ADU – What’s New for 2024*
New Law – AB 1033
California has historically allowed local agencies to prohibit the separate sale of ADUs from the primary dwelling for owners, investors, and developers. Assembly Bill 1033 will allow homeowners to sell one or more ADUs separately from their primary residence. The law authorizes (but does not require) local agencies to adopt local ordinances allowing ADUs to be sold as condominiums separately from the primary dwelling with approval from the California Department of Real Estate. Homeowners may consider creating a Homeowners Association (HOA) between the primary residence and the ADU to manage the common property.
New Law – AB 976
Currently, California ADU laws prohibit local agencies from imposing “owner-occupancy” conditions on ADUs permitted between Jan. 1, 2020, and Jan. 1, 2025. Assembly Bill 976 extends the prohibition indefinitely, meaning local agencies cannot impose owner-occupancy requirements for new or converted ADU projects permitted after Jan. 1, 2025. Local agencies can still impose owner-occupancy requirements on Junior ADUs.
New Law – AB 434
Assembly Bill 434 requires all California cities and municipalities to have a pre-approved ADU plan scheme in place by January 1, 2025. In order for plans to be pre-approved for use by applicants or other property owners in the future, cities must review and accept submissions for them, typically by an architect. Cities may choose to charge a fee to access the designs, and for processing, as well as for modifications required to meet property-specific requirements.
