Gilroy has not yet adopted an Ordinance to manage ADU development following the State rulings in January 2017. However in December, they passed an emergency measure to limit the size of ADUs. While State law allows ADUs up to 1,200 sq.ft, Gilroy has restricted them to 600 sq.ft. One reason was that dwellings of 800 square feet trigger use charges of $34,000 to $48,000, making them unaffordable. Those impact fees are assessed because larger units are thought to bring in problems such as parking, overcrowding and environmental impacts.
Gilroy Council will reconsider the matter at a future meeting.
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