A pending California bill called AB 956 would allow single-family homeowners to build up to two detached accessory dwelling units on one property. If it passes, the new ADU rules in 2026 could open a significant door for Coachella Valley homeowners — including those who live in HOA communities that have historically blocked these projects.
As of now, the bill is pending on the floor. Nothing is law yet. But the direction California is moving makes this worth paying attention to before it lands.
What AB 956 Actually Changes
Right now, state law allows one detached ADU per single-family lot. AB 956 would raise that to two. It would also prohibit HOAs from blocking ADUs that comply with state law — a provision that matters a lot in the desert, where a large share of Palm Springs and Palm Desert neighborhoods are governed by homeowners associations.
The bill is part of a broader push in Sacramento to increase housing supply without rezoning. Other pending legislation, including SB 1116, targets smaller starter homes with similar goals: lower construction costs, fewer bureaucratic barriers, more units on existing lots.
What This Means for Coachella Valley Homeowners
The valley has a strong ADU market already. Short-term rental demand, multigenerational households, and long-term rental pressure all point in the same direction: a second or third unit on your property has real income potential here.
If AB 956 passes, a homeowner with a standard single-family lot could potentially add two detached guest houses, casitas, or rental units. That's a different conversation than one ADU. It also reshapes how investors and buyers think about underbuilt lots throughout the valley.
For homeowners sitting on larger parcels in Palm Desert, La Quinta, or Indio, this bill could meaningfully change what your property is worth. Find out what your home is worth →
What This Means For You
• HOA residents in Palm Springs and Palm Desert should watch this bill closely. If it passes, your HOA may lose the ability to block a code-compliant ADU project.
• Lot size and local zoning still matter. AB 956 changes state law, but your city's setback, height, and coverage rules apply within those state minimums.
• The bill has not passed yet. Do not pull permits or hire contractors based on it. Check back once the final text is signed into law.
• If you own a property with unused space and are thinking about your options, now is a good time to talk through what's possible under current rules and what could change. Find out what your home is worth →
The new ADU rules in 2026 are not guaranteed, but the trend in California housing law has been consistent: more units, fewer local restrictions, and HOAs with less authority to say no. Coachella Valley homeowners have good reason to keep an eye on this one.
For more context on ownership opportunities across the valley, visit the Craft & Bauer blog.
Frequently Asked Questions
Does AB 956 apply to HOA communities in Palm Springs and Palm Desert?
Yes, if the bill passes as written, HOAs would be prohibited from blocking ADUs that comply with state law. This is a direct response to HOAs across California rejecting ADU applications even when homeowners met all building and zoning requirements.
Can I build two detached ADUs on my lot right now under current California law?
No. Current state law allows one detached ADU and one junior ADU (JADU) per single-family lot. AB 956 would expand the detached limit to two, but that change is not in effect yet. Check with your local planning department for what is permitted today.
How would two detached ADUs affect my property value in the Coachella Valley?
Adding legally permitted rental units typically increases assessed value and marketability, though the exact impact depends on lot size, construction quality, location, and local rental demand. In the desert market, where short-term and long-term rental demand is steady, additional units on a single lot can be a meaningful value driver.