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How to Finance An ADU

Tue, 12 Aug 2025 23:23:47 GMT

A Builder’s Guide to Budgeting, Costs, and Loan Options

Financing an ADU in Southern California isn’t just about finding the right loan—it’s about making sure your funding covers the full scope of your project. Whether you’re building to generate rental income or create space for family, your loan needs to match the real cost of building an ADU in Los Angeles or Orange County.

As a design-build firm, we’ve seen homeowners run into financing trouble because they underestimated their all-in cost. They locked in a loan early, only to discover later it didn’t cover site work, permits, or utility upgrades. The result? Stress, delays, and extra out-of-pocket expenses.

That’s why we put together this guide—from a builder’s perspective—to help you budget accurately, understand your financing options, and make sure your loan supports your ADU project from start to finish.

Start With a Complete Budget

The first step in financing an ADU is knowing exactly what it will cost. That means looking beyond just construction numbers and accounting for every phase of the project:

Site Work – grading, drainage, foundation prep
Utility Connections – water, sewer, electrical, gas
Permits & Fees – varies by city in LA and OC
Design & Engineering – architectural plans, structural calculations, Title 24
Interior Finishes – flooring, cabinetry, fixtures, appliances
Contingency – 10–15% for surprises like soil conditions or code changes

Your ADU design should be tailored to your budget—not the other way around. This is why we start every project with a feasibility study that maps out costs before you approach a lender. You can Get Started with your free feasibility report today.

Understanding the True Cost of an ADU

The total cost of your ADU includes both hard costs (materials, labor, construction) and soft costs (permits, design, utility upgrades).

Many homeowners only budget for the structure itself and are blindsided when additional requirements add $20,000–$50,000 to the project.

By working with a design-build team from day one, you can identify these costs early, adjust the design if needed, and approach financing with confidence.

ADU Financing Options in Southern California

Once you know your budget, you can choose a financing path that works for you:

Home Equity Line of Credit (HELOC) – Flexible and quick to access, but rates can vary.
Cash-Out Refinance – Good for locking in a fixed rate, but replaces your current mortgage.
Renovation Loans (Fannie Mae Homestyle, FHA 203k) – Based on the future value of your home after the ADU is built; can help if you want to use projected rental income for qualification.
Construction Loans – Designed for ground-up builds; often convert into a permanent mortgage after completion.
Private Lenders & Credit Unions – More flexibility for unique properties or credit situations, though sometimes at higher rates.

Designing With Financing in Mind

Your ADU’s design will directly influence both cost and loan approval. A lender will look at the total project value, so you want a design that aligns with your use or investment goals without exceeding your budget.

At ADU Homes , our in-house design team works hand in hand with our construction and permitting team to:

Maximize space efficiently without unnecessary square footage
Select materials that balance style, durability, and budget
Ensure every plan is fully code-compliant from day one
Use value engineering to keep the project within financing limits without sacrificing quality

This integrated approach means fewer redesigns, faster permitting, and a smoother financing process.

Below are the most common loan products we see homeowners using for their ADU projects in Los Angeles and Orange County.

Home Equity Loan / HELOC

A home equity loan (or home equity line of credit, HELOC) is often the simplest way to finance an ADU. Current rates are higher than in the past, but this option is still popular because primary residences can often have up to 80–90% Loan-To-Value (LTV) .

Example: If your home is appraised at $700,000 and your current mortgage is $400,000, you could access roughly $160,000 in credit (80% × $700K = $560K – $400K). With a HELOC, you can draw funds as needed and only pay interest on what you use.

Fixed Rate Second Loan

If you want to keep your existing low-rate mortgage, a fixed rate second position loan could be a strong choice. This newer loan product is based on your home’s after-renovation value , meaning no refinancing of your current loan is required.

Terms up to 20 years
No “draws” like a construction loan—you get the full loan amount upfront
After the ADU is completed, an appraiser issues a certificate of completion

Construction Loan

For homeowners without much equity, a construction loan can cover building costs and later roll into an adjustable-rate mortgage (ARM).

Interest-only payments during construction
Interest begins only when funds are drawn
Available for both owner-occupied and rental properties

Renovation Loan (FHA 203k or Fannie Mae Homestyle)

These loans bundle your renovation (including ADUs) into your mortgage. The Fannie Mae Homestyle allows detached ADUs, with a conforming limit of $806,500 in Los Angeles and Orange County.

May be based on future property value after the ADU is built
Up to 95% financing for a primary residence, 85% for an investment property
Can be combined with a purchase loan for buying and improving a property

Final Thoughts: Budget Before You Borrow

Financing an ADU is smoother—and far less stressful—when you start with accurate numbers. By understanding your all-in cost , choosing the right loan, and designing within your budget, you’ll set your project up for success.

Next Step: Get your Free ADU Feasibility Report from ADU Homes. You’ll receive a site analysis, cost breakdown, and timeline—everything you need to approach lenders with confidence.

�� Call us at (323) 484-2433 Or click here to Get Started

ADU Financing FAQs

Q: Can I use projected rental income from my ADU to help qualify for a loan?

Yes. Many lenders, especially with renovation loans, will allow you to use estimated rental income as part of your debt-to-income ratio when applying.

Q: How much should I set aside for hidden costs?

We recommend budgeting an extra 10–15% of your total project cost for contingencies like soil remediation, utility upgrades, or plan revisions.

Q: How long does it take to secure ADU financing?

Most loans in Los Angeles and Orange County take between 30–60 days to approve, depending on the lender and whether an appraisal is needed.

Q: What’s the biggest financing mistake homeowners make?

Locking in a loan before getting a full, builder-verified cost estimate. This can lead to funding shortfalls and project delays.

Q: Do design changes during construction affect my loan?

Yes. Major design changes can increase costs, which may require lender approval for additional funds. That’s why we align design with budget from the very beginning.

Smarter Living with All-Electric ADUs

Sat, 19 Oct 2024 02:58:59 GMT

Costs, Benefits, and Design Considerations of an All-Electric ADU

As California moves towards a cleaner, more sustainable future, energy efficiency and renewable energy are becoming a central focus in residential construction. While statewide all-electric mandates are not yet in place, cities like Berkeley and Santa Monica have already adopted regulations requiring new residential construction, including ADUs, to go fully electric. If you’re considering building an ADU, choosing an all-electric design offers a range of advantages—from lower energy costs and improved indoor air quality to a significantly reduced carbon footprint.

Let’s explore the costs, benefits, and design considerations of building an all-electric ADU.

