What do HCD's ADU findings mean for South Gate owners?

Selling a South Gate property with an ADU, or buying with plans to add one, raises a question: which rules apply while the city addresses state findings? California’s Department of Housing and Community Development, or HCD, says South Gate’s ordinance needs changes. An owner should ask the city’s Planning Division which text applies to the proposed project.

This is general information and not legal advice.

What did HCD find in South Gate’s ordinance?

HCD found that South Gate’s ADU Ordinance No. 2025-01-CC, adopted October 22, 2025, fails to comply with State ADU Laws in the ways identified in its March 16, 2026 letter.

The findings cover unit combinations, junior ADU definitions, owner occupancy, utility connections, size limits, building separation, design standards, impact fees, and approval wording. They identify provisions the city must amend. The letter does not say the ordinance is void or that any particular property is affected.

HCD also says the ordinance should incorporate legislation it lists as AB 130, AB 462, AB 1154, SB 9, and SB 543. Their listed effective dates run from June 30, 2025, through January 1, 2026.

The HCD findings letter provides the specific code references. For broader ADU context, see ADU rules.

We were discussing an ADU with a South Gate owner who had already downloaded the city ordinance. He thought having the local rules meant there was nothing else to check. The HCD findings showed why we also look for state review letters, since the city may need to revise provisions that are already written into its ordinance.

Has South Gate finished changing its rules?

Status as of October 28, 2026: Council adoption and the current amended text are unverified.

The city’s Planning Commission was scheduled to consider amendments on September 15, 2026; check the city’s meeting portal for the council’s action.

HCD gave the city a written-response deadline of April 15, 2026, with a plan to amend the ordinance or adopt a resolution with findings. That deadline does not establish what the city ultimately did.

The letter describes a further step if the city does neither, or if HCD finds a new ordinance still out of compliance: HCD must notify the city and may notify the California Office of the Attorney General. The letter does not establish that either later action occurred.

Can an owner combine more than one kind of ADU?

HCD says state law allows combinations that South Gate’s ordinance did not fully accommodate.

The ordinance allowed one ADU and one junior ADU on a lot with one or two detached single-family dwellings. As an alternative, it allowed one detached new-construction ADU with four-foot side and rear setbacks.

HCD says Government Code 66323(a)(1) and (2) allows a junior ADU and a conversion ADU, plus one newly built detached ADU. The letter says SB 543 clarifies that these ADUs may be combined on the same lot.

It also says Government Code 66314 allows an additional ADU subject only to objective standards, and does not let a city prevent that ADU from being combined with the 66323 ADUs. HCD makes the same point about combinations on multifamily lots.

For your property, the question for Planning is which provisions apply to the specific combination proposed. The letter does not provide a property-specific unit count.

What changes for junior ADU size and owner occupancy?

HCD says junior ADU size should use interior livable space, and owner occupancy is no longer required for junior ADUs that do not share sanitation facilities with the primary dwelling.

South Gate’s definition used 500 square feet of floor area. HCD says the state definition now means no more than 500 square feet of interior livable space, requiring changes to sections 11.43.020.L and 11.43.050.N.2.

The occupancy finding concerns section 11.43.040.G.2. HCD cites AB 1154 and Government Code 66333(b), effective January 1, 2026. The sanitation arrangement matters: the finding does not remove owner occupancy requirements for every junior ADU.

Do South Gate’s size and design limits apply to every ADU?

HCD says the ordinance’s size, separation, and design limits cannot apply uniformly to every ADU category.

South Gate set maximum sizes of 850 square feet for an ADU with one bedroom or less and 1,000 square feet for one with more than one bedroom. HCD says conversion ADUs within a dwelling or existing accessory structure cannot be held to that floor area limit.

The limit also does not apply to detached ADUs on multifamily lots under Government Code 66323(a)(4). Square footage is counted as interior livable space.

For ADUs qualifying under Government Code 66323(a), HCD says the six-foot building separation and design standards cannot apply. No separation beyond fire and safety requirements should be required for those units.

The letter also identifies subjective design language, including requirements for consistency with design and character. HCD says the ordinance must contain only objective standards. For another local ordinance discussion, see Gardena’s ADU ordinance.

What does the letter say about utilities and impact fees?

HCD says certain conversion ADUs cannot be required to have separate utility connections, and the ordinance’s impact-fee exemption needs to include ADUs with 750 square feet of interior livable space.

The utility finding concerns conversion-type ADUs under Government Code 66323(a)(1). HCD says a utility cannot require a new or separate connection, or impose a related connection fee or capacity charge, unless the unit was constructed with a new single-family dwelling or upon separate conveyance.

That finding addresses South Gate’s wording allowing a separate water, sewer, or electrical connection when a utility requests one. It is tied to the specified ADU category and exceptions.

For impact fees, the city’s text exempted ADUs “less than 750 square feet,” while HCD says state law bars impact fees on ADUs with 750 square feet of interior livable space or less. HCD also says state law bars impact fees on junior ADUs of 500 square feet or less. Larger ADU fees must be proportional to the primary dwelling’s square footage.

For another city’s fee discussion, see La Verne’s impact fees.

Can an ADU decision wait for a new main dwelling?

HCD says the city may delay approving or denying an ADU application submitted with an application for a new single-family or multifamily dwelling until the main project is approved or denied.

The ADU application is still considered without discretionary review or a hearing. HCD says South Gate’s section 11.43.060.A needs wording that matches Government Code 66317(a)(3).

This is a specific timing provision for applications submitted together. The letter does not supply South Gate processing-time figures or establish how long your project would take.

The short version

HCD’s findings identify changes South Gate must address, while the city’s completed response remains unverified as of October 28, 2026.

Before relying on an ADU proposal in a purchase or sale, ask Planning which text applies, which ADU category fits, and how the findings affect the proposed units. Check the city’s council action before relying on proposed changes.

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