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California AB 1033: A Comprehensive Guide to Separate ADU Sales and Condominium Conversion

ADU Pilot Team

ADU Pilot Team

AB 1033 is reshaping California's ADU market by enabling opt-in condo conversions and separate sales—this 2026 guide details the legal mechanics, city pilots, and investor playbooks.

1. Introduction: A Structural Transformation of the California Residential Market

The implementation of California Assembly Bill 1033 (AB 1033) represents the most significant shift in residential property rights in the state since the inception of the modern condominium in the 1960s. As of early 2026, the transition from a rental-centric Accessory Dwelling Unit (ADU) landscape to a "for-sale" ownership model has moved from legislative theory into a complex, city-by-city market reality. By effectively amending Government Code Section 65852.2, AB 1033 allows local jurisdictions to opt into a framework where ADUs can be sold as separate condominium units. [1]

This analysis provides a granular deep-dive into the regulatory, architectural, and financial mechanics of this transformation, specifically focusing on the primary economic engines of the San Francisco Bay Area and Southern California.

2. The Evolution of the ADU-to-Condo Framework

To understand the 2026 landscape, one must first recognize the historical limitations that AB 1033 was designed to dismantle. For decades, California law strictly prohibited the separate sale of ADUs, maintaining a legal tether between the primary residence and any secondary structures on the parcel. [2] While previous laws like AB 587 and AB 345 provided narrow exceptions for non-profit organizations and qualified low-income buyers, they failed to create a scalable market for middle-income homeownership. [3]

AB 1033, signed by Governor Newsom in October 2023 and effective January 1, 2024, introduced a permissive framework. [5] It does not mandate that cities allow separate sales; rather, it authorizes them to adopt local ordinances that enable the creation of common interest developments (CIDs) on what were previously single-family lots. [1] In these participating cities, a single parcel can be "condo-ized," allowing the primary home and the ADU to be owned by different parties, each with their own deed, mortgage, and property tax bill. [1]

As of early 2026, the market has entered a phase of "normalization." Early adopters like San Jose have completed their first transactions, providing the "proof of concept" necessary for lenders and title companies to standardize their workflows. [8] Simultaneously, other major hubs like Los Angeles and San Diego County are finalizing their own implementation criteria, often incorporating more robust tenant protections and design standards than the initial San Jose pilot. [10]

3. Legislative Context and Interplay with 2025-2026 Housing Laws

The success of AB 1033 in 2026 is inextricably linked to a suite of complementary legislation that has streamlined the construction and legalization of units. For investors, the ability to sell an ADU is only valuable if the unit can be built and permitted quickly.

| Legislation | Impact on AB 1033 Market (2026 Status) | Key Takeaway for Investors | | :--- | :--- | :--- | | AB 2533 | Legalizes unpermitted ADUs built before Jan 1, 2020. [12] | Unlocks a massive existing inventory for condo conversion. [12] | | SB 1211 | Permits up to 8 detached ADUs on multi-family lots. [12] | Enables "micro-condo" developments on single parcels. [12] | | AB 976 | Permanently bans owner-occupancy mandates for ADUs. [3] | Provides the "dual-exit" strategy: rent or sell. [12] | | AB 434 | Requires all cities to offer pre-approved ADU plans by Jan 2026. [12] | Reduces architectural lead times and design costs. [12] | | SB 1077 | Streamlines ADU permitting in Coastal Zones (Guidance by July 2026). [12] | Critical for coastal markets like Santa Monica and Long Beach. [13] |

4. Bay Area Implementation: The Early Adopters and Policy Innovators

The Bay Area has served as the laboratory for AB 1033, with diverse municipalities taking varied approaches to the "condo-ization" of backyard homes.

