For those in the Bay Area who want relatives to live nearby, or are interested in rental income, it’s becoming increasingly possible to DIY the space required onto a current residence.
California’s housing shortage and high housing costs have led to innovative solutions, and Accessory Dwelling Units (ADUs) are among the most popular.
ADUs have separate, independent and permanent facilities for living, sleeping, eating, cooking and sanitation. They can be detached, attached or converted from existing space in the home, such as the garage. ADUs can be used for various purposes, such as rental property, guest suites, studio workspaces or extra living space for family members.
To address the housing crisis, California law required all local governments to adopt a housing plan. Fremont’s assigned share of the region’s housing needs is to build almost 13,000 new residential units—over 7,000 of which are intended to be affordable—from 2023 to 2031.
Since California passed laws in recent years easing the ADU permitting process and construction requirements, the number of permitted ADUs has dramatically increased, with some reports stating that nearly 20% of new housing units in California are ADUs.
The following bills took effect in California on Jan. 1 of this year to simplify, clarify and reduce ADU regulations:
• AB2533 gives property owners a more affordable pathway to legalize their unpermitted ADUs by simplifying habitability standards and waiving many fees.
• SB1211 increases the maximum number of detached ADUs allowed on a lot with an existing multifamily dwelling from two to eight.
• SB1077 requires the California Coastal Commission to clarify and simplify the ADU permitting process for coastal areas.
So, what are some pros and cons of building an ADU?
Some ADU Pros:
• Increased property value
• Rental income
• Extra living space
• Allows extended families to be nearby while maintaining privacy
• Increased safety with extra eyes on the property
• Land conservation
Some ADU Cons:
• Straining neighborhoods resources such as parking availability
• Navigating local regulations on ADUs
• High upfront costs
• Potential for increased property taxes
Does it all sound a bit overwhelming? Enter companies like Samara that manufacture prefabricated ADUs and take care of the whole ADU process including obtaining permits, installation of the ADU, connecting the utilities, and financing.
“The extraordinary thing about Samara is that you can just go online and buy an ADU,” said Addy Bhasin, a Samara spokesperson. “Samara handles everything from the design of the unit—which we build in a factory we own—to permits and the installation. It takes about seven months in total to get it in your backyard, but only a few weeks of on-site work.”
Eligible California residents can also take advantage of a state ADU grant which provides up to $40,000 to reimburse pre-development and non-recurring closing costs associated with the construction of an ADU. Pre-development costs include site preparation, architectural designs, permits, soil tests, impact fees, property surveys and energy reports.
Resources:
• Fremont.gov – community development/planning building permits
• Newark.gov – community development/ planning division
• Unioncity.org – development services/ pre-approved ADU Program
• Calhfa.ca.gov – ADU Grant
