Additional Dwelling Units!
New CA Law allows home owners to sell their ADUs (Additional Dwelling Units) as of Jan 1'24 by establishing an HOA for the ADU to separate it out from the main property. That's the government's way of trying to boost up inventory - should be interesting.
Here is an excerpt from an interesting article from National Mortgage Professional explaining the new law.
‘Backyard revolution’ opens up the affordable housing market.
California Gov. Gavin Newsom has signed into law Assembly Bill 1033. It allows accessory dwelling units (ADUs) to be sold separately from the homes they are associated with, in effect creating two- or three-unit condominiums.
The bill’s sponsor, Assembly member Phil Ting (D-San Francisco), says the law opens the door to affordable homeownership by allowing these tiny homes, cottages, or casitas to be sold as condominiums. In a press release, he said this continues the momentum of California's “backyard revolution” for affordable housing.
“Signing AB 1033 into law will help families burdened by high housing costs. Our children won’t have to move out of state to purchase a home; employers will be able to attract and retain workers who would otherwise leave our state due to lack of affordable homes; and elders who want to downsize and stay in their communities will have new options,” said Denise Pinkston, president of the Casita Coalition, a statewide group looking for affordable housing solutions.
The California Department of Housing and Community Development (HCD) reports the ADUs are needed because California’s housing production is not keeping pace with demand. In the last decade, fewer than half of the homes needed to keep up with the population growth were built. Additionally, new homes are often constructed away from job-rich areas.
Citing HCD data, the San Bernardino Sun reported, “Statewide, there were 44,532 ADU building permits issued during the three-year period (2020-2022). Of that total, Los Angeles County issued 26,351, Orange County issued 3,539, Riverside County issued 1,136, San Bernardino County issued 1,531 and San Diego County issued 5,120 permits for ADUs.”
Additional Dwelling Units!