Monday, July 29, 2024 / by Bob Cowan
SAN JOSE IS THE FIRST CITY IN CALIFORNIA TO PERMIT PROPERTY OWNERS TO SELL ACCESSORY DWELLING UNITS (ADUS).
SAN JOSE, Calif. (KGO) -- San Jose has become the first city in California to authorize the sale of accessory dwelling units (ADUs), which are often found in many backyards.
Previously used to generate extra income or provide housing for family members, these units can now be a key factor in providing affordable housing options.
A new law enacted in January permits ADUs to be sold separately from the primary residence.
Dan Kearnan noted, "People are often surprised by how small a space you need for an ADU."
He constructed his 500-square-foot ADU behind his five-bedroom house in 2021.
Kearnan notes that everyone who has rented his ADU appreciates its spaciousness.
"They love the high ceilings, which are 15 feet tall, and the separate kitchen, bedroom, and bathroom," Kearnan said. "They find it fantastic, especially since they have their own patio and can walk right to the front door."
With the new law, Kearnan can now sell the ADU like a condominium, rather than just renting it out.
"This opens up opportunities for home ownership," Kearnan explained.
Assemblyman Phil Ting added, "California is facing a severe housing shortage, and we are urgently working to increase the housing supply."
Currently, many cities permit ADUs, which are similar to backyard cottages, in-law units, or casitas.
San Jose has received twice as many accessory dwelling unit (ADU) applications as Oakland and four times as many as San Francisco.
In January, Assemblyman Phil Ting's bill AB1033 was enacted, allowing property owners to sell their ADUs as separate condominiums from their main residence.
To implement this law, cities must pass their own ordinances. While other cities like Berkeley are working on adopting such ordinances, San Jose has taken the lead.
"This week, San Jose became the first city in California to put AB1033 into action," said Mayor Matt Mahan.
Mahan views this as a significant achievement for the city.
"It provides accessible home ownership, especially for young people on fixed incomes, and also offers a new source of revenue," Mahan added.
Mahan believes this development comes at a crucial moment.
"Silicon Valley is generating six jobs for every new home built. The construction of new homes is both slow and costly. This offers a more attainable option for home ownership," Mahan explained.
Kearnan already has a potential buyer for his ADU. His in-laws, who live in Sacramento, have long wanted to move to the Bay Area but couldn't afford it.
Now, they can purchase a home in San Jose and be near family.
"This significantly expands opportunities. It makes home ownership much more affordable," Kearnan noted.
