July 5, 2025 Your Source for Brentwood News

Assembly Bill 1033 Paves the Way for Homeowners to Sell ADUs On Their Property

ADUs Could Be Another Way To Create More Affordable Housing Quickly 

By Dolores Quintana

California cities are increasingly turning to residential backyards to bolster their housing inventory. In a move to streamline the process of constructing accessory dwelling units (ADUs) designed by architects, which were pre-approved in 2021, the city of Los Angeles has a website with pre-approved, architect-designed plans for ADUs that can be purchased from the architects and one plan, the You ADU, that is free, making it more convenient to establish these additional living spaces, whether for accommodating in-laws or for rental purposes.

On October 14, California enacted Assembly Bill 1033, enabling homeowners to sell ADUs built on their property, thereby capitalizing on their existing equity. However, it’s essential to note that participation in this program is contingent on cities choosing to opt in. In cities that elect to participate, property owners will have the opportunity to vend their ADUs under the same regulations applied to condominium sales. This entails notifying utility providers and forming a homeowners association for property maintenance, with taxes managed separately.

The passage of this legislation could be helpful for senior citizens living on fixed incomes, a demographic that often faces financial hurdles when considering relocation. This is primarily due to factors such as high-interest rates or capital gains taxes associated with selling a long-time residence. 

Individuals living on social security could have the option to sell their ADUs or downsize by constructing one to reside in and subsequently sell their primary residence. The same is true of other homeowners who might like to build an ADU for use by family members or sell the ADU to another party.

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