La Jolla Property Owners Can Profit from New State Law Allowing Sale of Auxiliary Dwelling Units

La Jolla, California – Assembly Bill 1033, a new state law that recently came into effect, has the potential to reshape neighborhoods in La Jolla. The law allows for the separate sale of auxiliary dwelling units (ADUs) built on residential properties. This concept, known as “condoization,” involves dividing traditional single-family lots into multiple-family lots, granting separate ownership rights to different parties. While some property owners may see this as an opportunity to sell their ADUs, others have concerns about living next to multiple units or a condominium complex.

Similar to a state law in California that allows up to 10 units per parcel without environmental oversight, AB 1033 grants individual cities the power to decide whether they want to participate. This flexibility is not new, as other cities across the country, including Seattle, Austin, Portland, and Princeton, have already implemented similar programs to address their housing crises.

However, implementing AB 1033 in La Jolla may face challenges. The area already grapples with limited neighborhood parking, traffic congestion, and infrastructure strain. Additionally, there are concerns about how this law may impact the character of the community, as it allows for a significant transformation of residential areas.

Deciding whether to opt into the program or oppose it will be the responsibility of the San Diego City Council. The council’s decision will require careful consideration of the potential benefits and drawbacks of AB 1033, taking into account the concerns of both property owners and the broader community.

It is important to note that while a “no” vote may be cast now, it does not necessarily mean a permanent rejection of the law in the future. The ever-changing landscape of housing demands and the need for innovative solutions may lead to reevaluations in the future.

The implications of this law on private property rights and the future of La Jolla neighborhoods will undoubtedly spark discussions and debates throughout the year. Only time will tell if AB 1033 can strike a balance between providing homeowners with new opportunities and ensuring the preservation of the community’s character and quality of life.

[Author’s Note: Mark Powell is a real estate broker and co-founder and owner of Discovery Property Group.]