Need help understanding CC&R covenant for homebouying

[Deepak Tripathy]

Hi Everyone,

I have liked a Single Family home in Vallejo, CA and put in a contract. However I received the disclosures as well as the CC&R after sending the offer. I wanted to stay in the property and rent out after a year as well as add a shed+ADU. But I think I hit a wall. The CC&R seems to me too much restrictive. I have attached images of the offending lines below and mainly asking about C1 & C7.

1. Can somebody please take a look and give me a little consolation if I can possibly be able to rent it out? If I can add shed+ADU, that will be even better.

2. Do most homes come with these types of restrictions? How you guys are managing to find unrestricted properties?

Appreciate and thanks.

[Dan H.]

California ADU laws do not allow HOAs to prohibit ADUs. If the proposed ADU meets the state ADU regulations, the HOA cannot legally prohibit it. Any HOA regulation that is more limiting than the state ADU regulations is void. This implies that min/max state setback, size, parking regulations are the regulation to apply in the case of local regulations (city, county, HOA) are more restrictive.

I recommend you become familiar with the current state ADU regulations (sb1069, SB13, ab68, ab881, b68, ab587, ad670, ab671) if you plan to add an ADU. Also make sure you know how the ADU will be valued. It is not uncommon for ADU additions to be valued at $50k to $100k below the hands off addition costs.

Good luck