AB 1055 – Cities Can Limit ADUs as Short-Term Rentals
AB 1055 lets cities require that ADUs approved through streamlined permitting be used for residential living at least half the year during their first 10 years. It’s aimed at curbing short-term rental conversions and keeping ADUs in the housing pool.
Key Implications for Homeowners
Limited Short-Term Rental Use:
Under AB 1055, cities are now allowed to require that ADUs built through streamlined permitting processes be used for residential living at least six months out of each year for the first 10 years. This means you can’t use the unit exclusively as a short-term rental during that period.Long-Term Planning Is Essential:
If your goal is to create consistent rental income or house family members, this bill works in your favor. But if your plan is to build an ADU as a full-time vacation rental or profit-focused short-term lease, you’ll need to adjust your expectations—or consider a different permitting route (if available in your city).More Scrutiny During Permitting:
Cities may now ask for proof or documentation that your ADU will be used as long-term housing. Working with a professional who understands these requirements is more important than ever.
How We Can Help
The New Avenue team stays on top of housing legislation like AB 1055 so our clients don’t have to. We’ll help you understand what your city requires, ensure your project complies with the latest rules, and design an ADU that meets your goals—whether that’s rental income, multigenerational living, or flexible future use.
Don’t build blind. Schedule a free consultation and get expert guidance for your ADU project.