San Jose: The State's Prototype

San Jose remains the primary reference point for investors in early 2026. After becoming the first large city to opt in (Zoning Ordinance Update PP23-007), the city approved the state’s first ADU condo conversion in August 2025. [5] This milestone, located on Josefa Street near downtown, was completed by AlphaX RE Capital in partnership with the city's Planning, Building and Code Enforcement Department. [9]

The San Jose model is defined by efficiency. The city’s "ADU Ally" program provides dedicated staff to assist property owners through the complex intersection of the Subdivision Map Act and building code compliance. [9] The Public Works Department in San Jose has demonstrated the ability to review parcel maps for ADU conversions in as little as 60 days, a timeframe previously unheard of for condominium subdivisions in California. [9]

For architects in San Jose, the 2026 market has highlighted a clear preference for "corner lot" developments. As analyzed in recent market reports, corner lots allow for the ADU to have a separate street address and a distinct, street-facing entrance. [14] This architectural separation significantly increases the appraisal value of the unit, as it functions more like a standalone single-family cottage than a "backyard" addition. [14]

Oakland: Strategic Density and Multi-Family Integration

Oakland's adoption of AB 1033 in mid-2024 has focused on maximizing the potential of its "Category Two" ADUs—new detached structures on residential lots. [7] Oakland's approach is particularly favorable for investors looking at "micro-developments" where a primary home is renovated and an ADU is added for immediate sale to recoup construction costs.

Architects in Oakland are heavily utilizing the city’s pre-approved plan program to bypass design delays. [16] By 2026, the city has integrated its ADU condo conversion ordinance with SB 1211, allowing for multi-unit detached developments on parcels that were previously limited to just two units. [13] This has led to an emerging trend of "cottage clusters," where three or more units are mapped as a single condominium association on a standard urban lot.

Berkeley: Tenant Protections and the 2026 Building Code

Berkeley presents the most complex regulatory environment for AB 1033 in the Bay Area. While the city council signaled adoption in May 2024, the final ordinance has been shaped by a desire to prevent tenant displacement. [4] As of January 2026, Berkeley's Title 21 (Subdivisions) amendments include a "First Right of Refusal," requiring that any tenant currently living in an ADU be given the first opportunity to purchase the unit after its conversion to a condominium. [19]

Furthermore, Berkeley's implementation is restricted to ADUs constructed after 2002 to ensure they meet modern seismic and safety standards. [19] Architects working in Berkeley must also navigate the 2025 California Building Standards Code (effective Jan 1, 2026), which includes local "reach codes" for energy efficiency that are more stringent than the state baseline. [20] These codes effectively mandate all-electric construction for new ADUs intended for separate sale, impacting the design of HVAC and water heating systems. [20]

5. Southern California Implementation: Scaling for Mass Homeownership

In Southern California, the adoption of AB 1033 is viewed through the lens of the "attainable homeownership" crisis. Major jurisdictions have moved to implement the bill as part of broader "Missing Middle" housing initiatives.

The City of San Diego: Ministerial Conversions

San Diego’s ordinance (O-21989), which took effect on August 22, 2025, allows for the separate sale of both new and existing ADUs via condominium conversion. [5] This is a critical distinction for investors: in San Diego, a "legal" ADU built five years ago can be retrofitted for condo-ization without triggering an entirely new building permit, provided it meets the safety inspection requirements of AB 1033. [5]

San Diego's process is designed to be ministerial, meaning that if an application meets all objective criteria in the ADU Condo Checklist, the city must approve it without a public hearing. [21] However, the city requires a recorded "Primary Residence Buyer Rule" in some circumstances, which aims to ensure that these units serve first-time buyers rather than institutional rental portfolios. [5]

San Diego County: Unincorporated Progress

As of early 2026, the County of San Diego has finalized its own local program for unincorporated areas. Following a December 5, 2025 review by the Planning Commission, the Board of Supervisors held a final hearing in early 2026 to adopt the ADU Zoning Ordinance Amendment. [11]

The County’s program is specifically designed to support "generational wealth transfer," allowing rural and suburban property owners to subdivide their land into "airspace" condos so that children or aging parents can own their units independently. [11] Architecturally, the County maintains a 1,200 square foot maximum for detached units, which is significantly larger than the studio or one-bedroom units typically found in urban LA or SF. [23]

