What are ADU Laws in Real Estate?

What are ADU Laws in Real Estate?

Accessory Dwelling Unit (ADU) laws in real estate govern the construction, use, and regulation of small residential units that are secondary to a primary dwelling on a single property. ADUs can be an apartment over a garage, a basement unit, or a detached unit in the backyard. These laws vary by jurisdiction and are influenced by state, county, and city regulations, with specific focus areas, including:

  1. Permitting and Zoning: Many regions have updated their zoning codes to allow ADUs, particularly in single-family residential areas. Some cities have simplified the permitting process to encourage ADU construction as a solution to housing shortages.
  2. Size Restrictions: ADU laws typically set minimum and maximum square footage for the unit. This can range from 400 to 1,200 square feet, depending on local regulations.
  3. Occupancy Requirements: Some regions require that the ADU or the primary residence be owner-occupied, while others permit both units to be rented. There may also be limits on the number of occupants in the ADU.
  4. Setback and Height Restrictions: ADUs are often subject to specific setback requirements (distance from property lines) and height limitations to ensure they blend with the neighborhood.
  5. Parking Requirements: Some areas may require additional parking spaces for ADUs, while others waive this requirement, especially if the property is close to public transportation.
  6. Utilities and Infrastructure: ADU laws can address how units are connected to utilities, including whether they can share or need separate meters for electricity, water, and sewage. In some areas, the cost of additional infrastructure can be significant.
  7. Short-Term Rentals: Many regions prohibit ADUs from being used as short-term rentals (e.g., on platforms like Airbnb) to ensure they contribute to the long-term housing supply.

States like California, Oregon, and Washington have been especially proactive in revising ADU laws to increase housing density. Local laws generally specify further details.