Housing and Homelessness Committee Memorandum
TO: HOUSING AND HOMELESSNESS COMMITTEE DATE: OCTOBER 26, 2026 FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARDS: ALL
DEPARTMENT
SUBJECT: 2025/2026 CALIFORNIA HOUSING LEGISLATIVE UPDATE – POLICY DIRECTION ISSUE:
Provide direction on policy implementation options.
RECOMMENDATIONS:
That the Housing and Homelessness Committee:
Provide direction on policy implementation options; and Direct staff to present an update to City Council.
BACKGROUND:
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 (Attachment 1). Staff sought policy direction on the following four topics:
Current legislation explicitly gives Cities the authority to decide on combining Accessory Dwelling Units (ADUS) and Junior Accessory Dwelling Units (JADUs) with Senate Bill (SB) 1123 ministerial 10-lot subdivision projects. Staff seek policy direction regarding whether ADUs and/or JADUs should be allowed in combination with these projects.
In some cases, the approval of an SB 1123 subdivision results in leftover “remainder parcels.” Staff seek policy direction regarding whether to adopt special development standards and/or exceptions for such remainder lots.
Assembly Bill (AB) 1033 (Ting) was signed by the Governor in 2023 and went into effect on January 1, 2024. This bill authorizes local agencies to adopt a local ordinance to allow the separate sale of the primary dwelling unit and ADUs as condominiums. 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.
Finally, staff seek guidance on how to update the City’s ADU ordinance to comply with changes in State Law and regulatory guidance. In previous years, the City has updated its ADU ordinance yearly in response to continual changes in State Law and regulatory interpretations promulgated in HCD’s ADU Handbook, which has final interpretive authority over ADU law which local jurisdictions must follow. Staff recommend repealing the existing ADU ordinance and replacing it with a simple reference to State law and the HCD Handbook.
The Committee directed Staff to provide further information on neighboring cities’ approach to these issues, in addition to working with the City Attorney’s Office to provide clarity on what authority the City retains as pertains to regulating ADUs.
DISCUSSION:
ADUs and JADUs
State law allows cities to adopt ordinances explicitly opting into allowing the construction of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in conjunction with SB 1123 projects, and the separate sale of ADUs/JADUs as condominiums. Allowing these units and separate sale may increase local housing production and provide additional housing options for Riverside residents. For example, an SB 1123 project could propose a 10-lot subdivision consisting of 10 single-family residences with 10 ADUs, for a total of 20 units. The City has the discretion to tailor the ordinance as well – the ordinance could limit SB 1123 projects to only build JADUs, which are required to be no more than 500 square feet and contained entirely within a single-family residence. The City could also restrict the addition of ADUs/JADUs associated with SB 1123 projects to only multi-family zones. If no local ordinance is adopted, these practices remain prohibited.
In a review of surrounding cities, the majority of local governments have not adopted ordinances opting into these practices. The Cities of Los Angeles and San Diego are notable exceptions – both cities allow construction of ADUs/JADUs with SB 1123 projects, and the separate sale of ADUs/JADUs.
City
Standards
Moreno Valley
No Ordinance Adopted
Rialto
Redlands
San Bernardino
Corona
Jurupa Valley
Fontana
Ontario
Los Angeles
Ordinance Adopted
San Diego
Remainder Parcels
SB 1123 projects allow the creation of up to 10 lots within a small subdivision. These projects can sometimes result in the creation of a “remainder parcel,” when a proposed SB 1123 10-lot subdivision “carves out” an existing single-family residence on its own separate remainder parcel, creating the allowed 10-lot subdivision from the vacant portions of the original lot. These remainder parcels are often smaller than what Zoning requires in terms of lot depth, area, coverage, or similar standards and present development difficulties. SB 1123 and clarifying amendments to the bill passed in 2026 as SB 1116 do not provide specific provisions or interpretive guidance for remainder parcel standards. As a result, Staff’s current interpretation of the plain language of the law is that remainder parcels must comply with the minimum lot standards that apply to the Zoning district in which the project is located. In some situations, this can have the effect of limiting an otherwise eligible site’s ability to accommodate the 10 new lots that the law otherwise allows.
While the majority of nearby cities have not adopted development standards for remainder parcels, doing so could potentially allow SB 1123 projects that might not otherwise be viable on eligible sites. In some situations, this may have the effect of resulting in substandard single-family remainder parcels. Staff therefore recommend adopting development standards for remainder parcels.
ADU Ordinance
As discussed in the previous report, Staff recommend repealing the existing ADU ordinance and replacing it with a simple reference to State law and the HCD Handbook as a solution to perennially evolving ADU law creating conflicts with the City’s adopted ADU ordinance.
The continual changes to legislation and expanding interpretations of existing law have resulted in numerous conflicts between the City’s ordinance, State Law, and HCD regulatory guidance. For example, the 2024 edition of the Handbook interpreted the law to require cities to allow one detached ADU; one attached or converted ADU; and one JADU, for a total of three units in addition to an existing primary dwelling; the 2026 edition of the Handbook (Attachment 2) has updated this interpretation to require cities to permit two detached ADUs, plus a converted or attached ADU and a JADU, for a total of four units in addition to the primary dwelling.
The City’s ordinance is currently generally consistent with the most permissive standards of State ADU Law. In some cases, the City’s ordinance is more permissive than State Law – for example, the City currently does not require any additional parking for ADUs or JADUs, or that a garage, carport, or covered parking be replaced if demolished to construct an ADU/JADU. State Law requires one off-street parking space for an ADU; however, no parking is required for certain ADUs, including those located within ½ mile of public transit, and those within architecturally or historically significant districts. Additionally, State Law also does not require replacement of demolished off-street parking. The City’s ADU ordinance also allows tiny homes on chassis as Moveable ADUs (MADUs), which are not addressed in State law.
With the exception of MADUs, the City has not adopted any standards which would be affected by replacing our local ordinance with references to State Law and the HCD Handbook. The aforementioned parking standards are located under the City’s Parking ordinance (RMC 19.580.060), rather than the ADU ordinance, and would remain unchanged. Cities may impose limited objective development and design standards, such as height, lot coverage, landscape, design, development, and architectural standards. Riverside does not currently have objective standards for ADUs. Functionally, regulation of ADUs and JADUs would remain essentially the same.
FISCAL IMPACT:
There is no fiscal impact associated with Housing and Homelessness Committee receiving and filing this report and directing staff to present an update to City Council.
Prepared by: Veronica Hernandez, Senior Planner
Approved by: Miranda Evans, Community & Economic Development Director Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Tom Hatch, Interim City Manager
Approved as to form: James Johnson, City Attorney
Attachments:
Housing and Homelessness Committee Staff Report – August 31, 2026 HCD ADU Handbook – January 2026
Presentation
2025/2026 Housing Legislation Update – Policy Direction