Council brings Santa Cruz ADU regulations into compliance with state law, holds off on another planning commission recommendation

The Santa Cruz City Council has updated local accessory dwelling unit regulations to align with recent state law changes, streamlining the approval process for homeowners looking to add secondary housing on their properties.

ADUs are additional living units built on single-family residential lots, such as converted garages or standalone backyard structures, which California has promoted as a tool to address the housing shortage by increasing density without requiring new land development.

Under the revised regulations, both ADUs and junior ADUs will now be measured by interior livable space rather than total floor area, potentially allowing for larger units within existing size restrictions.

Junior ADUs, which are smaller units typically created within existing homes or attached garages, now qualify for the same fire sprinkler and fee exemptions previously reserved for full ADUs.

The council also eliminated the owner-occupancy requirement for properties with JADUs that include separate bathroom facilities, giving property owners more flexibility in renting arrangements.

The council postponed a decision on restricting short-term rental permits for properties with ADUs, requesting additional analysis of the proposal's potential impacts.

This delay reflects ongoing tensions between maximizing housing availability for long-term residents and preserving property owners' rental income options in California's competitive real estate market.