Cost-Effective Considerations

Building an all-electric ADU offers significant financial benefits and helps future-proof your home. In most cases, your ADU will have an electric heat pump HVAC system and an electric heat pump water heater to meet the California energy code requirements. This requirement helps simplify the decision to go with an all-electric design and reduces reliance on gas appliances. Heat pump appliances are much more efficient than gas appliances, leading to lower utility bills – especially when paired with solar panels.

Opting for an all-electric ADU can lead to both cost and time savings during construction. Since there’s no need to connect gas to the ADU, homeowners avoid the additional expense of running a gas line from the gas meter to the ADU. This not only reduces installation costs but also speeds up the construction timeline by eliminating the coordination required with an extra utility provider.

The Benefits of Going All-Electric

Going with an all-electric ADU offers a wide range of advantages, including cost savings, environmental benefits, and improved health outcomes. Here are some key benefits to consider:

Energy Efficiency: Electric systems, particularly when combined with solar panels, are more energy-efficient than traditional gas-powered setups. This means lower energy bills and reduced waste.

Healthier Indoor Air: One of the most significant benefits of an all-electric ADU is the improvement in indoor air quality. Gas appliances can release harmful pollutants like carbon monoxide and nitrogen dioxide into the home. By eliminating gas appliances, an all-electric ADU ensures cleaner, healthier indoor air—particularly beneficial for households with children, elderly residents, or individuals with respiratory conditions.

Electric Induction Cooktops: When transitioning to an all-electric kitchen, electric induction cooktops offer a superior cooking experience compared to traditional gas stoves. Induction cooktops use electromagnetic fields to directly heat the cookware, making them faster and more efficient than gas or traditional electric stoves. Additionally, they allow for precise temperature control, which improves cooking performance. Another major benefit is safety—induction cooktops remain cool to the touch, reducing the risk of burns. Since no open flame is used, they also improve indoor air quality by eliminating the pollutants released during gas cooking.

Increased Property Value: Homes with all-electric systems and renewable energy sources like solar panels are often valued higher due to the long-term cost savings and sustainability they offer.

Environmental Impact: Electric appliances produce fewer greenhouse gases than their gas counterparts. Paired with solar energy, your ADU can become a green, self-sustaining house that significantly reduces your overall carbon footprint.

Solar Panel Requirements

In California, solar panels are typically required for ADUs larger than 950 square feet, based on state energy calculations. The exact requirements can vary depending on the climate zone where the ADU is located. Coastal areas with milder temperatures have different square footage thresholds compared to hotter inland regions, where energy consumption for cooling is higher.

Solar installation for ADUs typically costs between $12,000 and $15,000, depending on the system size and energy needs. However, state and federal incentives, such as the federal solar tax credit (up to 30%), can significantly reduce these costs. Over time, a solar-powered ADU can dramatically lower or eliminate electricity bills, offering substantial long-term savings.

Design Considerations for an All-Electric ADU

Designing an all-electric ADU offers great flexibility while ensuring efficiency. The use of electric water heaters is essentially mandatory in all ADUs, making the transition to an all-electric setup even smoother. While some adjustments may be required for other electric appliances, these design changes are minimal and easily integrated into your ADU’s layout.

For instance, electric tanked water heaters can be installed externally or in concealed spaces like closets, allowing them to blend into the overall design without compromising function. Heat pump HVAC systems, which handle both heating and cooling, are compact and are either ductless or ducted, making them ideal for smaller spaces. Additionally, modern electric appliances are designed with aesthetics in mind, ensuring they fit seamlessly into any style.

At ADU Homes, our team works closely with homeowners to design and build energy-efficient ADUs that meet both functional and aesthetic goals. From selecting the right appliances to ensuring your electrical system is optimized, we’ll help you create an ADU that’s as beautiful as it is sustainable.

Sustainability and the Shift Towards Electric Living

California is pushing towards a greener future, and the trend towards all-electric construction is only growing stronger. Whether mandated by local regulations or adopted voluntarily, building an all-electric ADU helps future-proof your home and aligns with the state’s renewable energy goals.

Beyond meeting regulatory requirements, going all-electric offers long-term benefits that make a real difference. By integrating solar panels, you can reduce reliance on the grid and lower energy costs. Contributing to a more sustainable future not only benefits your household but also helps reduce environmental impact on a larger scale.

Ready to Build Your All-Electric ADU?

Building an all-electric ADU isn’t just a trend—it’s a smart, future-proof investment in both your property and the planet. Whether you’re motivated by lower energy costs, healthier indoor air quality, or a desire to meet California’s sustainability goals, ADU Homes is here to guide you every step of the way.

Contact us today to learn more about our all-electric ADU options and schedule your free consultation. Let us help you design a modern, energy-efficient ADU that fits your lifestyle and contributes to a more sustainable future.

What is Universal Design?

Sat, 12 Oct 2024 00:12:52 GMT

One of the Most Important Aspects of Universal Design in Housing Is Deliberately Designing for Aging in Place

Universal design is an approach to creating products, environments, and communication that are accessible to as many people as possible, regardless of age, ability, or circumstance. The aim is to ensure that everyone, whether young or old, with or without disabilities can use and enjoy the things we encounter in our daily lives.

This design philosophy is particularly relevant in the world of housing, where inclusivity and adaptability are key. At ADU Homes, we believe that designing spaces that are accessible to all isn’t just about meeting regulations, it’s about creating homes that truly meet the needs of the people living in them, today and in the future.

The History of Universal Design

Universal design isn’t a new concept. Its roots go back to the mid-20th century in the fields of architecture and urban planning. The term was coined by architect Ronald Mace in the 1970s, who initially focused on making buildings accessible to people with disabilities. Mace’s ideas about accessible design gradually evolved into the broader concept of universal design, emphasizing inclusivity for all people, not just those with disabilities.

In recent years, there has been a renewed interest in universal design, partly due to the aging Baby Boomer generation. As more people reach retirement age, the demand for accessible housing and products has grown significantly. At ADU Homes, we see this trend reflected in the increasing number of clients who are planning for the future by incorporating aging in place features into their ADUs. The desire for independent living, combined with the flexibility of ADUs, makes them a perfect match for universal design principles.

The Role of Aging in Place

One of the most important aspects of universal design in housing is aging in place design. This approach accounts for the fact that as we age, our physical abilities and needs change. By incorporating thoughtful design elements that cater to these evolving needs, we can allow seniors to live independently in their homes for longer periods, avoiding the need for costly and sometimes unwanted relocation to assisted living facilities.

