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AB 1033 The Game-Changing Future of ADU's
By Jo-Ann Lapin On October 11 2023
Did You Know? AB 1033 and the Game-Changing Future of ADUs
Did you know that Accessory Dwelling Units (ADUs), also affectionately known as "Granny Flats", have been a hot topic in the real estate world recently? Thanks to less strigent building restrictions, property owners are now able to utilize extra lot space or underutilized areas within their properties to increase their property value by value adding.
But here's the truly groundbreaking news: California's recent passage of Assembly Bill 1033. This legislation is opening up a world of opportunities for homeowners, developers, and investors. It allows ADUs to be partitioned and sold separately from the primary dwelling unit on the property.
The Evolution of ADU Laws
Before we dive into the implications of AB 1033, let's take a moment to quickly recap how ADU regulations have evolved. ADUs are self-contained housing units, which can be either attached or detached from the primary residence. Think of them as guest houses, casitas, or converted garages. Initially, strict regulations made it difficult for homeowners to embark on these projects. However, since 2020, new laws have been enacted to address the housing crisis. These laws prevent cities from imposing certain restrictions, like minimum lot sizes, square footage requirements, and parking mandates. Please keep in mind just because they have allowed higher density does not necessarrily mean that it would greatly benefit the property and the neigborhood.
The ADU Revolution
Thanks to these relaxed standards, many homeowners have seized the opportunity to add ADUs to their properties. Current law mandates that local agencies must allow at least two types of ADUs - a standard one and a junior ADU (a compact unit within the primary residence). Investors and developers have also jumped on board, constructing ADUs on multi-family lots to boost property value and income potential.
AB 1033: A New Dawn
Did you know that starting January 1, 2024, a new opportunity arises? It will be possible to sell one or more ADUs separately from the primary residence! AB 1033 amends Government Code section 65852.2, allowing property owners to sever and convey real property interests through the creation of condominiums. Currently, separate ADU sales are highly restricted, mostly involving non-profit organizations, low-income buyers, and stringent deed restrictions.
In conclusion, Assembly Bill 1033 is set to revolutionize ADU ownership, providing a wealth of opportunities for property owners, developers, and investors. With careful planning and expert guidance, this new era of ADU ownership could reshape the California real estate landscape. Don't miss out on this transformative opportunity!