🏡 Understanding ADUs, JADUs & Ohana Units in Santa Cruz County: What Buyers and Sellers Need to Know

By Lisa Bibbee | Coldwell Banker Realty
📲 831.295.0065 | 🌐 homebylisab.com

As Santa Cruz County continues to attract homebuyers seeking coastal living — whether that’s Santa Cruz luxury real estate, Capitola beach homes, or Aptos oceanfront properties — accessory dwelling units have become a hot topic. Whether you’re considering adding an income unit, housing family members, or maximizing property value, it’s important to understand the differences between Accessory Dwelling Units (ADUs), Junior Accessory Dwelling Units (JADUs), and what people sometimes refer to as Ohana units — and how local regulations apply. Santa Cruz, CA+1

In this guide, we’ll break down these housing options, explain local rules in Santa Cruz County and the City of Santa Cruz, and point you toward the right resources to plan your next move.

🧠 What Is an ADU?

An Accessory Dwelling Unit (ADU) is a completely separate living unit on the same lot as a primary residence. ADUs are designed to function as independent households and must include full living facilities — sleeping, eating, cooking, and sanitation. Santa Cruz, CA

Types of ADUs

In Santa Cruz, you can typically create an ADU in different ways:
✔ Detached ADU: A new, standalone building on the property
✔ Attached ADU: Added on to the existing home
✔ Conversion ADU: Converted from existing space like a garage, workshop, or guesthouse Santa Cruz, CA

These units can be a gamechanger in terms of flexibility — they can serve as long-term rentals, space for family, or a future income unit. Some ADUs can even be mapped as separate condominiums and legally sold independently from the main house once they meet local condo requirements. Santa Cruz, CA

Local ADU Rules in Santa Cruz

Accessibility for ADUs in Santa Cruz is broad — ADUs are allowed on most residential and mixed-use properties, and no owner-occupancy requirement is needed (a major shift from earlier rules). Santa Cruz, CA

However, here are key points to know:
📌 Parking: Outside the Coastal Zone, additional parking isn’t required. Inside certain coastal areas, one off-street space may be required. Santa Cruz, CA
📌 Permits: ADUs require a Building Permit with architectural drawings and inspections. Santa Cruz, CA
📌 Coastal Permits: If your property is within the Coastal Zone, an additional Coastal Permit may be required. Santa Cruz, CA

👉 City of Santa Cruz ADU Info: https://www.santacruzca.gov/Government/City-Departments/Planning-and-Community-Development/Current-Planning/Accessory-Dwelling-Units-ADUs Santa Cruz, CA

🧑‍🍳 What Is a JADU?

A Junior Accessory Dwelling Unit (JADU) is smaller and more intimately connected to the main home than a standard ADU. It is created within the walls of the primary residence — for instance, a converted bedroom or unused interior space — and is limited to 500 square feet. Santa Cruz, CA+1

Key Differences Between ADU and JADU

*This typically means the owner must live in either the main dwelling or the JADU. Santa Cruz, CA

JADUs are a great option when you want a smaller, more affordable unit that provides living space for a family member, caregiver, or renter — while keeping everything under one roof.

🌺 What About “Ohana Units”?

The term “Ohana unit” comes from Hawaii and generally refers to a secondary dwelling on the same property meant to house extended family. California doesn’t have a specific municipal type called an “Ohana” unit, but in practice, people may use the term informally to describe either an ADU or a JADU designed for family living.

In Santa Cruz County and the City of Santa Cruz, the regulatory framework uses ADU and JADU definitions — not “Ohana” — under local and state law. Santa Cruz, CA

So while you might hear the term “Ohana unit” in conversation or real estate listings, it’s essentially an ADU or JADU under county/city code. For legal and permitting purposes, always refer to the official ADU/JADU terminology when working with planning departments.

📜 New State Legislation & ADU Legalization

There’s a powerful new statewide law — Assembly Bill 2533 (AB 2533) — that can help homeowners legalize unpermitted ADUs and JADUs built before January 1, 2020 (often a big issue in older Santa Cruz properties). Santa Cruz County CDI

Under AB 2533:
✔ You can pursue legalization even if the unit wasn’t permitted originally.
✔ Local jurisdictions can only deny legalization if the unit is substandard under Health & Safety Code standards.
✔ Impact fees and utility connection fees generally can’t be charged if they aren’t authorized by ADU state law. Santa Cruz, CA

This new pathway opens doors for homeowners to bring old units up to code and maximize property value.

💰 How These Units Affect Value

Whether you’re buying or selling, understanding ADUs and JADUs can dramatically affect financial outcomes.

ADUs can:

✔ Increase rental income potential
✔ Provide long-term housing flexibility
✔ Attract multi-generational buyers
✔ Boost overall property value

JADUs can:

✔ Offer affordable rental options
✔ Appeal to buyers seeking small-scale housing solutions
✔ Increase usable living space without building a separate structure

For properties in high-demand areas — like homes near the beaches of Santa Cruz, Capitola, and Aptos — buyers increasingly prioritize ADU/JADU potential during their search.

✅ Key Tips for Success

✔ Talk to the local planning department early — rules vary by zone and coastal status.
✔ Get professional plans & permits — unpermitted ADUs/JADUs can complicate sales.
✔ Factor in parking & utility requirements — Santa Cruz rules differ inside vs. outside coastal zones. Santa Cruz County CDI
✔ Understand owner-occupancy requirements for JADUs — it matters for long-term use and financing. Santa Cruz, CA

By Lisa Bibbee | Coldwell Banker Realty
831.295.0065 | homebylisab.com

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Lisa Bibbee  |  Coldwell Banker Realty  |  CalDRE#02348001

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