Sale of ADUs as Condominiums
Government Code Section 65852.2 allows for a local agency to adopt an ordinance allowing for the separate sale of accessory dwelling units (ADUs) and the primary dwelling on the property as condominiums. Such an ordinance must contain the following requirements (among others):

1. Created pursuant to the Davis Stirling Act. The condominiums must be created pursuant to the Davis-Stirling Common Interest Development Act, the body of Civil Code sections governing the creation and operation of homeowners associations. This requires the separate interests to have an interest in common area, a recorded declaration (CC&Rs), a recorded condominium plan, and a recorded final map or parcel map (if required under the Subdivision Map Act). (Gov. Code § 65852.2(a)(10)(A); Civ. Code § 4200.)
2. Created in Conformance with Subdivision Map Act & Local Ordinances. The condominiums must be created in conformance with all applicable objective requirements of the Subdivision Map Act and all objective requirements of a local subdivision ordinance. (Gov. Code § 65852.2(a)(10)(B).)
3. Safety Inspection & Certification. Before recordation of the condominium plan, a safety inspection of the ADU must be conducted and evidenced either through a certificate of occupancy or a certified housing quality standards report. (Gov. Code § 65852.2(a)(10)(C).)
4. Lienholder Consent. Neither a subdivision map nor a condominium plan may be recorded (or subsequently modified) without the consent of each lienholder of the property. Written evidence of each lienholder must be included on the condominium plan or attached to the condominium plan and recorded together with the condominium plan. (Gov. Code § 65852.2(a)(10)(D).)
5. Authorization of Existing HOA. If the property is within an existing planned development that has an existing homeowners association, the owner may not record a condominium plan without written approval by the association’s board of directors in a board meeting, and (if required by the association’s governing documents), approval by the association’s membership. (Gov. Code § 65852.2(a)(10)(G).)

Sale of ADUs as Low Income Housing 
Qualified nonprofit corporations have the right to sell ADUs separately from the private residence on a property, subject to several requirements which include, among others, that the buyer of the ADU be a person or family of low or moderate income. (Gov. Code § 65852.26.)

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