San Diego County Approves AB 1033: ADUs Can Be Sold Separately Starting April 2026

What This Means for San Diego County Property Owners

AB 1033 allows homeowners to convert their ADUs into condominiums and sell them independently from the main residence. This creates significant new opportunities:

Financial Benefits: Property owners can realize immediate returns on ADU investments rather than waiting years for rental income accumulation. Selling an ADU as a separate unit typically generates higher total property value than keeping both structures under single ownership.

Market Expansion: The policy creates a new buyer pool, particularly first-time homebuyers who may afford a smaller ADU unit but cannot purchase a full single-family home. In Pacific Beach and surrounding areas, where median home prices exceed $1.2 million, ADU condos could offer entry points in the $400,000-$700,000 range.

Conversion Costs: Property owners should budget $20,000-$45,000 for the condominium conversion process, separate from ADU construction costs in Pacific Beach. This includes approximately $20,000 in county filing fees plus $20,000-$25,000 for private survey and engineering work required to create the legal subdivision.

Implementation Timeline: The county will present additional first-time homebuyer support options within 120 days (by July 2, 2026). These programs may include owner-occupancy requirements and purchasing assistance specifically designed for ADU condo buyers. For background on how this ordinance came to be, see the earlier Planning Commission approval of AB 1033.

Tenant Protections and First-Time Homebuyer Focus

The approved ordinance includes important protections and priorities:

Tenant Purchase Rights: Existing tenants living in ADUs will receive first right of refusal when owners decide to sell. This protection ensures renters have the opportunity to purchase their units before properties go to market, potentially creating pathways to homeownership for current residents.

First-Time Homebuyer Programs: County staff will develop specific programs within 120 days to support first-time buyers purchasing ADU condos. While exact details remain under development, these initiatives aim to make ADU ownership accessible to buyers traditionally priced out of San Diego's housing market.

Geographic Coverage: The county ordinance applies to unincorporated areas throughout San Diego County. Property owners from Tourmaline Surfing Park to Bird Rock, including Pacific Beach, La Jolla, and Mission Beach, should note that most of these neighborhoods fall under City of San Diego jurisdiction (where AB 1033 has been effective since August 2025), though some portions near La Jolla Shores remain unincorporated and newly covered under the county ordinance. Coastal properties in these areas may also require coastal development permits for ADU projects.

What Happens Next

San Diego County's unanimous approval of AB 1033 represents a major shift in how ADUs can be developed, marketed, and sold throughout the region. With implementation beginning in April 2026 and first-time homebuyer programs arriving by July, property owners have a narrow window to prepare for conversion applications.

Whether you're planning new ADU construction with future sale in mind or considering converting an existing unit, understanding the timeline and requirements now positions you ahead of the market. If you need guidance on your specific project, contact our team to discuss AB 1033 compliance strategies. Pacific Beach Builder specializes in ADU design and construction optimized for AB 1033 compliance.