SAN JOSE, Calif. - With the stroke of a pen, San Jose city leaders on Thursday staked their claim as the first California city to allow accessory dwelling units to be sold as condos.

New opporutnity for homeownership

What they're saying:

"We're making sure that the dream of homeownership is alive and well by bringing the innovation inherent to our region into our housing policy," said Mayor Matt Mahan.

He and others touted a two-bedroom, two-bath ADU behind a home near downtown as the next evolutionary step in real estate. Woman-owned Alpha Real Estate was one of the first firms to jump at the opportunity to enter this emerging market.

"We want to be the first that's trying it because we believe in housing flexibility for homeowners," said Chief Asset Management Officer Jia Li.

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