At ADU Homes, we work closely with clients who are looking to incorporate aging in place features into their accessory dwelling units. Whether you’re planning to house an elderly relative in an ADU or thinking ahead for your own future, there are numerous design features that can make a home safer, more comfortable, and more accessible as mobility decreases. These features don’t just apply to seniors, they can benefit everyone, from families with young children to individuals recovering from surgery or injury.

Practical Applications of Aging in Place Design

Aging in place design often includes features such as:

Wider doorways and hallways: Ensuring there is enough space for walkers or wheelchairs to pass through easily.

Lever handles on doors: These are easier to operate than traditional knobs, particularly for those with arthritis or reduced hand strength.

Grab bars in bathrooms: Strategically placed grab bars can prevent falls, which are one of the most common hazards for elderly individuals.

Step-free entrances: Ramps or level entrances make homes more accessible for people with mobility challenges, ensuring they don’t have to navigate stairs to enter or exit.

Lower countertops: In kitchens and bathrooms, lowering countertops can make tasks easier for those in wheelchairs or those who have difficulty standing for long periods.

At ADU Homes, we offer custom designs that can seamlessly integrate these features into your ADU project, ensuring that your space is not only functional but also stylish and welcoming. You won’t have to sacrifice aesthetics for practicality—our ADU design team knows how to blend universal design principles with modern, appealing architecture.

Benefits of Universal Design

The benefits of universal design extend far beyond accessibility. Incorporating universal design features can have positive outcomes for both individuals and society as a whole. Some of the key benefits include:

Greater independence for people with disabilities or chronic health conditions: Features like step-free access, wide hallways, and accessible bathrooms allow individuals to live comfortably in their own homes without the need for specialized care.

More livable communities for everyone: Homes and communities built with universal design principles in mind are more inclusive, fostering environments where everyone, regardless of ability, can participate fully in daily life.

An environment usable by all: By designing spaces that work for everyone, we can create homes that don’t require costly modifications as people age or if their circumstances change.

Increased social inclusion: Universal design encourages greater participation by people with disabilities, improving overall social inclusion.

Aging in place: By allowing individuals to live in their homes longer, universal design can improve the quality of life and reduce healthcare costs.

Cost savings: Incorporating universal design elements early in a construction project is often more cost-effective than retrofitting a home later on.

At ADU Homes, we understand that building for the future isn’t just about compliance—it’s about creating homes that enhance the quality of life for everyone. That’s why we encourage our clients to consider adding universal design elements to their ADUs, whether for immediate use or for future planning.

Universal Design in ADU Homes

As specialists in ADU construction, ADU Homes is uniquely positioned to integrate universal design into the homes we build. Our experience in designing and building ADUs in Southern California has given us valuable insights into what works best for homeowners who want to age in place, house elderly relatives, or simply make their homes more accessible and adaptable for the future.

Here are some examples of how we apply universal design principles in our ADU projects:

Step-free ADU entrances: Whether through a gently sloped pathway or a direct entrance from the main house, we ensure that your ADU is easily accessible for people of all abilities.

Accessible bathrooms and kitchens: By incorporating features like walk-in showers, grab bars, and adjustable countertops, we create spaces that are safe, functional, and comfortable for everyone.

Wider doorways and hallways: We design ADUs with extra space to accommodate mobility devices, ensuring that your ADU is future-proofed for any changes in physical ability.

Thoughtful lighting and acoustics: Universal design goes beyond physical accessibility. We also consider the importance of lighting and sound, creating spaces that are comfortable for people with visual or auditory impairments.

ADU Homes takes pride in offering flexible, customizable ADU designs that reflect the needs and preferences of our clients. Whether you’re looking to add an aging-in-place ADU for a family member or want to create a more inclusive living environment for future tenants, we’re here to help.

Universal Design is the Future of Housing

Universal design isn’t just a trend—it’s a design philosophy that has the potential to transform our homes and communities. By incorporating universal design principles into your ADU, you’re not only making your home more accessible and functional but also future-proofing it for changes in your family’s needs.

At ADU Homes, we believe that building homes that work for everyone is the future of housing. By offering custom ADU designs that blend universal design principles with modern aesthetics, we’re helping homeowners create spaces that are adaptable, inclusive, and built to last.

10 Reasons Why You Should Build an ADU

Fri, 11 Oct 2024 23:48:49 GMT

If You’re Considering Adding an Adu to Your Property, Here Are 10 Compelling Reasons Why It’s a Smart Choice

In recent years, accessory dwelling units (ADUs) have surged in popularity as homeowners seek versatile housing solutions that offer both financial and lifestyle advantages. Often called backyard homes, granny flats, in-law suites, and casitas, ADUs are secondary housing units that provide a wide range of benefits, making them an attractive investment option for property owners. At ADU Homes, we specialize in helping homeowners realize the full potential of their properties through expertly designed and built ADUs that deliver on both form and function.

If you're considering adding an ADU to your property, here are 10 compelling reasons why it's a smart choice:

1. Increased Property Value

One of the most significant benefits of building an ADU is the boost it provides to your property value. Adding an ADU enhances the overall square footage of your home, making your property more attractive to potential buyers. In competitive real estate markets like Los Angeles and Orange County, homes with ADUs are often sold at a premium. The additional living space, flexibility, and potential for rental income are key factors that can significantly increase the overall value of your property.

At ADU Homes, we’ve seen firsthand how much value a well-designed ADU can add. Our custom designs are tailored to maximize space and appeal, ensuring your ADU not only meets your current needs but also enhances long-term property appreciation.

2. Generate Rental Income

Building an ADU offers you the opportunity to generate rental income. Whether you opt for long-term tenants or prefer to rent the space on platforms like Airbnb for short-term stays, ADUs can create a steady stream of passive income. For many homeowners, this rental income can offset a significant portion of their mortgage or other housing expenses.

Additionally, ADUs are particularly attractive in areas with high housing demand, where rental prices continue to rise. As a homeowner, this means you can capitalize on the growing need for affordable rental units, providing renters with a desirable, standalone living space while simultaneously boosting your own financial security.

3. Cost-Effective Housing Solutions

ADUs offer a cost-effective living option, both for homeowners and renters. For homeowners, the ability to generate rental income makes an ADU a practical way to offset housing costs. For renters, ADUs provide a more attainable housing option, often located in desirable neighborhoods where standalone homes or apartments might be financially out of reach.

