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Council receives ADU production update; asks staff to study SB 9/10 and AB 1033 implications

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Summary

Staff reported ADU permitting and completion numbers and the council asked staff to analyze state laws (SB 9, SB 10, AB 1033) and their local impact, including saleability and neighborhood effects.

The council received an update on accessory dwelling unit (ADU) production and local implementation on May 6. Assistant Director Martin Reeder reported 108 ADU permits issued from 2022–2024 and 56 completed ADUs in that period, with more than 200 ADU permit applications currently moving through the pipeline. The city published an ADU handbook in 2024 to consolidate permitting guidance and to streamline common questions such as water, sewer and fire sprinkler requirements.

Reeder said National City is in compliance with state ADU laws and that the city adopted a permissive local ADU ordinance in 2021 to align with state changes. Councilmembers and several public speakers urged further steps: residents said ADUs can help build generational wealth and expand homeownership opportunities, while others urged guardrails to avoid investor-driven overdevelopment that could alter neighborhood character.

Councilmember Rodriguez asked staff to return with a report on the effects of state laws — specifically SB 9 (two‑unit lot splits and duplex allowances), SB 10 (ministerial density increases in some circumstances), and AB 1033 (authorizing sale/transfer of ADUs in some contexts) — including how other jurisdictions have implemented those laws and whether opt-in or code amendments are warranted. Staff accepted the request and said they would report back with options. The report was received and filed at the meeting; council asked for a follow-up discussion before year-end.