expanding opportunities for homeowners and developers.
A significant development is the extension of the prohibition on local agencies imposing owner-occupancy requirements on properties with ADUs. This means homeowners who obtained permits for ADUs after January 1, 2025, are not required to live on the property where the ADU is located, creating more flexibility for those seeking rental income or investment opportunities.
For those with unpermitted ADUs built before January 1, 2020, a new law provides a clearer pathway to legalization. Local building departments must now provide a checklist of necessary repairs and upgrades for the unit to meet health and safety codes, enabling owners to bring their ADUs into compliance without fear of hefty penalties or fees.
Furthermore, the process for obtaining permits for ADUs located within the California Coastal Zone is set to become more efficient. By July 1, 2026, the California Coastal Commission, in coordination with the Department of Housing and Community Development (HCD), will provide local governments with clear guidance on amending their local coastal programs to simplify and expedite ADU approvals in these areas.
These regulations, among others, aim to reduce barriers to ADU construction and make it easier for homeowners to add housing units, thus contributing to the state’s broader effort to address the housing shortage.
