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Riverside Considers Expanding Backyard Housing Options, Separate ADU Sales

Proposals could allow more homes on smaller lots and give homeowners the option to sell accessory dwelling units separately.

Riverside Considers Expanding Backyard Housing Options, Separate ADU Sales
Riverside’s Housing and Homelessness Committee is weighing proposals that would let homeowners sell ADUs separately from their main homes. | File photo/Raincross Gazette

Riverside homeowners could gain more options to build and sell smaller homes on their properties under several housing proposals being considered by the city.

On Monday, the Housing and Homelessness Committee discussed several proposals that would allow accessory dwelling units (ADUs) to be sold separately from primary residences and could double the number of homes permitted in certain small-lot developments.

However, the committee continued the discussion to its next meeting after Councilmember Sean Mill said a newly received letter from the California Department of Housing and Community Development (HCD) to San Dimas appeared to conflict with portions of the city staff's report.

"I think we need to have a full review of that letter from HCD before we make any recommendations," he said.

The conflict centers on how much land must remain with an existing house when the surrounding property is divided for new homes. Riverside staff say the remaining lot must meet the city's usual minimum lot requirements, which can leave less room for new housing, while the state's letter says those requirements do not apply during the subdivision process.

The proposals

The committee's discussion centered on four questions: whether to allow accessory dwelling units in certain small subdivisions, whether those units could be sold separately, how to regulate lots left around existing homes when a property is subdivided and how to keep Riverside's ADU ordinance aligned with changing state requirements.

One proposal would allow Riverside to implement Assembly Bill 1033, which gives cities the option to let primary homes and ADUs be sold separately as condominiums.

For homeowners, that could create an opportunity to sell an ADU while retaining their main home. For buyers, it could offer another path to homeownership.

"I think it's a great opportunity for a lot of homeowners … to unlock equity and create some opportunity for individuals who may not be able to afford a single-family home," said Councilmember Luis Hernandez, who chairs the committee.

Another option would allow ADUs or junior ADUs alongside subdivisions created under Senate Bill 1123, which extended a streamlined process for developments of up to 10 homes to qualifying vacant properties in single-family zones.

Staff offered an example of a 10-lot subdivision with 10 single-family homes and 10 ADUs, bringing the total to 20 homes. Riverside could tailor its rules, including allowing only junior ADUs or limiting the additional units to multifamily zones. Without a local ordinance, ADUs and junior ADUs would remain prohibited in these subdivisions. 

Most nearby cities, including Corona, Moreno Valley, Fontana, Ontario, Rialto, Redlands, San Bernardino and Jurupa Valley, have not adopted such ordinances, according to the staff report. Los Angeles and San Diego allow both ADUs in these subdivisions and separate ADU sales.

A separate question involves "remainder parcels" — the land surrounding an existing house that stays in place while the rest of a property is divided into new residential lots.

City staff's current interpretation requires remainder parcels to meet existing zoning standards, which can limit how many new lots a property can accommodate.

But in an Oct. 26 letter to San Dimas, HCD said those zoning standards do not apply to remainder parcels at the time of subdivision, although future development must comply with local requirements.

A local developer told the committee that more flexibility could leave additional room for parking, yards or downstairs living space in the new homes. Staff recommended adopting special standards for remainder parcels, though their presentation noted the change could result in substandard lots.

Staff also proposed replacing Riverside's existing ADU ordinance with references to state law and the state housing department's ADU handbook, saying frequent changes have made local updates quickly outdated.

Senior Planner Veronica Hernandez said ADU regulation would function largely the same under that approach. The one exception would be movable ADUs — tiny homes on chassis, which Riverside currently allows but state law doesn't address. It's currently unclear where movable ADUs would stand if the city adopted the state law.

Veronica Hernandez also reported receiving four comments generally opposing the expanded housing options, citing concerns including traffic, public safety and open space. She said new units would still undergo review for compliance with building, fire and other safety codes.

The proposals will return to the committee after the City Attorney's Office reviews the state guidance, with any resulting recommendations expected to go before the full City Council.

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