Your building has a unit that doesn't officially exist.
It's built. It's rented. It just isn't permitted — so it can't be insured properly, can't be financed, and doesn't count when you sell.
In 2024 the law stopped treating this as a violation.
California Government Code § 66311.7 — passed as AB 2533 and renumbered on January 1, 2026 — says a city shall not deny a permit for an unpermitted accessory dwelling unit built before January 1, 2020. It bars impact fees. And it says the city shall not penalize you for having it.
Most owners have simply never been told.
Three things we look for.
You own an apartment building
A multi-unit building. You may be able to legalize more than one — up to 25% of the existing unit count.
You have a converted, non-conforming unit
A garage, basement, storage room, boiler room, attic or passageway. Space carved out of an existing apartment. Ask us.
It existed and was rented before 2020
The space has to have been there and in use before January 1, 2020.
The unit already earns. It just doesn't count.
A building's value is its net operating income divided by the cap rate. An unpermitted unit contributes rent but no financeable value — an appraiser can't count it, a lender won't lend against it, and a buyer will discount it.
| Market rent, permitted one-bedroom | $1,900 / mo |
| Contribution to net operating income | $21,660 |
| Capitalized at 4.5% – 5.5% | $394,000 – $481,000 |
One team, from the first look to final approval.
Inspection, drawings, submittal, the city, the inspectors. We manage all of it.
$100 Unit Inspection
Submit your information and payment and a trained SBBA inspector will schedule an inspection.
Report
One document with our recommendation. Also includes floorplans, photos, and a rough cost estimate for corrective work, if required.
You decide
Stop here, or proceed with unit legalization advisory alone or combined with construction.
SBBA takes over
We handle it through to final permit, excluding work done by third-party GCs.
Find out in one visit.
A licensed contractor, on site, and one page back in writing. One hundred dollars, credited against the fee if you go ahead. Or call 310-896-4323.
Start a Unit Report