The Evolution of ADUs in California and the Advent of AB 1033
Accessary Dwelling Units (ADUs) have emerged as a promising solution to the persistent housing crisis facing California. These fully functional, separate housing units – whether attached to a primary residence or wholly detached – offer homeowners multiple benefits, from earning rental income to housing family members. Yet, the journey to wider acceptance and more flexible regulations surrounding ADUs has been a long one, and with the introduction of AB 1033, it takes another significant turn.
What are ADUs?
ADUs are miniature homes that can function independently, found either attached to the primary residence or as separate entities on the same property, like casitas, guest houses, or converted garages. Their creation is often driven by economic incentives or personal reasons, such as accommodating family members while preserving mutual privacy.
The Regulatory Landscape Before 2020
Before 2020, the construction of ADUs was marred by rigid city regulations. These restrictions made it almost impossible for homeowners to benefit from the potential of these dwelling units. City mandates included:
Minimum lot size requirements.
Specifics on ADU square footage.
Limitations on unit sizes and heights.
Imposition of parking requirements.
Compulsory owner-occupancy of the ADU.
Need to bring existing structures up to code.
However, the state recognized the untapped potential of ADUs to address housing scarcity. Several bills introduced since then have significantly eased these constraints.
How AB 1033 Changes the Game
Starting January 2024, AB 1033 will present homeowners with an unprecedented opportunity – the ability to sell ADUs separately from their primary residence. This new legislation amends the Government Code section 65852.2, granting property owners the liberty to split and sell real property interests by establishing condominiums.
Previously, the sale of an ADU separately was restricted to particular scenarios involving specific non-profit corporations and significant deed restrictions. But now, investors, developers, and private owners can explore more lucrative opportunities, shedding the restrictive deed and buyer stipulations related to low-income housing.
It's crucial to understand that while the law provides a framework, its adoption and implementation are at the discretion of individual municipalities. If a city does accept the provisions of AB 1033, there are still foundational prerequisites homeowners need to meet:
The Davis-Stirling Common Interest Development Act: This legislation oversees the creation of residential real estate developments that combine exclusive use rights with common land interests. In the context of ADUs, this means that while the main house and ADU(s) will have exclusive usage rights, other parts of the property will serve as common areas, like paths for entering and exiting.
The Subdivision Map Act: This act allows local governments to shape community growth through subdivision regulations. It delineates the approval process for subdividing property, with penalties for non-compliance. It's essential for homeowners to familiarize themselves with their specific city or county regulations.
Furthermore, to move forward with selling ADUs, homeowners need the nod from all lenders and any existing homeowners’ associations.
Final Thoughts
While AB 1033 heralds a new era for ADUs in California, the path to capitalizing on this legislation isn't without its challenges. Homeowners must navigate regulatory requirements, which can vary across municipalities. If you're contemplating building and potentially selling an ADU, consulting with real estate professionals including a local attorney is invaluable. This expertise can illuminate the specific legal landscape of your city or county, ensuring that your ADU venture is both compliant and profitable.
