{"id":174470,"date":"2024-06-24T12:23:36","date_gmt":"2024-06-24T18:23:36","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=174470"},"modified":"2024-09-03T03:19:16","modified_gmt":"2024-09-03T09:19:16","slug":"is-californias-adu-law-the-beginning-of-a-new-era-in-housing","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/is-californias-adu-law-the-beginning-of-a-new-era-in-housing","title":{"rendered":"Is California&#8217;s ADU Law the Beginning of a New Era in Housing?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC7561395195\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8536460699\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">On June 11, the city of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.sanjoseca.gov\/your-government\/departments-offices\/planning-building-code-enforcement\/planning-division\/ordinances-proposed-updates\/zoning-ordinance-update-pp23-007#:~:text=Adopting%20this%20ordinance%20implementing%20AB,first%20ADU%20condominiums%20within%20California.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">San Jose<\/span><\/a><span data-preserver-spaces=\"true\"> became the first municipality to update its zoning code in accordance with<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/legiscan.com\/CA\/text\/AB1033\/2023\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">California Assembly Bill 1033<\/span><\/a><span data-preserver-spaces=\"true\">, which went into effect at the beginning of the year. The law allows for local ordinances that permit homeowners to sell <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/accessory-dwelling-units-explained\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">accessory dwelling units<\/span><\/a><span data-preserver-spaces=\"true\"> (ADUs) as condominiums, but cities must opt in.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">AB 1033 is one of many <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.brookings.edu\/articles\/in-california-statewide-housing-reforms-brush-against-local-resistance\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">state policies<\/span><\/a><span data-preserver-spaces=\"true\"> aimed at encouraging affordable housing development that have been enacted in California since 2017, many of which focus on increasing ADU production. As the state removed obstacles and closed local loopholes that impeded new construction, ADU production exploded in California, <\/span><span data-preserver-spaces=\"true\">increasing<\/span><span data-preserver-spaces=\"true\"> by more than 15,000% between 2016 and 2022, according to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cayimby.org\/news-events\/press-releases\/new-report-highlights-success-of-policies-legalizing-more-homes\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">research<\/span><\/a><span data-preserver-spaces=\"true\"> from the California YIMBY Education Fund. Last year, ADUs accounted for about <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.housingwire.com\/articles\/adu-options-set-to-expand-in-california\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">one in five<\/span><\/a><span data-preserver-spaces=\"true\"> newly created housing units in the state.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So far, most homeowners are building ADUs to house family members or generate rental income. About <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/bipartisanpolicy.org\/blog\/accessory-dwelling-units-adus-in-california\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">27% of the ADUs<\/span><\/a><span data-preserver-spaces=\"true\"> completed since 2018 are <\/span><span data-preserver-spaces=\"true\">considered<\/span><span data-preserver-spaces=\"true\"> affordable to families earning below 120% of the area median income.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But<\/span><span data-preserver-spaces=\"true\">, AB 1033, if adopted by more cities, has the potential to impact homeownership rates in California by increasing the supply of affordable starter homes. Currently, the <\/span><span data-preserver-spaces=\"true\">median household income in the state<\/span><span data-preserver-spaces=\"true\"> is <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/lao.ca.gov\/LAOEconTax\/Article\/Detail\/793\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">not enough<\/span><\/a><span data-preserver-spaces=\"true\"> to meet lender requirements for a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mortgage<\/span><\/a><span data-preserver-spaces=\"true\"> on a bottom-tier home.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The reform also provides opportunities for investors and existing California homeowners since ADUs are generally <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.hcd.ca.gov\/policy-and-research\/accessory-dwelling-units\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cheaper to build<\/span><\/a><span data-preserver-spaces=\"true\"> than single-family homes and have the potential to be very profitable. Still, there may be challenges to selling an ADU as a condo in California, and it\u2019s unclear whether the strategy will take off now that the state has lifted restrictions.