AB 1033 ADU in California Thoughts

[Peter Mckernan]

Hey All! 

I wanted to get everyone that has done or has a ton of knowledge in the CA space for doing ADUs for the new bill that was passed AB1033 for ADUs. This could give the ability to have a better and higher appraised value along with selling it separately from the main structure (main SFR or SMF). This could be huge, or something like the ADU legislation that came out in 2017 and then revamping in 2020 due to convoluted items that made the building very strict to almost nonexistent.

The main reason ADUs are hard to get the best value for now is that the appraisals come in short (depending on the comps in the area of course). Most people think it is building for 200K and getting 400K appraised value. That is not true and there is upside to your build or conversion, just needs to be well planned and good execution by the investor. 

This bill may along with SB9 might be the ability for investors to subdivide, build and then sell. That is all to be determined for now, but this bill could be the turning of the tide.

  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...

[Dan H.]

I suspect it will be as impactful as SB10 which means much ado about nothing.  

Also i suspect there is not as much offered here over existing options as some believe.   There are already means to sell pieces of individual properties (simpler than options like condo conversions).  These means may have some challenges to overcome, but I suspect so would taking advantage of this new law.  

Good luck