At ADU Homes, we emphasize affordability without sacrificing quality. Our efficient design and construction process ensures that homeowners get the most out of their investment. And with many cities offering streamlined permitting processes for ADUs, the costs and time involved in building one have never been lower.

4. Support Multigenerational Living

As family dynamics change, many homeowners are looking for solutions that allow them to accommodate multiple generations under one roof while maintaining privacy and independence. ADUs offer the perfect solution. Whether you’re creating a space for aging parents, adult children, or extended family members, ADUs provide the privacy and autonomy needed while keeping loved ones close.

This flexibility is invaluable. An ADU can be used as a transitional space for younger family members who are saving for their own home or as a long-term living solution for elderly relatives who need care but wish to retain their independence. At ADU Homes, we work with families to design spaces that meet the specific needs of multigenerational households, offering comfort and privacy for everyone.

5. Aging in Place with Comfort and Security

For older adults who want to age in place, ADUs can provide a safe, accessible living environment. Features like single-story layouts, barrier-free entrances, walk-in showers, and accessible kitchens make it easier for seniors to live independently without sacrificing comfort or security. At ADU Homes, we specialize in aging in place designs, ensuring that every ADU we build is accessible and adaptable to the changing needs of its occupants.

Our designs often include thoughtful features like lever door handles, lower countertops, and wider hallways to accommodate mobility devices, ensuring the space remains functional and comfortable as the occupant’s needs evolve. With an ADU, homeowners can plan for the future, creating a space where they or their loved ones can age gracefully.

6. Promote Sustainable Living

ADUs contribute to sustainable urban development by maximizing the use of existing land and infrastructure. By repurposing underutilized spaces like backyards or garages, ADUs help reduce urban sprawl and the environmental impact associated with new construction. Smaller homes like ADUs also consume fewer resources, using less energy for heating and cooling compared to traditional single-family homes.

At ADU Homes, we incorporate sustainability into every project, offering energy-efficient appliances, solar panel options, and environmentally conscious building materials. Whether you’re looking to lower your carbon footprint or simply reduce energy costs, building an ADU is a step toward a more sustainable future.

7. Customizable and Flexible Design Options

One of the most appealing aspects of building an ADU is the ability to customize it to suit your specific needs. Whether you’re envisioning a rental unit, home office, guest suite, or creative studio, ADUs can be designed to accommodate a wide variety of uses. At ADU Homes, we offer personalized designs that fit your vision, ensuring that the space is functional, aesthetically pleasing, and perfectly aligned with your goals.

Our in-house design team works closely with clients to ensure every detail is just right—from floor plans and finishes, to lighting and accessibility features. This level of customization makes ADUs highly flexible and adaptable to your changing needs over time.

8. Regulatory Support for ADUs

Many cities and municipalities are recognizing the role ADUs can play in addressing housing shortages and are revising zoning regulations to encourage their construction. In California, laws such as SB9 have made it easier than ever for homeowners to build ADUs by streamlining the permitting process and reducing restrictions. This regulatory support makes ADUs a practical and attainable option for homeowners who want to maximize the potential of their property.

At ADU Homes, we have extensive experience navigating the permitting process across Southern California. We handle all aspects of compliance, ensuring that your ADU meets local regulations and codes so you can focus on enjoying the benefits of your new space.

9. Enhance Community Integration

ADUs contribute to more vibrant and diverse communities by offering flexible housing options that accommodate a range of household compositions. Whether it's a small studio for a young professional or a larger unit for a family member, ADUs help diversify housing stock in neighborhoods, fostering greater community interaction and inclusivity.

Building an ADU on your property can also increase opportunities for social connections. By providing affordable rental housing or a space for family members, you can create a more integrated and supportive community. At ADU Homes, we design ADUs that blend seamlessly with the surrounding environment, ensuring that your new space complements both your home and your neighborhood.

10. A Long-Term Investment in Your Future

Finally, building an ADU represents a smart long-term investment. Beyond the immediate financial returns from rental income or increased property value, ADUs offer flexibility and adaptability for future needs. Whether your family grows, your lifestyle changes, or your financial goals shift, an ADU provides a versatile space that can evolve with you.

At ADU Homes, we take pride in delivering high-quality, well-designed ADUs that not only meet your current needs but also stand the test of time. Investing in an ADU is an investment in your property, your future, and your quality of life.

These are just some of the many reasons why building an ADU is a smart choice for homeowners. If you’re ready to take the next step or want to learn more, schedule your free consultation with ADU Homes today. Our team is here to guide you through every stage of the process, from design to construction, ensuring that your ADU enhances your property and your lifestyle.

Accessory Dwelling Units : The New Housing Trend Taking Over America?

Sat, 05 Oct 2024 00:08:15 GMT

These Versatile, Small Backyard Homes Are Gaining Significant Traction in Urban and Suburban Areas Alike

If you've been keeping up with housing trends in America, you've probably heard about accessory dwelling units, or ADUs. These versatile, small backyard homes are gaining significant traction in urban and suburban areas alike. As housing costs soar and cities become more densely populated, ADUs offer a smart, flexible solution for homeowners and renters. But what exactly are ADUs, and why are they becoming so popular? Let’s dive deeper.

What Are Accessory Dwelling Units?

An accessory dwelling unit (ADU) is a secondary housing unit built on the same lot as an existing main residence or multi-family building. ADUs come in many forms, including converted garages, carriage houses , or detached units built in the backyard. While small in size, typically ranging from 300 to 1,200 square feet, ADUs are fully equipped with essential amenities like kitchens, bathrooms, and sleeping areas.

ADUs are often referred to as “granny flats” or “in-law suites,” because they have long been a popular way to provide extra living space for family members. For a time, they became less common as suburbanization spread homes farther apart. However, with urban areas growing more congested and housing affordability becoming a national concern, ADUs are experiencing a renaissance.

Why Are ADUs Becoming So Popular?

Affordability and Income Potential

One of the primary reasons ADUs are exploding in popularity is their affordability. In high-demand urban areas where space is limited and housing prices are skyrocketing, ADUs provide a cost-effective alternative. For homeowners, ADUs offer the unique ability to create an additional rental unit, generating passive income that helps offset mortgage payments or fund retirement. At ADU Homes, we’ve seen firsthand how homeowners use ADUs to boost investment cash flow while increasing the overall value of their property.

Flexible Living Solutions

ADUs also address evolving family dynamics. Many homeowners build ADUs to accommodate elderly parents or adult children who want to maintain independence while staying close to loved ones. These units are ideal for multigenerational living or housing family members who may need extra support. With custom designs from the ADU Homes design studio, we help clients create spaces tailored to their family's specific needs, ensuring privacy and comfort.

