New ADU Laws!

TAYLOR LAMBERT November 12, 2025

Governor Newsom just signed a handful of new housing bills that will make a real difference for Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs), most of which kick in starting January 1, 2026.

Here’s a quick breakdown:

AB 1154 – JADU Owner-Occupancy

Previously, owners had to live on-site if they had a JADU. Now, that only applies if the JADU shares a bathroom with the main home. If it’s got its own bathroom, the owner doesn’t have to live there. One catch: JADUs can’t be used as short-term rentals (under 30 days). And cities can’t require parking for ADUs under 500sqft.

SB 543 – Impact Fees & ADU Size

This clarifies that “square footage” means interior livable space. ADUs with 750sqft or less, and JADUs with 500sqft or less, are now exempt from impact fees (including school fees).

AB 462 – Coastal Development Permits

If you’re in a coastal or disaster-affected county, this one’s big. ADUs in those areas are now exempt from the Coastal Development Permit process. Local agencies with a certified local coastal program have 60 days to approve or deny completed permit applications. And no more appeals to the Coastal Commission for ADUs. This one takes effect immediately.

All in all, these changes make it easier and more affordable to build or permit ADUs, and that could boost property values. If you’ve got a home with an ADU or even ADU potential, the appeal to buyers just went up!