California’s New ADU Assembly Bill 1033 (click for more info)
Come January 2024, a new opportunity arises: the ability to sell one or more ADUs separately from the primary residence! AB 1033 amends Government Code section 65852.2 to allow property owners with ADUs to sever and convey the real property interests by creating condominiums. Private owners, investors, and developers may be able to take advantage of the new law and sell separate interests in ADUs without the burdensome deed and buyer restrictions concerning low-income housing.
Owners building ADUs must notify local utilities about the creation and separate conveyance of these units. A homeowners association must be established to manage the maintenance costs of shared spaces and the property’s exterior. Property taxes for the primary residence and the ADU will be billed separately.
AB 1033 could increase the development of single-family type units (e.g., ADUs, duplexes, etc.) within single-family zoned neighborhoods. Gentle density helps maintain the overall exterior atmosphere of residential neighborhoods while assisting in the offsetting of the growing housing crisis.
Information Provided by California Legislative Information
