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As part of their spotlight, firm partner Edward W. Purcell, Esq. has provided an update on pending Accessory Dwelling Unit ("ADU") legislation.

Accessory Dwelling Units—Legislation Whose Time Has Come?
Edward W. Purcell, Esq.

Architects should be aware of New Jersey legislative bill (S1786), which is currently moving through the New Jersey legislature and would permit Accessory Dwelling Units (“ADUs”) on many properties across the State. The policy purpose behind this legislation is straightforward: to increase New Jersey’s housing supply. In a “balanced” housing market, it should take, on average, five to six months to sell a home. As of June 2026, it is taking approximately three months to sell the average home in New Jersey, indicating a severe undersupply. This, combined with the ongoing gap between wage growth and increases in home prices and rents, has left the average New Jersey resident in a precarious financial position.

Many other states are experiencing a housing shortage, and to date, eighteen states have adopted legislation permitting the construction of ADUs. For those that may not know, an ADU is a smaller, self-contained residential unit that shares the same lot as an existing primary dwelling. While the term uses the word “accessory,” from a zoning perspective, ADUs do not require a familial connection to the occupants of the primary dwelling. Put another way, while an ADU can be a mother-in-law suite or a post-college “pad,” it can also function as an independent dwelling unit for sale or rental to third parties.
ADUs are generally prohibited in traditional single family dwelling zones. Nevertheless, due to the severe housing shortage, many homeowners seek to install ADUs illegally, without proper zoning approvals. This legislation, sponsored by State Senator Troy Singleton, would address these barriers. Given that the bill is gaining support and has been revised to be more straightforward in promoting ADU development, it warrants close professional attention.

S1786 makes it unlawful for any municipality (with limited exceptions) to “prohibit or restrict the development of [ADUs]”. The sole exception applies to urban municipalities (those with a population density greater than 9,000 persons per square mile) that had already adopted legislation permitting ADUs by the effective date of S1786.

A notable feature of the amended bill is the breadth of situations where an ADU would be permitted “as of right.” Subject to specific dimensional requirements, ADUs would be permitted on any lot containing a single-family or two-family dwelling, or a row-house. Significantly (and unusually at least from a zoning perspective), the status of the primary dwelling—whether a pre-existing non-conforming use or a property with an existing zoning violation—does not preclude the development of an ADU on same.

The bill permits ADUs to be detached from the primary dwelling, contained within the primary dwelling, or constructed as an extension to the same. S1786 mandates that ADUs must be built behind the property’s front setback and located no closer than five feet from side and rear property lines. Additionally, an ADU’s height cannot exceed that of the primary dwelling, and its square footage must comply with the minimum requirements for an independent living facility under the Uniform Construction Code.

Per the bill, ADUs can be sold or rented. However, in order to make sure that the units are not used as short-term rentals, the owner must lease them for periods longer than thirty days. As a practical matter, and while not really discussed at length in the bill, “sold” ADUs will require some type of community property agreement.

Should S1786 be enacted, municipalities will have ninety days to adopt implementing ordinances. The bill mandates that local review of proposed ADUs be administrative, without a public hearing, and completed within sixty days of an application being deemed “complete.” The bill is currently silent on the specific items required for an application to be deemed “complete,” an issue that will likely be addressed in the implementing municipal ordinances. The bill also permits municipalities to impose specific requirements, including reasonable landscaping standards and architectural review for ADUs located within historic districts, provided the development requires new construction or exterior modifications.

For ADUs located in planned real estate developments and common interest communities, municipalities and associations may enforce reasonable regulations concerning stormwater, protection of common elements, architectural standards, parking allocations, and the allocation of common expense increases. However, the bill specifies that these regulations must be “uniformly applied and shall not operate to prohibit, unreasonably restrict, or materially delay the development of an accessory dwelling unit”.

The bill further incentivizes compliance by stipulating that if an ADU application is not acted upon within the sixty-day timeframe, it is deemed automatically approved. Municipalities are prohibited from using other policies or ordinances to “delay or deny” an ADU application, and the bill explicitly forbids the enforcement of off-street parking requirements against an ADU. All denials or the imposition of unreasonable conditions are subject to appeal to the Commissioner of the Department of Community Affairs, who is authorized to “levy the cost of the proceedings, including the applicant’s legal expenses . . . against the municipality”. Requiring the payment of attorneys’ fees is unusual and speaks to how the bill seeks to force municipal compliance with this pro-ADU legislation.

Architects should keep an eye on S1786 as it moves through the legislative process. If adopted, the legislation would force a sea change in how ADUs are developed in New Jersey. It will also require an incredible amount of architectural work to design the ADUs that will, no doubt, be proposed across the State.