California continues to lead the nation in ADU-friendly legislation. Several new laws taking effect in 2025 and 2026 make it even easier for Sacramento homeowners to build Accessory Dwelling Units.
Key New Laws
AB 976 (Effective 2025) **Owner occupancy requirement permanently removed.** Previously, homeowners were required to live on the property if they built an ADU. This law makes the removal permanent, allowing homeowners to rent out both their main home and ADU.
AB 1154 (Effective 2026) **Junior ADU (JADU) owner occupancy waived** if the JADU has its own separate bathroom. This opens up more rental opportunities for JADUs (units under 500 sq ft created within existing structures).
SB 543 (Effective 2026) **Cities must determine application completeness within 15 days.** This prevents cities from delaying ADU permits with repeated requests for additional information.
AB 2533 (Effective 2026) **Legalization path for unpermitted ADUs.** Homeowners with existing unpermitted ADUs may be able to bring them up to code and obtain permits, rather than facing demolition orders.
SB 937 (Effective 2026) **Impact fees due at final inspection, not upfront.** This reduces the upfront cost of building an ADU by deferring development impact fees until the project is complete.
What This Means for Sacramento Homeowners
These changes make ADUs an even better investment:
- No owner-occupancy restrictions — Rent both units for maximum income
- Faster permitting — Cities must respond within 15 days
- Lower upfront costs — Impact fees deferred to completion
- Path to legalize existing units — Bring unpermitted conversions into compliance
ADU Basics for Sacramento
- Maximum size (detached): 1,200 sq ft
- Maximum height: 16-18 feet
- Setbacks: 4 feet rear and side
- Impact fees: Waived for units ≤ 750 sq ft
- Garage conversions: Most affordable option, starting under $100K
Ready to Build Your ADU?
Future Generation Construction specializes in garage conversions and detached ADUs across the Greater Sacramento Area. We handle design, permits, and construction — contact us for a free consultation.
