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Selling Your Sebastopol ADU: What AB 1033 Allows

  • September 10, 2026

"We just have infrastructure that's crumbling everywhere," Mayor Jill McLewis said on the dais in January, according to Sebastopol Times. She cast the lone dissenting vote as the rest of the Sebastopol City Council approved a rule allowing homeowners to sell their accessory dwelling units as separate, individually owned homes.

Eight months later, the first practical question for an ADU owner is whether the parcel is inside Sebastopol's incorporated boundary. The city has opted into AB 1033; unincorporated Sonoma County has not. The vote made separate sales possible within city limits, but it did not make every ADU sellable.

What The Ordinance Actually Changed

On a 4-1 vote in January 2026, Sebastopol became the first city in Sonoma County to opt into Assembly Bill 1033, the 2024 state law that lets local governments allow homeowners to convert an ADU into a legally separate condominium and sell it to its own buyer. Before this, state law required an ADU to travel with the main house on a single title, no matter how independent the unit actually was. Councilmember Phill Carter, who had campaigned on the issue, framed it as a way to convert existing granny units and future ones into a genuine ownership path for first-time buyers and downsizing seniors. Jen Klose of the housing advocacy group Generation Housing backed the move publicly, arguing that the long-term property tax revenue from new owner-occupied units would outweigh any one-time cost to the city.

Sebastopol was not the first city in California to opt in. San Jose moved first back in 2024 and completed the state's first ADU condo sale in the summer of 2026. But among Sonoma County's cities and unincorporated area, Sebastopol went first, and as of mid-2026 it remains one of only a handful of California cities to have adopted the law at all.

The Paperwork Path Nobody Skips

Once a city opts in, the mechanics of an actual conversion are procedural rather than optional. A homeowner working through an AB 1033 sale in Sebastopol has to clear each of these in sequence:

  • A finished Certificate of Occupancy on the ADU before any condo map can be filed. You cannot run construction permitting and condo mapping side by side.
  • Written consent from every lender holding a lien on the property is required before the condo map can be recorded, as the California Department of Housing and Community Development explains.
  • A condominium plan that complies with the Subdivision Map Act and the city's own subdivision rules.
  • Formation of a homeowners association under the Davis-Stirling Common Interest Development Act, since a condo conversion legally requires shared-space governance even when the "shared space" is a driveway and a fence line.
  • Final recording of all of the above with the county recorder before a sale can close.

City fees for the planning application run from $500 to $1,500, according to reporting in the Press Democrat. That number is manageable. It is also the smallest cost most sellers will face.

Water and Wastewater in Sebastopol and Sonoma County

Sebastopol runs its own municipal water system, drawn entirely from a handful of city wells inside city limits, according to the city's own water and wastewater page. That covers the homes and lots that sit within the incorporated city boundary. It says nothing about the acreage parcels, the country lots, and the older rural properties just outside city limits, where the ADUs with the most room to be genuinely separate from the main house tend to sit, and where the water and waste systems are private wells and septic fields, not a city main.

Permit Sonoma, the county division that reviews every well and septic application in the county, states plainly on its own site that Sonoma County's soils are notoriously poor for septic systems. That is not a marketing caveat. It is the reason the county runs an entire Operational Permit and Monitoring program for septic systems with supplemental treatment, requiring owners to submit self-monitoring reports every March and October, maintain a notarized easement allowing county inspectors onto the property, and renew the permit annually. Roughly 3,000 systems were recently released from that program under updated state rules, and roughly 1,150 remain enrolled, which tells you the county still treats a meaningful share of local septic systems as close enough to the edge of function that they need twice-a-year eyes on them, for a single household. Those figures underscore how closely the county monitors septic systems in the unincorporated areas where they are used.

Inside City Limits Versus Outside Them

Inside Sebastopol city limits Outside city limits, unincorporated Sonoma County
Water and sewer City-run municipal system, drawn from city wells Private well and septic, overwhelmingly
Who reviews an ADU condo conversion City of Sebastopol Planning Division Permit Sonoma, but the county has not opted into AB 1033
Can you sell an ADU separately today Yes, if the property clears city process Not yet, according to Permit Sonoma staff as of early 2026

Permit Sonoma program manager Genevieve Bertone confirmed to local reporters that the county has not opted in to implement AB 1033, even as some interest has been expressed by the Board of Supervisors. If your ADU sits on a parcel outside Sebastopol's incorporated boundary, the new rule simply does not apply to you yet, regardless of how solid your septic system is.

What This Means If You're Weighing A Sale This Year

Before spending money on a survey, a condominium plan, or HOA formation documents, first confirm that the parcel is inside Sebastopol's incorporated boundary and ask the city's Planning Division about the process.

None of this means a Sebastopol ADU sale is impractical. It means the sequence matters. Confirm that the parcel is inside the city limits and follow the city's process before deciding whether to proceed.

A Few Straight Answers

What if my property is just outside Sebastopol's city limits? As of the most recent reporting, unincorporated Sonoma County has not adopted an AB 1033 ordinance, so a separate ADU sale is not currently available there even if the city right next door allows it.

Is this the same as renting my ADU? No. Long-term and short-term rental rules for ADUs are governed separately from AB 1033, and existing rental arrangements do not require any of the condo conversion steps described here.

How long does the process realistically take? Between the Certificate of Occupancy requirement, condo mapping, lienholder consent, and HOA formation, this is closer to a small subdivision than a simple paperwork filing. Plan in months, not weeks.

If you own a Sebastopol property with an ADU and you are trying to figure out whether a separate sale actually pencils out on your parcel, that is exactly the kind of question worth working through with someone who knows both the local market and the local permitting reality. Sold with Summer has spent years helping Sonoma County owners sort out what a property can and cannot support before they commit time and money to finding out the hard way. Let's talk about your next move.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.

Summer Stubblefield Olson

Summer Stubblefield Olson

About The Author

Introducing Summer Stubblefield Olson, a trusted real estate advisor who leads a small, dedicated team that is focused on helping clients navigate competitive markets with clarity, confidence, and strong representation; guiding buyers and sellers across Sonoma and Marin Counties through to the Mendocino Coast. Known for her thoughtful, detail-oriented approach, Summer brings genuine care and seasoned expertise to every stage of the real estate journey. She finds deep satisfaction in preparing homes for market and great joy in witnessing the moment her buyer clients connect with the spaces that will shape their next chapter.

Immersed in the rich culture and diverse communities of Northern California, Summer offers a nuanced understanding of inland, coastal, and lifestyle-driven markets—from charming town neighborhoods and vineyard properties to coastal retreats and legacy family homes. Her dedication, work ethic, and market insight have earned her recognition on the RealTrends Top Real Estate Professionals list for five consecutive years, placing her among the top 1% of Realtors® in Sonoma County.

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Outside of real estate, Summer enjoys yoga, pilates, the beach, the mountains, and savoring sunsets with her family of five in Sebastopol. Her warmth, balance, and commitment to excellence make her a steady and trusted partner for clients navigating meaningful transitions.

Approachable, insightful, and deeply committed, Summer Stubblefield Olson guides buyers and sellers with clarity, care, and confidence across Sonoma and Marin Counties and along the Mendocino Coast.

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