Accessory Dwelling Units

ADU Sample StructuresAn Accessory Dwelling Unit (ADU), also know as a "Secondary Dwelling unit", a "Granny unit", or an "In-Law Unit", attached or detached, on a single lot of record to be used for in-laws-quarters, a guesthouse, or rental, is allowed in residential districts if minimum development standards of the zoning district can be met. The City also allows the development of a Junior ADU (JADU), which is a smaller unit converted out of existing space. JADU's are required to have an "efficiency kitchen" but can share a bathroom with the main home. ADUs and JADUs are subject to the development standards and requirements found in Chapter 18.84 of the Municipal Code. 

Your Path to a Completed ADU


Path to completing an ADU

The following checklists can assist you with answering any questions you may have about your property and building an Accessory Dwelling Unit:

Detached ADU Checklist (PDF)

Attached ADU Checklist (PDF)

Ready to apply? Start with a Building Permit Application.

Additional ADU Resources

CalHFA ADU Grant Program 

The ADU Grant provides up to $40,000 towards pre-development and non-recurring closing costs associated with the construction of the ADU. Predevelopment costs include site prep, architectural designs, permits, soil tests, impact fees, property survey, and energy reports. Santa Clara County Households making up to $300,000 annually may qualify!

In collaboration with CalHFA, Guild Mortgage, the Santa Clara County Library, and the City of Gilroy, the City of Morgan Hill hosted a CalHFA ADU Grant Informational webinar that is available on YouTube. For additional grant information, including financing partners, go to the CalHFA website.

California Accessory Dwelling Unit Handbook

The State of California feels that ADU's and JADU's are an innovative and effective option for adding much needed housing in California. There is comprehensive HCD Accessory Dwelling Unit Handbook (PDF) for more information.