Sustainability

Another key factor driving the ADU trend is sustainability. Smaller living spaces like ADUs require fewer resources and energy to operate, making them a greener alternative to traditional housing. Additionally, ADUs are built on existing properties, eliminating the need for new land development and reducing environmental impact. For homeowners who want to go even further, ADUs can be equipped with renewable energy solutions like solar panels—making them not only eco-friendly, but cost-efficient in the long run.

Zoning and Regulatory Support

Legislative changes have contributed to the ADU boom. California has relaxed its zoning regulations and parking requirements, making it easier and faster for homeowners to get permits to build ADUs. The passage of SB9 and new laws allow for the ADUs to be sold as separately, unlocking even more financial opportunities for homeowners. At ADU Homes, we specialize in navigating the design and permitting process, helping homeowners take full advantage of these changes without the usual headaches.

Why Build an ADU with ADU Homes?

At ADU Homes, we believe that building an ADU should be as seamless as possible. With decades of construction experience in Los Angeles and Orange County, we offer guaranteed pricing, so you won’t be caught off guard by cost overruns. Our in-house design studio works with you to create the perfect custom ADU, whether you need a 300 sf studio or a 1,200 sf three-bedroom ADU for use as the primary house, we can help you. And with our use of innovative technology and construction methods, we reduce project time and cost while ensuring your ADU is built to the highest standards.

From enhancing property value and generating rental income to creating flexible, sustainable living spaces, ADUs are the new frontier in housing—and ADU Homes is here to help you make the most of this opportunity.

ADUs as the Future of Housing

ADUs are more than just a trend—they represent a thoughtful response to the housing crisis, the need for sustainability, and the evolving dynamics of American households. Whether you're looking to increase your property’s value, provide a home for aging parents, or reduce your carbon footprint, an ADU can be the perfect solution .

As housing continues to evolve, ADUs are poised to play a major role in reshaping American communities. And with ADU Homes, you can trust that your project will be completed on time, on budget, and to your exact specifications.

Building Your Future: The City of Long Beach Backyard Builders Program and How ADU Homes Can Help

rob@aduhomesinc.com (Rob Berry) — Tue, 24 Sep 2024 23:34:05 GMT

Get up to $250,000 in low-interest loans for ADU construction

At ADU Homes, we believe in empowering homeowners to make the most out of their property through Accessory Dwelling Units (ADUs). Whether you're looking to create additional rental income, provide a home for a family member, or simply increase the value of your property, ADUs present a practical and sustainable solution. With over 20 years of experience, we’ve helped countless homeowners turn their visions into reality. Today, we want to introduce an exciting opportunity for property owners in Long Beach: the City of Long Beach Backyard Builders Program .

This program is specifically designed to make ADU construction easier and more affordable for Long Beach residents by providing financial assistance, project management, and much more. Let’s dive into how this program works, the incredible benefits it offers, and how ADU Homes can assist you throughout the entire process.

What is the City of Long Beach Backyard Builders Program?

The City of Long Beach Backyard Builders Program is a local government initiative aimed at helping property owners finance, design, and construct ADUs on their properties. The program offers up to $250,000 in low-interest loans for ADU construction, and in addition to the financial aid, it provides project management services to assist homeowners with the planning, permitting, and building process. This means the city not only helps fund the construction of an ADU but also guides you through every step of the process.

Key highlights of the program include:

Low-Interest Loans: Loans of up to $250,000, with no payments required during the construction phase

Project Management: Expert guidance from city-appointed project managers to help ensure a smooth construction process.

Affordability Requirements: The ADU must be rented at an affordable rate for a period of five to seven years, depending on tenant income.

For homeowners who are interested in building ADUs but are hesitant due to the financial and logistical challenges, this program is a game-changer.

The Financial Benefits: A Closer Look at Loan Terms

Building an ADU can be a significant investment, but the City of Long Beach Backyard Builders Program offers a flexible, low-cost solution that makes ADU construction accessible to more homeowners. Here’s what you can expect:

Zero Interest During Construction and Affordability Period: During the construction period, homeowners are not required to make loan payments, and no interest will accrue on the loan as long as the ADU is occupied by a qualified tenant. This greatly reduces the financial burden of building an ADU.
Fixed 3% Interest Post-Affordability Period: After the initial affordability term, the interest rate increases to a modest 3%, allowing property owners to enjoy continued benefits while gradually paying off the loan over the remaining loan term.
Affordability Period Flexibility: For homeowners renting to low-income tenants or housing voucher holders, the required affordability period is five years (for voucher holders) or seven years (for general low-income tenants). After this period, you can rent your ADU at market rates while continuing to repay the loan.

What makes this program truly special is its focus on affordability. During the affordability period, the City of Long Beach ensures that tenants are either low-income or receive housing assistance, ensuring that the ADUs built under this program contribute to the city’s housing goals while helping homeowners receive rental income with minimal upfront costs.

Who Can Qualify for the Program?

Eligibility for the program is designed to be straightforward, so that as many property owners as possible can benefit.

Here are the basic qualifications:

Owner-Occupied Properties: You must reside full-time on the property where the ADU will be built.

Property Size: The property must have four units or fewer before the ADU is constructed.

Financial Eligibility: Homeowners must have a credit score of at least 650 and a debt-to-income ratio of 48% or less, including the future ADU loan payments.

Additionally, properties must be current on mortgage and tax payments, and the property must have sufficient insurance coverage. The loan can be used to cover all aspects of ADU construction, from architectural services to contractor fees, making it a comprehensive financial solution for homeowners ready to expand their properties.

Why Build an ADU? The Long-Term Benefits

Aside from the immediate financial incentives, there are numerous long-term advantages to building an ADU. Here are just a few reasons why it might be the perfect addition to your property:

Flexible Living Arrangements: ADUs are a fantastic solution for multigenerational families. Whether you want to offer a separate living space for aging parents, adult children, or other relatives, an ADU gives everyone the space and privacy they need while staying close to family.
Rental Income: An ADU can provide a steady stream of income by renting it to long-term tenants. With the City of Long Beach Backyard Builders Program, you can take advantage of guaranteed rental subsidies if you rent to housing voucher recipients, providing a stable and reliable income source.
Increased Property Value: Adding an ADU to your property can significantly increase its overall value. By offering a second, self-contained living space, your property becomes more versatile and attractive to future buyers.

