Accessory dwelling units, also referred to as ADUs and “granny flats,” have been available in California only as rentals. But a new law is giving Californians the opportunity to buy and sell them as condominiums.
ADUs come in all shapes and sizes — for example, a converted garage, a small home in the backyard, or, as often seen in San Francisco, an unused portion of the main house.
Under AB 1033, which was signed into law this week, property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums.
Under the new law, local governments need to opt in to the ADU-as-condominium approach for it to be an option in their cities.
As with new condominiums, homeowners building ADUs must notify the local utilities, including water, sewer, gas and electric, of the creation and separate conveyance of the unit. Each property will also have to form a homeowners association to assess dues to cover the cost of caring for the property’s exterior and shared spaces, such as the driveway, a pool or a common roof.
Selling ADUs as condominiums is having success in places such as Oregon, Texas and Seattle. Sample sales for neighbor residential parcels with detached ADUs, reporting that a unit of more than 1,000 square feet sold for an average of anywhere between $500,000 to $800,000.
Source: Los Angeles Times
