City of Santa Monica
Status: Active
Ordinance: 2786 (CCS)
Santa Monica is among California’s early coastal cities to implement AB 1033, officially enabling homeowners to sell qualifying accessory dwelling units (ADUs) as separate condominiums. That means your backyard cottage can become its own independently deeded home — with its own title, financing, and resale potential — in one of the most valuable real estate markets in the country.
Key Highlights
Fast Approval
ADU-to-condominium applications are processed ministerially and exempt from CEQA review, with required city action within 60 days once a complete application is submitted. That means no discretionary hearings and far less uncertainty than traditional condo conversions.
Reduced Fees
Santa Monica exempts ADUs under 500 square feet from developer impact fees, and units under 750 square feet avoid general impact fees — significantly lowering the upfront capital required before pursuing a separate sale.
Build Flexibility
Santa Monica allows homeowners to combine AB 1033 with state Density Bonus concessions, including potential relief on height and setback standards. On smaller coastal lots, that flexibility can materially increase the long-term value of a sellable ADU.
Santa Monica Opened the Door to Backyard Condo Sales
Santa Monica has formally integrated AB 1033 into its municipal code, allowing qualifying ADUs to be subdivided as condominiums and sold separately from the primary residence. Through compliance with the Subdivision Map Act and the Davis-Stirling Act, a single parcel can now be legally transformed into a two-unit condominium project — each with its own ownership rights.
Both single-unit and multi-unit development parcels may qualify, provided the ADU meets zoning standards and receives final approval before the condominium plan is recorded. Written lender consent is required if the property carries an existing mortgage, and shared elements such as driveways or utilities must be governed through a homeowners association structure.
The pathway is active and codified under SMMC §9.31.026. Santa Monica has published official guidance confirming that ADU condominiums are permitted and outlining the development standards and subdivision requirements for separate sale.
In a city where single-family homes often exceed multi-million-dollar price points, ADU condominiums introduce a smaller ownership tier without altering neighborhood character. For homeowners, this creates new flexibility — whether monetizing backyard equity, downsizing strategically, or transferring a deeded asset to the next generation.
Santa Monica Coverage & Policy Resources
Ready to Explore an ADU Condo Conversion in the City of Santa Monica?
If you own an ADU in Santa Monica and want to evaluate whether condominium subdivision is realistic for your property, we can help you assess zoning standards, subdivision requirements, and financing considerations with clarity and confidence.