At ADU Homes, we’ve seen firsthand how ADUs can transform not only properties but lives. Whether it’s providing a home for a family member or creating an additional income stream, ADUs offer unparalleled flexibility.

How ADU Homes Can Help You Navigate the Backyard Builders Program

At ADU Homes, we pride ourselves on making the ADU construction process as easy and stress-free as possible for our clients. Our extensive experience in designing and building ADUs means we’re uniquely positioned to help homeowners navigate the intricacies of the City of Long Beach Backyard Builders Program.

Here’s how we can support you:

End-to-End Project Management: From initial design concepts to the final stages of construction, we handle every aspect of the ADU building process, ensuring your project stays on time and within budget.

Customized ADU Designs: Whether you’re looking for a garage conversion, a studio unit, or a larger two- or three-bedroom ADU, we offer a range of customizable designs to suit your needs and maximize your property’s potential.

Financing Assistance: We understand that the financial aspect of building an ADU can be daunting. That’s why we work closely with you to explore all available financing options, including those offered through the City of Long Beach Backyard Builders Program. We help you complete the necessary paperwork, ensuring you’re fully prepared to take advantage of the program’s benefits.

Navigating Local Regulations: Our deep knowledge of Long Beach ADU regulations and our long-standing relationships with local permitting agencies means we can help you navigate the complexities of city codes and requirements with ease.

What’s Next? Start Your ADU Journey Today

If you’re a property owner in Long Beach and you’ve been considering building an ADU, there’s never been a better time to take the next step. With the financial assistance and project management services offered through the City of Long Beach Backyard Builders Program, paired with the expertise of ADU Homes, you can bring your ADU vision to life without the typical financial and logistical headaches.

At ADU Homes, we’re passionate about helping homeowners transform their properties and create spaces that truly meet their needs. Whether you’re interested in a rental income stream, housing for family members, or simply increasing the value of your home, our team is ready to guide you through every step of the process.

To learn more about how the City of Long Beach Backyard Builders Program can work for you, or to schedule a consultation with one of our ADU experts, contact us today! Together, we’ll create a space that enriches your life and enhances your property.

Final Thoughts

The City of Long Beach Backyard Builders Program represents an incredible opportunity for homeowners to add value to their properties while contributing to the city’s affordable housing efforts. And with the support of ADU Homes, you can rest assured that your ADU project will be in the best possible hands, from start to finish.

Let us help you take advantage of this amazing program and turn your backyard into a valuable asset. Reach out to us today to start your ADU journey!

Can I Build an ADU on my Multifamily Property?

rob@aduhomesinc.com (Rob Berry) — Tue, 02 Jul 2024 07:13:34 GMT

Short answer: yes.

California ADU laws allow several types of accessory dwelling units to be built on any multi-family property. The two types of ADUs that can be built on a multi-family property are detached ADUs and conversion ADUs. A detached ADU is a free-standing building separate from the main multi-family building. A conversion ADU converts existing non-livable space in the main multi-family building or accessory structures into an ADU (typical conversion areas are storage room, recreation room, or garage / carport).

Why Add ADUs to a Multi-family Property?

Property owners tend to think of accessory dwelling units as an option for single-family homeowners to create an additional unit on their property. While this is the most common application for ADUs, it’s not the only one—ADUs can be added to multi-family properties too. Adding detached ADUs or converting an underutilized garage or storage area into an ADU increases the overall property value and provides additional rental income. It can be a great way to add units and maximize a property’s rental potential.

How Many ADUs Can I Build?

The number of ADUs allowed on any multi-family property depends on what currently exists on the property. Typically, 2 detached ADUs are allowed on a property with a multi-family building. The number of conversion ADUs allowed depends on how many units are already on the property. At least one conversion ADU is always allowed, with the maximum number of allowed conversion ADUs at 25% of the number of units already on the property.

Are There Special Regulations for Multi-family ADUs?

Detached ADUs on a multi-family property may be limited to a maximum height of 16 feet but in some cities the height can be up to 25 feet which allows for a two-story building. The minimum setbacks are 4 feet at the rear yard and 4 feet at the side yards. The maximum size of the ADU can vary by city, but owners are allowed to build an ADU with a minimum of 800 sf. Conversion ADUs that are inside the main building on a multi-family lot are treated as part of the main building and have the same requirements as the main building. For example, if the main building has fire sprinklers, and the ADU is created within the building, it will also require fire sprinklers.

Does parking need to be replaced or provided?

Accessory dwelling units created from converting a carport or garage are not required to replace the parking. Furthermore, new detached ADUs are not required to provide on-site parking if the property is with one-half mile of public transportation which includes a bus stop.

Conclusion

Adding ADUs to your multi-family property can be great way to increase rental income and add significant value to your property. Looking at it another way, ADUs are a smart “investment” in your existing property since the investment return on the costs can be very attractive. If you’re interested in adding one or more ADUs to your multi-family property, contact us to schedule your free property analysis to determine what's possible on your property.

$40,000 ADU Grant - Free Money for your ADU

Wed, 03 Aug 2022 22:15:22 GMT

What is the CAL HFA $40,000 ADU Grant Program?

The California Housing Finance Agency also known as CalHFA is currently offering homeowners a $40,000 grant to help build an ADU on their property. This is a grant so you don’t have to repay it!

The ADU grant will provide up to $40,000 towards pre-development costs which include items like:

Architecture and Engineering
Fees and Permits
Property survey
Soils test

The grant will not pay for costs like construction materials and labor. We believe this an amazing opportunity for California homeowners wanting to build an Accessory Dwelling Unit (ADU) on their property.

Who is Eligible for the Grant?

The ADU grant is available to homeowners that meet the following criteria:

Maximum annual income of the borrower cannot exceed $180,000 for Los Angeles County residents and $235,000 for Orange County residents
You must be the homeowner and be living in the home
Investors not eligible
You must be on the deed
You will live in the main house during construction of the ADU
You will live in either the main house or the ADU after construction

How does the Grant Program Work?

The first step is to apply for the CALHFA ADU grant through an approved lender. We can connect you with recommended approved lenders.
For eligible and qualified homeowners, the lender will approve the construction loan and prequalifies the homeowner for the CALHFA ADU grant.
Next the lender will submit the ADU grant application including a list of costs and invoices for predevelopment costs.
The lender will require a fixed price construction contract in order for you to be approved for the grant. That’s where we come in. Since we will design and build your ADU, we can help you get the plans, budget and contract to your lender to make the process painless and worry free.
Lastly, the grant money will be managed through an escrow, where the funds will be released as each phase of construction is completed.

