The news: On July 28, 2026, the Anaheim City Council voted 6–0 to adopt a citywide package of zoning and General Plan changes. They put into effect the housing plan the state approved in 2025. The changes cover affordable housing on church and other institutional land, a rule for replacing affordable units that get demolished, group home and sober living definitions, and emergency shelters. None of it changes Anaheim’s ADU or SB 9 rules. The replacement housing rule does matter if you’re buying an older occupied property to tear down and rebuild. And the timing stands out: Anaheim is finishing its housing plan work while the state sues Costa Mesa over its own.
Published October 26, 2026. Dylan Serna, The ADU Realtor.
What Anaheim Passed
The Planning Commission recommended the package 5–0 on June 15, and the council adopted it July 28, Citizen Portal reported. The city’s hearing notice says the changes “comply with changes to State law and implement the Sixth Cycle Housing Element.” The city’s summary of the amendments breaks them down:
| Change | What it does | Matters to investors? |
|---|---|---|
| Affordable housing on institutional land | New code section and land use tables for affordable housing on church and other institution-owned property (state law SB 4), including in single-family zones | Possibly, if a church lot is near your property |
| Replacement housing | Demolished “protected” units have to be replaced, with matching size, bedroom count and affordability | Yes, for tear-down and redevelopment plans |
| Group homes and sober living | Updated definitions and parking for small facilities, aligned with regular homes | Minor |
| Emergency shelters | Keeps 300-ft spacing between shelters, removes other spacing rules, requires a conditional use permit above 50 beds | Minor |
| Zone and overlay cleanup | Updates across residential, commercial and mixed-use zones, the Platinum Triangle and Brookhurst overlays, and four specific plans | Check if you’re buying in those areas |
The Rule Investors Need to Know: Replacement Housing
This comes from state law (SB 330), and Anaheim has now written it into its own code (Chapter 18.52). If a housing project demolishes or removes a “protected” unit, the project has to replace it. Under the city’s summary, that includes units occupied by lower-income households within the previous five years. The replacement units have to match the original’s size and bedroom count, carry affordability requirements and come with tenant protections.
Here’s where that bites:
- Buying an older duplex or fourplex to scrape. If current or recent tenants were lower-income, replacement units may have to be rent-restricted. That can wreck the pro forma on a rebuild. Get the rent roll and tenant history during escrow (see rent rolls and estoppels).
- SB 9 has its own tenant rule. SB 9 generally can’t demolish a unit that’s been rented in the past three years. I cover it in SB 9’s built-in tenant protection, and Anaheim’s version in SB 9 in Anaheim.
- Adding ADUs doesn’t trigger it. If you keep the existing units and add ADUs behind them, you aren’t removing anything. That’s one more reason the add-units play usually beats the scrape play on older Anaheim multi-units. See Anaheim multifamily cap rates for what older multi-units trade at.
Anaheim vs. Costa Mesa
HCD found Anaheim’s housing plan in substantial compliance in a July 10, 2025 letter, on the condition that the city keep implementing its programs. The July 28 vote is part of that follow-through. Costa Mesa’s plan was due the same October 2021 deadline and still isn’t certified, which is why the state sued it in July (my coverage: California is suing Costa Mesa).
| Anaheim | Costa Mesa | |
|---|---|---|
| Housing plan status | Substantial compliance since July 2025 | Revised plan adopted Sept. 2026, not yet certified |
| State lawsuit | None | Filed July 16, 2026 |
| Builder’s remedy exposure | No | Yes, until certified |
| ADU rules | State law plus city code | State law plus city code |
For a buyer, a certified city means fewer surprises. Big projects follow the zoning map instead of the builder’s remedy, and the city isn’t distracted by litigation.
Anaheim ADU Rules Haven’t Changed
Nothing in the July package touched Anaheim’s ADU code. You can still build a conversion ADU, a detached ADU up to 1,200 sq ft and a junior ADU on most single-family lots. A detached unit over 800 sq ft has to sit 10 feet from the house (see the 10-foot separation rule). Starting January 1, AB 956 allows two detached ADUs. Anaheim is also one of Orange County’s busiest ADU cities, with 226 ADUs finaled in 2025. Full rules are in my Anaheim ADU guide, and current listings are in the October Anaheim ADU market report.
Frequently Asked Questions
Is Anaheim’s housing element certified?
Yes. HCD found it in substantial compliance in July 2025. The city has to keep carrying out its programs, which is what the July 2026 code updates did.
Did Anaheim change its ADU rules in 2026?
Not in the July 28 package. ADU rules come from the city code and state law, and AB 956 adds a second detached ADU starting January 1, 2027.
What is the replacement housing rule?
If a housing project demolishes protected units, such as units occupied by lower-income tenants in the past five years, it has to replace them with comparable units that carry affordability requirements.
Does adding an ADU trigger replacement housing?
Not if you aren’t demolishing or removing an existing unit. The rule is about units that are taken away, not units you add.
Buying in Anaheim?
I’ll check whether a property’s tenant history limits a rebuild, run the add-ADUs option against it, and show you the payment math. Browse ADU homes for sale, duplexes for sale in Orange County, or my Anaheim page.
👉 Book a buyer ADU consult call to go through your options with Dylan
Prefer to talk now? Call Dylan Serna, ADU Realtor at 714-860-2868.
Dylan Serna | The ADU Realtor | eXp Realty | DRE #02217359
This post is general information, not legal advice. Dylan Serna is a licensed real estate agent, not an attorney. Details come from City of Anaheim documents and public reporting as of October 26, 2026. Confirm how the rules apply to a specific property with Anaheim Planning.
