• Golden State ADUs
• Comment 0

SB1123 and Sacramento ADUs: What Homeowners Need to Know About New Regulations in 2026

SB1123 and Sacramento ADUs: What Homeowners Need to Know About New Regulations in 2026

Understanding SB1123: A New Era for Sacramento ADUs

What is SB1123? Key Provisions for Homeowners

SB1123 is the next landmark California accessory dwelling unit (ADU) legislation, scheduled for implementation in Sacramento and statewide beginning in 2026. Building on the successes and gaps exposed by earlier ADU reforms, SB1123 aims to streamline the permitting process, adjust setback rules, clarify fees, and address owner-occupancy requirements. For Sacramento homeowners, this means more transparency, predictability, and expanded entitlement to build ADUs—whether you’re seeking a detached unit, garage conversion, or backyard cottage.

Why Sacramento? Local Housing Needs and Policy Evolution

Sacramento’s fast-growing population and ongoing affordability crisis have made it a key area for ADU policy innovation. Local leaders have acknowledged ADUs as critical tools for supporting multigenerational living, rental income, and sustainable neighborhood growth. SB1123 sits at the intersection of state ambition and Sacramento’s unique needs, providing local flexibility while aggressively supporting homeowners’ property rights.

The Statewide Push for Accessory Dwelling Units

State policymakers have set a clear direction for expanding ADU options across California, including Sacramento. SB1123 responds to ongoing demand from homeowners eager to create additional housing, reflecting lessons from the implementation gaps in SB9, SB1069, and other recent laws. These reforms are directly designed to reduce red tape, speed up construction, and help families generate income or house loved ones with less bureaucracy.

Golden State ADUs’ Approach to Legislative Changes

At Golden State ADUs, we stay ahead by translating legislative evolutions into clear, actionable steps for homeowners. Our job isn’t just to build a high-quality ADU—it’s to ensure your investment aligns with every code update, city mandate, and practical reality, so you maximize your property’s value and potential under SB1123 and beyond.

Answer Block:
SB1123 will make Sacramento ADU projects easier to launch by enforcing statewide timelines, reducing permit headaches, and providing clear standards for setbacks, owner-occupancy, and utility costs—empowering well-advised homeowners to move from idea to occupancy faster than ever.

SB1123 Implementation: What’s Changing for ADUs in 2026?

Streamlined Approval Process: What to Expect

Perhaps the single greatest benefit of SB1123 is its forceful commitment to expedited ADU approvals. The law mandates that local Sacramento agencies must review complete ADU permit applications within a statutory window—typically 60 days or less. Agencies are pressed to provide clear, written feedback if an application cannot be approved as submitted, reducing open-ended staff delays that previously slowed down homeowners for months on end.

Revised Setback Requirements and Lot Size Flexibility

SB1123 further standardizes minimum setback requirements for ADUs, especially detached structures. In Sacramento, this means that even properties with modest or unique lot configurations can host new ADUs with as little as a 4-foot side and rear setback—removing zoning barriers that historically sidelined many homeowners from participating. Lot size minimums and density standards are also eased, opening the door for solutions like detached backyard cottages or side yard studios.

Utility Connection Fees and Infrastructure Clarity

One of the most frustrating and least predictable aspects of the ADU process has been figuring out which utility connection fees and infrastructure upgrades are required. SB1123 brings much-needed clarity, establishing clear guidelines for when municipalities can—and cannot—charge sewer, water, or impact fees for ADUs. Typical single-family ADUs in Sacramento will qualify for dramatically reduced costs, allowing homeowners to better predict their total budget from the outset.

Owner-Occupancy Mandates: Eased or Adjusted?

Earlier ADU legislation suspended owner-occupancy requirements for newly built ADUs, allowing investors and families more freedom in how they use their properties. SB1123 revisits these rules, balancing statewide protections with local flexibility. Sacramento homeowners should monitor for any revisions from the city, but in most cases, owner-occupancy mandates will remain relaxed, supporting long-term rental potential and family planning.

Comparison: Pre-SB1123 vs Post-SB1123 Regulations

• Permit Timelines: Unpredictable & slow ➔ Now, fixed statutory deadlines
• Setbacks & Lot Restrictions: Patchwork local rules ➔ Now, standardized and relaxed for all qualifying parcels
• Utility Fees: Unclear, often high ➔ Now, sharply defined with most ADUs qualifying for savings
• Owner-Occupancy: Inconsistent ➔ Now, mostly relaxed, with few restrictions for new units

Spotlight: Sacramento’s Planning Department Interpretations

Local interpretation always matters, and Sacramento’s approach has evolved in lockstep with state mandates. Golden State ADUs works in close collaboration with local planners and inspectors to ensure your ADU application gets the right review, the first time, minimizing the risk of costly delays or misinterpretations. Our real-time feedback loop with city departments allows our projects—and your investment—to move to construction when others are still waiting for an answer.