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">An Opportunity for California Property Owners and Prospective Homebuyers<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">San Jose\u2019s new ordinance, which will take effect July 18, allows local homeowners to sell their ADUs and primary residences separately as condos that share the same property. Previously, <\/span><span data-preserver-spaces=\"true\">the sale of<\/span><span data-preserver-spaces=\"true\"> ADUs as condo units <\/span><span data-preserver-spaces=\"true\">was only permitted<\/span><span data-preserver-spaces=\"true\"> under limited circumstances.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While San Jose is the only city that has changed its zoning code since the state lifted restrictions, other cities are likely to follow\u2014the Berkeley City Council has already <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.berkeleyside.org\/2024\/05\/21\/adus-in-berkeley-may-soon-be-sold-as-condos-under-newly-adopted-state-policy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">voted<\/span><\/a><span data-preserver-spaces=\"true\"> to adopt AB 1033 in 2025.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A previous law, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/ternercenter.berkeley.edu\/research-and-policy\/sb-9-turns-one-applications\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">SB-9<\/span><\/a><span data-preserver-spaces=\"true\">, allowed homeowners to split their lots and build additional single-family homes, but the reform <\/span><span data-preserver-spaces=\"true\">had limited<\/span><span data-preserver-spaces=\"true\"> impact.<\/span> <span data-preserver-spaces=\"true\">Cities were <\/span><span data-preserver-spaces=\"true\">given the freedom<\/span><span data-preserver-spaces=\"true\"> to set their <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> guidelines for SB-9 projects, which were often burdensome<\/span><span data-preserver-spaces=\"true\">, and the process was costly. Legal challenges were also an obstacle in many cities.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Several previous changes to state law also made <\/span><span data-preserver-spaces=\"true\">it easier to build and rent an ADU<\/span><span data-preserver-spaces=\"true\">, and new <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/sf.freddiemac.com\/working-with-us\/origination-underwriting\/mortgage-products\/accessory-dwelling-units\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">financing options<\/span><\/a><span data-preserver-spaces=\"true\"> allowed homeowners to qualify for a construction loan using the projected rental income.<\/span><span data-preserver-spaces=\"true\"> That strategy has become more popular than lot splits, but not all homeowners are interested in becoming landlords.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">AB 1033 provides another avenue for homeowners to cash in on their properties while <\/span><span data-preserver-spaces=\"true\">also<\/span><span data-preserver-spaces=\"true\"> allowing for the construction of more affordable homes. For example, retirees could build ADUs and use the money from the sale to support aging in place<\/span><span data-preserver-spaces=\"true\">, while<\/span><span data-preserver-spaces=\"true\"> first-time homebuyers comfortable with less square footage could have a better shot at qualifying for a mortgage. Existing homeowners wouldn\u2019t be required to sell their primary residences <\/span><span data-preserver-spaces=\"true\">in order to<\/span><span data-preserver-spaces=\"true\"> cash in, potentially removing the lock-in effect of high mortgage rates and increasing housing inventory.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To legally sell an ADU, property owners would need to establish a homeowners association (HOA) to oversee the maintenance of shared exterior spaces, such as a driveway or a shared roof if the ADU is attached to the primary residence. Owners <\/span><span data-preserver-spaces=\"true\">would also need to<\/span><span data-preserver-spaces=\"true\"> notify local utility companies that they plan to convey the two units separately. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/property-tax-faq\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Property taxes<\/span><\/a><span data-preserver-spaces=\"true\"> would be assessed on each unit individually, but it\u2019s unclear whether that would lead to a net increase in city revenue.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Property owners seeking a separate conveyance for an ADU must also get consent from their mortgage lender and any other lien holder. That would impact any property owner who does not own their home outright, and the mortgage lending industry\u2019s response could determine the extent of the bill\u2019s impact on housing affordability.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">AB 1033 gives municipalities some flexibility when opting in, so the requirements and review process may vary across cities that <\/span><span data-preserver-spaces=\"true\">choose to<\/span><span data-preserver-spaces=\"true\"> amend their zoning codes.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Obstacles May Interfere with the Goal of AB 1033<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Generally, AB 1033 makes it easier for homeowners to obtain ADU construction permits and sell ADUs separately from their primary residence. <\/span><span data-preserver-spaces=\"true\">However, <\/span><span data-preserver-spaces=\"true\">there are still<\/span><span data-preserver-spaces=\"true\"> a few hurdles that could prevent homeowners from taking advantage of the reform.