ADU California: Local Regulations & Future Sale

The construction of an accessory dwelling unit is primarily an investment in the future, which gives an unshakable guarantee that you can sell your house with a profit of several hundred thousand dollars. However, to take this advantage, it is necessary to go through many challenges during the construction phase because local agencies are constantly changing ADU regulations.

Today, we will tell you what steps will lead you to a profitable sale of ADU, whether property owners can sell ADU and primary home separately, and which new California ADU laws will regulate this process. Nevertheless, it makes sense to start with existing laws that have a direct relation to the construction of an accessory dwelling unit in Sacramento, California.

ADU Construction: All About Local Regulations

The accessory dwelling unit is an affordable housing structure that can bring the owner countless material and emotional dividends. However, before the appearance of ADU next to the primary residence, during the construction process, the homeowner should comply with many local regulations, about which the layman in 9 out of 10 cases knows nothing.

The following five rules are critically important to comply with during the new construction:

• ADU configuration requirements

The ADU size is the most crucial and relevant factor for homeowners; however, first, it is necessary to determine whether it is possible to build an ADU at all. California ADU laws give us a hint that on the site, you can build one junior accessory dwelling unit (JADU), one attached, and one detached ADU if you comply with all zoning regulations. In addition, it would be reasonable to clarify that a new ADU can appear on the site of any existing space, whether it is an old barn or an attic in the main house.

• ADU size requirements

Now we turn to the size of accessory dwelling units and immediately clarify that according to ADU regulations, the minimum size for any configuration is 150 sq. ft. Moving to the maximum size for junior accessory dwelling units this is 500 sq. ft., for detached ADUs, 1200 sq. ft., and for attached ones no more than 50% of the area of primary dwelling units. However, as in any law, we can highlight exceptions, e.g., there are no restrictions for garage conversion ADUs, even if your old garage has an area of 2500 sq. ft.

• ADU setback requirements

In any floor plan, you can find such categories as setback dimensions. In the case of accessory dwelling units, this is the distance between your ADU and the site boundary. The standard for this measure is 4 ft. However, this rule does not apply to ADUs converted from existing residential premises.

• ADU height restrictions

Two-story accessory dwelling units are only one of the common choices among property owners. For this reason, not everyone analyzes such an issue as the maximum height of the ADU, despite the fact that this item is on the list of key ADU regulations. ADU laws state that, regardless of configuration, the height of the ADU cannot exceed 16 ft. However, there are three exceptions, namely, when we talk about attached ADUs (maximum 25 ft), if the ADU stands on a site with multifamily dwellings (maximum 18 ft), or if your site is close to a public transport stop at least 0.5 miles away (maximum 25 ft).

• ADU parking requirements

When an ADU appears next to the primary dwelling unit, property owners have a question about the necessity of a parking space building, even if they do not need it. For such homeowners, it is important to remember that a parking area is optional if your residential lot is in an area of historical significance, half a mile from a car sharing or public transit hub, as well as if the builders have designed a new ADU based on the existing structure. The last point is essential for garage conversion owners; in particular, if you have made a home office or gym on the site of an old garage, then there is no need to make a parking lot.

These rules are legally binding in most cities of the state of California. However, local governments often change the wording of laws, so before you bring materials for the construction of an accessory structure to your site, we recommend visiting the office of a lawyer who will sort out all the nuances of the construction law with all its updates.

ADU & Primary Residence: Separate Sale Opportunity

If a couple of years ago, we had received a question from a homeowner about the possibility of selling an accessory dwelling unit separately from an existing primary home, then our answer would have been definitively and irrevocably negative; however, as we have repeatedly noted in this review that ADU laws are constantly changing, and now this option is available.

A mini-revolution has taken place in the legislative field, and among all the new ADU laws, the law called AB 1033 attracts the most attention. This law removes the ban on the sale of ADU separately from the main home that has been in force for years. However, like any law, it has many subtleties, which we will analyze in the next part.

