Accessory dwelling units (ADUs) in Palo Alto are gaining traction as a solution to the city’s housing challenges, especially given the soaring costs of housing. In 2024, the city issued 125 ADU permits, matching the previous year's count, significantly exceeding the projected growth in the city's Housing Element. Despite their incremental contribution to overall housing stock, permits for ADUs have increased rapidly over recent years. However, local planners are facing pressure to align city regulations with state laws governing ADUs, with the state agency indicating the seriousness of compliance or risk legal repercussions.
In October, the state agency informed the city that it should either change its laws to comply with the state's ADU law or adopt a resolution explaining why the city believes that it complies with state law, despite the HCD's findings.
These numbers more than double the projections in the city's Housing Element, a document that lays out plans to add 6,086 dwellings by 2031.
In 2016, city planners issued just five permits for ADUs. In 2018, there were 36 permits; in 2021, there were 89.
While the little structures represent a small share of the city's housing stock, their growth over the past decade has been exponential.
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