SACRAMENTO — In an effort to push forward housing reform, the California State Assembly on Monday advanced two high-profile bills aimed at expanding Accessory Dwelling Unit (ADU) development and protecting tenants from rising rents. AB 1154 and AB 1157—each tackling distinct aspects of the state’s housing crisis—will now head to the State Senate for consideration.
AB 1154: Streamlining Small-Scale Homebuilding
Assembly Bill 1154, authored by Assemblymember Juan Carrillo, passed the Assembly floor with strong bipartisan support. The bill seeks to streamline permitting and construction for ADUs under 500 square feet by consolidating the existing patchwork of laws into a single, unified standard.
ADUs—also known as in-law units, backyard cottages, or granny flats—have become one of California’s most productive and affordable housing strategies. Since statewide reforms began in 2016, over 85,000 ADUs have been built across the state, helping to ease housing shortages and provide flexible options for homeowners and renters alike.
However, regulations surrounding Junior ADUs (JADUs)—units built within the existing footprint of a home, including garages—have created confusion, conflicting interpretations, and unnecessary delays at the local level. AB 1154 aims to resolve this by creating uniform rules that apply to all ADUs under 500 square feet, ensuring homeowners can navigate approvals more efficiently and affordably.
“AB 1154 represents a smart, practical fix that will empower more Californians to contribute to the solution by building small, affordable homes on their properties,” said Asm. Carrillo in a statement. “Clarifying the law means less bureaucracy, faster construction, and more housing options in communities statewide.”
The bill has been widely endorsed by pro-housing advocates, including California YIMBY, who see ADUs as a key tool in addressing the state’s persistent homebuilding shortfall.
AB 1157: Tenant Protections Meet Housing Production Concerns
In contrast, AB 1157—authored by Assemblymember Ash Kalra—has sparked more contentious debate. The bill builds on California’s existing rent stabilization framework by extending price control provisions to include newly-constructed ADUs. It aims to shield renters in ADUs from sudden rent spikes, aligning with broader tenant protection efforts under landmark legislation AB 1482, which passed in 2019.
Under AB 1157, ADU tenants would be covered by just-cause eviction protections and capped rent increases of 5% plus inflation, not to exceed 10% per year.
Asm. Kalra and tenant advocates argue that these protections are urgently needed, especially as ADUs are increasingly rented out to low- and moderate-income tenants.
“Tenants living in ADUs deserve the same protections as anyone else,” Kalra said in a recent committee hearing. “We cannot allow a loophole that invites predatory rent hikes in what is one of the only growing segments of affordable housing in California.”
But housing supply advocates, including California YIMBY, have voiced strong reservations. In a public statement, the organization warned that, while well-intentioned, AB 1157 may “dissuade the housing production our state needs” by discouraging homeowners from building ADUs if they fear regulatory burdens and rent controls.
“AB 1157 addresses a symptom of the crisis while making the underlying disease worse,” the statement read. “The ultimate way to protect tenants is through abundance—landlords should be competing for tenants, not the other way around.”
California YIMBY emphasized that voters have repeatedly rejected strict rent control at the ballot box, and warned that layering more price regulations could stifle one of the state’s few successful pro-housing reforms.
A Tension Between Protection and Production
Together, the two bills capture the core tension in California’s housing policy debate: how to balance the urgent need to protect tenants from displacement and exploitation, while also maintaining momentum on new housing construction.
For some lawmakers, the passage of AB 1154 offers a model for smart, scalable reform—cutting red tape without compromising equity. For others, the cautious advancement of AB 1157 reflects a growing recognition that market-driven growth must be tempered by safeguards for vulnerable renters.
Both bills now head to the State Senate, where they are expected to face further scrutiny. Stakeholders from across the housing spectrum—homeowners, tenants, builders, and local governments—will be watching closely to see how lawmakers resolve this balancing act.
As the affordability crisis continues to push residents out of the state, California’s legislature is under increasing pressure to act. Whether AB 1154 and AB 1157 can coexist as part of a unified strategy remains to be seen—but together, they represent the dual priorities of 2025’s housing policy agenda: build more, and protect more.
