Why AB 1033 Matters For Additional Dwelling Units in 2024
California Assembly Bill 1033 (AB 1033) introduces several advantages for those interested in purchasing or building accessory dwelling units (ADUs). Here are some reasons why AB 1033 is considered beneficial for ADU buyers in San Diego and Los Angeles
AB1033 Streamlines The Permitting Process for ADUs In San Diego and Los Angeles
AB 1033 mandates that local agencies approve or deny ADU permit applications within a 60-day period, which significantly expedites the process. This is a substantial improvement over previous procedures that could be lengthy and unpredictable. If the agency does not act within this timeframe, the application is deemed approved.
Designation of Permissible Areas
The bill allows local agencies to designate areas where ADUs can be created, based on factors such as the adequacy of water and sewer services and the impact on traffic flow and public safety. This clarity helps buyers understand where they can legally build ADUs.
AB 1033 requires the imposition of objective standards on ADUs:
Which may include parking, height, setback, and landscape requirements. This helps to ensure that ADUs are built to a certain quality and are in harmony with the surrounding community.
Flexibility in Sales
The bill allows for the separate sale or conveyance of ADUs under certain conditions, providing more flexibility for ADU owners. This could potentially make ADUs a more attractive investment, as they can be sold independently of the primary residence.
Consistency with Local Zoning
AB 1033 ensures that ADUs do not exceed the allowable density for the lot and are consistent with the existing general plan and zoning designation. This helps maintain the character of neighborhoods while still allowing for the development of new housing units.
Protection Against Local Ordinances
The bill prohibits local ordinances, policies, or regulations from being the basis for the delay or denial of a building permit for an ADU. This protection means that ADU buyers and builders won't be hindered by potentially restrictive local laws.
No Impact on Residential Growth Limits
ADUs built in accordance with AB 1033 are not considered in the application of any local ordinance, policy, or program to limit residential growth. This ensures that the addition of ADUs does not affect the overall density calculations for a given area, which can be a concern in growth-managed communities.
In summary, AB 1033 provides a more streamlined and transparent process for the creation and purchase of ADUs, which can help alleviate housing shortages by making it easier for homeowners to add these units to their properties. The bill's provisions are designed to encourage the development of ADUs while maintaining the integrity of local neighborhoods and ensuring that new units are built to objective standards.
Assembly Bill 1033 History And Its Ties To Additional Dwelling Units In San Diego And Los Angeles
The history of California's AB 1033 and its implications mark a notable chapter in addressing the state's housing crisis. Sponsored by Assembly Member Phil Ting from San Francisco, AB 1033 was signed into law by Governor Gavin Newsom, signaling a significant shift in housing policy within California. The law, which allows for the separate sale of Accessory Dwelling Units (ADUs) from their primary residences, is aimed at increasing housing availability and providing more opportunities for homeownership. This move aligns with federal initiatives aimed at mitigating housing affordability issues, underpinning the synergy between state and federal policies to tackle the housing challenge head-on.
AB 1033 stands out for its flexibility, offering potential homeowners a new avenue to affordable housing. For example, the policy enables consideration of 75% of the estimated ADU rental income for some borrowers, facilitating their qualification for FHA-insured mortgages. This flexibility, coupled with standardized guidelines for ADU valuation, enhances transparency in ADU transactions, fostering confidence among buyers and sellers alike.
The enactment of AB 1033 is part of a broader legislative effort to address California's housing shortage. Alongside AB 1033, other housing laws like AB 434, which shortens the timeline for Housing and Community Development (HCD) review of housing elements, and AB 1485, enhancing the Attorney General's ability to intervene in housing enforcement suits, collectively aim to streamline and expedite the development of new housing units.
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AB1033 and ADUs FAQ
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AB 1033 is a California law that permits the separate sale of ADUs (Accessory Dwelling Units) from the primary residence on the same lot, provided local municipalities allow it.
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The legislation aims to address California's housing shortage by making it easier for homeowners to build and sell ADUs, thus increasing the state's housing stock.
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AB 1033 is in effect as of January 1, 2024.
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Yes, the law introduces the possibility for ADUs to be sold separately from the primary residence, enhancing property flexibility and potential income for homeowners.
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The bill prohibits local regulations from causing delays or denials in ADU building permit approvals, aiming to streamline the development process across California.
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It mandates local agencies to approve or deny applications within 60 days, thereby simplifying and expediting the approval process.
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While local agencies can impose parking requirements, the bill also allows for the reduction or elimination of such requirements under certain conditions.
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Until January 1, 2025, local agencies are restricted from imposing owner-occupancy requirements on ADUs.
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The full text is available on the California Legislative Information website, providing detailed information about the bill's specifications and requirements.
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AB 1033 permits the sale of ADUs separately from the primary residence, with significant restrictions, allowing local jurisdictions to pass ordinances enabling this and potentially lowering the value of the primary house when converting to a condominium setup.
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The law removes owner-occupancy requirements, broadening rental opportunities but still allowing local governments to impose minimum rental periods of over 30 days.
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The ability to sell ADUs separately depends on local municipalities adopting ordinances that permit such sales.
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Sellers should review existing lender requirements, recorded encumbrances, plan for future neighborly relations, and comply with the Davis-Stirling Common Interest Development Act and the Subdivision Map Act.
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Selling a portion of a property with an existing mortgage without the lender's consent could be considered a default. Property owners may need to refinance their mortgage to facilitate the sale.
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While sellers can choose the initial buyer, they might not have control over future owners. It’s important to consider future use issues and restrictions on the ADU.
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AB 1033 maintains that ADUs should not require additional off-street parking when a garage is converted and does not trigger new fire sprinkler requirements if they are not required for the primary residence.
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Selling an ADU involves ensuring compliance with lender requirements, checking for any recorded encumbrances, planning for the maintenance of shared spaces, and adhering to relevant subdivision and development acts.
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Creating a subdivision for an ADU sale involves detailed planning, including creating a subdivision map or condominium plan and obtaining local municipality approval, which can be time-consuming.
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AB 1033 aims to increase housing availability and homeownership opportunities by allowing ADUs to be sold separately. The actual impact will vary by municipality, depending on the adoption of enabling ordinances.
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AB 1033 presents a new opportunity for property owners in California, but it's crucial to understand the legal and practical considerations before proceeding with the sale of an ADU.
