Our Solutions

Transforming Accessory Dwelling Units
(“ADUs”) Into Sellable Properties.

An illustration of two purple houses with a green palm tree behind them.
An illustration of a small blue shrub.

What We Do

  • Consultation

    Get together to understand your objective in detail.

  • Planning

    Prepare our approach to transform your ADU into a sellable home.

  • Boundary Definitions

    Precisely define the physical limits & respective spaces of the property.

  • Document Creation

    Craft the governing documents with our specialized lawyers.

  • Compliance

    Conform to local jurisdictions and remain sound with all relevant laws.

  • Regulatory Filings

    Direct regulatory filings & applications for official adherence.

An illustration of a neighborhood with multiple houses.

Why transform accessory dwelling units into sellable properties?

Transforming your ADU into a sellable home opens new avenues for real estate investment. With recent legislation and enhanced resources in California, the potential of ADUs has been realized. These homes, now capable of operating independently, yield substantial returns on your initial capital by elevating property equity.

Cities are adopting Sellable ADUs

~

Download your Guide

~

ADU Condominium Conversions (AB1033)

~

Cities are adopting Sellable ADUs ~ Download your Guide ~ ADU Condominium Conversions (AB1033) ~

We work with realtors:

Client
Education

Local Compliance Support

Property Investments Groundwork

We work with builders:

New Development Governance

Amenity & Common Area Planning

Association Formation Strategy

An illustration of a small green house.
An illustration of a small blue shrub.

Help Your Clients Transform ADUs Into Sellable Properties

 FAQs

  • 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.

  • 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.