California Assembly Bill 976 (2023) — extended the prohibition on owner-occupancy requirements for ADUs through the end of 2024 and clarified state preemption.
Before AB-976, cities could require homeowners to live in either the main house or the ADU. The law eliminated that requirement for ADUs permitted between 2020 and 2025, dramatically improving the investment case for rental ADUs. JADUs still require owner-occupancy (state-mandated, not local).
Part of the BackyardADU California ADU Glossary — plain-English definitions of the regulatory, construction, and financing terms you'll encounter during a California ADU project.