New Law Expands Multifamily ADU Opportunities

Attention Multifamily Owners: SB 1211 (Skinner) was just signed into law last Thursday, September 19, 2024, which significantly expands multifamily ADU opportunities, effective January 1, 2025. 

Below are the key takeaways: 

• For existing multifamily projects, you can now by right build eight (8) detached multifamily ADUs per parcel (previously only 2) which comply with the limited standards in Government Code § 66323(a)(4) (18’ height and 4’ rear/side yard setbacks). This allows better scale and drives down per-unit costs.
  • • At eight per parcel, if you have a multifamily project with multiple legal parcels, you can build several clusters of eight throughout the project.
• If you convert or replace a garage, carport, covered parking structure, or uncovered parking space with an ADU, you do not need to replace the lost parking [new language emphasized].
  • • If the project is within a half-mile of public transit (e.g., a bus stop or train station), the municipality also cannot require any parking for the ADU.
• “Livable Space” is now expressly defined as follows: “a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” This is helpful because several municipalities have resisted the interior conversion of non-livable space under Government Code § 66323(a)(3), such as ground floor retail, which is now clearly outside the definition of livable space.
• A municipality is now expressly prohibited from imposing on the mandatory approval ADUs in Government Code § 66323 any objective development or design standard not expressly authorized by that section.

SB 1077 (Blakespear) was also signed into law, which requires the California Coastal Commission to develop guidance for municipalities to use in drafting ADU elements of their Local Coastal Plan. AB 2533 (Carillo) was also passed but has not yet been signed into law, which would enhance the unpermitted ADU amnesty laws. 

Please contact us if you have multifamily properties with (1) open space or parking areas, (2) underutilized non-livable space, such as common areas or amenities, (3) underutilized ground floor retail, or (4) underutilized parking garages.