California’s AB 1033 opens a new door for homeowners: the potential to sell an ADU independent of the primary home—typically by creating a condominium map and establishing a homeowners association (HOA) to manage shared elements like the lot, driveway, or utilities. Importantly, AB 1033 does not make separate ADU sales automatic statewide; cities and counties must opt in by passing a local ordinance. When they do, owners can legally convey the main home and ADU as separate condo interests under the Davis-Stirling Act.
Quick Summary: What AB 1033 Does (and Doesn’t) Do
- Enables local jurisdictions to allow separate sale of ADUs as condominiums, alongside the primary residence. You’ll need a condo map/plan and typically an HOA (or similar maintenance agreement) to oversee common areas and obligations.
- Requires local adoption. Your ability to sell an ADU separately depends on whether your city/county passed an AB 1033 ordinance and on meeting the ordinance’s technical requirements. California Housing Department
- Includes a narrow nonprofit exception. Separately, state law allows certain qualified nonprofit projects to convey ADUs to qualified buyers under specific conditions. CA Assembly - Housing & Community Dev
Why This Matters for Homeowners and Investors
Turning a backyard home into its own deeded asset can unlock equity, create lower price-point ownership opportunities, and improve portfolio flexibility. Early adopters show what’s possible: San José became the first California city to implement AB 1033 and has already seen the first ADU condo sale move forward—signaling a real market, not just a policy idea. Other cities are exploring similar rules. San Francisco Chronicle+1
How the Separate Sale Works (Typical Pathway)
While each jurisdiction will set its own checklist, most AB 1033 ordinances will expect owners to complete steps like these:
- Confirm Local Adoption
Verify your city/county has adopted an AB 1033 ordinance and learn its submittal standards (e.g., mapping, utilities, disclosures). California Housing Department - Secure Lender Consent (if mortgaged)
Your lender typically must consent before you subdivide the property interest into separate condo units. Santa Cruz County - Prepare a Condo Map & Condo Plan
Work with a land surveyor/attorney to create the condominium plan, identifying exclusive-use areas and common elements. SANDAG - Form an HOA (or Maintenance Agreement)
Establish CC&Rs and an HOA (or a Davis-Stirling-compliant maintenance agreement) for shared components and responsibilities. Santa Cruz County - Address Separate Services
Local rules may require separate utility meters/connections and clearly defined access/parking arrangements. Santa Cruz County - Finalize Permits & Certificates
Ensure the ADU is fully permitted, inspected, and code-compliant before recording and selling the condo interests. SANDAG
Tip: Because AB 1033 lives inside California’s ADU framework, use the updated 2025 HCD ADU Handbook and your city’s ordinance as your source of truth. California Housing Department
Key Considerations Before You Proceed
- Local Variation: Each city/county sets the “how.” Don’t assume requirements in San José (or any other city) apply where you live. San Francisco Chronicle+1
- Financing & Title: Lenders and title insurers need clear condo docs, CC&Rs, and maps. Budget time for legal and survey work. SANDAG
- Shared-Ongoing Duties: The HOA will manage common areas, insurance allocations, reserves, and dispute procedures—plan governance early. Santa Cruz County
- Nonprofit Exception: Separate conveyance without local opt-in may exist for certain qualified nonprofit developments, but it’s a narrow path with strict criteria. CA Assembly - Housing & Community Dev
FAQ: AB 1033 + HOA + ADU Sales
Does AB 1033 let me sell my ADU today?
Only if your local agency adopted an ordinance enabling it—and you satisfy its conditions (condo map, HOA/agreements, etc.). LegiScan+1
Why do I need an HOA?
When one lot is split into condo interests, there are shared components (land, driveways, utilities). An HOA/maintenance agreement established under Davis-Stirling allocates responsibility, cost, and control. Santa Cruz County
Which cities have implemented AB 1033?
Implementation is growing; San José led the state and processed the first ADU condo sale. Other cities (e.g., in the Bay Area and San Diego) are evaluating similar measures. Check your local planning department for the latest. San Francisco Chronicle+1
Is this a subdivision?
It’s a condominium subdivision (a mapping process) that creates separate legal interests for the main home and ADU—different from a lot split. SANDAG
How Acton ADU Helps You Turn an ADU into a Sale-Ready Asset
- Feasibility First: We confirm local AB 1033 adoption and outline your condo-map/HOA path, utilities, access, and parking. California Housing Department
- Code-Compliant Design & Build: Our Build Ready and Custom ADUs are engineered for real-world living and inspection success, reducing friction at sale time.
- Transaction-Ready Documentation: We coordinate with surveyors, land-use attorneys, lenders, and title to prepare clean, sale-ready packages compliant with local rules. SANDAG
Ready to Explore AB 1033 for Your Property?
- Get a Free Quote – See costs and timelines for a condo-ready ADU.
- Check Your Property – Confirm if your city has adopted AB 1033 and what it requires.
- Get in Touch – Talk to our ADU and permitting experts about HOA formation, mapping, and resale strategy.
Note: Regulations evolve. Always verify your local ordinance and consult professional counsel before initiating a condominium subdivision under AB 1033.
