10/14/2026
1 RiversideCA.gov
1 Housing and Homelessness Committee
October 26, 2026
CALIFORNIA 2026 HOUSING
LEGISLATION – POLICY DIRECTION
COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT
RiversideCA.gov
2 • On August 31, 2026, Staff presented an overview of relevant housing laws from the 2025/2026 California legislative session to the Housing and Homelessness Committee. Staff sought policy direction on the following four topics:
1. SB 1123 and ADUs/JADUs
2. SB 1123 Remainder Parcel Standards
3. Separate Sale of ADUs and JADUs
4. Continuing Updates to the ADU ordinance
BACKGROUND
10/14/2026
2 RiversideCA.gov
3 POLICY DIRECTION: SB 1123 AND AB 1033
Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADUs)
WHAT THEY DO
• Allows the City to adopt an ordinance
allowing construction of ADUs and JADUs with
SB 1123 projects
• Allows separate sale of ADUs and JADUs as
condominiums
WHAT IT MEANS FOR RIVERSIDE
• Adopting an ordinance could allow the
development of up to 20 units with an SB 1123
project – 10 Single-Family Residences with 10
ADUs
• AB 1033 would allow the City to adopt an
ordinance allowing the separate sale of ADUs as
separate properties (condominiums)
Street
SFR
ADU
RiversideCA.gov
4 POLICY DIRECTION: SB 1123
Urban Lot Splits
WHAT THEY DO
• Allows the City to adopt an
ordinance with specific
development standards for
remainder parcels
WHAT IT MEANS FOR RIVERSIDE
• Could facilitate otherwise infeasible SB
1123 projects
• May result in substandard lots
Street
SFR
Remainder
Parcel
10/14/2026
3 RiversideCA.gov
5 POLICY DIRECTION: ADU ORDINANCE
Accessory Dwelling Units
WHAT IT MEANS FOR RIVERSIDE
• State legislation on ADUs changes significantly year-to-year, resulting in the City’s ADU ordinance conflicting with State Law and HCD regulatory guidance • The City’s ADU ordinance is consistent with, or more permissive than, State Law • Regulation of ADUs would not functionally change • Staff recommends repealing the existing ADU ordinance and replacing it with a simple reference to State Law and the HCD Handbook
RiversideCA.gov
6 POLICY DIRECTION SUMMARY
POLICY DIRECTION: ADU ORDINANCE, SEPARATE SALE OR CONVEYANCE OF ADUs ADU Direction: • Staff recommends repealing the existing ADU ordinance and replacing it with a simple reference to State Law and the HCD Handbook • Staff seek policy direction regarding whether to adopt a local ordinance allowing the separate sale of primary and accessory dwelling units as condominiums, per AB 1033.
SB 1123 Direction: • Staff seek policy direction regarding whether ADUs and/or JADUs should be allowed in combination with SB 1123 projects. • Staff seek policy direction regarding whether to adopt special development standards and/or exceptions for remainder lots resulting from SB 1123 projects.
10/14/2026
4 RiversideCA.gov
7 That the Housing and Homelessness Committee:
1. Provide direction on the aforementioned policy
considerations;
2. Receive and file the staff report on the California
Legislature’s 2026 Housing Bills; and
3. Direct Staff to present an update to City Council.
RECOMMENDATIONS