Sacramento ADU 2025–2026: Laws, Changes, and Fees

Accessory dwelling units, or ADUs, continue to play a crucial role in Sacramento’s housing strategy. As California addresses its housing crisis, 2025 and 2026 bring important updates to ADU laws, fee structures, and permitting timelines. These changes affect Sacramento homeowners, property owners, and local agencies involved in community development and housing production. Understanding the new rules helps property owners plan projects, reduce costs, and take advantage of streamlined approval processes.

Key ADU Law Changes in 2025

Several new laws went into effect on January 1, 2025, shaping how ADUs are permitted and built:

• Faster permitting: Local governments must approve or deny complete ADU applications within 60 days. If plans use preapproved ADU designs, detached units can qualify for a 30-day approval window.
• Owner occupancy removed: Cities and counties cannot require owners to live on-site to rent or operate ADUs. The only requirement is that rentals must be at least 30 days in length.
• Parking rules simplified: No more than one parking space per ADU or bedroom may be required, and properties located within half a mile of major transit stops or bus routes may not need additional parking at all.
• Preapproved plans required: All jurisdictions must now maintain preapproved or “shelf-ready” ADU plans, cutting design costs and review times for homeowners who choose them.
• ADU sales flexibility: AB 1033 gives cities the option to allow ADUs to be sold separately from the primary residence through condominium mapping, provided local ordinances are adopted.

Fees and Costs for Sacramento Homeowners

Sacramento homeowners should pay close attention to how new fee rules affect project budgets:

• Impact fee exemption: ADUs under 750 square feet are exempt from development impact fees, including school impact fees. This exemption can save homeowners thousands of dollars.
• Proportional fees for larger units: ADUs over 750 square feet must pay impact fees, but charges must be proportional to the size of the ADU relative to the primary dwelling.
• Utility connection fees: Converted units are often exempt from new water and sewer connection charges, while detached ADUs may still face site-specific utility fees.
• Permit costs: Standard building permits, plan review fees, and inspection fees still apply. Sacramento also charges for sewer, water, and public works services depending on site conditions.

JADUs vs. ADUs

Junior accessory dwelling units (JADUs) remain a cost-effective option for homeowners. These units, usually under 500 square feet, are created within an existing primary dwelling and require their own entrance and efficiency kitchen. JADUs must comply with owner occupancy requirements, but they are exempt from impact fees and many utility connection charges. For families seeking affordable multigenerational housing, JADUs remain one of the easiest ways to expand living space.

Permitting Timelines in Sacramento

Sacramento city departments are processing ADU applications faster than ever before. With complete documents, most applications move through plan review in four to eight weeks. Homeowners using preapproved ADU plans often receive approval in as little as 30 days for detached units. Submitting thorough plans, including site layouts, property line details, and utility information, is essential to avoid delays.

Financial Considerations and Support Programs

ADU construction costs vary depending on unit size, design, and site conditions. Garage conversions and attached units are generally less expensive than new detached structures, but all types add property value and potential rental income. Financing options for Sacramento homeowners include:

• Home equity loans
• Construction loans
• Personal loans
• Cash-out refinance options

In addition, the California Housing Finance Agency and other programs provide grants and loans to assist homeowners developing ADUs, particularly those intended for affordable housing.

Looking Ahead to 2026

In 2026, Sacramento homeowners can expect further refinements to ADU development:

• Local adoption of AB 1033: Sacramento may allow separate ADU sales, providing new opportunities for ownership and investment.
• Fee modernization: Expect clearer, more consistent fee schedules, with an emphasis on affordability and fairness.
• Continued streamlining: State law will continue to emphasize ministerial approvals and expanded preapproved plan use.
• Transit-oriented housing: ADUs near light rail and major bus routes will remain exempt from most parking requirements, encouraging sustainable housing growth.

How Sacramento Homeowners Can Benefit

For Sacramento homeowners, the best strategies for 2025–2026 include:

• Designing ADUs under 750 square feet to avoid impact fees.
• Using preapproved ADU plans to reduce design costs and shorten permit timelines.
• Exploring garage conversions or JADUs for affordable projects.
• Considering detached ADUs for long-term rental income and increased property value.
• Staying updated on new local ordinances that may allow ADUs to be sold separately.

Final Thoughts on 2025-2026 ADU changes

Sacramento ADU 2025–2026 laws, changes, and fees create new opportunities for homeowners to build, rent, and even sell accessory dwelling units. With streamlined permitting, fee exemptions for smaller units, and financial programs to assist homeowners, ADUs are more accessible than ever. Sacramento residents who plan carefully and take advantage of these new rules can reduce costs, generate rental income, and add valuable housing to their properties.

A+ Construction & Remodeling is offering ADU construction services in many areas in Sacramento and surrounding communities, helping homeowners navigate permits, design, and construction with confidence.