What AB 1033 actually does
AB 1033 (effective January 2024) lets California cities opt in to a process where homeowners can separately sell their ADU as a condominium. The single-family lot is converted into a small condo regime — main house is one condo, ADU is another.
Why it matters
Before AB 1033, an ADU could only be rented — never sold. Now in opt-in cities, an ADU built for a property-specific written estimate can potentially be sold for $400k–$600k, unlocking real wealth for homeowners.
Which California cities have adopted AB 1033 (as of August 2026)
Ten jurisdictions have enacted AB 1033 ordinances as of mid-2026:
| City / Jurisdiction | Ordinance | Effective |
|---|---|---|
| San Jose | Ord. 31095 | Jul 2024 |
| Santa Cruz | Ord. 2024-18 | Oct 2024 |
| West Hollywood | Ord. 25-04 | Feb 2025 |
| Oakland | Ord. 13856 C.M.S. | Jul 2025 |
| San Diego (City) | Ord. O-21989 | Jul/Aug 2025 |
| San Francisco | File 241069 | Jul 2025 (ADUs permitted after May 1 2025) |
| Santa Monica | Ord. 2786 CCS | Oct 2025 |
| Berkeley | Ord. 7,999-N.S. | Jan 2026 |
| Sebastopol | Ord. 1162 | Jan 2026 |
| San Diego County (unincorporated) | Ord. 10986 | Mar 2026 |
City of Los Angeles: Council adopted a motion on September 10, 2025 (CF 25-0753, "Missing Middle LA") directing staff to draft an AB 1033 ordinance. As of August 2026, no ordinance has been enacted — LA residents cannot yet sell an ADU separately under AB 1033.
Other areas: Most Orange County cities, Inland Empire cities, and other jurisdictions have not yet adopted AB 1033 ordinances.
The first arms-length AB 1033 sale closed in early July 2026 in San Jose ($530k, 749 sq ft) — a milestone for the program statewide.
Always confirm current adoption status with your city before planning a condo conversion.
How the conversion works
- Build (or own) a permitted ADU
- Confirm your city has opted in to AB 1033
- Hire a surveyor to define condo boundaries
- File a Tentative Tract Map and Final Map
- Record CC&Rs governing shared utilities, driveway, and maintenance
- Issue separate APNs for main home and ADU
- List the ADU for sale
Total conversion cost: a property-specific written estimate. Total timeline after the ADU exists: 6–12 months.
Is condo conversion right for you?
Make sense if: you live in an opt-in city, you do not need the ADU rental income, and you want to free up equity.
Skip if: your city has not opted in, or you plan to keep the ADU long-term for family use.
Frequently Asked Questions
Can I sell my ADU separately under AB 1033?
Only in cities that have opted in. Always verify with current city ordinance.
How much does AB 1033 conversion cost?
$25k–$60k for surveys, mapping, legal, and recording.
Do I need HOA approval?
HOA cannot block AB 1033 itself, but existing CC&Rs may complicate conversion in older communities.
Can I convert a JADU under AB 1033?
No. JADUs are part of the main home and cannot be separated.
What about utilities?
Shared utilities (water, sewer) usually remain shared via CC&Rs. Electric typically separated with new meter.
Related Vision ADU Resources
- JADU vs ADU in California: Cost, Rules & When to Choose Each (2026)
- Garage Conversion ADU Permits in California (2026 Step-by-Step)
- ADU Setback Requirements in California (2026 State Minimums + City Rules)
- ADU Height Limits in California (2026 State Rules + City Variations)
- ADU Contractor in Irvine
- ADU Contractor in Torrance
- Los Angeles County ADU Builder
- Orange County ADU Builder
- Inland Empire ADU Builder
- 2026 ADU Cost Calculator
- All Vision ADU Service Areas