Alameda Homeowners Could Sell a Backyard ADU as a Condo

Alameda's City Council will take up a new ordinance on September 15 that would let homeowners split off a backyard accessory dwelling unit and sell it as its own condo, separate from the main house. The change uses a process created under state Government Code Section 66342, and it would apply to homeowners across Alameda, CA.

• What: An ordinance adding Alameda Municipal Code Section 30-5.19, letting an existing or new accessory dwelling unit (ADU) be split off and sold as a condominium.
• Where: Citywide, on any residential lot with an ADU.
• When: The City Council introduces the ordinance September 15. The Planning Board recommended it unanimously, 6 to 0, on June 22.
• Who decided: The City of Alameda Planning Board, after a study session on May 11 and a public hearing on June 22.
• What it requires: A homeowners association or similar entity, recorded CC&Rs, and written consent from any lender with a lien on the property.

What does it mean to sell an ADU as its own condo?

It means a homeowner could carve their backyard unit off the main property title and sell it to someone else, the way you'd sell a condo in a bigger complex. Right now, an Alameda ADU can only be rented out or sold along with the primary house. The new Section 30-5.19 changes that by laying out a path to a separate parcel map and condominium plan, so the ADU gets its own deed.

What do homeowners need to do first?

Before the city will approve a subdivision map, the property needs a homeowners association or similar entity in place to handle upkeep of shared spaces like driveways, landscaping and the exterior of the buildings. Owners also have to record a formal declaration of covenants, conditions and restrictions, or CC&Rs, that spells out who's responsible for what. And if there's still a mortgage on the property, the lender has to sign off in writing before the condominium plan can be recorded. That's not a small ask. Refinancing or getting lender consent can take months and isn't free.

When did the Planning Board weigh in?

The board looked at the idea at a study session on May 11, then came back June 22 and voted 6 to 0 to recommend it, with one member absent. Alameda first adopted its ADU ordinance in 2017, aiming to make it easier to build accessory units.

What happens next?

September 15 is only the introduction, a first step under state law. Council typically has to approve it again at a later meeting before it takes effect. If it passes both times, homeowners with an ADU that meets the standards could start the process, though the HOA setup and lender consent mean it won't happen overnight for anyone.

You can read the full text of the ordinance and the Planning Board's recommendation on the City of Alameda's legislative site. For more on how Alameda is changing what gets built and where, see our development coverage.