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Berkeley council adopts ADU condo-conversion route with tenant protections
Summary
The council adopted an ordinance to allow separate sale (condominium conversion) of accessory dwelling units under AB 1033, adding a 90‑day right of first refusal and a five‑year restriction after no‑fault evictions for converted units; the measure passed after debate over fees and production impacts.
Berkeley’s City Council voted to adopt an ordinance implementing AB 1033 that allows accessory dwelling units (ADUs) to be sold separately as condominiums, while preserving tenant protections intended to limit displacement.
The measure, sponsored by planning staff and amended on the dais, creates a ministerial path for ADU condominium conversion and includes tenant safeguards that the council said balance new homeownership pathways with renter stability.
During presentations, Branka Tatarovich, associate planner in the Planning Department, summarized staff’s approach: “The chapter applies only to the separate sale of ADUs on eligible lots and creates no new development rights,” and said the ordinance preserves tenant protections such as the right of first refusal and required safety inspections. Planning Director Jordan Klein told the council staff’s data show ADU production has averaged roughly 180 units per year over the last five years and said the ordinance is unlikely to dramatically change that production level.
Vice Mayor Luna Parra presented supplemental language to add tenant protections to the ordinance, including a shortened right‑of‑first‑refusal window and a waiting period after certain evictions. Parra said the aim was to "incentivize affordable homeownership without displacement," and proposed a 90‑day right of first refusal for tenants who want to buy a converted ADU. Parra also proposed limiting conversions following no‑fault evictions to five years and clarified which ADUs would be eligible.
Council debate focused on two strands: whether the changes would deter new ADU construction or conversions that produce for‑sale housing at lower price points, and whether the tenant protections went far enough. Some councilmembers warned that adding fees or overly broad restrictions could chill condominium conversion and reduce entry‑level ownership opportunities; others argued tenant protections are necessary to prevent displacement.
Councilmembers also examined the affordable housing mitigation fee that can apply to condo conversions. Staff provided an example calculation showing how the mitigation fee is derived from the difference between estimated ownership and rental costs and noted an illustrative figure of about $221,538 in one sample scenario, depending on assumptions about rent, mortgage, taxes and prevailing interest rates.
After public testimony from tenants, housing advocates and ADU developers, Councilmember Humbert moved the staff recommendation with an amendment to reduce the right‑of‑first‑refusal period (previously one year for some tenants) to 90 days. The motion carried in a roll call vote (Yes: Taplin, Bartlett, O’Keefe, Lackabee, Humbert, Mayor Ishii; No: Munaparra). The council also approved related supplemental language addressing eviction screening and eligible ADU definitions as part of the final ordinance.
What happens next: the council approved first reading and adopted the ordinance on the night’s vote. The city will implement ministerial procedures for eligible conversions, with the required disclosures, safety inspections and tenant protections described in the ordinance.