Answer Block:
Under SB1123, Sacramento ADU permits will be reviewed more quickly, with simpler setbacks, clearer utility costs, and fewer owner-occupancy barriers—eliminating much of the guesswork that frustrated homeowners in prior years.

Step-by-Step Guide: Navigating the Sacramento ADU Permit Process Under SB1123

1. Feasibility Assessment & Zoning Review (with Local Context)

Every successful ADU project begins with a robust feasibility review. Under SB1123, determining your site’s eligibility is more straightforward than ever—but pitfalls remain. Golden State ADUs analyzes your property’s size, slope, utility access, and any overlay zones to confirm what you can build, where, and with what design.

We address the questions competitors skip: Are there legacy easements? Is there a utility pole between your house and where you want your ADU? How does your existing landscaping impact your buildable area, now that minimum setbacks are only 4 feet?

2. Preparing & Submitting Your Application: Required Documents

SB1123 requires cities to provide clear, itemized lists of required ADU application documents. Sacramento’s process will still expect:

• Site surveys
• Complete architectural and structural plans
• Energy compliance (Title 24) documents
• Proof of property ownership
• Clearances for encroachments or tree impacts (as applicable)

At Golden State ADUs, we handle every element—including city-specific forms, neighborhood notification letters, utility sign-offs, and digital submittal packages that meet Sacramento’s latest standards. Our goal is 100% staff-ready applications for first-pass review, dramatically reducing the likelihood of a ‘resubmit’ scenario.

3. Working With Sacramento’s Planning and Building Departments

Our team provides white-glove coordination from your first consultation through final inspection. We proactively communicate with Sacramento’s permit staff, tracking your file, addressing plan check comments in real time, and ensuring compliance with every evolving guideline. This partnership model is why our projects stay on track, even as the codebooks get thicker.

4. Managing Updates to Timelines and Approval Windows (SB1123 Impact)

SB1123’s fixed review windows place unprecedented pressure on city planners to execute, but applicants can still face bottlenecks with incomplete paperwork, unresponsive utility agencies, or unclear site conditions. Our detailed permit tracker, timely submission strategy, and collaborative relationship with city staff ensure you make the most of SB1123’s promises, not just its paperwork.

Pitfalls to Avoid: Common Delays & Mistakes

• Submitting outdated forms or unapproved predesigned plans
• Assuming utility connections are always trivial—some properties need upgrades
• Ignoring overlap with local Historic Districts or HOA overlays
• Failing to respond quickly to city plan check corrections

Pro Tip: Use meticulously prepared, Sacramento-specific ADU models to accelerate compliance. Our ADU portfolio showcases designs already passing local review—saving you months of guesswork.

How Golden State ADUs Can Streamline Your Experience

With a single point of contact, guaranteed up-to-the-minute code compliance, and in-house design-to-permit workflow, Golden State ADUs stands out among Sacramento ADU builders. By anticipating issues before they escalate, we help you avoid the cycle of resubmittals and unexpected costs that less experienced contractors struggle to manage.

Answer Block:
SB1123 greatly improves Sacramento’s ADU process, but successful projects still require expert navigation—from site feasibility to final inspection. Golden State ADUs ensures your permits clear every hurdle and that your investment gets built on time, with no painful surprises.

Special Considerations: HOAs, CC&Rs, and Legacy Neighborhood Restrictions

Does SB1123 Override HOA Restrictions? The Legal Gray Area

One of the most complex dimensions for ADU owners is the growing tug-of-war between state law and private association (HOA) rules. While SB1123 aims to make ADUs an entitlement across Sacramento, some HOAs and neighborhood covenants, conditions, & restrictions (CC&Rs) continue to assert their power, often seeking to block or limit new backyard homes.

Neighborhood Covenants vs. State Law: Practical Implications

SB1123’s language is purposefully strong in overriding ‘unreasonably restrictive’ HOA barriers. But legal nuance remains: Some HOAs may attempt to delay, challenge, or require additional design review for new ADUs, sometimes leading to costly disputes or legal deadlock. Practically, homeowners should anticipate paperwork, back-and-forth, and possibly advocacy or legal guidance when planning ADUs in HOA-governed communities.

Tips for Navigating HOA Communication and Disputes

• Notify your HOA early—before submitting city permits
• Document all correspondence and requests
• Leverage new state guidance on ADU entitlements (which Golden State ADUs provides as part of our service)
• Consider mediation or consult legal professionals if the HOA’s position seems out of step with current law

Real-World Success Stories: Golden State ADUs in HOA Communities

We have successfully shepherded projects through HOA review by providing educational packages, facilitating meetings with association boards, and referencing the explicit language of new state law when rights were challenged. Our ability to mediate, clarify, and document each step empowers homeowners to realize their ADU opportunities even in the toughest legal environments.

