Permitting · 8 min read · May 30, 2026 · 457 words
AB 1033 explained: selling your ADU separately from your house
AB 1033 lets California cities opt in to allowing homeowners to sell an ADU as a condominium. Here is what it actually does, which cities have adopted it, and what it changes for builders and buyers.
Key takeaways
- San Jose — first major California city to adopt; ordinance effective 2024.
- Berkeley — adopted with additional affordability requirements.
- Oakland — exploratory; check the [Oakland ADU permit guide](/guides/oakland-adu-permitting-rules) for current status.
Answered in this guide
Jump straight to the question you came in with — every answer is on this page, with links onward to the deeper guide.
- What is SB-9 and does it apply to me?
- What about hillside or coastal lots?
- I'm in an HPOZ — can I still build?
- Do you handle the permitting?
- What setbacks and height limits apply?
- How long does an ADU project take in Los Angeles?
More across the studio · the full FAQ map · the reference desk
AB 1033 is a 2023 California law (effective January 1, 2024) that lets cities and counties opt in to allowing homeowners to sell an Accessory Dwelling Unit as a separate condominium from the primary residence. Before AB 1033, ADUs in California could only be rented, never sold separately. The law does not legalize ADU sales statewide — each jurisdiction must pass its own ordinance to opt in. As of mid-2026, only a handful of California cities have done so.
What AB 1033 actually changes
The law amends California Government Code §65852.2 to add subdivision (a)(1)(D), authorizing cities and counties to adopt a local ordinance allowing ADUs to be sold or conveyed separately from the primary dwelling. To convert an ADU into a saleable condo unit, the homeowner must record a condominium plan, comply with the Davis-Stirling Common Interest Development Act, and obtain consent from any existing lienholders.
Which California cities have opted in
- San Jose — first major California city to adopt; ordinance effective 2024.
- Berkeley — adopted with additional affordability requirements.
- Oakland — exploratory; check the Oakland ADU permit guide for current status.
- Los Angeles, San Francisco — under study; no ordinance passed as of mid-2026.
City-level adoption status changes frequently. Always confirm with the local planning department before assuming AB 1033 applies — see our California Permit Directory for direct office links.
Steps to convert an ADU to a saleable condo
- Confirm your city has adopted an AB 1033 opt-in ordinance.
- Hire a land surveyor + civil engineer to prepare a condominium plan that defines unit boundaries, common areas, and easements.
- Record CC&Rs (Covenants, Conditions & Restrictions) compliant with the Davis-Stirling Act.
- Obtain written consent from your mortgage lender — most loans require this before subdivision.
- Submit the condo map to the city and the California Department of Real Estate (DRE).
- Pay reassessment of the new condo parcel through the County Assessor.
Why this matters financially
Before AB 1033, an ADU added equity but never crystallized it. Now, in opt-in cities, homeowners can either rent the ADU for monthly income (see Bay Area ADU rent data and LA ADU rent data) or sell it outright to recover construction cost. The trade-off is significant: condo conversion costs $15,000–$40,000 in legal, survey, and recording fees on top of the ADU build itself.
Property tax implications
A condo conversion triggers a separate parcel assessment. The new condo gets its own tax bill at the current market value, while the primary residence's Proposition 13 basis stays intact. This is materially different from simply building an ADU — see our ADU property tax reassessment guide for the rental-only scenario.
Sources
- AB 1033 Bill Text (California Legislature) · California Legislature
- HCD ADU Handbook · California HCD
- Davis-Stirling Act (California Civil Code §4000) · California Legislature
Next chapter · 01 of 03
Permitting · 6 min read
AB 976: California's permanent ban on ADU owner-occupancy requirements
AB 976 paired with AB 1033 is what made the California ADU-as-investment story possible.
AB 976 made the temporary ban on ADU owner-occupancy rules permanent starting January 1, 2025. Here is what changed, which exceptions remain, and why this matters for investors.
FAQ · Permitting
Common questions on permitting
The questions readers send us most after this guide.
What is SB-9 and does it apply to me?
SB-9 (the California HOME Act) lets eligible single-family lots split into two parcels and/or add a duplex. We assess eligibility during the feasibility call — roughly 60% of LA single-family lots qualify on paper, fewer in practice once HPOZ, hillside, and coastal overlays are applied. SB-9 projects can stack with an ADU for up to four units on what was a single-family lot.What about hillside or coastal lots?
Hillside requires a Methane District review (where applicable) plus a haul route plan if grading exceeds 1,000 cubic yards. Coastal Zone projects (anything west of Lincoln Blvd in Venice, for example) need a Coastal Development Permit on top of standard LADBS approval. Both are workable; both add 60–90 days.I'm in an HPOZ — can I still build?
Yes, but with design review. Historic Preservation Overlay Zones require Certificate of Appropriateness from the cultural heritage commission before permits issue. We've shepherded projects through Miracle Mile, West Adams, Whitley Heights, and Spaulding Square HPOZs. Add 8–12 weeks for the COA process.Do you handle the permitting?
Yes. We file with LADBS or your local building department, manage plan check, coordinate utility upgrades, schedule inspections, and deliver final sign-off. You don't visit the counter, we do.What setbacks and height limits apply?
