What Happens If Your ADU Violates Building Codes After ...

ADU Building Code Violations: What You Need to Know

Building an Accessory Dwelling Unit (ADU) involves navigating complex building codes, zoning regulations, and permit requirements. But what happens if your ADU is found to violate building codes after construction is complete? Whether the violation was an innocent mistake, an oversight by your contractor, or the result of unpermitted modifications, understanding the consequences and your options is essential.

Building code violations can range from minor issues that are easily corrected to major structural problems that require significant investment to resolve. The way you respond to a violation, and how quickly you address it, can make a significant difference in the outcome.

Common ADU Building Code Violations

Understanding the most common types of violations helps you identify potential issues with your own ADU and take corrective action before enforcement catches up.

Structural Violations

Structural violations are among the most serious because they affect the safety of the building. Common structural violations include inadequate foundation for the structure, improper framing that does not meet load-bearing requirements, roof structures that do not meet wind or seismic codes, and missing or incorrect connections between structural members.

Electrical Violations

Electrical violations pose fire and safety risks. Common issues include insufficient electrical panel capacity, improper wiring (wrong gauge wire for the circuit), missing or improperly installed GFCI outlets in kitchens and bathrooms, inadequate electrical grounding, and circuits not properly protected by breakers.

Plumbing Violations

Plumbing code violations can lead to water damage, health hazards, and environmental contamination. Common violations include improper drain slope that does not allow proper waste flow, missing or inadequate venting, incorrect pipe sizing, water heater installation that does not meet safety codes, and connections to the main sewer line that do not meet city standards.

Fire Safety Violations

Fire safety codes are strictly enforced in California, especially after the devastating wildfires in recent years. Common violations include missing or improperly placed smoke and carbon monoxide detectors, inadequate fire separation between the ADU and main dwelling, non-compliant materials in fire-rated assemblies, insufficient emergency egress from bedrooms, and lack of fire-resistant exterior materials in wildfire zones.

Zoning and Setback Violations

Even with a building permit, ADU projects can end up violating zoning codes if the as-built structure differs from the approved plans. Common issues include the ADU being larger than the approved plans, the structure encroaching into required setbacks, height exceeding the approved maximum, and lot coverage exceeding the maximum allowed percentage.

How Building Code Violations Are Discovered

Building code violations can come to light through several channels, each with different implications for the homeowner.

Building Inspections

The most common way violations are discovered is during the building inspection process. Building inspectors visit your site at various stages of construction (foundation, framing, rough plumbing, rough electrical, final) to verify compliance with approved plans and building codes. If the inspector finds violations, they will issue a correction notice that must be addressed before the next phase of construction can proceed.

Neighbor Complaints

Neighbors who believe your ADU violates building codes can file a complaint with the city's code enforcement department. The city will investigate the complaint and, if violations are found, issue notices requiring correction. For tips on managing neighbor relations during your ADU project, see our guide on handling neighbor complaints.

Property Sale Inspections

When you sell your property, the buyer will typically order a professional home inspection. If the inspector discovers building code violations in your ADU, the buyer may demand that you correct them before closing, reduce the sale price, or walk away from the deal entirely.

Insurance Claims

If you file an insurance claim related to your ADU (for example, after a fire or water damage), the insurance company may investigate and discover building code violations. If violations contributed to the damage, the insurer may deny your claim or reduce the payout.

Refinancing or Appraisal

During a refinancing or when obtaining a new appraisal, the appraiser may notice unpermitted work or code violations that affect the value of your property.

Enforcement Actions for Code Violations

When a building code violation is identified, the enforcement process typically follows a predictable pattern. Understanding this process helps you respond appropriately.

Notice of Violation

The first step is usually a written notice of violation from the building department. This notice identifies the specific violations, cites the relevant code sections, and gives you a deadline to correct the issues. Deadlines typically range from 30 to 90 days depending on the severity of the violations.

Correction Period

You are given a specified period to correct the violations. During this time, you should hire a licensed contractor to make the necessary repairs, obtain any required permits for the corrective work, schedule re-inspection with the building department, and document all corrections with photographs and contractor invoices.

Fines and Penalties

If you fail to correct violations within the specified deadline, the city can impose fines. Fine amounts vary by jurisdiction and violation type, but they can range from $100 per day for minor violations to $1,000 or more per day for serious violations. In Los Angeles, repeat offenders or those who ignore violations face escalating fines that can accumulate into tens of thousands of dollars.

Stop Work Orders

If violations are discovered during construction, the building department may issue a stop work order that halts all construction activity until the violations are corrected. Working in violation of a stop work order can result in additional fines, permit revocation, and even criminal charges.

Permit Revocation

In severe cases, the building department may revoke your building permit entirely. This can require you to apply for new permits, submit revised plans, and potentially undo work that was completed out of compliance.

Remediation Options for Code Violations

If your ADU has building code violations, you have several options for bringing it into compliance.

