San Jose becomes 1st in CA to allow property owners to sell ADUs - ABC7 San Francisco

San Jose has become the first city in California to implement AB 1033, a new state law that allows property owners to sell accessory dwelling units (ADUs) separately from their primary homes.

The ordinance, which took effect this week, enables homeowners to sell ADUs similar to how condominiums are sold, creating a new pathway to affordable homeownership in the state's expensive housing market.

Mayor Matt Mahan and Assemblymember Phil Ting, who authored the legislation, celebrated the milestone as a potential solution to California's housing affordability crisis.

The law provides an opportunity for first-time homebuyers to purchase smaller, more affordable units while allowing seniors to downsize without leaving their neighborhoods.

San Jose has constructed nearly 1,400 ADUs over the past five years, representing 23 percent of the city's new housing stock during that period.

While AB 1033 became state law earlier this year, cities must actively opt into the program through local ordinances.

The separate sale of ADUs could significantly impact property developers and homeowners throughout California, offering new revenue opportunities for existing property owners and expanding the supply of affordable housing units.

Housing advocates are urging other California cities to follow San Jose's lead in adopting the ordinance to address the statewide housing shortage.