ADUs 2025: California’s New Handbook Drops More Barriers—Washington & New York Jump In
SACRAMENTO — May 7 2025
California’s Department of Housing & Community Development (HCD) just released its January 2025 ADU Handbook, adding clearer statewide rules on height, side‑yard setbacks and fee waivers.
Key California tweaks effective 1 Jan 2025
- Front‑setback cut to 10 ft. for detached ADUs.
- Streamlined solar exemption for units under 800 sq ft.
- Cities must approve ministerially within 60 days instead of 90.
It’s paying off: permits jumped from 1,336 in 2016 to 26,924 in 2023, making ADUs 21 % of all new homes statewide.
Ripple effects in other states
| State | New rule/legislation | Status |
|---|---|---|
| Washington | HB 1337 lets every urban lot host two ADUs and bars most owner‑occupancy mandates; cities must update codes by June 30 2025. |
Law; local ordinances in progress |
| New York | A6778 “ADU Incentive Act” would offer forgivable loans up to $125k; plOne ADU** grants still rolling out. |
In Assembly committee |
| Colorado, Vermont | State grants of $50k–$100k for backyard cottages aimed at low‑income owners. | contentRefern application windows |
Take‑aways for homeowners & builders
- Financing: California’s $40k pre‑construction grants are tapped out, but CalHFA signals another funding round this summer—get pre‑registered.
- Design speed: With 60‑day ministerial approval, prefab ADUs now hit occupancy in ~9 months versus 14 months pre‑2020.
- Cross‑state momentum: Expect copy‑cat bills in OR, CO and NJ during 2025 sessions as lawmakers chase “invisible density.”
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