AB 1033 and Santa Barbara County: Can You Sell an ADU Separately in 2026?
California's ADU condominium law is finally producing real sales — here's what AB 1033 does, where Santa Barbara County stands today, and how local homeowners can get ahead of it.
The short answer: AB 1033 is a California law that lets homeowners sell an accessory dwelling unit (ADU) separately from the main house, as its own condominium — but only in cities and counties that have opted in and passed a local ordinance. As of mid-2026, Santa Barbara County and its cities have not yet adopted AB 1033, so ADUs still cannot be sold separately here. That could change, and there are smart ways to prepare now.
For years, one hard rule defined accessory dwelling units in California: you could rent your ADU, but you couldn't sell it apart from your main home. AB 1033 was written to change that — and in July 2026, the very first standalone ADU sale in state history closed in San Jose. That milestone has Central Coast homeowners asking a fair question: can I do the same thing with my ADU in Santa Barbara County?
Here's an honest, practical breakdown of what AB 1033 does, where our county actually stands, and how to position your property for the future.
What Is AB 1033?
AB 1033 is a California law, signed in October 2023 and effective January 1, 2024, that authorizes cities and counties to allow the separate sale or conveyance of an ADU as a condominium. Under the framework, a single residential lot can be legally divided into individually owned condominium units — the primary home and the ADU — using the Davis-Stirling Common Interest Development Act, the same body of law that governs traditional condos. Importantly, AB 1033 does not create new ADU types, loosen construction standards, or override local zoning. It only changes what can happen to a permitted ADU after it's built: it can potentially become a separately sellable home.
The Catch: AB 1033 Is Opt-In
This is the part that trips up most homeowners. AB 1033 does not automatically apply anywhere. It's a local-option law, meaning a city or county must affirmatively pass its own ordinance to enable separate ADU sales. Until a jurisdiction adopts that ordinance, the default statewide rule still applies — and ADUs cannot be sold separately.
As of mid-2026, only a small number of California jurisdictions have opted in, including San Jose, Santa Monica, and unincorporated San Diego County. San Jose approved the first condominium conversion in August 2025, and the first arms-length sale of a standalone ADU closed there in July 2026 for $530,000 — proof the process now works, but also a reminder that it took nearly a year from approval to closing.
Has Santa Barbara County Adopted AB 1033?
Not yet. As of mid-2026, neither Santa Barbara County nor its incorporated cities — including Santa Barbara, Goleta, and Carpinteria — have adopted an AB 1033 ordinance. That means separate ADU sales are not currently available anywhere in the county, whether your property is in Montecito, the Mesa, Goleta, Carpinteria, or the Santa Ynez Valley.
This can change. Local governments across California are watching the early adopters, and adoption tends to move in waves as cities see how the process plays out elsewhere. If Santa Barbara County or one of its cities does move forward, the change would come through a public ordinance process — something worth watching if separate sale is part of your long-term plan.
Bottom line for now: If someone tells you that you can build an ADU in Santa Barbara County today and sell it separately, that's not accurate under current local rules. What you can do is build smart and be ready if the county or your city opts in.
How the ADU Condo Conversion Process Works (Where It's Allowed)
In jurisdictions that have opted in, selling an ADU separately is closer to a small condominium development than a simple sale. The typical steps include:
A condominium map and plan. A surveyor prepares the documents that legally divide the lot into separate condominium units, which are then recorded with the county.
CC&Rs and an HOA. The property gets covenants, conditions, and restrictions, plus a homeowners association to handle shared responsibilities — even for just two units.
Lender consent. This is the biggest hurdle. Every lender or lienholder on the property must give written consent before the condominium map can be recorded. Some homeowners end up refinancing or paying off their mortgage to move forward.
Real costs. Legal, survey, and filing fees commonly run in the range of $15,000 to $30,000 before construction or utility upgrades.
None of this is a quick flip. It's a deliberate, document-heavy process best treated as a long-term strategy.
How AB 1033 Could Help Santa Barbara County Homeowners
If our county does adopt AB 1033 down the road, the upside for Central Coast owners could be significant:
A new exit strategy. Instead of only renting your ADU, you could sell it as a standalone home — unlocking equity without selling your primary residence.
Access to a high-value market. In an area with Santa Barbara County's home values, a separately sellable ADU could represent meaningful, realizable equity.
A homeownership pathway. Condo-ized ADUs can create a more attainable entry point for buyers in a market where full single-family homes are increasingly out of reach.
Flexibility over time. You could build for rental income now and keep the option to sell separately open for later.
What Santa Barbara County Homeowners Can Do Now
Even without a local ordinance in place, there are practical steps that keep your options open:
Build to condo-compatible standards. If you're planning an ADU, thoughtful choices around separate utility metering, dedicated access, fire separation, and soundproofing can make a future conversion far easier.
Understand the coastal-zone layer. Much of Santa Barbara County sits in the Coastal Zone, which can add permit steps and conditions to any ADU project. Factor that in early.
Talk to your lender and a tax professional. Because lender consent and property-tax treatment are central to any separate sale, it's worth understanding your specific loan and tax picture before you commit to a plan.
Watch for local action — with guidance. If separate sale is a goal, keeping tabs on county and city ordinance activity matters. I'm glad to help you stay informed as things develop.
Frequently Asked Questions
Can I sell my ADU separately in Santa Barbara County right now?
No. As of mid-2026, Santa Barbara County and its cities have not adopted an AB 1033 ordinance, so separate ADU sales are not currently permitted here. AB 1033 only takes effect where a local government has opted in.
What does AB 1033 actually do?
It authorizes California cities and counties to allow ADUs to be sold separately from the primary home as condominiums, using the Davis-Stirling Act. It does not require them to do so, and it doesn't change ADU construction or zoning standards.
Which California jurisdictions have opted into AB 1033?
As of mid-2026, opted-in jurisdictions include San Jose, Santa Monica, and unincorporated San Diego County. San Jose recorded the first standalone ADU sale in California history in July 2026.
How much does an ADU condo conversion cost?
Where it's permitted, legal, survey, and filing fees commonly run about $15,000 to $30,000, before any construction or utility upgrades. The process also requires written consent from every lender on the property.
Should I still build an ADU in Santa Barbara County if I can't sell it separately yet?
For many owners, yes. ADUs still provide rental income, space for family, and added property value. Building to condo-compatible standards keeps the door open in case the county or your city adopts AB 1033 in the future.
Curious What an ADU Could Do for Your Santa Barbara County Property?
Whether you're weighing rental income today or keeping an eye on a future separate-sale opportunity, I'm always glad to talk it through — no pressure, just a clear, honest conversation about what makes sense for your property and your goals.
Johannes Steenkamp, Realtor® — Keller Williams Realty, Santa Barbara
📞 805-886-6581 | ✉️ jsteenkamp@kw.com
🌐 www.johannessteenkamp.com | CalDRE# 02057072 · SFR · SRES
This article is provided for general information only and is not legal, tax, or construction advice. ADU and condominium laws and local ordinances change; please confirm current requirements with your city or county planning department and the appropriate licensed professionals before making decisions.