Governor Gavin Newsom recently signed a new legislative package to strengthen California’s laws addressing the housing and homelessness crisis. Among them, was SB 1211 which may be a game-changer for investors seeking to build detached Accessory Dwelling Units (ADUs). Here are the Details:
The Details of SB 1211:
- Updates to Existing Law: SB 1211 updates an existing ADU law to create more flexibility around how ADUs can be built alongside existing multifamily housing.
- SB 1211 to Increase Allowable ADU Density: Under SB 1211, the number of detached ADUs allowed to be built on properties with apartments, condos, or townhouses would quadruple, from two to eight.
- No Parking Replacement: If a property owner decides to replace a carport or driveway with an ADU, they would not be required to replace that parking.
Addressing CAs Worsening Housing Shortage:
- The Numbers Behind California’s Housing Shortage: California needs to build an estimated 2.5 million homes by 2030 to keep up with demand, according to the California Department of Housing and Community Development. But the state only averages about 100,000 new homes per year, including only 10,000 affordable units.
- ADU Construction on the Rise: A decade ago, California was permitting only about 800 ADUs per year. Now, thanks to a series of new laws designed to jumpstart the state’s ADU market, the state is building about 25,000 new ADUs each year, meaning that twenty-five percent of all new housing built in California each year are ADUs. SB 1211 may help to increase that number.
