CA AB587

Authorizes local agencies to allow accessory dwelling units (ADUs) to be sold or conveyed separately from the primary residence, notwithstanding existing prohibitions on separate sales.

Permits separate ADU sales only when the property was built by a qualified nonprofit corporation receiving a welfare tax exemption and the buyer is a low or moderate-income qualified buyer.

Requires a recorded contract between buyer and nonprofit corporation imposing enforceable restrictions to preserve the property as affordable housing for 45 years.

Mandates a recorded tenancy in common agreement allocating unequal interests based on dwelling size, including a repurchase option for the nonprofit corporation and occupancy requirements for the buyer.

Requires recording of a grant deed and Preliminary Change of Ownership Report, and permits separate utility connections for the ADU if requested by the service provider.