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New ADU Legislation Spurs Growth in Multifamily Housing

New ADU Legislation Spurs Growth in Multifamily Housing

Recent state reforms have made it quicker, more affordable, and more straightforward for homeowners to build Accessory Dwelling Units (ADUs), also known as "granny flats." These reforms have significantly increased ADU construction, with over 80,000 units built in the past seven years. The passage of Senate Bill 1211 (SB 1211) aims to further boost ADU development, especially on multifamily properties, by addressing key challenges and enabling more flexible building options.

SB 1211 builds on the existing momentum by removing several limitations that have previously hindered ADU construction on multifamily properties, offering property owners more opportunities to expand.

Key Highlights:

  • Expanded Capacity for Detached ADUs: SB 1211 raises the limit on the number of detached ADUs allowed on multifamily properties from 2 to as many as 8, depending on the number of existing units on the property.
  • Continued Flexibility for Interior ADUs: The legislation maintains the ability to add ADUs within existing structures, such as basements or garages, further increasing housing options without new construction.
  • No Parking Replacement Mandates: The law prevents local governments from requiring property owners to replace surface parking spaces when repurposing them for ADU construction, reducing costs and speeding up the approval process.
  • Strong Legislative Support: SB 1211 passed with strong majorities—27-8 in the Senate and 49-8 in the Assembly—and was signed into law by Governor Gavin Newsom on September 19, 2024.

This new legislation represents a significant opportunity for multifamily property owners to increase rental units and meet growing housing demand.

If you’re interested in how these changes could benefit your property, get in touch with us to learn more!