Yes, ADUs can indeed be owned separately from the primary residence. This was made possible through California Assembly Bill 1033, which grants local agencies the authority to adopt ordinances allowing the separate conveyance of primary dwelling units and ADUs as condominiums. By enabling the separate sale and ownership of ADUs, this legislation aims to increase housing availability and affordability, providing a practical solution to the state's housing challenges.

ADUs are conveyed as condominiums to enable separate ownership from the primary residence, as regulated, in compliance with Davis-Stirling and the Subdivision Map Acts.

Yes, an association or similar entity is necessary for condominiums. Condominiums require clearly defined physical boundaries and delineated responsibilities for owners, which are outlined in the association's governing documents.

Governing documents for separate conveyance of primary homes and ADUs detail property boundaries, delineate common versus private areas (if any), specify owner rights and responsibilities, and include many other important details within key documents like CC&Rs and Bylaws. These governing documents offer a framework for legal, zoning, and planning compliance, essential for effective sale and conveyance.

Securing lienholder consent is essential before selling an ADU, as it involves altering the property's legal and financial structure. Lenders, as primary lienholders, must agree to these changes since they hold a stake in the property. This requirement is in accordance with Assembly Bill 1033, which outlines the conditions under which such conversion can occur.

Homeowners Associations (HOAs) cannot outright restrict ADU sales. However, creating an ADU condominium plan within an existing HOA requires written authorization from the association.

The recording of a condominium plan does not trigger a re-assessment of the property. The county assessor will seek to reallocate the pre-existing assessed value of the whole property to the various separate interest condominium units. Any sale of a unit will result in that unit being reassessed based on the purchase price.

A site condominium constitutes a detached structure situated on and conveyed with its own parcel, established through a recorded condominium plan. A conventional condominium typically involves attached units, where owners hold title only to the interior space and share ownership of the land and common areas.

Hoadu Consulting primarily uses the site condo structure for ADU condominium conversions.

The goal of ADU condo conversion is to make each dwelling separately owned and sellable. In order to maintain habitability, Hoadu Consulting offers resources and access to a network of professionals who can help ensure conformity, preserve privacy, and create comfortable living environments.

Yes, homeowners have the option to hire and retain their own professionals instead of seeking our expertise. It is paramount that all sought professionals are knowledgeable about their roles, can work collaboratively, and are responsive to the project's needs for a fast and effective process.

Hoadu Consulting actively works with Realtors® to provide their clients access to ADU condo conversions. Realtors® recognize Hoadu Consulting as an additional resource for their team and utilize this to help their clients make ADUs sellable.