New “Tiny Home” Laws for California

[Ken and Ari Walker]

To increase the availability of affordable housing more rapidly, the California legislature has approved several new laws effective in 2024 relative to ADUs. Here is a summary of some of them: 

• AB1033: Allows ADUs to be sold separately from the homes they are associated with. 
• SB 897: For all attached ADUs the new height maximum is twenty-five feet or what is allowable under the zoning code, whichever is greater. 
• SB 4: Ensures that churches, faith institutions, and nonprofit colleges will be able to build 100% affordable housing on their land. 
• AB 976: Removes the ability of local agencies to set owner-occupancy requirements for newly created ADUs in exchange for a requirement that any rental agreements for the ADU must be for 30 days or longer. 

A variety of ADU financing options have emerged, also. An example of counties promoting ADUs is Napa’s new affordable ADU loan program which provides forgivable construction loans for new ADUs in exchange for a commitment to rent such properties to households earning up to 80% of the area median income for five years. Loans range from $5,000 for a studio to $105,000 for a two-bedroom. 

ADUs is a new way for first-time homebuyers to build equity. Since 2016, 72,063 permits have been issued statewide. When 2023 results are included, the results could bring the total number of permits to nearly 100,000! 

Best,  

Ken & Ari Walker - Your Direct Private Money Source  

 

Husband & Wife Team  

Phone: [phone] / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401 
Ken: CA DRE Broker #01858042 / NMLS #1221130 
Ari: CA DRE #01858152 / NMLS #2170867 

 

Bio: Ken & Ari are a husband & wife team with over 30 years of combined real estate and private money lending experience.   They like working with buyers & borrowers, as well as directly with other licensed individuals who have clients in need of fast & alternative financing, and who can benefit from Private Money mortgages. (Qualify for our financing despite DTI ratios, credit score, property condition, difficult to prove income, etc. on purchases and refinances for owner occupied & investment properties.)