What homeowners in San Diego need to know about Assembly Bill 1033.
I'd like to shed light on Assembly Bill 1033, explaining its purpose and highlighting some concerns. AB 1033 was recently signed by Governor Newsom, aiming to increase housing units by allowing homeowners to sell off an Accessory Dwelling Unit (ADU) on their property.
The concept of creating more housing options, especially for entry-level buyers, is commendable. However, there are notable issues with the bill's loose structure. The relaxation of building codes for ADUs, while encouraging housing development, raises concerns about potential shortcuts by builders who might evade higher standards required for new constructions.
Furthermore, the bill lacks clarity on ownership types. It doesn't specify whether ADUs can be condominiums, timeshares, or subject to fractional ownership. This ambiguity may pave the way for Airbnb or vacation rentals, impacting the neighborhood's character. The bill also fails to distinguish whether investors can purchase these units or if they must be owner-occupied, potentially leading to increased competition and rising prices.
“This bill could benefit from much-needed clarification.”
The neighborhood's integrity is at stake, especially without clear guidelines for maintenance responsibilities in the absence of CC&Rs or HOA regulations. Common areas like gas meters, water meters, and sewer lines pose questions about accountability in case of breakdowns.
For retirees looking to sell their ADU, a potential issue arises with the triggering of a due-on-sale clause. This could prompt lenders to seek repayment, as conveying ownership of a portion of the property may violate single-family home loan terms.
While the bill's goal is commendable, it requires clearer specifications to prevent unintended consequences. Addressing issues such as investor involvement, neighborhood regulations, and potential triggers for loan clauses is crucial for the bill's success. If you have questions about this bill or ADUs, please call or email me. I look forward to hearing from you.