Author: Hank Hernandez

Alameda homeowners will soon have a new option for their accessory dwelling units — and it could change how you think about building one.

What is AB 1033?

Assembly Bill 1033 is a California state law that allows local jurisdictions to permit ADUs to be sold separately from the primary residence, essentially converting them into condominiums. For years, ADUs in California could only be built as rental units or kept as part of the same property title as the main house. With new policies like AB 1033, it’s reasonable to ask: is it time you change how you think about your ADU? AB 1033 changes that — but only in cities that formally opt in with their own local ordinance.

The City of Alameda is now moving toward becoming one of those cities.

The June 22, 2026 Planning Board Meeting

On June 22, Alameda’s Planning Board advanced a proposal that would implement AB 1033 locally, unanimously recommending updates to the City’s Accessory Dwelling Unit ordinance to allow ADU-to-condominium conversions. The draft resolution followed an earlier study session, after which city staff drafted a new process that would permit these conversions. With all these changes, some may wonder: is it time to change how you think about your ADU under the emerging rules? Alameda Post

Support for the change has been building for a while. Back in May, the Planning Board had already signaled broad support for allowing ADUs to be converted into condominiums and sold separately, with board members arguing the policy would expand housing flexibility and create additional pathways to homeownership while posing limited risk to the city’s rental housing stock. Advocacy groups including the Casita Coalition and California Housing Defense Fund have also weighed in, arguing that allowing ADU ownership would expand housing options and create new pathways to homeownership. That leads to the important question: is it time to change how you think about your ADU in Alameda, given these new possibilities?

What This Means for Alameda Homeowners

When the City of Alameda formally adopts an AB 1033 ordinance, homeowners will be able to build an ADU with the intention of eventually selling it as its own condominium unit — separate from the main house. That opens up possibilities that didn’t exist before, and you might be wondering, is it time to change how you think about your ADU strategy?

• A path to homeownership for a family member, adult child, or first-time buyer, without subdividing the lot.
• A new equity tool for homeowners who want to build now and have the flexibility to sell later.
• A smarter long-term investment, since a condo-eligible ADU can appeal to a broader range of future buyers than a rental-only unit.

Of course, converting an ADU to a condo isn’t as simple as flipping a switch. It typically involves preparing a condominium plan, meeting Davis-Stirling Common Interest Development requirements, forming a homeowners’ association for shared spaces and exteriors, and notifying utilities of the new, separately owned unit. Getting the ADU’s design and site plan right from day one makes all of that dramatically easier down the road. Ultimately, this all circles back to one essential question: is it time to change how you think about your ADU, especially with so many opportunities opening up?

Why This Matters for How You Build Your ADU Today

This is where design and construction experience really matter. An ADU that’s built with future condo conversion in mind needs thoughtful separation of utilities, clear boundary lines, durable shared infrastructure, and layouts that hold up to condominium-plan requirements. Now more than ever, is it time to change how you think about your ADU design and construction choices?

At Alameda Tiny Homes, we’ve spent years building ADUs specifically in Alameda. That local focus matters. We know the city’s permitting process, its Planning Board priorities, its lot patterns, and its building department inside and out. As Alameda moves to formally adopt its AB 1033 ordinance, our designs are already well-suited to this new conversion pathway, because we’ve always built ADUs with quality, durability, and long-term flexibility in mind. In light of these changes, it’s worth asking yourself: Is it time to change how you think about your ADU for the future?

If you’re considering building an ADU in Alameda — whether purely as a rental, a home for family, or with an eye toward a future condo conversion — our team can help you design and build a unit that keeps every option open. Given the new laws, is it time to change how you think about your ADU and your broader homeownership goals?

Ready to explore your ADU options in Alameda? Contact Alameda Tiny Homes today to talk through your project and how AB 1033 might factor into your plans.

This article is for general informational purposes and does not constitute legal advice. Homeowners considering an ADU-to-condo conversion should consult the City of Alameda Planning Department and a qualified real estate attorney once the local ordinance is finalized.

The City of Alameda, Alameda Tiny Homes and The California State Legislature agree that the production of Accessory Dwelling Units (ADUs) is an important strategy in the effort to reduce the overall cost of housing in California, and understanding the ADU permit legislation is key.

According to UC Berkeley’s Urban Displacement Project, “Recent state efforts to incentivize the construction of ADUs have resulted in more communities and families building ADUs as a cost-efficient way to address the affordable housing crisis. By further reducing barriers to ADU approval and construction, this legislation will help add tens of thousands of new units to California’s housing stock.”

History

On September 27, 2016, Governor Brown signed three bills into law (AB 2299, SB 1069, and AB 2406), which modify State regulations related to accessory dwelling units (ADUs) in Government Code Section 65852.2.

These new regulations made ADUs legal in all California cities. But in some municipalities, strict local regulations such as parking space and minimum lot size requirements coupled with high permit fees and have hampered ADU development efforts.

Upcoming Changes to ADU Permit Process

This year, new legislation has been passed that streamlines the ADU application process, limits fees, and in general makes the permit process easier for ADUs.

Tell Gov. Gavin Newsom that you support these bills to streamline the ADU Permit process.