Why Choose ADU Homes

ADU Homes is a one stop shop for anyone interested in having an ADU built on their property. We have pre-designed and engineered a series of ADUs in a variety of sizes, floor plan configurations and architectural styles that we build for homeowners for a fixed price with a completion date promise. We offer several elevational styles for each plan type that customers can choose from to match the architectural style of their existing home.

Our team has more than 20 years of experience in the home building, design, finance, and technology industries and bring a new approach to building ADUs, utilizing operating efficiencies and innovation to deliver exceptional value, cost savings, and a less stressful process to homeowners.

If you are interested in building an ADU on your property in Los Angeles County or Orange County, then give us a call at (3 (323) 434-2433 , shoot us an email at info@aduhomesinc.com , or click on the following link to get a free ADU analysis for your property.

Sources:

https://www.calhfa.ca.gov/adu/#resources

Why ADUs Make Financial Sense

drew@linkencounter.com (Andrew Mele) — Thu, 04 Jun 2020 19:03:17 GMT

Accessory dwelling units make sense for a variety of reasons, so the realquestion isn't "why?", it's "how?". New legislation hasmade it possible for most properties in California to build ADUs. Regardless oflot size, current density, or zoning, you are likely allowed to build some formof ADU on your lot.

So, how do you pay for it?

With interest rates at all time lows, going through arefinancing, taking out a Home equity line of credit or constructionloan allow you to build your ADU, while cash flowing your new rental.

Not a rental?

Compare these monthlies to what you would spend on officespace, or an apartment for a family member or friend. We have built ADUs forparents, young adult children, grandparents, rentals and just for more living space.

Your ADU may start as a rental and wind up being a retirement property. Adding a unit not only increases your property value, but it will set you up for options now, as well as in the future. ADUs add flexibility.

Keep Your Garage, Add An Apartment

drew@linkencounter.com (Andrew Mele) — Fri, 01 May 2020 00:47:17 GMT

The Carriage House. From "The Fonz" on "Happy Days" to The Braverman's in "Parenthood", the apartment over the garage has been a popular TV home. With new laws and legislation, this sensible solution is now easier than ever to build.
Converting a detached garage is one of the most popular and cost efficient ways to add an accessory dwelling unit to your property, but if you really want or need that garage, this is the way have both.

"Is it more expensive than converting your garage?"

Short answer, yes. In order to build over your garage you must have a good foundation, proper footings and a unit that is in good repair. Going this route could mean tearing down your current structure all together. However, the potential rental income plus the increase in property value makes this versatile unit very popular.

For more information on how to convert your garage visit our Garage Conversions web page.

How To Make Your Small Home Feel Big

drew@linkencounter.com (Andrew Mele) — Tue, 28 Apr 2020 17:00:46 GMT

Extra space is always nice, especially right now, but maybe you don't want a big structure sitting on the back of your lot. This 330 sf studio will serve as a really nice home office for our clients, but it will also easily convert into a comfortable weekend (or long term) stay for family or guests.
330 sf is small, but with a full kitchen, bath, and stacked washer/dryer, this little guy feels like a real home.

A few design elements that will help your small space feel bigger:

Natural Light- Incorporate as many windows as possible. Natural light makes any space feel larger, and if you use white or light colored paint on the interior, it accentuates that wonderful light.
Volume- The higher the ceilings, the better. When building ground up it is worth the cost to create some headroom, avoiding a potential "cave like" feeling.
Outdoor space- Any outdoor space! Even if you create a small patio in the setback, having a separate area to walk out to will make a big difference.
Smaller appliances- Using European style 24" appliances instead of the standard 30" creates more counter and cabinet space. These are still fully functional, just slightly smaller, and that added storage is a huge plus.

The unit in the video above has an 18' x 18' footprint, which is roughly the size of a small 2 car garage. See what you can do on your property by clicking here .

Tour Our 1200sf, 3 bed/2.5 bath ADU

drew@linkencounter.com (Andrew Mele) — Tue, 31 Mar 2020 21:23:45 GMT

This 1200sf ADU is a detached unit built on the rear of a corner lot, which makes it look and feel like a separate home. 1200sf is the maximum size for an accessory dwelling unit in the state of California.

Walk Through Our 400sf Garage Conversion

drew@linkencounter.com (Andrew Mele) — Tue, 31 Mar 2020 20:40:27 GMT

This 20x20 garage is in the process of being converted into a 1 bedroom rental for the homeowner. 400sf feels bigger than it sounds!

3 Things That Make A Great Garage Conversion

drew@linkencounter.com (Andrew Mele) — Wed, 11 Mar 2020 22:15:31 GMT

If your garage is simply "somewhere you put stuff", you are likely not maximizing the potential of your property. Start your spring cleaning now, KonMari your garage, and turn it into a lucrative rental property. Garage conversions are not only a great way to bring in steady rental income, but they also add value and flexibility to your lot. You have already done the hard part, purchase land in California, now is the time to capitalize on your investment.

What Makes a Good Garage Conversion?

1. A side driveway or corner lot-
Having easy access to the unit not only allows you to create a sense of privacy between the conversion and your primary residence, but it also makes the construction process easier, faster, and consequently, cheaper.

2. Access to outdoor space-

Outdoor space is always nice, but when you are considering a 400sf home, even a small patio can make a big difference. We are in California, take advantage of that indoor/outdoor living no matter what size the home is.

3. Good Footings and foundation-
It makes sense that a garage in better condition is easier and cheaper to convert. Things to look for are cracks in the foundation, whether or not your garage has footings, and if there is any damage to the framing (rot, termites, etc.). If the garage needs to be torn down and rebuilt, that will certainly be more expensive, but as you look into the numbers, even going this route is going to be worth the investment.

Construction time on garage conversions can be as little as 8 weeks. Meaning, you can have your backyard home up and running in just a few months. These 400sf studios or small 1 bedrooms can rent for $1500 or more in some parts of Los Angeles which makes the return on your investment immediate (cash flow), and long term (increased property value).

So, clean up your garage and put it to use!