Statewide ADU law (AB 68/881) overrides most local restrictions: 4-foot side and rear setbacks, 16-foot height for detached one-story, 18-foot for two-story within ½ mile of transit. Front setbacks follow the underlying zone. We model your envelope at the schematic stage.How long does an ADU project take in Los Angeles?
Most detached ADUs run 9–13 months from contract to certificate of occupancy. Garage conversions are typically 4–6 months. Permitting alone is usually 60–120 days at LADBS depending on whether we use a pre-approved standard plan or a custom design that needs full plan check.
Reference desk · Permitting
More answers from the California reference desk
City-specific questions pulled from our 5,000-answer FAQ corpus — every link opens a deeper desk page.
How long does a ADU permit take in Beverly Hills?
City of Beverly Hills Community Development runs plan check 120–180 days on a complete, code-conformant submittal for a ADU. First-cycle approvals depend on three things: a stamped structural set, a Title 24 energy report bound into the package, and a site plan with verified setbacks. Most slippage comes from missing one of those three on first submittal.Why do ADU permits get rejected in Beverly Hills?
In Beverly Hills, the five most common first-cycle corrections are: (1) Title 24 energy compliance not bound to the submittal, (2) site plan setback math off by inches, (3) structural calcs not stamped by a CA-licensed engineer, (4) utility load calculations missing for the panel upgrade, and (5) drainage/grading not addressed for impervious-surface adds. Fixing all five before submittal cuts 120–180 days off the schedule.Does state ADU law override Beverly Hills rules for my ADU?
For qualifying ADU and JADU scopes, California Government Code §65852.2 and §65852.22 preempt most local discretionary review — Beverly Hills cannot impose owner-occupancy requirements (banned by AB 976), most parking minimums near transit, or stylistic design review. Local jurisdictions still control building-code application, Title 24, utility connection, and impact fee schedules. Non-ADU scopes (full additions, remodels, hillside builds) remain fully under local control.Are pre-approved standard plans available in Beverly Hills for a ADU?
Where Beverly Hills has adopted a pre-approved standard ADU plan program, using one cuts plan check by 30–60 days and removes the structural review fee. For programs that exist (LADBS, San Jose, San Diego), the trade-off is that floor-plan changes void the pre-approval. Most owners are better off using a standard plan as a starting point and accepting the layout it ships with.How long does a garage conversion permit take in Beverly Hills?
City of Beverly Hills Community Development runs plan check 120–180 days on a complete, code-conformant submittal for a garage conversion. First-cycle approvals depend on three things: a stamped structural set, a Title 24 energy report bound into the package, and a site plan with verified setbacks. Most slippage comes from missing one of those three on first submittal.Why do garage conversion permits get rejected in Beverly Hills?
In Beverly Hills, the five most common first-cycle corrections are: (1) Title 24 energy compliance not bound to the submittal, (2) site plan setback math off by inches, (3) structural calcs not stamped by a CA-licensed engineer, (4) utility load calculations missing for the panel upgrade, and (5) drainage/grading not addressed for impervious-surface adds. Fixing all five before submittal cuts 120–180 days off the schedule.Does state ADU law override Beverly Hills rules for my garage conversion?
For qualifying ADU and JADU scopes, California Government Code §65852.2 and §65852.22 preempt most local discretionary review — Beverly Hills cannot impose owner-occupancy requirements (banned by AB 976), most parking minimums near transit, or stylistic design review. Local jurisdictions still control building-code application, Title 24, utility connection, and impact fee schedules. Non-ADU scopes (full additions, remodels, hillside builds) remain fully under local control.Are pre-approved standard plans available in Beverly Hills for a garage conversion?
Where Beverly Hills has adopted a pre-approved standard ADU plan program, using one cuts plan check by 30–60 days and removes the structural review fee. For programs that exist (LADBS, San Jose, San Diego), the trade-off is that floor-plan changes void the pre-approval. Most owners are better off using a standard plan as a starting point and accepting the layout it ships with.How long does a JADU permit take in Beverly Hills?
City of Beverly Hills Community Development runs plan check 120–180 days on a complete, code-conformant submittal for a JADU. First-cycle approvals depend on three things: a stamped structural set, a Title 24 energy report bound into the package, and a site plan with verified setbacks. Most slippage comes from missing one of those three on first submittal.
Sources & further reading
- California Government Code §65852.2 — statewide ADU framework (ministerial review, 60-day clock).
- LADBS — Accessory Dwelling Unit information bulletins and current permit fee schedule.
- HCD — California Department of Housing & Community Development, ADU handbook (2024 update).
- Internal data: 120++ ADU projects delivered across Los Angeles County, 2018–2025.
Continue your read · the editorial path
We chained these chapters in the order LA homeowners actually need them. Each one picks up where the last one left a question open.
02 / 03
Permitting · 7 min
SB 1211: how California unlocked up to 8 detached ADUs on multifamily lots
SB 1211 (effective 2025) raises the cap on detached ADUs at existing multifamily properties from 2 to 8. Here is exactly how the math works and what it means for small-multifamily owners.
Read chapter →03 / 03
Finance · 7 min
Will your ADU trigger a property tax reassessment?
Under Prop 13 and BOE Rule 463, only the new construction value is reassessed — not the entire property. A practical walkthrough of how the LA County Assessor calculates the bump.
Read chapter →
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