San Jose mayor sees ADUs as housing crisis quick fix

San Jose Mayor Matt Mahan said the Los Angeles wildfires created a rare opportunity for the state to build tens of thousands of new homes for displaced residents while simultaneously tackling the housing crisis.

Mahan made his proposal to the state housing and community development department in an opinion piece published last week where he advocated for affordable, quick-build accessory dwelling units (ADUs), also known as backyard homes. He said in his newsletter that state housing officials should negotiate the purchase of up to 1 million factory-made backyard homes.

“Backyard cottages or ADUs aren’t for everyone,” Mahan said. “But they can make a huge difference in our housing crisis, create income for middle class families, and extend the opportunity of homeownership to the next generation of Californians.”

Housing advocates said backyard detachable homes are one solution to the housing crisis, but city and state officials should focus on securing more permanent affordable housing.

Ramping up the development of backyard homes would certainly increase the city’s housing stock, according to Alison Cingolani, policy director for housing advocacy group SV@Home. But many of those detachable homes in the Bay Area end up being used by existing property owners as a hobby space, guest home or short-term rental space, she said.

“We’re also seeing that there’s no guarantee ADUs will necessarily rent for prices that are affordable to lower income households,” Cingolani told San José Spotlight. “So far, none of our local jurisdictions have found a strategy to try to administer a program that would guarantee affordability of ADUs.”

A spokesperson from the state housing and community development department did not respond to a request for comment.

San Jose became the first California city last year to allow the sale of ADUs as condos. More than 1,400 new ADUs have been built in San Jose since 2019, with thousands more in the pipeline. City leaders hope to reduce the affordable housing crisis by opening the door for homeowners to add ADUs and sell them as starter homes.

Huascar Castro, housing and transportation director for Working Partnerships USA, said backyard homes aren’t tied to affordability levels, and shouldn’t be seen as the end all solution to housing insecurity.

“What we need to do is to unlock funding for permanent sources of affordable homes,” he told San José Spotlight. “ADUs are one potential solution. But there’s so much we need to do, long-term property and affordable housing sources is really the goal here, or should be the goal here.”

Terry Christensen, San Jose State University political science professor emeritus and former host of Valley Politics, said Mahan announcing this proposal further raises his statewide political profile. The mayor continues to challenge Gov. Gavin Newsom and California Democrats on issues including retail theft, criminal justice reform and the Trump administration.

“He did that with Proposition 36 (and) he continues doing this sort of thing. He’ll set himself up to run for statewide office someday,” Christensen told San José Spotlight. “The catch is that you could put out a proposal, but how do you actually move it forward?”

Mahan’s office declined to comment and referred San José Spotlight to his op-ed.
Christensen said Mahan is going to need allies in the state Legislature and governor’s office if he wants the proposed influx of backyard homes to move past just words.

“There’s not that much they can do without the governor and the Legislature authorizing funds,” he said. “It’s good that he’s taking initiative.”

Contact Vicente Vera at [email protected] or follow @VicenteJVera on X.