City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01262 9/16/2025
Accessory Dwelling Unit (ADU) Construction and Finance Workshop File ID: 2025-01262
Location: Citywide
Recommendation: Review, discuss, and provide comments.
Contact: Ryan Brown, Chief of Staff, (916) 808-7005, [email protected], Office of Councilmember Caity Maple, District 5
Presenter: Ryan Brown, Chief of Staff, (916) 808-7005, [email protected], Office of Councilmember Caity Maple, District 5
Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: Accessory Dwelling Units (ADUs) are second, individual dwelling units constructed on a property with an existing primary unit. These are commonly known as in-law units, granny flats, backyard cottages, secondary units, and other informal names. Junior Accessory Dwelling Units (JADUs) are similar but are within the walls of a proposed or existing single-family home and are restricted to no more than 500 square feet.
After ADU construction was made legal in California in 2016, they have surged in popularity, especially in larger cities where the housing crisis is felt most acutely. They qualify as infill development, providing other benefits like greenhouse gas reduction (through reducing the distance that residents need to travel), reducing the conversion of greenfield/agricultural land, and reducing costs to construct each housing unit.
Both statewide and in Sacramento, actual ADU construction is lagging behind the expected number of new units being created. Factors that are often cited as potential barriers include:
1. Planning and Permitting Time/Expense
2. Cost of Labor and Materials
3. Access to Affordable Construction Financing
File ID: 2025-01262 9/16/2025
4. Access to Incentive Programs
This workshop seeks to explore the barriers that homeowners (both new and existing) face when choosing to include an ADU or JADU on their property and to hear directly from industry stakeholders about potential solutions.
Policy Considerations: The information given in this workshop is intended to provide an opportunity for Law and Legislation Committee members to learn more about the Accessory Dwelling Unit (ADU) industry and identify opportunities for future policy development.
Economic Impacts: None.
Environmental Considerations: This action is not a project that is subject to California Environmental Quality Act (CEQA) because it is an administrative activity and relates to government fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines § 15378(b)(2) and (b) (4)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.