Accessory dwelling units and junior accessory dwelling units

The law reduces development fees for qualifying ADUs and applies statewide, including in charter cities. It preserves existing limits on utility connection charges and smaller-unit fees.

What the law does ​

• Bars impact fees for ADUs of 750 square feet or less and junior ADUs of 500 square feet or less.
• For up to two ADUs on a lot that exceed 750 square feet, allows proportionate impact fees only on the area above 750 square feet.
• Keeps proportionate impact-fee rules for ADUs above 750 square feet on lots with more than two ADUs.
• Prohibits treating an ADU or junior ADU as a new residential use for utility connection or capacity charges unless it is built with a new single-family home.
• Applies the changes to every city, including charter cities.

Who it affects ​

• Homeowners and developers building ADUs or junior ADUs.
• Cities, special districts, and water corporations that set ADU fees.

Context ​

The law does not require state reimbursement because local entities may levy charges, fees, or assessments to cover mandated costs.