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San Jose is ready to become the first California city that will allow homeowners to sell accessory dwelling units (ADUs) on their property.

According to an NBC Bay Area report, San Jose issued over 460 permits enabling homeowners to build ADUs on their property after the state legislature passed a bill allowing localities to approve this approach to homebuilding and sales.

San Jose’s ADU sales will begin on July 18. Under this arrangement, the ADU would be sold as a condo while the property owner would create a homeowners association that would define the ADU resident’s responsibilities on property maintenance. The two parties would be responsible for their own property taxes and utilities.

“They’ve become an incredibly popular option,” said San Jose Mayor Matt Mahan. “They’ve become one of the most common permit types for new home construction. They’re arguably the most accessible form of homeownership available, and this just creates another option.”

Assemblyman Phil Ting, who authored the ADU legislation, told Realtor.com, “The average size of a single-family home in California is 1,860 square feet. By comparison, the average size of an ADU in California is less than one-third of that, at 615 square feet. Presuming a commensurate reduction in price, the purchase of an ADU would be affordable to lower-income households.”

Photo: An ADU above a garage; courtesy Radcliffe Dacanay / Flickr Creative Commons