San Jose approved the sale of accessory dwelling units as standalone condominiums under Assembly Bill 1033, effective 2024, enabling ADUs to be sold separately from primary residences. The first unit at 410 Josefa Street near Diridon Station is occupied and market-ready. Cupertino-based AlphaX RE Capital led the project while the Department of Public Works completed parcel map review in 60 days. Since 2022 the city has approved 1,500 ADUs, representing over 20 percent of new housing production. Additional developer plans and city resources, including checklists and ADU Ally positions, aim to streamline permitting and expand ownership opportunities.
San Jose has marked a significant milestone by becoming the first city in California to approve the sale of an accessory dwelling unit as a condominium. This achievement opens new pathways for homeownership and addresses the pressing need for more housing options in the region. The inaugural unit at 410 Josefa Street, near Diridon Station, stands as a model for future developments, already occupied by tenants and ready for market.
Enabled by Assembly Bill 1033, which took effect in 2024, this initiative allows ADUs to be sold independently from the main residence. Cupertino-based AlphaX RE Capital led the project, with the city's Department of Public Works completing the necessary parcel map review in just 60 days. Such efficiency demonstrates San Jose's commitment to streamlining processes that support innovative housing solutions.
Since 2022, the city has approved 1,500 ADUs, accounting for over 20 percent of its new housing production. These units provide an accessible entry into ownership, particularly for those seeking affordable alternatives in a competitive market. AlphaX RE Capital plans to develop more than 80 additional spaces, expanding opportunities across neighborhoods. To assist residents and developers, San Jose offers resources like the ADU Condominium Checklist and the longstanding ADU Universal Checklist, which simplify permitting and conversion steps.
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