AB 1033 ADU Law: All You Need to Know

Never before the introduction of new ADU laws has attracted such attention as AB 1033, because it opens up new horizons for homeowners in the management of accessory dwelling units. As we noted earlier, the main feature of this law is that it grants the property owner the right to sell a house and ADU separately, and this applies to any configurations from granny flats to junior ADUs.

However, to obtain this right, you should comply with several conditions:

• Coordination of this option with local governments. You cannot sell the ADU separately from the main house, just based on your desire. To do this, you should obtain a special ADU permit from the local authorities.
• Qualification of the ADU developer. If you want to take advantage of this opportunity, you should have proof that your general contractor belongs to the category of qualified companies with a construction license.
• Compliance with the basic ADU requirements. A fairly obvious criterion is that your ADU should meet all standards, from size and zoning to setbacks and security measures for installing fire sprinklers.

As you can see, to be fully confident in the possibility of selling an ADU separately from the main house, it is necessary to immerse yourself in the topic of construction legislation. Since this is a complex field, we recommend using the services of a specialist who, among other things, will speed up obtaining a sale permit.

Profitable ADU Selling Strategy

The sale of real estate is always a slow process, and when we talk about the sale of ADU under new laws, the situation becomes even more difficult since neither homeowners nor the authorities have much experience working with this regulatory act. Fortunately, you are reading this review, where we tell you what stages the ADU sales process consists of.

We identify six steps:

• Premises assessment and report preparation. At this stage, specialists draw up a common document for your ADU and enter information about all key parameters there, including configuration, area, etc.
• Checking for compliance with legal norms. Next, experts will evaluate your ADU for compliance with building laws, and they pay attention to everything. For example, they check in detail that the area of the junior accessory dwelling unit is at most 500 sq. ft. or that fire sprinklers hang in the right place.
• Creating an ADU profile. This procedure is a combination of the previous two positions. Based on two reports, specialists create an ADU profile and later potential buyers will study it.
• Application submission. After you have collected all the documents for your ADU and received an expert report on compliance with all building regulations, apply for the sale of ADU.
• Review and approval of the application. Bureaucratic processes are not fast, however, if your documentation is in order, then the city authorities from Sacramento to San Diego will definitely allow you to sell your detached, attached or junior ADU separately from the main home.
• Promoting your ADU on the market. To speed up the sales process, we recommend not just putting the ADU up for sale, but investing in marketing. This will help to promote your ADU to the target audience, highlight it against the background of other apartment complexes, single and multifamily dwelling units, as well as emphasize all its advantages.

Overall, the possibility of selling ADU separately from the main home once again tells us that ADU is not just an affordable housing unit that stands on the same property with the main house. This is a wonderful investment that, when sold, will bring you huge dividends.

Frequently Asked Questions — FAQ

What is the meaning of the new ADU regulations in California?

California continues to modernize laws to increase the rights of property owners. A special feature of the new legislation is that homeowners can now sell ADU separately from the main residence. This law stands out from other state laws because now homeowners are free to dispose of their property in the real estate market.

How important is it to seek the help of a lawyer in the matter of ADU selling?

The assistance of a lawyer is necessary at any stage, be it the registration of demolition permits, the ADU building process, or the sale of existing space. Experts know all the local ordinances, in particular, the new ADU laws. This means that they can protect your interests and achieve your goals without financial loss.

What is the maximum allowable ADU size in Sacramento, California?

The minimum threshold is 150 sq. ft., but the maximum limit depends on the ADU type. In particular, the maximum size of junior accessory dwelling units is 500 sq. ft., detached ADUs 1200 sq. ft., ADU conversions do not have an upper limit, and, for example, attached ADU cannot be more than 50% of the area of the main home.

What housing opportunities does the appearance of ADU on my site open up?

Listing all housing opportunities will take several pages, so let’s highlight the main things. In particular, even one ADU provides the opportunity to generate rental income for long term or short term rentals, work in a home office and forget about the lack of storage space. Granny flats or mother-in-law units allow you to receive a huge number of guests with complete comfort, as well as move elderly relatives closer to yourself.