Answer Block:
While SB1123 advances homeowner rights, navigating HOA disputes or CC&R limitations requires experience—Golden State ADUs leverages unique local expertise to help you assert and defend your ADU entitlements, streamlining approval wherever possible.

SB1123 in Action: Maximizing Value and Compliance With Your Sacramento ADU

Design Choices to Leverage New Rules (Setbacks, Size, Placement)

With relaxed setbacks and redefined lot standards, you now have more freedom in how you site and design your ADU. Want a true detached home with ample privacy? Or a compact detached ADU model that maximizes backyard space? SB1123 has unlocked opportunities for larger and more functional units, especially if you choose proven, plan-check-ready designs like:

• 800 sq ft 2-bed Ranch ADU
• 593 sq ft Modern Farmhouse ADU
• 476 sq ft Cottage ADU

Cost Considerations Under SB1123: Permits, Fees, and Construction

New fee transparency means fewer unhappy surprises. Sacramento will now post clear ADU impact fee and utility fee schedules online, letting you project your outlay in advance. Construction costs remain driven by labor and materials, but clarity around what is—and isn’t—required for approval can save thousands in unnecessary work or hidden charges. At Golden State ADUs, our all-in pricing removes guesswork, giving you a predictable investment window from day one.

Long-Term Benefits: Flexibility, Rental Income, and Multigenerational Living

The true impact of SB1123 is its creation of enduring value. By removing layers of regulatory uncertainty, your Sacramento ADU is now a future-proof investment. Use it as a rental residence, a ‘granny flat’ for family, or simply to enhance long-term resale value. No matter your goal, SB1123 ensures you can adapt as your needs—and the neighborhood—evolve.

Internal Link: ADU Design Trends in Sacramento

For the latest inspiration on layouts and finishes, check out our extensive ADU portfolio, highlighting Sacramento’s most popular styles, finishes, and floorplans—all engineered for fast compliance under SB1123.

Internal Link: Comprehensive Guide to ADU Costs

Curious about total project budgets, from permits to finishing? Visit our ADU construction cost guide for complete breakdowns and tips on maximizing your dollar under the new regulations.

Answer Block:
SB1123 empowers Sacramento homeowners to build smarter, bigger, and more cost-effectively—if you leverage expert ADU design, predictable permit timelines, and transparent fee structures.

Why Choose Golden State ADUs: Expert Guidance Through Regulatory Changes

Value of Local, Hands-On Experience With Sacramento ADUs

Legislation like SB1123 only solves half the puzzle—the other half is real-world execution. Over more than a decade, we’ve distilled ADU complexity into step-by-step simplicity for Sacramento homeowners, supporting you from initial concept to final keys. Our field-proven process delivers not just compliance, but peace of mind, knowing that every detail—on paper and on site—meets the highest standard of quality and code conformance.

From Consultation to Completion: Our Transparent Process

Golden State ADUs isn’t just a contractor—we are a full-spectrum partner. We offer:

• Personalized property reviews
• Permitting, design, and project management
• Construction by highly skilled crews
• Clear, itemized pricing
• Guidance through each regulatory update
• Aftercare and next-generation ADU advice

Internal Link: Meet the Golden State ADUs Team

Learn more about our passion for excellence and our Sacramento ADU experts by visiting the About Us page.

Internal Link: ADU Planning Checklist

Ready to get started? Use our step-by-step ADU planning checklist and consultation form to ensure your project launches on a solid foundation.

Answer Block:
Choosing Golden State ADUs means partnering with local experts who turn changing laws like SB1123 into real-world value, clear guidance, and exceptional living spaces for you and your family.

Looking Ahead: Future-Proofing Your ADU Investment in a Changing Sacramento

Expected Adjustments Post-SB1123 Implementation

Like any transformative reform, SB1123’s rollout is just the beginning. Sacramento city staff and state lawmakers will continue to monitor implementation, potentially refining rules, clarifying ambiguities, and introducing innovations based on homeowner feedback. Golden State ADUs will be at the table for these discussions, advocating for policies that strengthen your rights and streamline your building experience.

Staying Up-to-Date: How We Monitor Ongoing Policy Changes

We track policy updates, planning memos, and building department rule changes in real time, and our clients benefit from this deep insight. Our blog and homeowner resource hub provides timely analysis and practical tips as new ADU guidance emerges, ensuring your project stays aligned as the city evolves.

Resources for Homeowners: City Websites, Workshops, and Newsletters

• Regularly check the Sacramento city website for ADU-specific updates
• Attend online or in-person city planning workshops
• Subscribe to the Golden State ADUs newsletter for digestible, actionable news

Answer Block:
SB1123 is rewriting the Sacramento ADU playbook, but ongoing guidance from trusted experts like Golden State ADUs ensures your project remains compliant and future-ready as policies evolve.