A “backyard revolution” is underway in California, thanks to the policy and budget actions taken by the state Legislature in recent years on Accessory Dwelling Units (ADUs) – affordable housing more commonly known as backyard cottages, granny flats or in-law units. They are now poised to play an even great role in easing these state’s housing shortage.
In SB 104, a budget bill now headed to the Governor, there’s an additional $25 million for the highly successful ADU Grant Program, which provides approved homeowners with up to $40,000 in pre-development costs like design and site prep. This funding would complement the $100 million allocated last year and could result in up to 2,500 new ADUs. But these funds were exhausted within months because of demand.
“California needs more housing. ADUs can be built quickly and fit into existing neighborhoods,” said Assembly Budget Chair Phil Ting (D-San Francisco). “Homeowners can be part of the solution. Their family can live nearby or rental income can generated, while providing some housing relief in their communities.”
Ting also has three ADU bills pending this session:
- AB 932: Directs CalHFA to explore ADU financing options to create more housing and report back to the Legislature by 2025; signed by the Governor on September 8, 2023.
- AB 976: Removes requirement that ADUs be owner-occupied; sent to the Governor today.
- AB 1033: Allows ADUs to be sold separately as condominiums, opening the door to affordable homeownership; sent to the Governor today.
“California’s leadership on ADUs is crucial for homeowners who cannot achieve their ADU dreams alone. The Casita Coalition is proud to partner with legislative leaders by sponsoring bills that promote greater financing options and policies for homeowners, families, and critical workers. This collaboration leads to more and better housing choices. We want to express our appreciation to Assemblymember Ting for his generational leadership on ADU bills and for defending the ADU Grant Program,” said Denise Pinkston, President of The Casita Coalition.
Ting hopes this year’s actions build on his 2019 legislation, AB 68, which has made it easier and faster to build an ADU. It was among a group of laws that expedite the permit approval process, allow for larger units, ease parking requirements, and reduce fees. These efforts are credited with starting an ADU construction boom.
The Governor has until October 14th to act on all bills sent to his office this week.