AB 976: California's permanent ban on ADU owner-occupancy requirements

AB 976 removed the sunset on California's prohibition of local owner-occupancy requirements for ordinary ADUs. Government Code § 66315 applies generally, but § 66341(c)(3) has a qualified-buyer exception for a particular separate-sale pathway. JADU occupancy is governed separately by § 66333(b). Confirm tenancy and deed restrictions for the parcel before making an ownership or rental decision.

What an owner-occupancy requirement used to mean

Before the moratorium, many California cities required the property owner to live in either the primary residence or the ADU. That meant out-of-state landlords, LLC-owned properties, and investor-built ADUs were effectively blocked. The owner had to sign and record an affidavit at the County Recorder's office and recertify periodically.

What AB 976 actually prohibits

• —No ordinance may require the owner to occupy either dwelling.
• —No recorded affidavit may be required as a permit condition.
• —No periodic owner-occupancy recertification may be required.
• —Do not assume older recorded restrictions are enforceable or void without reviewing the instrument and current law.

Exceptions that survive

A JADU with sanitation shared with the primary dwelling requires owner occupancy under § 66333(b), unless a statutory ownership exception applies; a JADU with its own sanitation does not. The qualified-buyer separate-sale exception for ADUs in § 66341(c)(3) is another narrow distinction. See the ADU vs JADU guide. Short-term rental restrictions are a separate question; see California ADU short-term rental rules.

Why this matters for the ADU investment thesis

AB 976 removes one local occupancy condition, not the need to verify the lot's ADU pathway, tenancy rules or ownership documents. AB 1033 condo conversion requires a local opt-in ordinance for that separate-sale path; SB 9 lot splits are a different framework. Verify contractor licensing with the CSLB guide.

Parking and setback rules — separate but related

AB 976 is purely about occupancy. Parking minimums, setbacks, and height limits are governed by other parts of the state ADU statute (Gov. Code §§ 66310–66342). Most California ADUs within ½ mile of transit are exempt from parking requirements. Standard setbacks for detached ADUs are 4 feet from rear and side property lines.