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The legislature of California found that second-units are a good source of below-market-price housing for family members, students, elderly, and others. Also, the legislature found that homeowners receive extra income and an increased sense of security. California intends that the first change to the state code makes second-unit ordinances free from arbitrary, excessive, or burdensome regulations that restrict the ability to create second-units in authorized zones. Development applications for second-units should be considered without a discretionary review or hearing (ministerially). The process “must apply predictable, objective, fixed, quantifiable, and clear standards.” The state has also required that second-units be exempt from growth control measures. The memorandum suggests that localities monitor the effectiveness of regulations and programs that encourage second-units. To encourage second-units the state can apply flexible zoning requirements, reduce parking requirements and impact fees, and offer fee deferrals, setback reductions, and design prototypes. The memorandum also contains the new section of code, a list of other pertinent codes and regulations, and a list of resources on second-units.

The second change, Section 65583.1, allows identification of the capacity of second-units in fulfilling the locality’s housing need, as of January 1, 2003. The second change to California’s law is designed to change how local governments may count second-units towards housing requirements. Local governments “may count the realistic potential for new second-units within the planning period of the [housing] element.” The law also states that the housing element should calculate the anticipated affordability of second-units and outlines how they can be determined. The impact of development standards on constraining second-units should also be examined.