California YIMBY Statement on Governor Signing of AB 976

October 11, 2023

Policy needed to continue the Boom in ADUs and Granny Flats 

“Once we started making it easier to build ADUs, everyone agreed – they’re great”

SACRAMENTO – Today, California Governor Gavin Newsom signed into law AB 976, a bill authored by Asm Phil Ting (San Francisco) that extends legislation passed in 2019 designed to encourage the construction of ADUs, or “Granny Flats,” on existing residential properties. AB 976 removes the sunset provision from 2019’s AB 881, and makes permanent the ability for property owners to provide more rental homes with the construction of low-cost ADUs.

Sponsored by California YIMBY, AB 976 sailed through the legislature; ADUs have proven to be a popular form of new housing in California. 

“When we began advocating for ADUs, cities across the state fought to prevent homeowners from being able to build them,” said Brian Hanlon, CEO of California YIMBY. “Now, cities everywhere are promoting ADUs as one of the most desirable and affordable forms of housing available in their jurisdictions. 

“Even cities that have historically resisted more housing are embracing ADUs, which are a sort of ‘proof of concept:’ There is plenty of room in our cities for more homes, and once we build them, people love them.

“By forever prohibiting owner-occupancy requirements for ADUs, AB 976 will enable middle-class homeowners to access the financing necessary for building ADUs. 

“We’re honored to have worked with Asm. Ting over the years to ease their path to construction. Governor Newsom is holding true to his commitment to address the housing shortage, and California YIMBY is grateful for his signature on AB 976.”