Los Angeles: The "Missing Middle LA" Program

The City of Los Angeles is the largest market currently implementing AB 1033. On January 8, 2026, the City Planning Commission (CPC) reviewed a revised ordinance that officially opts the city into the separate-sale framework. [10] This move is part of the "Missing Middle LA" program, which seeks to modernize the city’s 2019 ADU rules and facilitate for-sale infill housing like duplexes, townhomes, and "backyard condos". [10]

Los Angeles officials emphasize that ADU condos are expected to sell for significantly less than comparable standalone single-family homes, providing a vital entry point for first-time buyers. [10] The LA ordinance also addresses specific concerns regarding "Hillside Fire Zones," requiring enhanced fire-life safety measures for any ADU intended for separate sale in these high-risk areas. [10]

Santa Monica and Long Beach

Santa Monica, which opted in early 2025, has integrated ADU condo sales into its municipal code section 9.31.026. [5] The city's high land value makes these units particularly attractive to professionals seeking to live near tech hubs like "Silicon Beach."

Long Beach is also in the final stages of adoption. Its draft ordinance, released for public review in late 2025, limits the total number of condominium units on a single parcel to four—typically allowing for a combination of two primary residences and two ADUs to be converted. [27] This "four-unit limit" is a strategic move by Long Beach to maintain neighborhood character while still doubling or tripling the density of single-family blocks. [27]

6. Architectural and Engineering Requirements for Separate Sale

For an architect, designing an ADU for "separate sale" under AB 1033 is fundamentally different from designing a "rental" unit. The technical requirements for condominium conversion are significantly more rigorous and must be integrated at the earliest stages of schematic design to avoid cost-prohibitive retrofits.

Fire-Life Safety and Structural Separation

The primary architectural hurdle for condo conversion is the requirement for "one-hour fire-rated" separation. Under the California Residential Code and local amendments (e.g., San Francisco Building Code, Berkeley Building Code), any wall that separates the ADU from a garage or the primary dwelling must achieve a 1-hour fire-resistance rating. [25]

| Architectural Feature | Requirement for Condo Conversion (2026 Standard) | Reference | | :--- | :--- | :--- | | Separation Walls | Must be 1-hour fire-resistance rated (using Type X drywall or masonry). | [25] | | Floor-Ceiling Assembly | For stacked units, must meet 1-hour fire rating + Sound Transmission Class (STC) 50. | [25] | | Egress Path | Minimum 36-inch wide path to public way; max travel distance 125-150 ft. | [25] | | Protected Openings | Windows/doors within 3-5 ft of property line must have fire-resistant glazing. | [29] | | Fire Sprinklers | Mandatory if the primary dwelling is sprinklered or if unit is >1,200 sq ft. | [25] |

In 2026, architects are increasingly specifying "Type VA" (protected wood frame) construction for ADUs intended for sale. This goes beyond the "Type VB" (unprotected) standard often used for backyard sheds or basic rental units, ensuring the structure can meet the long-term durability and safety expectations of a common interest development. [28]

Utility Infrastructure and the Metering Mandate

AB 1033 requires homeowners to notify utility providers of the creation and separate conveyance of the unit. [7] In practice, most participating cities (including San Jose and San Diego) require that each unit have its own independent utility connections for water, sewer, gas, and electricity. [1]

This is often the most expensive component of an AB 1033 conversion. For a rental ADU, many cities allow the unit to "share" a meter with the main house. However, a condominium cannot effectively function with shared utilities, as it creates liability and billing disputes between the separate owners. [3]

  • Electrical: A separate utility meter and a separate service panel are required. [25]
  • Water: Many jurisdictions require a separate water lateral or, at minimum, a city-read sub-meter. [31]
  • Sewer: Independent sewer laterals are often required to ensure that a backup in one unit does not affect the other. [31]
  • HVAC: Mechanical codes (specifically ASHRAE 62.2) prohibit the transfer of air between adjacent dwelling units, meaning separate heating and cooling systems are non-negotiable for separate sale. [25]

Design for "Exclusive Use" and Privacy

Investors and architects must also consider the "marketability" of the unit. A "condo-ized" ADU that requires the owner to walk through the primary owner’s private backyard will have a significantly lower appraisal value. [14] 2026 design trends focus on:

  • Acoustic Fencing: High-quality sound-dampening walls between the primary home’s "Exclusive Use Area" and the ADU’s yard.
  • Window Placement: Utilizing clerestory windows or skylights on the side of the ADU facing the primary residence to maintain privacy for both parties. [29]
  • Independent Address: Ensuring the lot can accommodate a separate mailbox and a clearly defined entry path that does not cross the "private zone" of the main house. [9]

The conversion of an ADU into a sellable asset is not a "permit" process so much as it is a "legal subdivision" process. This requires a professional team consisting of a land-use attorney, a licensed surveyor, and a title officer.

The Subdivision Map Act and the Parcel Map

To create the separate ownership interest, the property owner must file a Parcel Map or a Condominium Plan with the local Planning Department and the County Recorder. [5] This plan must detail:

  • The three-dimensional "airspace" occupied by the ADU.
  • The "Common Area," which often includes the shared driveway, main utility lines, and the structural soil. [6]
  • "Exclusive Use Common Areas," such as a designated parking spot or a private patio. [6]

For investors, the most critical risk factor is "Lienholder Consent." AB 1033 explicitly states that a condominium map cannot be recorded without the written consent of every lienholder on the property. [6]

Lenders have the right to refuse consent, effectively blocking the conversion. [21] Because the conversion changes the legal description of the collateral for the original mortgage, the bank may require:

  1. A Partial Release of Lien: Releasing the ADU portion from the original mortgage.
  2. A Full Refinance: Paying off the existing single-family mortgage and replacing it with two separate "condo" mortgages. [21]
  3. An Appraisal Valuation: Proof that the "Primary Home" still has sufficient equity to cover the original loan amount after the ADU is "split off". [6]

In early 2026, major national lenders are still adapting to this. Investors are finding better success with regional banks and credit unions that have specialized "ADU-to-Condo" bridge loan products.

Establishing the Homeowners Association (HOA)

Even for a two-unit project (one house + one ADU), an HOA must be established under the Davis-Stirling Act. [6] While this may seem like overkill for a backyard cottage, it is a legal requirement to manage shared responsibilities.

  • CC&Rs: The "Covenants, Conditions, and Restrictions" define who fixes the shared driveway or the main sewer line if it breaks. [6]
  • Insurance: The HOA must typically maintain a master insurance policy for the structures, with owners carrying individual "HO-6" condo policies for their interiors. [6]
  • Operating Budget: A nominal monthly fee is usually established to fund a reserve for future maintenance of shared elements. [6]

The "ADU-condo" market in 2026 has begun to show consistent pricing patterns. Data from early adopters in San Jose and San Diego suggests that these units provide a vital "missing middle" price point.

The "60% Rule" of ADU Valuation

A city report from San Jose analyzing early 2025/2026 data indicates that the median ADU condo sells for approximately 60% of the price of the associated main home. [14] For example, on Lantz Avenue in San Jose, a 1,200 sq ft ADU was listed for just under $1.6 million, while the 2,900 sq ft primary home was listed for over $3 million. [14]

This pricing makes the ADU condo the most affordable path to "detached" homeownership. While it is technically a condo, many buyers view it as a standalone cottage, which commands a premium over traditional high-rise condo units that may have higher HOA fees and less privacy. [1]

Return on Investment (ROI) for Investors

For an investor, the AB 1033 pathway offers a superior exit strategy compared to traditional "buy and hold" rental models.

  • Rental Yield: A typical ADU in San Jose rents for $2,000–$2,500 per month, providing an annual ROI of 8–12% on construction costs. [12]
  • Resale Yield: Selling the same unit as a condo can result in an immediate equity gain of $100,000 to $300,000 beyond the cost of construction and mapping. [12]
  • Capital Velocity: The ability to sell the ADU allows an investor to "re-cycle" their capital into a new project within 18–24 months, rather than waiting 15 years for rental income to cover the initial build cost.

