To increase housing in California, Governor Newsom signed legislation encouraging homeowners to convert their garages into living spaces and build small dwelling units in their backyards as low-income rentals. On January 1, 2020, new laws took effect, voiding restrictions in planned developments that prevented granny flats and garage-to-rental conversions. (Civ. Code § 4751) 

Accessory Dwelling Unit Defined

An “Accessory Dwelling Unit” (ADU) is an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent living, sleeping, eating, cooking, and sanitation facilities on the same parcel as the single-family or multi-family dwelling. (Govt. Code § 66313(a)) If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50% of the existing primary dwelling. (Govt. Code § 65314(d)(4)) If it’s detached, it cannot exceed 1,200 square feet. (Govt. Code § 6314(d)(4))

A “Junior Accessory Dwelling Unit” (JADU) is a unit that is no more than 500 square feet and contained entirely within a single-family residence. A JADU can include separate sanitation facilities or share them with the existing structure. (Govt. Code § 66313(d))

Garage Conversions. The legislation authorizes converting garages, carports, and covered parking into rentable ADUs. (Govt. Code § 66314(d)(3)) Attached garages can also be converted into JADUs, subject to size limitations. Garage conversions must be allowed only in properties zoned for single-family residential use (typically fully detached residences and zero-lot-line properties) and in planned unit developments. However, they may still be prohibited in properties zoned for multi-family residential use (typically condominium properties, whether multistory stacked or townhouse-style construction). Zoning requirements for any development should be confirmed with the appropriate municipality (city or county).

Parking. Local agencies cannot impose parking requirements for JADUs (Govt. Code § 66334(a)) that reduce or eliminate parking requirements for any accessory dwelling unit located within their jurisdiction. (Govt. Code § 66314(2)(1)(B)(ii)) Most associations already have parking problems. ADUs and JADUs will exacerbate the problem. Associations that require cars to be parked in garages cannot use the requirement to stop garage conversions. (Govt. Code § 66314(d)(11)) The bill voids any restrictions that prevent ADU construction. (Civ. Code § 4751)

Rules Enforcement. Associations can continue to enforce garage parking requirements, but only against those who do not convert them into ADUs. This will create problems for associations. Owners will not take kindly to some following parking rules while others are exempt.

Three Per Lot. While the law limits one JADU per residential lot zoned for single-family residences (Govt. Code § 66333(a)), the statute is unclear on how many ADUs are permitted on the same lot, and requirements vary for multi-family residential lots. It may be possible to convert a garage to a JADU, convert part of the residence’s interior to an ADU, and add a detached ADU in the backyard.

Architectural Review

Associations cannot impose restrictions that would “unreasonably increase the cost to construct, effectively prohibit the construction of, or extinguish the ability to otherwise construct, an accessory dwelling unit or junior accessory dwelling unit.” (Civ. Code § 4751(b))

Expedited Approvals. The bill expedites the approval process. Local agencies must process applications within 60 days of their submission. (Govt. Code § 66320(a)) Some applications can receive ministerial approval. (Govt. Code § 66323) That means they can be approved without a hearing, even if a local ordinance regulates the issuance of variances or special use permits.

Fees Limited. In addition to streamlining applications, the ordinance limits permit fees. Agencies cannot treat ADUs as a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, nor can they require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge. (Govt. Code § 66324)

Setback Requirements. Association setback requirements that would prevent construction of backyard ADUs are voided. Setbacks will be reduced to "no more than four feet from the side and rear lot lines." (Govt. Code § 66314(d)(7))

Parking. When a garage, carport, or covered parking structure is demolished in conjunction with constructing an accessory dwelling unit or converted to an accessory dwelling unit, local agencies cannot require that those off-street parking spaces be replaced.  (Govt. Code § 66314(d)(11)) In other words, parking is pushed to the streets. In addition, if owners want to create additional parking on their lots, the bill allows parking in setback areas. That means more vehicles can be parked on a lot and closer to neighboring houses.

ADU Denial Upheld. Homeowners applied to the HOA to build an ADU. The design review committee said it lacked ADU expertise and formally referred ADU applications to the board. The board investigated by retaining an independent consultant and asking the homeowners to submit separate applications for the ADU and garage (which they refused). The Board denied the proposal, citing traffic and fire-safety concerns related to the new garage’s location and configuration near common-area access. The homeowner sued for breach of governing documents, breach of fiduciary duty, tortious interference, and declaratory relief. The trial court granted summary judgment for the association, and the Court of Appeal affirmed, holding that the board acted within its authority under the governing documents and applicable law. The homeowners' failure to produce substantial evidence of bad faith, fraud, or arbitrary decision-making was insufficient to overcome deference to the board’s good faith decisions. (Eng v. Opperman (2025) 117 Cal.App.5th 354)

ADU Conversion to Condominium

Beginning January 1, 2024, local agencies are authorized to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and accessory dwelling unit or units as condominiums. (Govt. Code § 66342) Before an owner can convert an ADU to a condominium, he/she must obtain written authorization from the association, i.e., approval by the board at a duly noticed board meeting and, if needed, membership approval under the existing association’s governing documents. (Govt. Code § 66342(g))

Recommendation. Associations should amend their governing documents (either CC&Rs or Architectural Standards, or both) to require board and membership approval before an owner can convert an ADU into a condominium.

Miscellaneous Issues

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