Specifically, Senate Bill 13 by Senator Wieckowski, which is currently awaiting signature by Gov. Newsom addresses the issue of high permit fees and other barriers to ADU development, while Assembly Bill 881 removes owner-occupancy requirements. Assembly Bill 68 even allows for two ADUs on the same property.

According to Assembly Member Bloom, author of AB 881, “Although the ADU permitting process has been significantly streamlined as a result (of previous legislation), there continue to be ambiguities in the ADU statute that can slow or block the construction of these units. This has resulted in many ADU permits being significantly delayed or blocked. There are a number of specific deficiencies in existing law that this bill seeks to remedy.”

The California Association of Realtors notes that the bill “will help alleviate our housing shortage while capitalizing on limited land resources.”

Once signed these new regulations go into effect January 1, 2020 making now an excellent time to begin your ADU project with Alameda Tiny Homes.

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One of the benefits of Alameda is year round outside time.  Figuring out how to mesh this with your indoor living will create the perfect oasis.  Your tiny home is not just extra square footage – done right, your new tiny area will complete your visual landscape and complement your main house.

Think about what you’re going to use your tiny home for–is it going to be a guest house or a personal art/ yoga studio?  Do you want privacy or visibility from your main house?  What area of your garden do you want to reserve for growing tomatoes?

So my sister, husband, and 3 cherubic (seriously, they are) nephews and niece came from the East Coast for an Alameda visit. Our home is a modest 1800 sq ft. but we do have a guest room/office with a comfy for 3 days max. Ikea pullout couch. An inflatable toddler bed manages to squeeze in nicely between the wall. My how they had grown. Sleeping bags in the living room, tooth-brushing parties, shoes everywhere…the stuff childhood memories are made of right? Okay, yes but… thank the baby Jesus it was summer with “let’s go back outside” time. I realized then that our 150 sq ft. guest room (a.k.a. home office) wasn’t going to cut it if I wanted to keep my sanity and also make sure my family remained willing to keep making the cross-country trek. Cue the cute backyard cottage–we’re talking about building a guest house.

Imagining their next visit, I would love it if the next time they come, my sister and her husband could wake up to their own room (and real bed!) on East Coast time as they wish, sipping coffee on their private patio. Meanwhile, the kids would be happily camped out on in their own little nook enjoying Peppa Pig in the comfort of their own little space. The chaos of shared spaces would be replaced with room to spread out, get some private time to re-charge, “real” beds for everyone, and maybe even help extend their visits for more quality time. Building a guest house could be a game-changer for helping us build family connections too.

Building a guest house isn’t just about adding extra square footage; it’s about creating a welcoming haven for family and friends. It’s an investment in quality time spent together, minus the stress of cramped living quarters. By providing individualized spaces, we can ensure that everyone is relaxed and can truly enjoy their time together.

Family visits can often be loaded – fortunately with my sister & co. they never have been – but I know that by building a guest house the individual space will make for a more peaceful visit all round.  Tooth-brushing parties will persist.

Written by a man:

With space in the Bay Area at a premium, we are all faced with some potentially difficult choices as to what gets to stay and what gets voted off the island.

This can be even more difficult if you have an active family with ‘gear’. It’s inevitable if you live and play in the Bay Area that you not only need piles of layers for our changing weather but also those more dedicated items like winter wear for Tahoe, the obligatory paddle board or kayak for romps at Crown Beach, a pile of bikes, scooters and wagons, the list can go on and on.

This doesn’t even take into account the earthquake kit, lawn tools, Halloween, and other holiday decorations (yes, we know who you are!). Though if you live on Christmas Tree Lane then you probably have already rented a warehouse so maybe this conundrum doesn’t apply to you.

“Yes!”, you say. “I know, I really should get rid of some of this stuff.”

But let’s face it, some of this stuff needs to stay. Building a tiny home in your backyard may mean that you need to remove that often dilapidated garage/shed thing that is already there. Yes, it may be a little worse for the wear since it was first put together sometime around WWII but it is undeniably useful in keeping the stuff of Bay Area living out of sight.

A big part of taking the plunge to tear down your shed and build a more versatile tiny home is about taking apart our priorities and putting them back together in a more purposeful way.

Even if you can’t bring yourself to offload your worldly goods to Goodwill, do not fear- there are amazing things that can be done through organizing! Ask anyone who has ever lived on boat. If everything has a place and everything is in its place, clutter can be kept under control even in tight spaces.

For my money, deciding to get my inventory under control and organized and stored in manageable ways is a worthwhile proposition not only because it opens the door to a better backyard structure.

A small but liveable space, also known as an accessory dwelling unit (ADU), even one where the closet is well stocked, is so much better than a ramshackle shed or tired old garage.

When you thinking about tiny home decor, look for pieces that can serve multi purpose – a table that can function both as a desk and a dining table, a deep sofa that can double as a guest bed, or an ottoman that can be both a coffee table and bonus seats when guests are over.

Built-ins, storage nooks, and furniture tailored to your exact needs can utilize every available sliver of space.

Buy bigger but fewer furniture. It may seem counter-intuitive, but outfitting a small space with just a few large-scale pieces (rather than a mishmash of pint-size furniture) can actually make it feel grand.