AB 1033 ADU in Sacramento: What Homeowners Need to Know

California continues to refine its housing laws to address the state’s housing shortage, and AB 1033 is one of the most notable recent measures. For Sacramento residents, AB 1033 ADU in Sacramento introduces significant changes to how accessory dwelling units (ADUs) can be owned, sold, and managed. Understanding its connection to local ordinances, zoning regulations, and the Subdivision Map Act is essential for property owners considering ADU development or separate ADU sales.

What Is AB 1033?

AB 1033 is a state mandated local program that modifies existing law to allow certain ADUs to be conveyed separately from the primary residence under specified requirements. Previously, existing law required ADUs to remain tied to the primary dwelling unit and prohibited separate sale. With AB 1033, Sacramento property owners may now explore separate ADU sales under a detailed condominium plan, provided the unit meets housing quality standards and passes safety inspections.

How AB 1033 Changes ADU Ownership in Sacramento

Under the new government code proposed by AB 1033, ADUs built on the same location as a primary dwelling may be conveyed separately if local jurisdictions adopt the ordinance. This creates the possibility for separate conveyance of a proposed or existing dwelling unit, either the primary dwelling or the ADU, through a condominium structure. The subdivision map act governs this process, requiring a detailed condominium plan and related statement to be submitted for approval. Local agencies and permitting agencies must confirm that the unit complies with local building codes, zoning law, and applicable objective requirements.

Requirements for Separate ADU Sales

Sacramento residents interested in selling ADUs separately must follow a series of requirements under AB 1033:

1. The ADU must be located on a property with a proposed single family or existing primary dwelling.
2. A condominium plan must be prepared and submitted, detailing ownership arrangements and compliance with the Subdivision Map Act.
3. Local governments must adopt ordinances to allow separate conveyance of ADUs under state law.
4. A safety inspection and housing quality standards report must verify the ADU complies with the California Building Code, local building codes, and zoning regulations.
5. Both the primary dwelling and the ADU must have access to water and sewer services.
6. The property owner or qualified nonprofit corporation must enter into a common agreement to govern shared areas and services.
7. The local permitting agency must grant ministerial approval if substantial evidence shows the project meets specified requirements.

Financial Considerations for Property Owners

AB 1033 ADU in Sacramento raises new financial opportunities and challenges. Separate ADU sales create options for property owners to monetize additional living spaces without selling the primary residence. This could increase property value, affect property taxes, and provide flexibility for families or investors. However, ADU construction costs, fees for condo mapping, and the approval process all add expenses. Property owners should weigh potential market value, rental income alternatives, and long-term financial considerations when deciding between rental and sale.

Implications for Sacramento’s Housing Market

AB 1033 is intended to address California’s housing crisis by creating new pathways to homeownership through ADU ownership. In Sacramento, where demand for affordable housing remains high, separate ADU sales may expand opportunities for qualified buyers to purchase smaller homes in established neighborhoods. By applying specified standards and zoning regulations, local agencies can ensure that residential projects meet community development goals while increasing the number of available housing units.

Relationship to Local Regulations and Ordinances

Although AB 1033 is state law, it requires action from local governments to be implemented. Sacramento’s local ordinances and local regulations must be updated to allow separate conveyance of ADUs. Local jurisdictions are responsible for ensuring the approval process is consistent with state housing laws while applying objective requirements such as zoning designation, setback rules, and California Building Code standards. Property owners must stay in contact with city or county permitting agencies to confirm when ordinances are adopted and when separate ADU sales become available.

Benefits and Challenges of AB 1033 for Sacramento Homeowners

For Sacramento homeowners, AB 1033 presents both opportunities and responsibilities. Benefits include the ability to build ADUs that can later be conveyed separately, greater property value flexibility, and potential to provide affordable ownership opportunities in high-demand markets near major transit stops or high quality transit corridors. Challenges include navigating the condo mapping process, meeting all specified requirements, and coordinating with local agencies. Owners must also consider common agreements for shared services such as water and sewer, utilities, and maintenance of existing structures.

Practical Example in Sacramento

Consider a property owner in Sacramento with a detached ADU located behind the primary residence. Under existing law, this ADU could only generate rental income. With AB 1033 in effect and local ordinances adopted, the property owner could file a condominium plan under the Subdivision Map Act, request ministerial approval, and convey the ADU separately to a qualified buyer. Both the ADU and the primary dwelling would require safety inspection approval, water and sewer connections, and compliance with zoning law. Once approved, the ADU could be sold independently, creating a new homeownership opportunity in the local housing market.

Final Thoughts on AB 1033 ADU in Sacramento

AB 1033 ADU in Sacramento represents a major shift in how ADUs can be owned, sold, and managed. By allowing separate conveyance of proposed or existing dwellings, the law provides flexibility for property owners, affordable housing developers, and local jurisdictions seeking to expand housing supply. While the approval process involves detailed condominium plans, inspections, and compliance with local regulations, the long-term benefits include new housing opportunities and increased property value. A+ Construction & Remodeling supports Sacramento residents in navigating ADU permits, construction, and compliance, ensuring projects meet state and local requirements while creating high-quality additional living spaces.