If you're buying, selling, renting, or are a landlord in California, there are a six important new laws slated to take effect in 2024 you will want to learn about.
Sale of Accessory Dwelling Units (ADUs)
- Assembly Bill 1033 permits homeowners in California to sell ADUs, also known as accessory dwelling units. This could potentially lead to the creation of two- or three-unit condominiums on a single lot. Starting in 2024, property owners in participating cities opting into this program can sell their ADUs separately from the main residence. This change may also necessitate the creation of Covenants, Conditions & Restrictions (CC&Rs) for these condominiums.
Disclosures for Flipped Houses
- Assembly Bill 968 addresses concerns about substandard renovations in flipped houses. If a property is purchased, renovated, and sold for profit within an 18-month period, the buyer must disclose all repairs and renovations made during that time. This includes providing information about each contractor involved and specifying whether permits were obtained for the renovations.
New Fire Hazard Disclosures
- Assembly Bill 1280 expands existing laws on natural hazard disclosures. Sellers are now required to disclose if a property is in a high or very high fire hazard severity zone. The new law introduces subcategories, such as whether the property is in a high fire hazard severity zone in a state responsibility area or a very high fire hazard severity zone in a local responsibility area. Additional disclosures related to defensible space and fire hardening (for properties built before 2010) would be necessary for properties in these zones.
Tenants' Rights
- Three new laws focused on tenant protection will take effect:
- Assembly Bill 12 limits security deposits to one month’s rent in addition to the first month’s rent.
- Landlords are prohibited from discriminating based on the source of income, including Section 8 applicants.
- Assembly Bill 1418 prevents cities and counties from implementing "crime-free" housing programs that require landlords to evict or refuse to rent to individuals with prior criminal convictions.
- Assembly Bill 1620 empowers local jurisdictions to require landlords of units without elevators to allow physically disabled tenants to move into similar ground-floor units while maintaining the same rent rate and lease terms.
Whether you're buying, selling, or investing— we're here to help. Reach out for more information on how these developments may impact you.
Photo: The Abodu One ADU features large windows, white horizontal lap siding in an Arctic white color and granite composite shingles. Learn more at www.abodu.com
