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Ordinance Allows Condominium Conversion of Accessory Dwelling Units and Primary Residences in San Francisco

  • When: 2025/07/08
  • Address: Citywide, San Francisco, California
  • City: San Francisco
  • State: California
  • Category: Zoning Code Modification
  • Subcategory: Accessory Dwelling Units (ADUs)
  • Asset Class: Multifamily

This San Francisco ordinance amends the Planning and Subdivision Codes to facilitate the separate conveyance of Accessory Dwelling Units (ADUs) and their associated primary residences as condominiums. Enacted on July 8, 2025, the legislation creates a process for property owners to sell or separately finance certain new or existing ADUs. Key requirements for conversion include compliance with the Davis-Stirling Common Interest Development Act and the California Subdivision Map Act, a safety inspection of the ADU, and explicit consent from any lienholders. The program is limited to lots with four or fewer existing dwelling units and excludes Junior ADUs. It also specifies that applications to construct eligible ADUs must have been submitted after January 1, 2020 (for state programs) or November 1, 2024 (for local programs). Tenant advocacy groups raised concerns about the potential for displacement of existing tenants and loss of rent control protections, prompting modifications to the ordinance to reduce such impacts, particularly for rent-controlled units. The Planning Department is required to report on the program's effectiveness and recommend future modifications by December 31, 2030.

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