AB 1033 introduces potential challenges to the safeguards outlined in SB 9, which aim to uphold neighborhood integrity while enhancing homeownership prospects. By allowing for the swift sale and conveyance of ADUs, AB 1033 may inadvertently empower speculative developers to swiftly gentrify and reshape neighborhoods without ample local input.

Regarding the notion of expanding homeownership through condominium conversions, AB 1033 does not explicitly address this concept nor does it provide clear guidelines on how ADUs may be sold or conveyed. If the bill intends to facilitate single-family home conversions to joint interest developments, it must navigate the intricate legal frameworks governing condominium development and conversion requirements.

Concerns also arise regarding mortgage and title complications under AB 1033. Since the bill does not mention condominiums or common interest developments, the typical lender guidelines for condo conversions may not apply. Instead, AB 1033 primarily focuses on ADUs and their separate sale or conveyance, overlooking potential complexities associated with common interest ownership models.

In its current form, AB 1033 lacks clarity on how it addresses common interest development forms of ownership or provides consumer protections. To streamline common interest development conversions, the bill must be thoughtfully drafted to ensure compliance with existing laws governing such developments and uphold consumer safeguards.

While amendments could address some of the concerns raised by the March 9th version of AB 1033, collaboration between stakeholders, including the California Association of Realtors (CAR), and the bill's author is essential. Any amendments should prioritize consumer and homeowner protections and align with existing legal frameworks governing common interest developments and lot splits.

02/03/2024