ADU Condominium Approved in San Jose

San José, Calif. (August 14, 2025) - The City of San Jose has made history by approving the state’s first-ever condominium conversion of an accessory dwelling unit (ADU). Located on Joséfa Street near downtown, this milestone marks a groundbreaking shift in housing policy, enabling ADUs to be sold separately from the main house.

A Landmark Decision in California Housing

The approval is significant not only for San Jose but also for the entire state. Under Assembly Bill 1033, which took effect in January 2024, cities can allow ADUs to be sold as condominiums. San Jose became the first large city to enact this measure in July 2024, and now it has officially delivered the first successful conversion in California.

Leadership Perspectives

Mayor Matt Mahan hailed the achievement as a new pathway to affordability:

“San José is creating housing affordability and ownership by thinking differently. 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 Jose’s lead.”

City Manager Jennifer Maguire highlighted the importance of interdepartmental collaboration:

“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.”

How the Process Worked

The timeline reflects San José’s commitment to efficiency. AlphaX RE Capital, the real estate firm leading the project, completed its initial review in just 29 days. The city’s Public Works Department followed with a streamlined Parcel Map review in only 60 days, resulting in the fast-track approval of the first ADU condominium.

Support for Homeowners

To ensure the process is accessible to more property owners, San José introduced several new tools and support systems:

• An ADU Condominium Checklist, providing a step-by-step guide for eligibility.
• Two ADU Ally positions in the Building Division, dedicated to assisting applicants through the process.
• An ADU Universal Checklist to simplify cross-departmental workflows and reduce delays.

These resources make the pathway to ADU condominium conversion more transparent and achievable for homeowners.

Developer’s Perspective

Stephanie Yi, Founder and CEO of AlphaX RE Capital, expressed her enthusiasm for the project and appreciation for the city’s leadership:

“We are honored to deliver California’s first ADU condominium in San José. This is more than a housing unit—it’s a door to opportunity, equity, and stability for families who might otherwise never achieve homeownership. We thank the city for leading the way.”

By the Numbers: San José’s ADU Growth

San José has already been a leader in ADU development:

• ADU permits have doubled in the past five years.
• More than 1,500 ADUs have been permitted since 2022.
• Over 1,100 building permits for ADUs have been finalized.

These numbers reflect both growing demand and the city’s dedication to making ADUs a central part of its housing strategy.

Broader Impact Across California

The approval of the first ADU condominium demonstrates how cities can leverage state policy to expand affordable housing. By shifting ADUs from rental-only units to ownership opportunities, San Jose is showing how these small-scale homes can play a big role in solving California’s housing crisis.

Conclusion

San José’s approval of the first ADU condominium in California is more than a housing milestone—it is a vision of what the future of homeownership could look like. By combining state law, city leadership, and innovative partnerships, San José is paving the way for affordable, accessible, and attainable housing opportunities. Other cities across California are now encouraged to follow this example and open new doors for families seeking stability and a brighter future.

How SFBayADU Can Help

For homeowners inspired by San José’s leadership, SFBayADU offers expert guidance through every step of the ADU process—from feasibility analysis and design to permitting and construction. With deep knowledge of state laws like AB 1033 and local city procedures, SFBayADU helps clients evaluate whether their ADU can qualify for condo conversion, prepare necessary documentation, and navigate inspections efficiently. Whether you’re looking to legalize an unpermitted unit, build a new ADU, or explore condominium options, SFBayADU provides personalized solutions to turn your property goals into reality.