SAN JOSÉ, CA – Mayor Matt Mahan and housing advocates highlighted a new path to affordable home ownership today as a local ordinance took effect this week. San Jose became the first city in California to opt into AB 1033, authored by Assemblymember Phil Ting (D-San Francisco), which allows property owners to sell their accessory dwelling units (ADUs) separately from their main home.
“We all know that homeownership has become unattainable for far too many residents in San Jose and across our state,” said Mayor of San Jose Matt Mahan. “We need to keep the American Dream alive by bringing the innovation inherent to our region into our housing policy, and this new ordinance does just that. San Jose will continue to lead the way, but we can’t solve this crisis alone – I am looking forward to seeing other California cities follow suit.”
“I thank the City of San Jose for seeing the impact that my legislation could have across their neighborhoods. ADU ownership could provide a path to buying their first home, or even allow our seniors to downsize their homes,” said Assemblymember Phil Ting. “With this less expensive housing option available, increased home ownership can help build stronger communities.”
San Jose has completed nearly 1,400 new ADU’s in the past five years with thousands more in the pipeline. This number represents about 23% of San José’s new housing stock over that time frame. Now, homeowners in San Jose can sell their ADU, similar to how a condominium is sold. AB 1033 took effect this year, but cities have to take the extra step and opt into the state law.
“The ability to sell my ADU is yet another reason this addition to my backyard was one of the smartest things I’ve done. Not only has it increased the value of my property, it also generates more rental income than I expected,” said Joyce Higashi, San Jose ADU owner.
The Casita Coalition, a statewide organization that works to remove barriers to more affordable, sustainable homes, was a huge advocate for this legislation. They created a model ordinance that San Jose utilized to draft the local legislation required to take advantage of this new law.
“As homebuyers across the state face an extreme shortage of starter home inventory, we applaud Mayor Mahan and the City of San Jose for creating new possibilities for homeownership,” said Rafael Perez, Board President of the Casita Coalition. “ADU condos have proven successful elsewhere, providing much-needed inventory that is more affordable than traditional single-family homes. Families in San Jose will now have more options for housing themselves and other generations on properties with an ADU. We hope other cities and counties will follow San Jose’s lead!”
Assemblymember Ting has authored previous ADU legislation to make the local approval process faster and remove the parking requirements. As Assembly Budget Chair, he also championed funding for a grant program that helps homeowners pay for pre-development costs, such as design and site prep.
The City of San Jose will be hosting a workshop in the coming weeks to help homeowners understand how to use this new ordinance.
About the City of San José
With nearly one million residents, San José is the largest city in the Bay Area and one of the nation’s most diverse and creative. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world’s greatest concentration of technology talent and development.
