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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