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The most obvious problem is that homeowners with mortgages <\/span><span data-preserver-spaces=\"true\">would need to<\/span><span data-preserver-spaces=\"true\"> obtain their lender\u2019s consent. By requiring this step <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> an ADU sale, the law protects homeowners from unwittingly triggering the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.law.cornell.edu\/wex\/due-on-sale_clause\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">due-on-sale clause<\/span><\/a><span data-preserver-spaces=\"true\"> in their home loan agreement.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\"> But it\u2019s not clear whether mortgage lenders would be willing to authorize these transactions. AB 1033 states that homeowners may need to meet additional requirements to get lender consent, which could be as simple as changing the legal description of the property or as infeasible as paying off the mortgage entirely.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Lenders tend to charge slightly higher interest rates for condos because the unknown variables of the other unit owners and the HOA increase the risk of lending, so it doesn\u2019t seem likely that a lender would be willing to allow a borrower to sell a portion of their property while keeping the rate and terms of their single-family mortgage. That said, property owners who want to build and sell an ADU have options: They can <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-refinance-your-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">refinance<\/span><\/a><span data-preserver-spaces=\"true\"> with a loan product such as the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/sf.freddiemac.com\/working-with-us\/origination-underwriting\/mortgage-products\/choicerenovation\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">CHOICERenovation mortgage<\/span><\/a><span data-preserver-spaces=\"true\"> or the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/singlefamily.fanniemae.com\/originating-underwriting\/mortgage-products\/homestyle-renovation\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HomeStyle Renovation mortgage<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But<\/span><span data-preserver-spaces=\"true\"> access to financing may not override the lock-in effect of today\u2019s high mortgage rates.<\/span><span data-preserver-spaces=\"true\"> Borrowers with low rates on their current mortgages would need to weigh the benefits of the investment against the higher interest rate on the new loan. <\/span><span data-preserver-spaces=\"true\">And<\/span><span data-preserver-spaces=\"true\"> while adding an ADU to a primary residence as a rental property can significantly increase the value of the original home when sold to the right buyer, selling off a portion of a land parcel and re-categorizing the single-family home as a condo might decrease the value of the original <\/span><span data-preserver-spaces=\"true\">home<\/span><span data-preserver-spaces=\"true\">. The many trade-offs and potential legal issues would most likely require that homeowners get professional advice before attempting the sale.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With these concerns in mind, AB 1033 may <\/span><span data-preserver-spaces=\"true\">not<\/span><span data-preserver-spaces=\"true\"> provide <\/span><span data-preserver-spaces=\"true\">much<\/span><span data-preserver-spaces=\"true\"> additional incentive for ADU construction in the cities that opt into the measure.<\/span><span data-preserver-spaces=\"true\"> Critics of the legislation also <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.tricountysentry.com\/articles\/adu-ordinance-stays-on-hold\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">question<\/span><\/a><span data-preserver-spaces=\"true\"> whether it will increase the supply of affordable housing or impede other, more effective programs. AB 1033 doesn\u2019t contain any affordability requirements for developers, and city housing staff would need to devote time to implementing the new rules, potentially delaying other established housing priorities.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While it\u2019s clear that relaxed zoning rules in cities like <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.seattle.gov\/opcd\/ongoing-initiatives\/encouraging-backyard-cottages\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Seattle<\/span><\/a><span data-preserver-spaces=\"true\">, which also allow ADUs to <\/span><span data-preserver-spaces=\"true\">be sold<\/span><span data-preserver-spaces=\"true\"> as condos, have <\/span><span data-preserver-spaces=\"true\">resulted in an increase in<\/span><span data-preserver-spaces=\"true\"> ADU permits, there\u2019s little evidence about their impact on affordable housing. Only a <\/span><span data-preserver-spaces=\"true\">small<\/span><span data-preserver-spaces=\"true\"> share of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.seattle.gov\/documents\/Departments\/OPCD\/OngoingInitiatives\/EncouragingBackyardCottages\/OPCD-ADUAnnualReport2022.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Seattle\u2019s ADUs<\/span><\/a><span data-preserver-spaces=\"true\"> are on condo parcels, and while those units sell at a lower price, the sample size is small.