Following the lead of states like Oregon, Texas and Washington, the California state legislature recently passed a law, effective January 1, 2024 that allows accessory dwelling units (ADUs) to be sold or conveyed separately, as condominiums, from the primary residence if certain
conditions are met. Under AB1033, to establish an ADU as a condominium, property owners must follow similar rules that apply to condominiums.
What is AB1033?
AB 1033 Allows for a Simple Partition In-Kind of Single Family Homes. In 2023, California enacted AB 1033, which presents new opportunities for co-owners of property to partition a property in kind by allowing ADUs (Accessory Dwelling Units) to be sold separately from the main residence. ADUs do not have to meet the same building and safety standards as new construction or remodels.
What is an ADU?
Accessory Dwelling Units (ADUs) have been known by many names: granny flats, in-law units, backyard cottages, secondary units and more. No matter what you call them, ADUs are an innovative, affordable, and effective option for adding much-needed housing in California. ADUs come in various forms, such as converted garages, small backyard homes, or unused parts of the main house, according to Assemblyman Phil Ting, who introduced the legislation and represents San Francisco.
If you are thinking about adding an ADU to your property, let’s connect so we can discuss how an ADU affects your property values, your return on investment, and how you can best set yourself up for when local cities start implementing the rules of AB 1033.
Kong Property Management Group provides property management and leasing services to the greater part of Silicon Valley. We specialize in single-family homes, condos, townhomes, duplexes, as well as apartment buildings. Based in San Jose, Kong Property Management Group is a local and family-owned business with over 15 years of combined experience in residential property management, real estate sales, and appraisal.