Whether you're a home buyer, seller, landlord or tenant, there are several new laws set to go into effect in California in 2024 that will impact housing. Here are six laws you should know about:
The sale of accessory dwelling units
Accessory dwelling units, also known as ADUs, have often been rented out by homeowners in California. Assembly Bill 1033 will now allow ADUs to be sold, which could in effect create two- or three-unit condominiums on a given lot.
Effective in 2024, property owners in participating cities that decide to opt-in to the new program will be able to sell their ADUs separately from the main residence.
This also would mean Covenants, Conditions & Restrictions (CC&Rs), the set of rules governing the use of a certain piece of real estate in a homeowners association, would need to be created for these condominiums.
Disclosures for flipped houses
In an effort to mitigate the risks of shoddy renovations to buyers of flipped houses – those that are purchased, rehabbed and sold for a profit – Assembly Bill 968 expands existing sales disclosure laws. Anyone who purchases a home and flips it within an 18-month period must disclose all repairs and renovations made to the property during that time. The name of each contractor who performed work and whether a permit was obtained for each renovation also must be disclosed.
New fire hazard disclosures
Existing law requires a seller to disclose natural hazards, including whether a property is in a high or very high fire hazard severity zone, to a prospective buyer through the Natural Hazard Disclosure Statement. Assembly Bill 1280 expands this criteria and establishes subcategories, including as to whether the property is located within a high fire hazard severity zone in a state responsibility area, very high fire hazard severity zone in a state responsibility area, or very high fire hazard severity zone in a local responsibility area.
If the property is located in any of these zones, the defensible space and (for properties built before 2010) fire hardening disclosures would then be required.
Tenants' rights
Three new laws aimed at protecting tenants are set to go into effect at the start of the year.
Assembly Bill 12 limits the amount landlords can require in security deposits to just one month’s rent in addition to the first month’s rent. California landlords also cannot discriminate on the basis of an applicant’s source of income, which means they must consider Section 8 applicants.
Assembly Bill 1418 prohibits cities and counties from enacting “crime-free” housing programs and nuisance ordinances that require landlords to evict or refuse to rent to those with prior criminal convictions.
Assembly Bill 1620 allows local jurisdictions to require landlords whose units don’t have elevators to allow physically disabled tenants to move into similar units on a ground floor and keep the same rent rate and lease terms.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
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Comments
Registered user
Another Palo Alto neighborhood
on Jan 1, 2024 at 10:08 am
Registered user
on Jan 1, 2024 at 10:08 am
Ugh. So now these ADUs can be built and then sold to bring income to the original homeowner. It asks the question about whether someone renting a single family home may suddenly lose part of their yard at the whim of the owner and various other questions of practicality.
Once again, this is not something that is likely to harmonize relationships between neighbors. For the past 5 or 6 years there has been long term building work going on with 3 close neighbors to my home and these are just about ending and now another house half a block away is just starting. The peace and tranquility of our quiet street no longer exists, parking is abominable particularly during the day with construction vehicles and no end in sight of the disruption and noise.
Registered user
another community
on Jan 1, 2024 at 4:31 pm
Registered user
on Jan 1, 2024 at 4:31 pm
New normal, Bystander. PA (especially in the street food court neighborhood) is becoming heavy equipment and line-of-sight restricted due to the same with no reprieve. We traded tall trees for heavy equipmment and cranes atop buildings where I never see construction workers. I think PA has bitten off more than they can chew, and it has extremely low curb appeal and in general looks like a war zone. Those houses that are selling for millions are not looking to relocate to another neighborhood in PA, they all seem to be moving to Idaho. They'll be happy to sell it all. There's really no incentive to split it up without a parking easement of some kind, but whatev. Bad ideas beget more bad ideas.
Registered user
Adobe-Meadow
on Jan 2, 2024 at 11:05 am
Registered user
on Jan 2, 2024 at 11:05 am
Let's start with some facts.
Water - you get a message from the city each month on your water usage with admonishes on how to use less. Each city is allocated x amount of water based on the supply. they are measuring this week and we have less than last year. Less rainfall, less snowpack. You are billed with how much you use.
Electricity - over this weekend SF, SJ and PA had power outages. there is only X amount of electricity to go around.
An ADU has to be on a separate system and connection to the sewer line. A property is billed on all of this.
Who thinks this all up? People who are clueless about how this all works out and other people who vote yes on it - further clueless people.
The biggest problem in this state is that the people in the legislature have no clue on what the state agencies are doing, what their limitations are, and have little financing to solve the state issues on their topic.
They are building a house of cards that will fall over and engulf everyone. You cannot isolate topics without input from the state agencies that are required to support the project.
And the state cannot legislate opposing agendas for taxpayer supported agencies. This state is out of control and it is reducing the budgets of the agencies that have to provide "supply" to the "demand".
Worse - people who are on the PACC keep trying to implode lack of common sense onto the situation at hand. You have a slew of empty buildings that can be converted. You have enough to meet the goal if you work the empty building stock. Making an ADU a separate unit from the base property is a nightmare in process.
Registered user
Embarcadero Oaks/Leland
on Jan 2, 2024 at 1:00 pm
Registered user
on Jan 2, 2024 at 1:00 pm
And with Silicon Valley office vacancy rates at almost 30% I again ask when this area will do what other areas are: consider converting vacant offices to housing instead of destroying existing neighborhoods.
Tick tock.
Registered user
Adobe-Meadow
on Jan 8, 2024 at 2:04 pm
Registered user
on Jan 8, 2024 at 2:04 pm
Did the "legislators" check with the County which controls the Property Tax issues? Each of these sold ADU's need to be billed for property tax. And billed for utilities used. Imagine the techie who takes out a mortgage to buy one, gets fired, and has to leave the state. The mortgage company owns the property and will put in someone else.
If you had techies before now you have someone else, or a whole series of someone else's. You have children in your house. WOW - that is not what you planned on. Taking control of personal property is the goal here - they won - you lost.