04/26/2024
new law affecting the salability of ADU per C.A.R.
Allows local agencies to adopt ordinances to allow the separate conveyance of an ADU from the primary residence as a condominium.
Presently, with the exception of an ADU developed by a qualified nonprofit corporation, it is prohibited to sell an ADU separately from the primary residence.
AB 1033 allows local agencies to adopt ordinances to allow the separate conveyance of ADUs and primary residences as condominiums. Any such ordinance must require that the process to establish the condominiums complies with both the Davis-Stirling Common Interest Development Act, which governs homeowners associations (HOAs), and the Subdivision Map Act, which governs the subdivision of property. It is also required that there is written and recorded evidence that each lienholder consents to the establishment of the condominiums. If a property is within a homeowners association, that homeowners association must approve the creation of the condominium. Finally, AB 1033 requires the local agency to provide notice to applicants for ADUs of these requirements, such that they can make informed decisions in advance.
Other technical information on how AB 1033 works:
1) Specifies that a condominium plan must not be recorded with the county recorder in the county where the real property is located without each lienholder's consent. Provides that a lienholder may refuse to give consent, or that a lienholder may consent provided that any terms and conditions required by the lienholder are satisfied.
2) Requires the owner of a property that is within an existing homeowners association to receive written authorization of that association before they can record a condominium plan.
3) Updates the contents of the notice required to be provided by local agencies to any applicant for an ADU, including advising applicants considering selling the ADU as a condominium to contact the local agency to make sure that such a sale is permitted by that local agency.
4) Requires that, if an ADU is established as a condominium, the local government must require the homeowner to notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
Assembly Bill 1033 is codified as Government Code §§ 75852.2 and 75852.25.
Effective January 1, 2024.
