Assembly Bill 365 mandates that political subdivisions with zoning ordinances must permit at least one accessory dwelling unit (ADU) on each parcel designated for single-family or multi-family residential use. The bill outlines specific prohibitions for these subdivisions, including the inability to charge fees beyond standard building permit fees for ADUs, impose unique dimensional or design requirements for ADUs that do not apply to single-family homes, and enforce additional parking or utility connection requirements based solely on the presence of an ADU. Furthermore, the bill allows for size limitations on ADUs, stating they cannot exceed 75% of the existing square footage of the primary dwelling on the same parcel.

Additionally, the bill renders any covenants or restrictions that prevent or unreasonably limit the construction or use of ADUs void and unenforceable. Homeowners associations are also restricted from imposing such limitations, except when necessary for public health and safety. The legislation emphasizes that any private laws that inhibit the establishment of ADUs on single-family parcels contradict public policy, thereby promoting the development of more housing options within the state.