Hire a Licensed Contractor

For most violations, hiring a licensed contractor experienced in ADU construction is the best approach. The contractor can assess the violations, develop a remediation plan, obtain any necessary permits, and execute the corrective work. Working with an experienced ADU builder in Los Angeles ensures the work meets all current code requirements.

Apply for After-the-Fact Permits

If your ADU or portions of it were built without proper permits, you may be able to obtain after-the-fact permits that legalize the work. This process typically involves submitting plans for the existing structure, paying permit fees (which may include penalties for unpermitted work), bringing the structure up to current code requirements, and passing inspections. After-the-fact permits are more expensive than regular permits, and the work may need to be brought up to current codes rather than the codes in effect when the work was originally done.

Retroactive Code Compliance

Some jurisdictions offer amnesty or streamlined compliance programs for unpermitted construction, including ADUs. These programs may offer reduced penalties, simplified inspection processes, and more lenient code requirements. Check with your local building department to see if any such programs are available in your area.

Demolition and Reconstruction

In the worst-case scenario, if the violations are too severe or too costly to remediate, you may need to demolish all or part of the ADU and rebuild it to code. While this is the most expensive option, it may be necessary for structures with fundamental structural deficiencies, severe fire safety violations, or major setback encroachments.

Financial Consequences of Code Violations

Building code violations can have significant financial consequences beyond the cost of remediation.

Reduced Property Value

A property with known building code violations will sell for less than a comparable property without violations. Buyers and their lenders will factor the cost of remediation into their offers, and some buyers may simply walk away from a property with unresolved code issues.

Insurance Implications

Building code violations can affect your homeowner's insurance in several ways. Your insurer may deny coverage for damage related to the violation, your premiums may increase, and in some cases, your policy may be cancelled if the insurer discovers serious violations.

Rental Income Impact

If your ADU has violations that make it uninhabitable or unsafe for occupants, you may lose rental income while the violations are being corrected. In some cases, the city may order you to stop renting the ADU until all violations are resolved.

Legal Liability

If someone is injured due to a building code violation in your ADU, you could face significant legal liability. This is particularly serious for violations related to electrical safety, fire safety, structural integrity, and stairway or handrail requirements.

How to Prevent Building Code Violations

Prevention is always better and less expensive than remediation. Here are strategies to ensure your ADU meets all building codes from the start.

Work With Licensed Professionals

Hire a licensed architect for design, a licensed general contractor for construction, and licensed subcontractors for electrical, plumbing, and HVAC work. Licensed professionals are required to know and follow building codes, and their licenses provide accountability.

Stay Involved in the Construction Process

While your contractor manages the day-to-day construction, stay engaged and informed. Attend progress meetings, review inspection reports, and ask questions about any changes from the approved plans.

Do Not Skip Inspections

Building inspections exist to catch code violations during construction when they are relatively easy and inexpensive to fix. Do not allow your contractor to skip or delay required inspections. Each inspection phase (foundation, framing, rough systems, final) is an opportunity to verify compliance.

Avoid Unpermitted Changes

Once construction begins, avoid making changes to the approved plans without obtaining the necessary plan revisions and permit amendments. What seems like a minor change, such as adding a window, moving a wall, or changing a fixture location, can create code violations if not properly reviewed and approved.

Insurance Impact of Building Code Violations

Building code violations can have serious consequences for your homeowner's insurance coverage, potentially leaving you financially exposed in the event of a claim.

Coverage Denial

If your ADU suffers damage from a covered peril (such as fire, storm, or water damage) and the insurance company discovers building code violations during the claims process, they may deny part or all of your claim. Insurance policies typically include provisions that exclude coverage for losses caused by or related to code violations. For example, if faulty electrical wiring that violated code caused a fire, the insurance company may argue that the loss was a direct result of the code violation and refuse to pay.

Policy Cancellation

If your insurer becomes aware of significant building code violations in your ADU, they may cancel your policy or decline to renew it at the end of the policy term. This can make it difficult and expensive to obtain replacement coverage, as other insurers will also ask about code violations during the application process. Being uninsured or underinsured puts your entire property investment at risk.

Increased Premiums

Even after code violations are corrected, your insurance premiums may increase. The history of violations signals higher risk to insurers, who may charge more for coverage or impose higher deductibles. While premium increases may eventually moderate as years pass without further issues, the financial impact can be significant in the short term.

Liability Concerns

If a tenant, guest, or other person is injured in your ADU due to a condition that constitutes a building code violation, your liability exposure increases substantially. Your homeowner's liability insurance may not cover claims related to known code violations, leaving you personally responsible for medical expenses, legal fees, and potential damages awarded by a court. This is one of the most compelling reasons to ensure your ADU is fully compliant with all applicable building codes.

Impact of Code Violations on Property Resale

Building code violations in your ADU can significantly affect your ability to sell your property and the price you can obtain.