Financing and the Fannie Mae 2026 Update

Financing for these units became significantly more accessible in early 2026. Fannie Mae’s updated Selling Guide (SEL-2025-08) now officially allows lenders to include projected ADU rental income when calculating a borrower’s qualifying income for a purchase or refinance. [35]

Furthermore, the Federal Housing Finance Agency (FHFA) has maintained high multifamily loan purchase caps for 2026, requiring that at least 50% of Fannie Mae and Freddie Mac’s multifamily business be "mission-driven" affordable housing. [37] This has incentivized lenders to create innovative mortgage products for ADU-condo buyers, who are often first-time homeowners or middle-income professionals. [36]

9. Regulatory Interplay: SB 1211 and the Future of the Multi-Unit Lot

By 2026, the real "power move" for sophisticated investors is the combination of AB 1033 and Senate Bill 1211. SB 1211 (effective Jan 1, 2025) revolutionizes multi-family lots by allowing up to eight detached ADUs per lot, provided they do not exceed the number of primary units on the property. [12]

In an AB 1033-participating city, an investor could:

  1. Purchase a lot with an existing duplex (2 units).
  2. Add two detached ADUs under SB 1211.
  3. "Condo-ize" the entire property into a 4-unit association.
  4. Sell the two new ADUs to recoup all acquisition and construction costs, while retaining the original duplex as debt-free rental income.

This strategy is currently being pioneered in Oakland and San Diego, where zoning density has been significantly "de-coupled" from traditional single-family restrictions. [12]

10. Conclusion: Strategic Outlook for Professional Stakeholders

As we navigate the first half of 2026, California’s AB 1033 is no longer an outlier policy; it is the cornerstone of a new residential asset class. For architects and investors, the "backyard cottage" has evolved into a sophisticated urban infill project that requires a deep understanding of the Subdivision Map Act, 1-hour fire-resistance engineering, and the nuances of lienholder consent.

Key Recommendations for Architects

  • Pre-Design for Conversion: Always design ADUs with 1-hour fire ratings and separate utility stubs, even if the client only intends to rent the unit initially. Retrofitting these for sale later is three times as expensive as building them correctly on day one. [29]
  • Master the Map: Partner with a surveyor who understands "airspace" condominium plans. The architectural site plan must be perfectly synchronized with the parcel map to ensure "exclusive use" areas are legally enforceable. [6]

Key Recommendations for Investors

  • The "Dual-Exit" Advantage: Target cities with AB 1033 ordinances for your ADU builds. The ability to sell provides a "liquidity event" that acts as an insurance policy against fluctuating rental markets. [1]
  • Early Lienholder Dialogue: If you have an existing mortgage, do not wait until construction is finished to talk to your bank about condo conversion. Secure a "pre-approval for subdivision" letter from your lender before breaking ground to ensure your capital stack is secure. [3]

The 2026 landscape of California real estate is one of "surgical density." By leveraging the condominium model, the state is successfully adding homeownership opportunities in its most exclusive neighborhoods, one backyard at a time. For those who master the technical and legal requirements of AB 1033, the rewards are a combination of high capital velocity and the social impact of creating truly attainable homeownership in America’s most challenging housing market.

References

[1] Consumer's Title Company. "How Senate Bill AB 1033 Impacts California's Housing Market." Accessed January 9, 2026. https://ctccal.com/blog/how-senate-bill-ab-1033-impacts-californias-housing-market

[2] GS ADUs. "Can An ADU Be Sold Separately From The Main House In California? [2025 Update]." Accessed January 9, 2026. https://gsadus.com/blog/can-an-adu-be-sold-separately-from-the-main-house/

[3] Alena Lehrer Real Estate. "How To Convert ADUs into Condominiums with AB 1033." Accessed January 9, 2026. https://alenalehrer.com/blog/how-you-can-best-set-yourself-up-for-when-local-cities-start-implementing-the-rules-of-ab-1033

[4] ADU Geeks. "AB 1033 opens the door to selling ADUs in San Diego." Accessed January 9, 2026. https://www.adugeeks.com/news/ab-1033-opens-the-door-to-selling-adus-in-san-diego

