ADUs Can Now Be Sold Respectively In California

Assembly Bill 1033 California AB-1033

Have you heard about California AB-1033, also referred to as Assembly Bill 1033?

ADUs can now be sold respectively in California. What are the new Los Angeles ADU laws? Do you have California ADU law questions? This article breaks down the newest legislation and for further inquiry call me now at (310) 231-6544. Let’s dive into the article ADUs can now be sold respectively in California

Assembly Bill 1033 California AB-1033
Photo via @fergusgarber

Assembly Bill 1033 paves the way for homeowners to sell ADUs on their property. On October 14, California enacted Assembly Bill 1033, enabling homeowners to sell ADUs built on their property, thereby capitalizing on their existing equity. Participation in this program is contingent on cities choosing to opt in. In cities that elect to participate, property owners will have the opportunity to vend their ADUs under the same regulations applied to condominium sales. This entails notifying utility providers and forming a homeowners association for property maintenance, with taxes managed separately.

Assembly Bill 1033 California AB-1033

Los Angeles has a website with pre-approved, architect-designed plans for ADUs that can be purchased from the architects and one plan, the You ADU, that is free, making it more convenient to establish these additional living spaces, whether for accommodating in-laws or for rental purposes. Have California ADU law questions? Reach out at (310) 231-6544

New L.A ADU Law California ADU law questions

AB 1033 allows homeowners to sell ADUs like condos, boosting homeownership. Accessory dwelling units, also referred to as ADUs and “granny flats,” have been available in California only as rentals until now. Assembly Bill 1033 is giving Californians the opportunity to buy and sell ADUs on their property condominiums.


Assemblyman Phil Ting (D-San Francisco), who drafted the legislation stated that in San Francisco an unused portion of the main house or attached ADU has been the most popular. Under AB 1033, which was signed into law this week, property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums. It gives homeowners more options for building on their property.

California ADU law questions

California AB-1033 In a nutshell: Let’s property owners in select cities to construct ADUs on their property and sell them independently, akin to condominiums.


Assembly Bill 1033 Details: Owners building ADUs must notify local utilities about the creation and separate conveyance of these units.  A homeowners association must be established to manage the maintenance costs of shared spaces and the property’s exterior.  Property taxes for the primary residence and the ADU will be billed separately.


California AB-1033 ideas: could grow density in many cities efficiently and with less impact with the development of single-family type units, ADUs, duplexes, and triplexes within single-family zoned neighborhoods. Softer density helps maintain the residential façade and aura of neighborhoods while assisting in the offsetting of the growing housing crisis. Assembly Bill 1033 could additionally provide more affordable for-sale housing opportunities for low-income first-time homeowners.

New L.A ADU Law California ADU law questions

Assembly Bill 976 or AB-976 : Removes Owner-Occupancy Requirement


AB-976: will permanently extend the ability of property owners to build rental accessory dwelling units (ADUs) in addition to removing any owner-occupancy requirements.


Assembly Bill 976:  The Bill removes owner-occupancy requirements that prohibited ADU construction unless the owner lived in either the main house, or the ADU.  When owner-occupancy requirements were temporarily removed in 2017, ADU construction grew massively, resulting in thousands of new rental homes across California.


The results might yield ADUs to be used strictly for rental purposes, with the goal of expanding the rental housing market in California.  Additionally, removing owner-occupancy requirements could facilitate the process for owners to use loans or their home equity to add ADUs to their existing properties.

Sell ADUs like Condos

These legislative changes have the potential to substantially impact the housing landscape in California. These laws aim to facilitate more accessible and cost-effective housing options for a wide spectrum of residents. With the passing of Assembly Bill 1033 and AB-976 Sacramento’s leaders are addressing the housing challenges the State faces.

David Clark Real Estate Advisor with The Shelhamer Group. Hurry California's Spectacular Dream For All Program Is Here, Dream For All Program, Down Payment Assistance, First Time Home Buyers, CalHFA Dream For All Loan

As a Los Angeles realtor and Angeleno, I have seen the ebbs and flows of several real estate markets. I continue to have my finger on the pulse of the emerging neighborhoods and have a focus on both the preservation of architecturally significant properties while being a steward of green architecture and new modern development to help ease our strain on the lack of housing inventory.


I am a Senior Real Estate Specialist (SRES®) holding certifications in Probate and Trust Sales and Accessory Dwelling Units. My marketing and negotiation skills, combined with community outreach have helped me build a solid reputation with my clients.


I continue to empower my clients with this knowledge, helping them get closer to building wealth and financial independence.