Assembly Bill 033 changes how California handles Accessory Dwelling Units, and thus impacts property values, rental opportunities, and local zoning. Learn about all the changes AB 1033 ADU law brings for local homeowners, new regulations, and reputable ADU builders in Sacramento and surrounding areas.
What is AB 1033
AB 1033’s main purpose is making the construction of ADUs faster and more straightforward and reduce housing pressures by expanding affordable housing options across California.
Under this bill, cities have clearer guidelines to follow, which can streamline the approval process for ADU projects and eliminate some of the delays and red tape. For those in Sacramento, this means:
- Simplified Permitting: the new standardized application process makes it easier and faster to get approval.
- Fewer Restrictions: property owners now have more flexibility in height and size to design ADUs that fit their needs.
- Reduced Fees: the construction will now cost less, as some fees related to building ADUs have been reduced or waived.
In cities like Sacramento, where housing demand is high, this streamlined process helps property owners avoid some of the typical permitting issues and makes it more realistic to complete an ADU project.
Cities Participating Under AB 1033 in California
This new legislation allows more cities to opt in whenever they are ready, so the list of AB 1033 participating cities keeps expanding. At the moment, the AB 1033 program for ADU sales covers:
- Los Angeles
- San Diego
- San Jose
- Berkeley
- Sacramento
- San Diego County
For now, the program is primarily available in larger cities that are actively seeking to boost affordable housing through ADUs. However, as AB 1033 matures, participation may broaden to other regions across the state. To stay updated, keep track of your city council agendas and local housing authority. Each city must pass its own ordinance to implement these changes fully.
How AB 1033 Impacts Homeowners in Sacramento
For Sacramento homeowners, AB 1033 brings several new opportunities and considerations. Here are the bill’s positive and negative aspects for those looking to add, rent, or sell ADUs:
Pros
- Separate Sales: You can now sell an ADU as its own property, like a condo. This lets you earn from the ADU without managing a rental.
- Affordable Housing: ADUs provide lower-cost housing in Sacramento’s tight market, helping students and first-time buyers.
- Easier Permits: The approval process is faster and cheaper, with fewer restrictions, making ADU projects quicker to start.
- Boosted Property Value: Adding an ADU can raise your property’s worth, especially since it can be sold separately.
Cons
- Building Expenses: While permits are easier, homeowners may need loans or financing options, which can add complexity.
- Management Duties: Renting or selling an ADU may involve maintenance and dealing with tenants, which can be time-consuming.
- Neighborhood Concerns: Too many units may lead to crowding, and these concerns can impact neighborhood relations.
Tips for Homeowners Considering an ADU
- Check Local Requirements: While AB 1033 streamlines the process, each city may have specific guidelines. Confirm any local requirements for ADU permits and utility connections.
- Explore Financing Options: Building an ADU isn’t cheap. Look into home equity loans or financing programs that could help cover construction costs.
- Consider Future Maintenance: Whether you rent or sell the ADU, remember there will be ongoing maintenance. Make sure you’re prepared for upkeep, or find a reliable property manager.
- Talk to Neighbors: Keeping neighbors informed can prevent potential concerns about privacy or parking. It helps to build support for your project.
- Understand Tax Implications: Selling an ADU separately may impact property taxes. Consulting a tax professional can help you plan for any changes.
How to Convert Your ADU into a Condominium
Step 1: City Approval. See if your city allows ADU conversion under AB 1033.
Step 2: Condo Map. Prepare a detailed map defining separate ownership of the ADU and main property.
Step 3: Utilities. Notify utility providers to arrange separate billing for water, electricity, and gas.
Step 4: HOA. If there are shared spaces, form a Homeowners Association to manage maintenance.
Step 5: Paperwork. Ensure that all paperwork meets local requirements before listing your ADU for sale.
The Future of ADU Development in Sacramento
AB 1033 supports California’s housing goals by adding affordable units within existing neighborhoods, helping meet demand without sprawling into new land. This fits the state’s push for higher-density, sustainable, and eco-friendly housing.
Currently, there are some of Sacramento’s initiatives in progress that may lead to more financing options, grants to reduce building costs, or co-ownership models for shared ADU properties.
Conclusion
With simpler permits, fewer restrictions, and the ability to sell ADUs as separate properties, AB 1033 offers a practical way to boost property value or create affordable housing. As more cities join in, Sacramento homeowners have solid support for building ADUs. If you’re considering an ADU, stay updated on local rules and consult a local general contractor to make the most of these new opportunities.
FAQ
Can I sell my ADU separately from my house?
Under AB 1033, cities like Sacramento allow homeowners to sell ADUs as individual properties, similar to condos. You can retain ownership of your main house and sell the ADU as a separate unit.
Will an ADU increase my property taxes?
Adding or selling an ADU may increase property taxes, as assessments consider the added value to the property. Please, consult a reputable tax advisor to clarify any changes.
Do I need to notify my utility providers?
If you plan to sell the ADU separately, utilities like water, gas, and electricity must be set up for independent billing. This involves notifying each provider and installing separate meters and connections.
How long does it take to get permits?
AB 1033 speeds up the ADU permitting process, with most approvals granted in 60 days. However, the timeline can vary depending on city workload and any unique property requirement.