[5] SnapADU. "AB1033: Can you Sell an ADU in California?" Accessed January 9, 2026. https://snapadu.com/blog/ab-1033-future-of-adu-sales-in-california-san-diego-guide/

[6] ADHI Schools. "AB 1033, Explained for California Agents: How Separate-Sale ADUs Actually Work." Accessed January 9, 2026. https://www.adhischools.com/blog/ab-1033-adu-separate-sale-california

[7] Type Five. "An Overview of AB-1033 | Research." Accessed January 9, 2026. https://www.typefive.com/journal/ab-1033

[8] Bay Area Council. "An ADU First in San Jose, Thanks to Bay Area Council Legislation." Accessed January 9, 2026. https://www.bayareacouncil.org/housing-and-sustainable-development/an-adu-first-in-san-jose-thanks-to-bay-area-council-legislation/

[9] City of San José. "NEWS RELEASE: San José Approves the First ADU Condominium in California." Accessed January 9, 2026. https://www.sanjoseca.gov/Home/Components/News/News/6851/4699

[10] Los Angeles City Planning. "Missing Middle LA Fact Sheet." Accessed January 9, 2026. https://planning.lacity.gov/odocument/ddf2591f-04c4-4a7c-a53a-27d9f321f25b/ENGLISH_Missing_Middle_LA_Fact_Sheet_for_Launch_AD.pdf

[11] County of San Diego. "ADU Zoning Ordinance Amendment." Accessed January 9, 2026. https://www.sandiegocounty.gov/content/sdc/pds/longrangeplanning/ADU-ZO.html

[12] ADU West Coast. "California's 2026 Housing Law Updates: What ADU Developers, Investors & Agents Must Know." Accessed January 9, 2026. https://aduwestcoast.com/californias-2026-housing-law-updates-what-adu-developers-investors-agents-must-know/

[13] Streamline Design Group. "New ADU Laws in California 2026 | Streamline Design & Permitting." Accessed January 9, 2026. https://streamlinedesigngroup.com/blog/new-adu-laws-california-2025

[14] Yvonne Yang Homes. "Sell ADUs as Condos in San José — Are Corner Lots the Big Winners?" Accessed January 9, 2026. https://www.yvonneyanghomes.com/post/sell-adus-as-condos-in-san-jos%C3%A9-are-corner-lots-the-big-winners

[15] CapRadio. "San José developers pioneer new California law: selling ADUs as condos." Accessed January 9, 2026. https://www.capradio.org/articles/2025/08/14/san-jose-developers-pioneer-new-california-law-selling-adus-as-condos/

[16] City of Oakland. "Accessory Dwelling Units (ADUs)." Accessed January 9, 2026. https://www.oaklandca.gov/My-Household/Building-and-Remodeling/Homeowner-Projects-Permits/Accessory-Dwelling-Units-ADUs

[17] City of Oakland. "Apply for Detached ADU(s) with Pre-Approved Plans." Accessed January 9, 2026. https://www.oaklandca.gov/My-Household/Building-and-Remodeling/Homeowner-Projects-Permits/Accessory-Dwelling-Units-ADUs/Apply-for-Detached-ADUs-with-Pre-Approved-Plans

[18] DNM Architecture. "California ADU Rules & Regulations Updates for 2026." Accessed January 9, 2026. https://dnmarchitecture.com/california-adu-rules-regulations-updates-for-2026/

[19] City of Berkeley. "REVISED AGENDA MATERIAL for Supplemental Packet 2." Accessed January 9, 2026. https://berkeleyca.gov/sites/default/files/2026-01/2026-01-20%20Item%2021%20Amendments%20to%20Title%2021%20%28Subdivisions%29.pdf

[20] City of Berkeley. "Adoption of Berkeley Building Codes, Including Local Amendments to California Building Standards Code." Accessed January 9, 2026. https://berkeleyca.gov/sites/default/files/documents/2025-11-18%20Item%2028%20Adoption%20of%20Berkeley%20Building%20Codes%2C%20including%20Local%20Amend.pdf