Disclosure Requirements

California law requires sellers to disclose all known material defects and conditions that could affect the property's value, including building code violations. The Transfer Disclosure Statement (TDS) and Natural Hazard Disclosure (NHD) reports are mandatory, and failing to disclose known violations can result in lawsuits from buyers after the sale. Honest disclosure is both a legal requirement and the best way to protect yourself from future liability.

Buyer Financing Challenges

Properties with known building code violations can be difficult for buyers to finance. Most lenders require the property to meet certain standards before approving a mortgage, and code violations may cause the property to fail the lender's appraisal requirements. FHA and VA loans are particularly strict about property condition, and even conventional lenders may require violations to be corrected before closing.

Price Negotiations

Buyers who are willing to purchase a property with code violations will typically demand significant price reductions to account for the cost and hassle of remediation. The discount demanded by buyers often exceeds the actual cost of the repairs, because buyers factor in the risk, inconvenience, and uncertainty associated with addressing the violations after purchase. Correcting violations before listing your property almost always results in a better net outcome than selling with known issues.

Frequently Asked Questions About ADU Code Violations

Can I sell my property if my ADU has building code violations?

You can sell a property with known code violations, but you are generally required to disclose them to potential buyers. Undisclosed violations can lead to lawsuits after the sale. Most buyers will require violations to be corrected before closing or will negotiate a reduced price to account for the cost of remediation.

What if my contractor caused the code violations?

If your licensed contractor's work caused the code violations, they may be responsible for correcting them at their expense. Review your construction contract for warranty provisions and contact the Contractors State License Board (CSLB) if the contractor refuses to address the issues. You may also have grounds for a legal claim against the contractor.

How long does the city give me to fix code violations?

Correction periods vary by jurisdiction and violation severity. Minor violations may have 30-day deadlines, while major structural issues may allow 90 days or more. Extensions are sometimes available if you can demonstrate that corrective work is in progress.

Can I rent my ADU while code violations are being corrected?

It depends on the nature of the violations. If the violations create safety hazards for occupants, the city may order you to vacate the ADU until corrections are made. For minor violations that do not affect habitability or safety, you may be able to continue renting while making corrections.

What if I inherited a property with an ADU that has code violations?

If you inherit a property with an ADU that has existing code violations, you become responsible for addressing them. The violations do not disappear with the change in ownership. However, you may be eligible for amnesty or streamlined compliance programs that reduce the cost and complexity of bringing the ADU up to code.

Are building code violations a matter of public record?

Yes. Building code violations and enforcement actions are typically recorded by the city and can be discovered through public records searches, title reports, and property disclosure requirements. Unresolved violations can create liens on your property that appear in title searches.

How do I find a contractor who specializes in correcting ADU code violations?

Look for licensed general contractors with experience in both new ADU construction and renovation or remediation work. Ask for references from projects where they corrected code violations, and verify their license status with the California Contractors State License Board (CSLB). A contractor with a good relationship with local building inspectors can often navigate the remediation process more smoothly than one who is unfamiliar with the local enforcement team.

What is the difference between a code violation and a zoning violation for an ADU?

A building code violation relates to how the ADU is constructed, such as the quality of electrical wiring, plumbing, structural framing, or fire safety systems. A zoning violation relates to where and how the ADU is placed on the property, such as setback encroachments, height exceeding the allowed maximum, or lot coverage exceeding the permitted percentage. Both types require different remediation approaches. Building code violations typically involve physical corrections to the structure, while zoning violations may require more drastic measures such as partial demolition, variance applications, or redesign of the ADU.

Can I legalize an unpermitted ADU in California?

Yes. California has made it easier to legalize unpermitted ADUs through programs like AB 1033 and various local amnesty programs. The process typically involves applying for retroactive permits, having the ADU inspected, and making any necessary upgrades to bring it into compliance with current codes. The cost of legalization varies widely depending on the condition of the existing ADU, but it is generally less expensive than building new and protects you from enforcement actions, insurance issues, and sale complications.

How often do cities inspect ADUs after they receive a certificate of occupancy?

Most cities do not routinely re-inspect ADUs after the final inspection and certificate of occupancy are issued. Code violations are typically discovered through neighbor complaints, insurance claims, incidents such as fires or floods, property sale inspections, or when you apply for additional permits. This means that violations can go undetected for years, but the consequences are often more severe when they are eventually discovered because deferred maintenance and ongoing non-compliance can compound the issues.

What should I do if I suspect my ADU has code violations?

If you suspect your ADU has building code violations, take proactive steps immediately. Hire a licensed home inspector to conduct a thorough inspection of the unit. If violations are found, consult with a licensed contractor about the scope and cost of corrections. Then contact your local building department to discuss the remediation process, which may include applying for correction permits. Voluntarily addressing violations before they are discovered by the city demonstrates good faith and may result in more favorable treatment from code enforcement officials.