ADU STR workaround?

Question

The planning department says that once ADUs are installed, none of the units on the property can be rented for less than 30 days. There was only one unit out of 5 that I wanted to rent out short term (my own when I'm gone).

Is this local ordinance verified by the city and if so, what are the ways around it, like possible SB1033 and condo out the units or something else?

John Underwood · Answer

When I hear work around.

I hear " I know this is illegal but is there a way I can do it anyway?"

Talk to the people that enforce the rules and see if there is a way to do this without breaking the rules and getting in trouble.

If not, then just don't do it.

Dan H. · Answer

SB1033 is likely useless for your intent as it allows jurisdictions to Set their own requirements which is exactly what existed prior to SB1033.

It is no different than other RE related laws that allowed jurisdictions to do something.  In general, these jurisdictions already had the capability to do what the law now states the jurisdiction can do and in general the jurisdictions do not decide to participate.  See SB10 for an example. Last I heard one city had opted in.  City of San Diego initially was going to opt in, but the backlash was significant enough that it appears it is not happening any time soon.

I suspect a jurisdictions will proceed with zoning rules that meet their goals without any significant consideration of Sb1033.  If allowing ADUs to be sold as separate units aligns with their goals, it will happen.  However, I suspect most jurisdictions will not be going this direction any time soon.

Good luck

Bruce Woodruff · Answer

a) You should say where you are if you want specific advice.

b) The only work-around you'll get if you sneak around any Planning Dept is a hefty fine (in my experience)

Dan H. · Answer

My response was specifically in using AB1033 to perform a condo conversion.

It is my belief that AB1033 does not grant any powers that a jurisdiction did not already have and is unlikely to be of any assistance in the condo conversion.  If the jurisdiction would have allowed the conversion prior to AB1033 (probably unlikely without large costs) then you likely will be able to do the conversion.  If it did not allow the conversion to condos prior to AB1033, then it is virtual certainty that it will not be allowed any time soon.  I would recommend you find the exact wording that makes the existing home not eligible to STR.  Verify the interpretation seems to match the wording.  I will state that some mid-interpretations are difficult to overcome.  It is my belief that jurisdictions that are applying rent control to existing units that are over 15 years are mis applying the rule and I base my opinion on 1) what senator wienkowski has indicated 2) the rational of the 15 year exemption (to not discourage adding units).  However, the jurisdictions continue to apply rent control to older units when an ADU is added.  It seems like pointing to the rationale for guidance on interpretation is useless.

Good luck

Collin Hays · Answer

Sure seems like a work around epidemic!

K S. · Answer

Thanks, can't find anything because they have not adopted SB1033 as of yet. But true, since it's allowed now, I guess it would be allowed after I condo it out. But I guess I can ask later to be sure. Not sure how many free email advice I get from them before they start charging.

Matt Devincenzo · Answer

@K S. unfortunately I'm not familiar enough with SB to comment specifically on what you were told. That said my go to 'line' in situations like this is something to the effect of: "Thanks for clarifying that requirement for me, could you point me to the specific section or sections in the code that covers this?" In your case another question could be "Could you share the code section on STR guidelines for condos in the area?"

There are plenty of times that planners are 'interpreting' a section that doesn't say exactly what they imply it does. That interpretation may be the policy and what Senior management are directing, but being clearly specified in the code vs. a policy/interpretation can have two different ways of resolving it. In San Diego I'm familiar with the codes and I know how and where to look myself, but I still ask those questions because I want them to tell me where they think the requirement comes from. If possible I use that same section to refute the requirement...or provide an alternate path to approval.

Once you have the specific section they reference go look it up and read it yourself, and see if you can do the same. Does it actually say what they're telling you it does? If it does, does it also have a section that gives another option? Or does it provide details for when it applies that  maybe don't apply to your site? All are reasonable options to identify how you meet the code when it is correctly applied.

Matt Devincenzo · Answer

I do land use planning in SoCal but not SB specifically. From a quick read of the SB ordinance I don't think you adding the ADU has anything to do with it. Their STR ordinance only allows STR in mountain and desert areas and does not allow it in MFR structures at all. So adding the ADU isn't somehow making the site ineligible for a STR, the use as MFR is what makes it ineligible.

Of course site specific details could change my take above, but based on what you shared you need to buy a SFR in the two allowable areas above in order to obtain a STR permit.

K S. · Answer

I thought I mentioned SoCal but it's San Bernadino to be more specific. So SB1033 is a new CA bill that was passed to allow you to condo out your units which creates separate APNs. I believe this means you can short term rent them again as your ADU is no longer an ADU. I already tried contacting a permitting attorneys but thought someone would know better.

Side note for the goodies, local ordinance is not a federal law and is not subject to jail time as far as I know.

So I'm designing the two ADUs with that in mind and putting them on their own power, water and sewer in case I 1033 in the future.

ADU STR workaround?

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