California recently signed Assembly Bill 1033 into state law. This new bill enables CA jurisdictions to allow separate conveyance of accessory dwelling units from a primary residence. In simpler terms, it legalizes the sale of ADUs by allowing the units to be sold separately from the houses they share a lot with, as condos.

AB 1033 allows the sale of accessory dwelling units as condominiums. The process involves legally detaching the ADU from the main house and drafting a condo declaration that outlines specific rules. Responsibilities are share between property owners and the establishment of a HOA maintains order.

AB 1033 was signed into law in 2023, and went into effect January 1, 2024. This mean technically, ADUs may now be sold as condos in CA.
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However, that doesn’t necessarily mean you’ll be able to sell your ADU right away. The new law is not a mandate, and it is up to cities to adopt the bill. As of now, San Jose is the first city to implement this bill.
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San Jose adopted this Bill and it went into effect in Aug. 2024. Meaning, in San Jose homeowners can separate their ADUs and sell them as condos. Though San Jose is the only city to have this bill implemented at the moment, other cities are expected to adopt AB 1033 in the coming years.

More accessible homeownership - the purpose behind AB 1033 is to create more affordable housing for Californians. ADUs can help add housing stock, since the states production of housing is not keeping up with growing demand.

‍Environmentally friendly - AB 1033 encourages responsible housing density by utilizing existing housing stock without developing new land. This approach aligns with CA’s commitment to sustainability.
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Economic Stimulus - Beyond its housing implications, AB 1033 is a catalyst for economic growth. The law is likely to inspire homeowners to invest in ADUs, creating more wealth for homeowners and stimulating local economic development.

Cosmic Buildings is an end-to-end platform utilizing prefabrication through precision robotics to provide the highest quality building system and finishes in the market. When building a structure to add value to your property or to sell separately, quality and value matters in order to get the highest return.

Cosmic Buildings is committed to making the building of ADUs as easy as possible, by handling everything from permitting to final construction, while delivering the highest value buildings equipped with features ranging from net zero solar and energy storage to water recycling and filtration, to whole house air filters… making a Cosmic home the most sustainable and healthy home on the market.