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2d ago

San José Approves California’s First ADU Condominium Sale

The rules require sellers to set up a fee-free homeowners association agreement.

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File photo of an accessory dwelling unit that was made using four cargo containers in a Menlo Park backyard. On Thursday, San Jose approved the state’s first backyard ADU to be sold as a condominium.
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Overview

  • The approved Joséfa Street unit near downtown is the first ADU in California authorized for separate sale from its main house under AB 1033.
  • The city’s ADU Ally program offers homeowners dedicated assistance with financial analysis and permitting for ADU conversions.
  • San José has permitted roughly 1,500 ADUs since 2022 and issued more than 1,100 final building permits, accounting for about 20% of its housing growth over the past six years.
  • Private firms such as AlphaX RE Capital and Alpha Real Estate are planning pipelines of dozens to nearly 100 new for-sale ADU projects.
  • Berkeley, San Francisco and Santa Cruz are evaluating similar ADU-for-sale measures while cities like San Diego have tightened bonus ADU limits.