12 Essential Things to Know About ADUs in Los Angeles

By Peter Ciriello CCIM
So you want to build an ADU or multiple ADU's on your property?  If so, you should first understand which recent bills in California address this and what they mean for you.  Key bills include AB 2533, SB 1211, and SB 1077, which were signed into law in September 2024 and take effect on January 1, 2025. ​

AB 2533 - Streamlined Permitting

  • Mandates faster application processing
  • Simplifies approval procedures
  • Reduces bureaucratic barriers
  • Implements standardized review timelines



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SB 1211 - Multi-Family Property Expansion

  • Increases ADU allowances on multi-family lots
  • Creates opportunities for additional housing units
  • Establishes new density guidelines, 1 additional ADU per existing unit, up to 8 additional ADUs.
  • Modifies existing unit calculation methods

SB 1077 - Coastal Development

  • Provides specific regulations for coastal zone ADUs
  • Balances environmental protection with housing needs
  • Clarifies jurisdiction between state and local authorities
  • Establishes coastal development parameters

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These legislative changes represent California's continued commitment to addressing housing shortages, creating affordable living options, supporting property owner rights, and promoting sustainable urban development.  To that effect, here are the top 12 things to understand before starting to construct one or multiple ADUs.

#1 California's Progressive ADU Legislation

The state's groundbreaking legislation enables homeowners to construct new dwelling units on single-family lots and convert existing structures into ADUs. The City of Los Angeles offers pre-approved standard plans through the Department of Building & Safety, streamlining the construction process.

#2 Power Line Construction Updates

Following LADWP's 2019 policy revision, ADUs can now be constructed beneath power lines, provided they comply with CPUC General Order 95 clearance requirements, typically maintaining a 12-foot minimum distance from power lines.

#3 Housing Assistance Programs

  • Second Dwelling Unit Pilot Program: Up to $75,000 for new ADUs
  • Existing Unit Preservation: Maximum $50,000 subsidy
  • CalFHA ADU Grant Program: Up to $40,000 for qualified low-to-moderate income homeowners

#4 ADU Configuration Options

Available formats include:
  • Garage Conversions: Transforming existing detached garages
  • Home Conversions: Integrating units within primary residences
  • New Detached Units: Independent structures
  • Garage Additions: Connected to existing garages
  • Home Additions: Sharing walls with main residences
  • Junior ADUs (JADUs): Compact 500 sq ft maximum units

#5 Size Regulations

Detached ADUs must not exceed 1,200 square feet, while attached units cannot surpass 50% of the primary residence's size.

#6 Parking Requirements

Recent legislation (AB 68) eliminates replacement parking requirements for:
  • Garage conversions
  • Properties within 1/2 mile of public transit
  • Historic district locations

#7 Rent Control Considerations

The RSO (Rent Stabilization Ordinance) applies differently:
  • New ADUs exempt from RSO
  • Converted garage ADUs fall under RSO
  • Original homes remain under existing RSO status

#8 Setback Guidelines

Minimal setback requirements for:
  • Garage conversions: No setbacks required
  • New construction on existing footprints
  • Above-garage units: 4-foot maximum side/rear setbacks

#9 Short-Term Rental Restrictions

ADUs face specific short-term rental limitations:
  • Must be primary residence
  • 6-month minimum occupancy requirement
  • 120-day annual rental cap
  • RSO properties ineligible

#10 Construction Costs

Investment ranges from $80,000 to $250,000, varying by:
  • Design complexity
  • Material selection
  • Contractor expertise
  • Site conditions

#11 Utility Infrastructure Requirements

Essential considerations include:
  • Independent Metering: Separate electrical, gas, and water meters
  • Service Upgrades: Potential panel and line improvements
  • Connection Points: Strategic utility placement planning
  • Smart Technology: Optional energy management systems
  • Emergency Access: Dedicated address assignments

#12 Property Tax Implications

Financial planning considerations:
  • Targeted Assessment: Only ADU portion reassessed
  • Value Calculation: Square footage-based evaluation
  • Tax Base Integration: Added to existing property taxes
  • Exemption Options: Potential homeowner tax benefits
  • Annual Impact: Graduated payment structures available