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New CA law allows homeowners to sell their ADU similar to a condominium

Cities will have to opt-in to the program that’s designed to lower housing costs

SAN DIEGO — A new California law opens the door for homeowners to sell an ADU in their backyard. Supporters said this will create more affordable housing, but not everyone is convinced it will work in San Diego.

Many people build ADUs for family members, including aging parents and older children, who can’t afford our high cost of living. 

But the new state law, authored by Bay Area Assemblymember Phil Ting, said homeowners can now sell their ADU. And he said they will be much cheaper than single family homes on their own lot. 

“We have so few people in California who can afford to buy a home,” Ting said. “So by creating more ADUs and allowing people who own ADUs to sell them like condominiums, it creates more homeownership opportunities for everyone in California.”

Under the new law, individual cities will have to opt-in, which the City of San Diego is considering. 

The Mayor's office sent CBS 8 a statement, "Mayor Gloria supports increasing our housing supply and providing new homeownership opportunities for San Diegans. This new law appears to align with the Mayor's objectives, and City staff is evaluating it carefully for potential implementation."

Paul Krueger, with Neighbors for a Better San Diego, said his group would support the new law if San Diego only allowed residents to build one ADU on their property, but he said allowing investors to cram several of them onto one single family lot defeats the purpose. 

“Who is going to buy something that doesn't have a parking space,” Krueger asked. “Who is going to buy something that doesn't have a place to store your stuff? Who is going to buy something that doesn't have a single tree in the backyard?”

There are also questions of affordability. ADUs in San Diego's most desirable neighborhoods will certainly cost over $500,000 and will have homeowner association dues to help pay for shared maintenance. 

Plus, each individual housing unit will have its own property tax bill. But Ting said you have to start somewhere. 

“If people don't want homeless people in their neighborhood, they need to build more housing,” he said.

WATCH RELATED: New ADU being built inches from neighbor’s Normal Heights home 

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