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If ADU condos do take off, <\/span><span data-preserver-spaces=\"true\">that could offer investors<\/span><span data-preserver-spaces=\"true\"> the chance to enter sought-after California markets at a lower price point. Investors would also have multiple options for <\/span><span data-preserver-spaces=\"true\">getting a return from<\/span><span data-preserver-spaces=\"true\"> ADU construction.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Research <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/magazine\/real-estate-news\/study-adus-can-add-35-to-home-s-value\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">shows<\/span><\/a><span data-preserver-spaces=\"true\"> that ADUs increase a home\u2019s value by an average of 35% in large cities, which could make <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flipping<\/span><\/a><span data-preserver-spaces=\"true\"> a potentially successful strategy<\/span><span data-preserver-spaces=\"true\">, though<\/span><span data-preserver-spaces=\"true\"> there isn\u2019t yet data on how conveying the two units as separate condos would impact the total value of the property when compared to selling both units in the same deal. Rental restrictions and owner-occupancy requirements vary by municipality in California, and cities that adopt AB 1033 have some flexibility with these requirements when issuing permits.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But an<\/span><span data-preserver-spaces=\"true\"> investor could <\/span><span data-preserver-spaces=\"true\">potentially<\/span><span data-preserver-spaces=\"true\"> rent out one or both units, <\/span><span data-preserver-spaces=\"true\">or<\/span><span data-preserver-spaces=\"true\"> sell one as a condo and rent the other.<\/span><span data-preserver-spaces=\"true\"> It\u2019s good to have options, but <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/which-real-estate-investing-strategy-is-best-for-your-goals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">choosing the right strategy<\/span><\/a><span data-preserver-spaces=\"true\"> requires careful analysis of individual factors, such as the lot, the neighborhood, and local laws.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">ADU reforms in California, Seattle, and Portland have led to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cato.org\/blog\/results-accessory-dwelling-unit-reform-so-far\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">booming ADU construction<\/span><\/a><span data-preserver-spaces=\"true\">, and any endeavor that can positively impact the supply of homes at a relatively low cost to local governments could be worthwhile. <\/span><span data-preserver-spaces=\"true\">Dozens of cities have approved ADU reforms in recent years<\/span><span data-preserver-spaces=\"true\">, according to the U.C. Berkeley <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/belonging.berkeley.edu\/zoning-reform-tracker\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zoning Reform Tracker<\/span><\/a><span data-preserver-spaces=\"true\">, and the impact of these changes could be meaningful.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But it\u2019s still unclear whether AB 1033 will meaningfully increase ADU permits in California <\/span><span data-preserver-spaces=\"true\">above and<\/span><span data-preserver-spaces=\"true\"> beyond the great results the state has seen from removing barriers to ADU construction and whether cities that opt in will see an increase in affordable housing. A major obstacle could be <\/span><span data-preserver-spaces=\"true\">the discretion of<\/span><span data-preserver-spaces=\"true\"> mortgage lenders in \u201ccondoizing\u201d a borrower\u2019s property.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If the legislation does lead to more ADU sales, that could lower the barrier to entry for investors looking to break into high-priced California markets. Those looking to buy a single-family home and add an ADU also have financing options and could potentially profit in multiple ways, with AB 1033 providing additional avenues for investment.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_bd7d53c49e619903cb544ad85d507da3\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_4d3e28c2db16a11c520948c9a68ccf06\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_c9a6299f2134141b4412e39fded43b6f class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/is-californias-adu-law-the-beginning-of-a-new-era-in-housing&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/is-californias-adu-law-the-beginning-of-a-new-era-in-housing&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>San Jose is the first city to embrace AB 1033 as ADUs become a potential solution to affordability.<\/p>\n","protected":false},"author":613615,"featured_media":174472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119,7384],"tags":[],"class_list":["post-174470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily","category-politics-policy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/174470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613615"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=174470"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/174470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/174472"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=174470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=174470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=174470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}