In what stakeholders are calling a historic milestone for housing in California, Apex Homes and the City of San Jose have created the state’s first accessory dwelling unit to condominium conversion. A recently enacted state law, Assembly Bill 1033, allows ADUs to be sold separately from a property’s main residence, marking the beginning of a new chapter in affordable homeownership.
The city’s Public Works Department completed the parcel map review for the project in 90 days, and AlphaX RE Capital navigated a 29-day application review, demonstrating the potential efficiency of the new policy.
Supported by San Jose Mayor Matt Mahan and city leaders, the effort is intended to solve challenges to local housing affordability and demonstrates how ADU condos can expand pathways to ownership at more accessible price points. The breakthrough offers families the chance to invest in homeownership without the barriers of soaring single-family home prices, the mayor’s office stated.
Community Impact, National Model
The implications of the milestone in California extend beyond San Jose. With housing affordability at a crisis point nationwide, ADU condominiums present a replicable model for cities across the country. By converting underutilized land and rethinking zoning and ownership structures, municipalities can create new streams of attainable housing while supporting community stability and wealth-building.
While AB1033 opened the door for this achievement, area stakeholders stress that further policy support is essential. Scaling ADU condo conversions will require ongoing collaboration between cities, states, and developers to streamline permitting, financing, and resale protections that keep units affordable.
“With San Jose leading the way under AB1033 and unlocking the ability to sell ADUs as individual homes, the doors are now open for families who have been priced out of the market for too long. Apex Homes can now deliver homeownership at more attainable price points, giving families the opportunity to build equity and stability,” Apex Homes founder and CEO Stephanie Yi said. “California has shown what’s possible. Now it’s time to expand policies and partnerships that will make ADU condominiums a cornerstone of solving America’s housing affordability crisis. By taking this first step, we are showing how small but powerful innovations in housing policy can make a real difference. Apex Homes is committed to helping California families access ownership opportunities and with expanded policies and partnerships.”
Apex Homes already has plans to continue building dozens more ADU condominiums across the Bay Area, with the long-term goal of helping to establish a sustainable, scalable model for affordable homeownership nationwide.
“We’re thrilled to share that a buyer has already been secured, and we are moving into contract on this first-of-its-kind ADU condominium,” Yi said. “This sale is a proof point that innovative design and ownership models can open the door to homeownership for families that might otherwise be locked out of the market. For the buyer, it means an attainable entry point to build equity and stability. For the city and for Apex Homes, it validates that rethinking how we design, permit, and sell accessory homes, supported by forward-looking policy like AB1033, can deliver real community impact. By documenting every step of the process, from construction through closing, we’re not only helping one family into a home, but also creating a playbook that other builders and policymakers can replicate.”
ADU development in California has seen rapid growth in recent years. San Jose has doubled the number of ADUs permitted in the past five years, issuing more than 1,500 permits since 2022, and completing more than 1,100 final building approvals.
The city continues to support homeowners and developers through tools such as the ADU Condominium Checklist and dedicated “ADU Ally” staff to streamline permitting and guide conversions.
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