The City of San José approved the first Accessory Dwelling Unit (ADU) condominium in the state. The home, located on Joséfa Street, near downtown, will be the first ADU in the state of California that can be sold separately from the property’s main house. The move provides another opportunity for affordable homeownership during the housing crisis.
“San José is creating housing affordability and ownership by thinking differently,” said Mayor Matt Mahan. “ADUs are affordable by design and growing in popularity across the state, and now they can offer the most accessible form of home ownership, too. We are offering a proof of concept for California and hope that other cities follow San José’s lead.”
The condoization is the first of its kind completed since San José became the first city to approve the sale of ADUs in July 2024. The state approved AB1033 in January of 2024, allowing cities to adopt ADU condoization to increase housing supply. While many cities are in the process, San José is the first large city to implement the measure with a proposal from the Planning, Building and Code Enforcement Department, directed by City Council. The Public Works Department completed the Parcel Map review for the Josefa St. property in just 60 days, not including 29 days of review from applicant AlphaX RE Capital, a Bay Area real estate firm.
“The importance of collaboration to help make the dream of homeownership a reality for more of our community cannot be overstated. City departments came together as One Team to make the process as efficient and accessible as possible,” said City Manager Jennifer Maguire. “We are honored to lead the state in this effort and, most importantly, serve our community with more housing opportunities.”
The City is leading the way in helping homeowners decide if building and selling an ADU is right for them. The ADU Condominium Checklist is a step-by-step guide to see if properties qualify for a condominium conversion. The Building Division also has two ADU Ally positions to assist property owners in navigating the process. The City also created the ADU Universal Checklist in 2024, a roadmap commended by other municipalities for synthesizing complex information and streamlining the permitting application process across planning, building, fire, and public works. The first-of-its-kind guide allows property owners to navigate several permitting processes at once and legally build ADUs faster than ever before.
“With San José leading the way under AB1033, we can offer homeownership at more attainable price points, giving families the opportunity to build equity and long-term stability,” said Stephanie Yi, Founder & CEO of AlphaX RE Capital. “I want to thank Mayor Matt Mahan, the City’s leadership, and city staff for their vision in adopting AB1033 and for partnering with us to make this milestone a reality. Together, we are opening new doors for families to achieve stability and a brighter future here.”
San José has doubled the number of ADUs permitted in the past five years. The City tracks its housing data online as part of its Regional Housing Needs Allocation (RHNA) requirements and reports 1,500 ADUs were permitted since 2022 and more than 1,100 final building permits were issued.