San Francisco Homeowners Could Soon Sell ADUs as Condos
- Bay Area Real Estate Insider
- Feb 19
- 2 min read
San Francisco is poised to become the third Bay Area city to permit the sale of accessory dwelling units (ADUs) as condominiums, pending a favorable decision by the Planning Commission. The proposed legislation, authored by City Supervisor Joel Engardio, aims to increase entry-level housing options and support multi-generational families.
Engardio emphasized that ADUs offer an affordable housing solution without necessitating the purchase of additional land or extensive new infrastructure. He noted that the legislation is designed to encourage the creation of new ADUs rather than the legalization of existing unpermitted units, thereby minimizing potential displacement of current tenants. This initiative also provides homeowners, particularly seniors, with opportunities to generate income and retain their properties by selling ADUs separately.
This move follows the enactment of Assembly Bill 1033 in 2023, authored by former Assemblymember Phil Ting, which allows California municipalities to enable the separate sale of ADUs. San Jose and Berkeley have already adopted ordinances under this state law, with San Jose's local law taking effect on July 18, 2024.
San Francisco's current ADU program, established citywide in 2016, permits the addition of ADUs in all zoning districts that allow residential use. The proposed legislation would expand this program by allowing these units to be sold independently, potentially increasing the city's affordable housing stock and providing homeowners with new financial opportunities.
The Planning Commission's decision on this legislation will determine whether San Francisco joins its neighboring cities in leveraging ADUs to address housing shortages and support diverse living arrangements.
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