December 17, 2023

The landscape of residential development in California is set for a significant change with the introduction of Assembly Bill 1033, proposed by Assemblymember Ting. This bill addresses the complex issue of accessory dwelling units (ADUs) and their place in the housing market, particularly focusing on their separate sale or conveyance.

Under the existing Planning and Zoning Law, local agencies are authorized to create ADUs in residentially zoned areas, with specific standards, including a prohibition on selling these units separately from the primary residence. However, AB 1033 brings a notable shift in this approach.

Key Highlights of AB 1033:

  1. Separate Conveyance of ADUs: The bill authorizes local agencies to adopt ordinances that allow for the separate conveyance of primary and accessory dwelling units as condominiums, subject to certain conditions.
  2. Conforming Changes: It makes necessary changes to accommodate this new provision, potentially opening up new avenues for homeownership and real estate development.
  3. Impact on Local Governments: The bill imposes new duties on local governments regarding the approval of ADUs, reflecting a state-mandated local program.
  4. Reimbursement and Costs: It specifies that no reimbursement is required for certain costs mandated by the state.
  5. Legislative Findings and Declarations: AB 1033 includes a statement of legislative findings and declarations, affirming the existing law on local government’s ability to limit short-term rentals and community covenants under the Davis-Stirling Common Interest Development Act.
  6. Compliance and Enforcement: The bill outlines procedures for local agencies to comply with and enforce the new provisions, including timelines for approving or denying permits for ADUs.

Implications for Homeowners and Developers:

AB 1033 opens up potential opportunities for both homeowners and developers. Homeowners might find it easier to monetize their property by selling off an ADU separately. Developers, particularly those focused on residential constructions, may find new opportunities in the creation of condominium-style ADUs.

Conclusion:

AB 1033 represents a significant step in California’s ongoing efforts to address its housing crisis. By providing more flexibility around ADUs, the bill could lead to increased housing stock and more affordable options for residents. It’s a development worth watching for anyone interested in California’s real estate and housing markets.