New California Law Allows Separate Sales of ADUs - Boosting Housing Options for Lower-Income Homebuyers

12/23/20232 min read


brown rocky mountain beside sea during daytime
brown rocky mountain beside sea during daytime

In a bid to address the housing crisis and make homeownership more accessible, California has introduced a new state law that allows property owners to sell their accessory dwelling units (ADUs) separately from the main house. This move aims to increase the availability of housing options for lower-income and first-time homebuyers. However, it is important to note that individual counties and cities must opt in and adopt the rules outlined in Assembly Bill 1033. ADUs, also known as granny flats or in-law units, are smaller living spaces that are built on the same property as an existing home. They provide an affordable housing solution by utilizing existing land and infrastructure. Until now, ADUs could only be rented out, limiting their potential as a means of homeownership for those on a lower income. The new law recognizes the growing demand for ADUs and aims to unlock their full potential by allowing property owners to sell them as separate units. This opens up a new avenue for lower-income individuals and first-time homebuyers to enter the housing market. By enabling the sale of ADUs, California hopes to alleviate the housing shortage and provide more affordable options for those looking to own a home. Orange County, in particular, has seen a surge in ADU construction in recent years. State lawmakers have implemented regulations that make it easier for homeowners to build these units, leading to a boom in their construction. With the new law allowing separate sales of ADUs, the demand for these units is likely to increase even further. By allowing ADUs to be sold separately, property owners have the opportunity to generate additional income or utilize the equity from their ADU to improve their financial situation. This flexibility can be especially beneficial for homeowners facing economic challenges or seeking to maximize the value of their property. It is worth noting that while the new law opens up exciting possibilities, it is not a guarantee that all counties and cities will opt in and adopt the rules. It will be up to local governments to decide whether they want to implement this change. Therefore, it is essential for interested homeowners and potential buyers to stay informed about the status of their local regulations and consult with professionals who are well-versed in ADU sales. In conclusion, the new California law allowing separate sales of ADUs is a positive step towards addressing the housing crisis and providing more affordable housing options. By expanding the potential use of ADUs, lower-income individuals and first-time homebuyers have a better chance of entering the housing market. However, it is crucial for counties and cities to opt in and adopt the rules outlined in Assembly Bill 1033 to fully realize the benefits of this new law.

Los Angeles County and San Diego County are two prominent counties in California. In Los Angeles County, there are various cities worth mentioning such as Anaheim, Santa Ana, Norwalk, El Monte, and Whittier. Anaheim is famous for being the home of Disneyland, a popular amusement park that attracts visitors from all over the world. Santa Ana is known for its vibrant arts scene and cultural diversity. Norwalk is a suburban city with a mix of residential and commercial areas, while El Monte is recognized for its historical significance and beautiful parks. Whittier, on the other hand, is a charming city with a small-town feel and a strong sense of community. These cities within Los Angeles County and San Diego County offer a range of attractions and cultural experiences that showcase the diversity and beauty of Southern California.




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