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Council approves ordinance allowing separate sale of ADUs and directs annual report on affordability impacts
Summary
The City Council approved changes permitting condominium mapping and separate sale of accessory dwelling units (ADUs) and added direction for staff to provide an annual analysis tracking ADU sales, prices and related housing‑affordability indicators to monitor investor activity and affordability trends.
The Santa Cruz City Council voted unanimously to adopt an ordinance permitting condominium mapping and the separate sale of accessory dwelling units (ADUs) along with a council directive requiring annual analysis of the policy’s local affordability impacts.
The action responds to debate about whether selling ADUs as separate condominiums could accelerate investor purchases and reduce housing affordability for local residents. Councilmember O’Hara, who opened discussion at second reading, said the ordinance’s intent was to diversify housing stock but acknowledged concerns expressed in prior meetings about possible…
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