Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

AB-1154: Streamlining Junior Accessory Dwelling Units to Boost Housing Supply- Quick Read

by Dan J. Harkey

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Summary:

California’s housing shortage has pushed lawmakers to rethink small-scale housing solutions.  Assembly Bill 1154 (AB 1154), authored by Assemblymember Juan Carrillo, updates state Law to make Junior Accessory Dwelling Units (JADUs) easier to build and rent—while aligning them more closely with Accessory Dwelling Units (ADUs).

Background

JADUs are compact units (≤500 sq. ft.) built within an existing single-family home, often converting into a bedroom or garage.  They provide affordable housing options and allow homeowners to generate rental income.  However, prior regulations-imposed owner-occupancy requirements and inconsistent standards compared to ADUs have discouraged investment and slowed production.

What AB 1154 Changes

AB 1154 amends Government Code §66333 and related provisions to remove barriers:

Key Provisions

✅ Owner-Occupancy Reform

  • Eliminates the owner-occupancy requirement if the JADU has its own sanitation facilities (bathroom).
  • Requirement remains only for JADUs sharing sanitation with the main home.

✅ Rental Term Requirement

  • JADUs must be rented for more than 30 days, prohibiting short-term rentals like Airbnb.

✅ Parking Exemption for Small ADUs

  • Local agencies cannot impose parking standards on ADUs ≤500 sq. ft., creating parity with JADUs.

✅ Ministerial Approval Maintained

  • JADUs continue to qualify for ministerial (non-discretionary) approval, reducing delays.

Impact

  • Housing Supply Boost: Unlocks thousands of potential JADUs across the state.
  • Equity for Homeowners: Enables low- and middle-income families to rent both the primary home and JADU.
  • Regulatory Clarity: Aligns ADU and JADU standards, reducing confusion for homeowners and local agencies.  

Implementation Guide for Local Agencies

·         Update Ordinances

o   Remove blanket owner-occupancy requirements for JADUs with separate sanitation.

·         Revise Permit Processes

o   Ensure ministerial approval procedures reflect new standards.

·         Educational Staff & Public

o   Provide clear guidance on rental term restrictions and parking exceptions.

Bottom Line

AB 1154 is a targeted fix that empowers homeowners to create affordable housing within existing structures.  By significantly reducing regulatory friction, California moves closer to meeting its housing goals—one small unit at a time.