August 2024 - The State of California signed into law AB1033 - Which allows ADU's to be sold as condominiums.
Created April 17th, 2026
The First ADU sold as a Condominum was in San Jose, California
Update from San Diego.
August 22, 2025 - CITY of San Diego Amendments to their ADU Bonus program limiting the number in backyards among other things signed into law. One of those "other things" was allowing ADU's to be sold as Condos scroll down story to see it listed in amendments.
March 4th 2026 - COUNTY of San Diego has now adopted the ADU's selling as Condos.
But what does this really mean?
Is Mr. Christian Spicer and Mr. Daniel Shkolnik, the two largest ADU developers in the city of San Diego going to be selling their 10, 12, 18 individual 441 sq. ft. adus in backyards as individual condominiums now? Well the answer is - maybe?
However there are a few things written into this bill and our laws for developers to consider first.
1. Neither a subdivision map nor a condominium plan shall be recorded without each lienholder's written consent. Written evidence of the lienholder's consent shall be provided to the Office of the County REcorder prior to recordation of or subsequent modifications to the condominium plan.
2. For owners/developers with mortgages the conversion (to Condo) not only requires securing lenders' approval but also potentially devaluing the existing home since condos are typically valued less.
3. Unlike traditional condos, the law requires the ADU to receive a certificate of occupancy before undergoing condominium mapping.
4. Before recording they must have FINAL approval on all inspections under its building permit
5. Deed restricted (affordable units under ADU Bonus program) or ADUs that received financing or other forms of assistance from the San Diego Housing Commission are NOT eligible to be sold as condominiums.
6. JADU's or Junior ADU's which are generally the garage of a house can NOT be sold as a separate condominium if it is connected to the main house and/or shares utilities. Both must be totally separate from the main house, which is NOT the case with most of Mr. Spicer's properties.
Then a set of C.C.& R's the Covenants, Conditions and Restrictions must be outlined plus a HOA Homeowners Association.
Check out the video on what one San Diego ADU builder and real estate investor says and why this might be an unlikely prospect for him.
https://www.youtube.com/watch?v=CQnmg-1EtK4
But remember there are a heck of a lot of ADU's out there than just the egregious ones on this website. Many, many homes have added them to their property and may be looking to sell them separately.