CA AB881

Requires local agencies to designate areas for accessory dwelling units based on water/sewer adequacy and traffic/safety impact, and prohibits issuing occupancy certificates for ADUs before the primary residence.

Eliminates minimum lot size requirements and removes lot coverage standards; sets maximum size limits of 850 square feet (1,000 for multi-bedroom units) and requires setbacks of no more than 4 feet for new construction.

Reduces permit approval timeline from 120 to 60 days for applications with existing single-family or multifamily dwellings; prohibits owner-occupancy requirements through January 1, 2025.

Eliminates replacement parking space requirements when garages or carports are demolished or converted for ADU construction; prohibits parking requirements for units within half-mile walking distance of public transit.

Allows ministerial approval for one ADU and one junior ADU per single-family lot, multiple ADUs within existing multifamily structures (up to 25%), and up to two detached ADUs on multifamily lots, subject to specified conditions.