[21] SANDAG. "AB 1033: Permitting Separate Sale or Conveyance of Accessory Dwelling Units as Condominiums." Accessed January 9, 2026. https://www.sandag.org/-/media/2B17084DB9114EC28CC42D953B9685B1.ashx?ref=blog.livenearfriends.com

[22] Santa Cruz County. "Consideration of Assembly Bill 1033 Allowing ADUs to be Sold Separately." Accessed January 9, 2026. https://www2.santacruzcountyca.gov/planning/plnmeetings/ASP/Display/PdfFinder.asp?Type=Agenda&MeetingDate=20250924&MeetingType=1&Filename=012.pdf

[23] SnapADU. "County of San Diego: ADU Regulations & Zoning." Accessed January 9, 2026. https://snapadu.com/california-adu-regulations-zoning/county-of-san-diego/

[24] County of San Diego. "Housing Options." Accessed January 9, 2026. https://www.sandiegocounty.gov/content/sdc/pds/advance/housingoptions.html

[25] Los Angeles County Building and Safety. "Accessory Dwelling Unit (ADU) & Junior Accessory Dwelling Unit (JADU) Guidelines." Accessed January 9, 2026. https://dpw.lacounty.gov/bsd/lib/fp/Building/Residential/Accessory%20Dwelling%20Units/ADU%20Guidelines.pdf

[26] Los Angeles City Planning. "Code Amendments." Accessed January 9, 2026. https://planning.lacity.gov/zoning/code-amendments

[27] City of Long Beach. "CONDOMINIUM CONVERSION FOR ADUS 20.33.001 – Title." Accessed January 9, 2026. https://www.longbeach.gov/globalassets/lbcd/media-library/documents/planning/adus-and-sb9/ch-20_33-adu-condo-conversion_a

[28] SF.gov. "Design an ADU that meets City codes." Accessed January 9, 2026. https://www.sf.gov/design-adu-meets-city-codes

[29] SnapADU. "Fire Ratings & Safety Requirements for ADUs." Accessed January 9, 2026. https://snapadu.com/blog/adu-fire-requirements-california-san-diego/

[30] California HCD. "IB 25-004 Accessory Dwelling Unit (ADU)." Accessed January 9, 2026. https://www.hcd.ca.gov/sites/default/files/docs/policy-and-research/ib-25004-adu.pdf

[31] Better Place Design & Build. "Understanding AB 1033 | Selling ADUs in California." Accessed January 9, 2026. https://betterplacedesignbuild.com/resources/tips/ab-1033-adu/

[32] LegiScan. "Bill Text: CA AB1033 | 2023-2024 | Regular Session | Amended." Accessed January 9, 2026. https://legiscan.com/CA/text/AB1033/id/2832426

[33] Blockchange Real Estate. "Is San Jose Real Estate Too Expensive? A 2025 Cost Breakdown." Accessed January 9, 2026. https://blockchangere.com/blog/is-san-jose-real-estate-too-expensive-a-2025-cost-breakdown

[34] San Jose Highrises. "Downtown San Jose Condo Market Update, What 2025 Reveals About 2026." Accessed January 9, 2026. https://www.sanjosehighrises.com/pages/blogDowntownSanJoseCondoMarketWhat2025RevealsAbout2026.htm

[35] North Carolina Appraisal Institute. "Fannie Mae Expands Use of ADU Rental Income in Loan Qualification." Accessed January 9, 2026. https://www.ncappraisalinstitute.org/index.php?option=com_dailyplanetblog&view=entry&year=2025&month=10&day=22&id=993:fannie-mae-expands-use-of-adu-rental-income-in-loan-qualification

[36] ADU Geeks. "Fannie Mae now allows ADU rental income to help buyers qualify for mortgages." Accessed January 9, 2026. https://www.adugeeks.com/news/fannie-mae-now-allows-adu-rental-income-to-help-buyers-qualify-for-mortgages

[37] FHFA.gov. "U.S. Federal Housing Announces 2026 Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac." Accessed January 9, 2026. https://www.fhfa.gov/news/news-release/u.s.-federal-housing-announces-2026-multifamily-loan-purchase-caps-for-fannie-mae-and-freddie-mac

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