03/14/2024
Welcoming 2024 a bit late, but not too late to set goals that for sure will define our near future. Ever since being signed into law by Governor Brown in 2019, SB-13 have allowed ADUs or granny flats to be built in our cities as a second dwellings within a single-family lot. With SB-13, homeowners have been able to build them new, convert a garage into one, or carve them out from the main single-family residency, but those units were only allowed as rentals units.
Now, under the newly AB-1033, just signed in October of 2023, the homeowners who create a new ADU in their property, will be allowed to sell those units separately as "condominiums". So, in essence if you own a home and create a new ADU, you could rent it or sell it separately at market rate and give someone else the opportunity at home ownership.
The new law requires the two dwelling two homeowners to form an association similar to an HOA, where covenants are written and signed by the parties.
It is not clear yet how many of our local cities, who already have ADU provisions in effect, will apply this new law and how soon. Within its guidance the law authorizes agencies (cities) to allow separate conveyance (transfer) of title, which brings to thought, how many cities will decline to participate or include it into their ordinances. Nonetheless, the bill says that by imposing new duties to local governments, the state is imposing a state-mandated local program.
We are still digesting this lengthy bill but see this as very encouraging because it could possibly provide more of the much-needed affordable housing. It also expands the opportunity for current homeowners to secure additional income or sell separately. Either way we will keep in the loop, as we currently are approving a couple of those ADU units.
If want to know more about ADUs or are interested in building or creating one in your property don't hesitate to send a message or gives us a call, we typically don't charge for giving sound advice.
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