An owner-occupancy rule says the property owner must live on the lot. Investors and homeowners often ask whether it applies to ADUs. The answer depends on whether you are building an ADU or a junior ADU (JADU), and when.
LA ADU Guide is an information site. We are not a contractor, architect, lender or law firm. Rules change, so confirm everything with your building department before you spend money. This page is general information, not legal advice.
The short answer
| Unit | Owner must live on site? | Source |
|---|---|---|
| ADU | No. A city cannot require it. | AB 976, ABAG 2025 summary |
| JADU | Yes. The owner lives in the JADU or the main home. | Gov. Code 66333 |
ABAG's table puts it plainly: for ADUs, "Owner occupancy cannot be required." For JADUs, "Owner must live in the JADU or primary home (unless the owner is a government agency, land trust, or housing organization)."
What changed and when
For ADUs, HCD told Los Angeles in its November 2024 review that "the passage of Assembly Bill 976 will prevent jurisdictions from imposing owner-occupancy requirements on ADUs as of January 1, 2024."
Why the dates matter: the City's own Zoning Administrator memo had said a local ordinance could require owner occupancy for ADUs permitted after 2025. HCD flagged that as out of date, and told the City to clarify that only JADUs carry the requirement. The City may have amended its materials since, and we did not verify that. Confirm with LADBS or LA City Planning.
How the JADU rule works
Section 66333 requires the owner of a lot with a JADU to live in either the JADU or the remaining part of the single-family home. In practice:
- You can live in the main house and rent the JADU.
- You can live in the JADU and rent the main house.
- An owner that is a government agency, land trust or housing organization is exempt.
- ABAG notes a deed restriction is required to prohibit separate sale of a JADU.
The rule applies to the owner of record. If you plan to buy the property through an LLC or move away, read the restriction before you sign.
Does the ADU rule cover the main house?
A city cannot require owner occupancy for an ADU. But you can still choose to live in the home, and some leases, loans and HOA documents bring up residency. Check:
- Your mortgage terms. Some owner-occupied loans require you to live in the home for a period.
- Your homeowners insurance policy. Rental use can change the policy type.
- Your CC&Rs. See ADU HOA rules in California.
Rentals and short-term stays
The owner-occupancy rule is separate from rental length. ABAG says state exempt ADUs "cannot be used as short-term rentals (less than 30 days)," and other ADUs may be regulated locally. See our rental income and property tax guide for the money side.
Checklist
- [ ] Is the unit an ADU or a JADU? Section 66313 defines both.
- [ ] If it is a JADU, plan on living in the JADU or the main house.
- [ ] Ask the city whether it will record a deed restriction and ask for the text.
- [ ] Read your mortgage and insurance terms before renting either unit.
- [ ] Ask whether any recorded covenant (CC&Rs) imposes its own occupancy language.
- [ ] If an old permit or deed mentions owner occupancy, ask the city if it still applies.
Older ADUs
Some ADUs permitted before 2024 may carry a recorded owner-occupancy covenant. HCD's reading is that a city cannot impose the requirement on new ADU approvals; whether it can enforce old covenants is a different question we did not verify. If you have one on your title, ask a real estate attorney.
Common questions
Can I buy a house, build an ADU, and live elsewhere? For an ADU, a city cannot require that you live on the lot. A JADU is different: section 66333 requires the owner to live in the JADU or the main home.
Does the rule apply to a trust? We did not verify how owner occupancy treats trusts or LLCs. Ask an attorney.
Does the rule apply if I only rent the ADU for 30 days or more? ABAG's summary treats rental length and owner occupancy as separate rules. Owner occupancy cannot be required for an ADU either way.
Who can I ask? LADBS or LA County Public Works for permits, and HCD's ADU page for the state view.
Recent changes
Section numbers changed in 2024 when the law moved to Gov. Code sections 66310 to 66342 (SB 477, effective March 25, 2024). For the full law, see California ADU rules explained, or compare unit types in ADU vs. JADU vs. garage conversion. More topics are in the ADU rules hub.