How a New California Law, AB 1033, can Benefit Homeowners in ADU Construction

1. How a New California Law, AB 1033, can Benefit Homeowners in ADU Construction The newly passed California Law AB 1033 is a landmark change benefiting homeowners’ existing and planned ADU construction. By permitting the sale of Additional Dwelling Units (ADUs) separately, like condominiums, AB 1033 promotes increased levels of home ownership in California and Los Angeles’ tight housing market. ADUs are quite common in California and Los Angeles. ADUs, sometimes known as “granny flats,” are seen as guest houses, converted garages, or individual buildings behind homes owned by the property owner. According to The L.A. Times, this new law will only go into effect in cities that choose to “opt-in, “subjecting ADUs to the same regulations as condos. Allowing homeowners to build and sell separate ADUs on one property through condominium conversions, the ADUs are now a viable living and ownership option. In addition to individual ownership of up to 2 condominium units on one property, the law also aids homeowners in using rental income from the ADUs on mortgage applications. ADU Rental Income Changes The U.S. Department of Housing and Urban Development (HUD) has introduced a policy through the Federal Housing Administration (FHA) to enhance housing affordability and expand home ownership opportunities. Mortgage lenders can now consider income from Accessory Dwelling Units (ADUs) when evaluating mortgage applications.

2. Previously, individuals could only rent out ADUs on their property. However, AB 1033 aims to expand homeownership opportunities by allowing more people to purchase an ADU located on someone’s land. Is Now a Good Time to Construct an ADU? Although AB 1033 is a game changer for Los Angeles homeowners, and many ADUs are now getting green-lighted and expedited applications, Homeowners need to consider many rules and regulations. Of equal importance is what the homeowners’ short-term and long-term goals are for new ADU garage conversion. If your goals include: Creating additional rental income. Housing a caregiver or elderly relative. Building a starter home for a child. Constructing a down-sized living space. These are all great goals for ADU construction; one particularly advantageous aspect is how these changes support multi-generational living arrangements. According to California regulations, as long as the ADU measures less than 800 square feet and is no taller than 16 feet with a setback of at least 4 feet from the property line, it qualifies for a permit in residential or mixed-use zones. Additionally, there is no requirement to provide alternative, off-street parking when converting your garage into an ADU. A list of regulations and the application process is available on ePlanLA. Summary of LA ADU Construction Changes The regulatory environment, particularly AB 1033, creates a healthier environment for new ADU construction. Remember to consider the number of ADU units, how far the units are set back from the main house for privacy, how construction will affect your lifestyle, and, as always, budget considerations are paramount. RD Fast Construction is Your Trusted Partner! Are you looking for ADU contractors that truly understand your vision, respect your budget, and deliver superior quality? RD Fast Construction is the name you can trust. At RD Fast Construction, our comprehensive services deliver every type of construction project in Los Angeles and surrounding areas. Whether you need residential renovations or large-scale commercial builds or a ADU unit, our skilled team commits fully to making your vision a reality. With over ten years as a premier Los Angeles construction company, RD Fast Construction leads the market in experience and expertise. We pride ourselves on being the number-one choice for all construction needs in the region. Contact us today or view some of our past projects and discover why homeowners and businesses trust RD Fast Construction as the leading construction company in Los Angeles.