AB1033: California’s New Law That Could Let You Sell Your ADU Separately
What San Diego property owners need to know about this game-changing legislation.
If you own a home in San Diego and have an accessory dwelling unit (ADU) — or are thinking about building one — a new state law may open up an entirely new opportunity for you: selling your ADU separately from your main home.
Thanks to Assembly Bill 1033 (AB1033), which was signed into law in 2023, California cities now have the option to allow homeowners to convert ADUs into separately sellable condominiums.
But there’s a catch — and plenty of local details to consider. Let’s break it down.
What Does AB1033 Do?
AB1033 amends state law to let cities opt in to a policy that allows ADUs to be sold separately — not just rented.
In technical terms, the law permits a local agency to authorize the recordation of a separate lot or parcel for an ADU or junior ADU (JADU) through a condominium plan under the Davis-Stirling Common Interest Development Act. This is similar to how condos are legally structured.
In short: if your city agrees to it, you could split the legal ownership of your property and sell the ADU independently — like a condo.
How Could This Work in San Diego?
The key point is that AB1033 is not automatic. San Diego (and every other city in California) must choose to adopt the law.
If San Diego opts in — and city leaders are already exploring housing solutions like this — homeowners could begin selling ADUs as individual units, which could:
- Provide affordable homeownership opportunities for buyers priced out of traditional homes
- Offer new paths to build equity for homeowners and developers
- Help diversify housing stock without building high-rise developments
However, there are still several requirements. For example:
- The property must be split under a condo map
- Homeowners must provide separate utility connections for each unit
- Tenants must be notified before any sale, and cities may impose affordability requirements
Why This Matters for Property Owners
If San Diego adopts AB1033, homeowners could:
- Unlock new real estate value by legally separating and selling ADUs
- Downsize without moving far, by living in one unit and selling the other
- Access capital from a sale without selling the entire property
And for real estate investors and builders, this could mean new ways to create and sell inventory in a market where housing supply is tight.
What Should You Do Now?
AB1033 creates new possibilities — but also raises important legal, financial, and logistical questions.
At Uplift Property Management, we help property owners like you:
- Stay informed about San Diego’s local adoption of AB1033
- Navigate condo conversion requirements and local building codes
- Manage or market your ADU for rent or future sale
- Evaluate the best strategy for your property long term
Conclusion
AB1033 is a powerful tool in California’s effort to expand housing — but only for those ready to act. If San Diego moves forward with adoption, it could change the game for ADU owners.
Want to understand how AB1033 could impact your property?
Contact Uplift Property Management today and let’s talk about how we can help you make the most of your investment — whether you’re renting, selling, or still planning.
