Assembly Bill 1033 – Build By Design

What is Assembly Bill 1033

How Can It Benefit You?

If you've built or are considering building an ADU, there's a game-changing law you need to know about: Assembly Bill 1033.
This legislation fundamentally transforms ADUs from rental properties into assets you can sell separately—and it opens up entirely new financial strategies for homeowners

AB1033, enacted in 2024, allows cities and counties to permit homeowners to sell their ADUs as separate condominiums, independent from the main house. Before this law, your ADU was permanently attached to your primary residence—you could rent it out, but you couldn’t sell it separately. Now you can subdivide your property and sell the ADU as its own unit with its own deed.

Think of it like creating a condo on your own lot—your main house remains yours, but the ADU becomes a separate property that can be bought, sold, financed, and owned independently.

Multiple Exit Strategies

Provides flexibility to either rent, sell, or live in your ADU depending on your changing financial needs and life circumstances.

Attracts more buyers

Offering a separately saleable ADU can make your property more attractive to diverse buyer pools, including investors and multi-generational families.

Contributes to housing supply

Helps address California’s housing shortage while potentially generating personal financial benefit.

Creates affordable homeownership opportunities

Your ADU can become an entry point for first-time buyers, retirees, or downsizers seeking smaller, more affordable housing options.

Build It, Sell It, Keep Your Home

AB 1033 unlocks new financial opportunities for property owners by allowing the separate sale of Accessory Dwelling Units (ADUs) as condominiums.

Financial Benefits

Unlock equity without selling your primary home – You can sell your ADU separately while continuing to live in your main residence, accessing substantial property equity without displacement.
Monetize existing ADUs – If you’ve already built an ADU, AB 1033 provides a new path to realize cash from that investment rather than managing it as a rental property.
Generate funds to finance ADU construction – Selling the ADU after construction can help recover building costs, making the initial investment more financially viable.
Increase overall property value – Having the flexibility to sell both your main home and ADU separately can enhance your property’s total market value and appeal to more buyers.
Avoid landlord responsibilities – Property owners who don’t want to manage tenants can build and sell ADUs instead of becoming long-term landlords.

Investment & Development Advantages

No expensive lot splits required – Unlike SB-9, AB 1033 doesn’t require costly lot line subdivisions or large parcels of land, making it accessible for typical single-family homeowners.
Simpler than traditional subdivision – The condominium conversion process is more straightforward than full property subdivision, with clearer guidelines and streamlined procedures.
Works with existing properties – Particularly beneficial if you already have an ADU on your property, allowing you to capitalize on that existing asset.