To address the housing shortage in California, bills AB 2299 and SB 1069 were passed in 2016, requiring cities and counties to allow property owners to build Accessory Dwelling Units (ADUs) in most backyards. However, these bills were temporary, set to expire in 2025, and faced some resistance, with certain municipalities imposing restrictions on ADU construction through parking requirements and HOA regulations. Subsequently, the legislature passed additional bills to eliminate these hurdles, resulting in the permanent establishment of ADU-friendly regulations with the passage of AB 976 in 2020. Despite these legislative changes, the primary purposes for having an ADU remain unchanged: either to rent it out, accommodate relatives, or use it as an office or additional living space.
These new laws require cities to permit the construction of at least an 850 square-foot ADU for one-bedroom units and 1,000 square feet for two-bedroom or larger units. Cities are allowed to cap detached ADUs at 1,200 square feet or at 50% of the size of the primary residence.
In 2021, SB 9 was introduced, enabling property owners to subdivide their lots into two parcels and build two housing units on each parcel. This subdivision allows for independent ownership of the newly created parcels. Consequently, an ADU can be sold if the lot is subdivided, with each owner having their own lot.
Selling ADUs
A new twist in this scenario is AB 1033, which passed in October 2023. This law allows property owners to sell the ADU without needing to subdivide the lot. The structures on the property can essentially be converted into condominiums on a mutually owned lot, potentially offering different rights for each owner.
While AB 1033 simplifies the ability to sell an ADU, it also introduces a new set of challenges, as creating a homeowners association (HOA) necessitates the establishment of bylaws, covenants, conditions, and restrictions (CC&Rs), along with shared maintenance expenses.
San Jose was the first city to adopt AB 1033, and participation from other cities is currently voluntary, so it’s essential to check with your local development department regarding their status. As of today, San Carlos California has not adopted AB1033. However, if it ever does, then you can remain in your spacious detached San Carlos ranch home and tell your friends that you now live in a condo!
Resources
Photos are previous ADU projects of Red, White, and Blue Construction (RWB Construction)
About RWB Construction
Based in Lafayette, CA, Red White & Blue (RWB) Construction is an award winning design-build contractor, and one of SF Bay Area’s top general contractor specializing in home building and remodeling, including ADUs. Visit their website at https://rwb.construction/
For More News
For more of what’s happening in and around San Carlos, please visit San Carlos Life Blog
About San Carlos Life
Mark Martinho and Vivienne Kelvin are the hosts of San Carlos Life and have been residents of San Carlos for years. While running San Carlos Life together with an awesome team, Mark and Viv are also in the business of real estate. They are co-owners of Vabrato Real Estate, a luxury real estate brokerage serving the City of Good Living, and the whole of San Mateo and Santa Clara counties.
With over 30 years of combined experience in the business and 95% of their clients coming in from referrals, Mark and Viv take great pride and joy in exceeding your expectations.
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