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San Diego County is advancing a proposal that would allow accessory dwelling units (ADUs) in unincorporated areas to be sold as condominiums — an option made possible under AB 1033, a state law designed to expand homeownership pathways. According to The San Diego Union-Tribune, county planners are “a step closer” to bringing this option forward, though concerns remain about how such changes would affect more rural communities in the region.
AB 1033, signed in 2023, lets cities and counties decide whether to permit ADUs to be sold separately from the main home. Several jurisdictions across California have already adopted these provisions as state officials aim to diversify housing types and boost affordability.
Supporters of the county’s proposal argue that allowing ADUs to be sold as condos could create new entry-level ownership options for local families — something especially relevant as San Diego faces some of the highest housing costs in the state. The Union-Tribune reports that county planners see this as a potential tool for expanding the region’s housing mix.
But the rural context complicates matters. Infrastructure in unincorporated San Diego County is not as robust as in urban and suburban neighborhoods. County staff have raised concerns about increased pressure on septic systems, fire evacuation routes, and roads if condo conversion incentives lead to denser use of rural properties.
The California Department of Housing and Community Development (HCD) has emphasized in statewide guidance that local AB 1033 implementation must still align with infrastructure and safety standards — a point county planners are weighing carefully.
According to official City of San Diego ordinance updates and public statements, the city approved its local AB 1033 ordinance in July 2025, with the policy becoming effective outside the Coastal Zone in August 2025. This means ADUs within city limits can already be converted into condo units if they meet the city’s standards.
However, the new proposal discussed in the San Diego Union-Tribune refers not to the city, but to the County of San Diego, which oversees the unincorporated areas. These rural and semi-rural communities have different infrastructure realities, which is why County planners are evaluating whether similar rules should apply outside city boundaries.
County officials noted that extending condo eligibility to ADUs in unincorporated regions could offer more ownership opportunities — but they also warned that limited water, septic capacity, road access, and emergency services demand careful review.
County planners told the Union-Tribune that rural areas often lack sewer service, have limited emergency access routes, and rely on older road networks. More individually owned units could strain systems.
Condos require formal associations, financial documentation, and regular inspections. County staff cautioned that these administrative burdens might be harder for small rural communities.
State law aims to expand ownership opportunities, but each jurisdiction must determine whether it can responsibly support condo-eligible ADUs.
If the County of San Diego ultimately approves this change, homeowners in unincorporated areas could gain the same opportunity city residents already have: the ability to finance, sell, or inherit ADUs as separate property interests. For now, however, only residents within the City of San Diego have access to AB 1033-enabled ADU condo sales.
San Diego County’s exploration of ADU condo sales reflects a broader California trend: finding creative ways to expand housing access while respecting local constraints. As the City of San Diego moves ahead with its AB 1033 implementation, the County must decide how to balance new ownership opportunities with the realities of rural infrastructure.
According to the San Diego Union-Tribune, the debate is far from over — but the conversation signals how seriously local leaders are treating the challenge of creating more flexible, attainable housing options across the region.
Quick Tip: Check your property’s jurisdiction — whether you live inside the City of San Diego or in an unincorporated part of the County — because AB 1033 eligibility currently depends on that boundary.
Xavier Rodriguez is the CEO of ADU Geeks, San Diego’s leading ADU consulting and project management firm. In 2024, the company was ranked No. 1 on the San Diego Business Journal’s Fastest Growing Private Companies list in the Small Business category, achieving 594.3% revenue growth.
Looking for more ADU news? Continue exploring in-depth articles on California accessory dwelling unit laws, policy updates, and development trends.
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