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What do Contractors Need to Know About New ADU Laws in California?

In the face of an unprecedented housing crisis, California has passed a series of new laws designed to incentivize homeowners to build Accessory Dwelling Units (ADUs) on their properties. An ADU is a secondary dwelling unit with complete independent living facilities for one or more persons. The State of California is encouraging the building of ADUs by offering grants and other subsidies. In addition, California has enacted AB 2221 and SB 897, which are designed to remove local impediments to the construction of ADUs.

Home Improvement Laws

Contractors building ADUs in California should take heed of the state’s home improvement laws. A home improvement project includes additions to residential property such as ADUs. California law requires contracts for home improvements to include several legal notices and specify project details, including contract price, scheduling, and payment terms. Further, California law places several restrictions on the execution of a project for home improvements, such as limitations pertaining to deposits, timing for payments, and change orders. The burden is on the contractor, not the homeowner, to ensure that these legal requirements are met. Failure to meet these requirements can lead to harsh penalties and consequences for contractors.

What Contractors Need to Do

California contractors building ADUs should ensure that their contracts are compliant and they are familiar with the applicable laws. Having a construction lawyer experienced in the laws applicable to ADUs and home improvement contracts in California is essential to ensuring compliance, limiting exposure and maximizing your project’s overall profitability.

Learn about our construction law services here or request a free consultation to ensure your contractor business is compliant and legally protected.

This article is for general information purposes and is not intended to be and should not be taken as legal advice.

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