Here are a few great places to donate your used items :

Operation Paperback will send your old books to troops overseas, veterans and military families. https://operationpaperback.org/

Habitat For Humanity Restore will accept home items, building materials, vehicles and more. https://www.habitatla.org

Baby2Baby will take used clothing, blankets, toys, cribs and more and donate them to children's hospitals and shelters. https://baby2baby.org/

The 1 Million Project helps high school students in low-income neighborhoods by providing cell phones, tablets, computers and other electronics.

http://www.1millionproject.org/

ADU Homes Tops The List!

drew@linkencounter.com (Andrew Mele) — Fri, 28 Feb 2020 07:49:36 GMT

ADU Homes was named a top accessory dwelling unit builder by Home Builder Digest this week, topping the list for our innovative design and simplified process (Read the full article here ). We take pride in what we do, and believe that ADUs can help change the face of Los Angeles for the better, benefitting not just homeowners, but all residents of the city.

I Can Buy A Home In LA...?

drew@linkencounter.com (Andrew Mele) — Wed, 29 Jan 2020 23:10:02 GMT

I have been renting a 520sf bungalow in Venice for 8 years. I am a pre Google pre “silicon beach” resident.

Because of the nature of LA real estate this means 2 things:

1. I can never move to another rental.

2. I can NEVER move.

I wouldn’t mind a change of scenery, or more space, but a bigger apartment in my neighborhood is going to be 2-3x my current rent, which doesn’t make any sense, and buying a home anywhere on the Westside of LA is outside of my budget. My nightly routine would consist of: Redfin, Zillow, Craigslist, Trulia, close my computer, sigh, go to bed. For years I would look at options periodically, realize there weren’t any, and then move around the furniture in my apartment to make it feel different.

Then 2020 rolls around……..

Real estate is still expensive, that has not changed, but what has changed is the way I can conceivably use my future property. Adding an ADU and JADU to my currently fictitious property and renting them both will offset my mortgage. Because of this flexibility and income I would feel way more comfortable about taking on the commitment of a big long term loan.

I can live in my primary home and rent my ADU and JADU. If an unforeseen financial circumstance pops up, I can move into the JADU and rent my two larger properties.

For someone like me trying to put down some roots, it now seems possible.

For someone who made a great investment and put roots down in Venice years ago (or insert any other highly gentrified neighborhood) they can capitalize by adding an ADU and renting. They don’t have to sell and move, they can earn cash while staying in their own home.

That is the beauty of it. It is an option that literally helps everyone.

ADUs are a solution to a problem for many on the individual level, and increasing our housing options will theoretically help on a macro level.

Win/Win.

Goodbye 2019, Hello 2020!

drew@linkencounter.com (Andrew Mele) — Wed, 08 Jan 2020 00:06:44 GMT

New year, new legislation, new opportunity. The accessory dwelling unit movement has gained a lot of momentum in the last few years, and 2020 is looking to be the busiest year yet for ADU permitting and construction. The versatility of a backyard home has always been appealing, and with new regulations making the construction simpler, fees lower, and offering more options, 2020 should allow for more ADU and Junior ADU (JADU) doors to open than any previous year.
Reduced setbacks, lower impact fees, removal of owner occupancy....California is trying to create more housing and ADUs are a part of the solution. For homeowners, developers, and investors these new laws will create opportunities.

No Time Like The Present

drew@linkencounter.com (Andrew Mele) — Sat, 21 Dec 2019 00:42:11 GMT

New California legislation has literally opened the doors for ADU construction. By starting your project this winter you could potentially have your ADU up and running by the beginning of summer.

The benefit of building an ADU is, of course, more space that can fulfill a variety of needs. Housing a parent, a young adult child, office or guest space, or a source of rental income. The advantage of a quick (well done) build is that you are saving money by saving time. If you rent, your ADU is occupied/money is in your pocket sooner, if you are putting up a family member, their cost of living comes down as soon as your ADU goes up. These should all be factors when weighing your options. Time really does equal money.

Any construction project is a major decision, but it is important to look at not only the financials of the project, but the efforts required by you to get this done. Don’t underestimate the value of your time.

The Solar Mandate

drew@linkencounter.com (Andrew Mele) — Tue, 10 Dec 2019 23:58:43 GMT

Starting January 1, 2020 all new construction in California will need to comply with Title 24 guidelines, which means adding solar. The new solar mandate will only affect new construction, which includes detached ADUs. If you are building an attached ADU, carve-out ADU, or garage conversion your project will not fall under these legislation changes.
While solar does have long term cost benefits, the necessity to add it to your project will increase construction costs. Depending on the size of your ADU, the additional price tag could be $7,000-10,000.

Submit your ADU for plan check in 2019, and you can avoid the mandate.

Many homeowners add solar to their properties, and when you crunch the numbers, solar makes long term financial sense. Panels are far more efficient and less expensive than just a few years ago. However, if you submit in 2019, the decision of whether or not to add solar will still be yours.

The Greater Benefits Of An ADU

drew@linkencounter.com (Andrew Mele) — Wed, 20 Nov 2019 06:05:55 GMT

“Accessory dwelling units are a relatively low-cost way for homeowners to play a big part in expanding our city’s housing stock, and make extra money while they’re at it.” - Mayor Eric Garcetti

Yes, accessory dwelling units are a financial benefit to the homeowner, but on a larger scale, they can help alleviate some of the pressure currently on the LA housing market.
There are over 500,000 single family homes in LA, and with new legislation passed, most of these are eligible for an ADU, and potentially a junior ADU.
Housing costs have become so inflated in California that some cities, including Los Angeles, lost residents in 2018. If LA wants to remain a vibrant economy, where we experience growth, we need to address housing affordability.

The flexibility to age in place, generate rental income, or create more affordable housing, ADUs offer a possible solution to California's housing needs.

New ADU Laws and Regulations

drew@linkencounter.com (Andrew Mele) — Sat, 02 Nov 2019 00:00:00 GMT

The new ADU legislation taking effect on January 1, 2020 is a game changer for the ADU (Accessory Dwelling Unit) movement.

Here is a brief summary of the changes:

Removes owner occupancy requirement
Homeowners can have two ADUs on their property – standard ADU and a junior ADU (JADU)
Eliminates restrictions on lot size
Replacement parking is no longer required
Reduces Impact fees
Reduces building setback requirements
Cities cannot restrict the maximum ADU size to less than 850 sf
Increases opportunities to build ADUs on multi-family zoned properties

Yes, But, What Does This Mean?

These new laws are designed to make it easier for more homeowners to add ADUs to their properties. We need more housing in California and ADUs can be part of the solution.

What Is An ADU?

drew@linkencounter.com (Andrew Mele) — Thu, 01 Aug 2019 00:00:00 GMT

Why An ADU?

An ADU can serve as...…

A home for an elderly parent who needs to be closer to family
A private space for a recent college graduate returning home
A guest house for family and friends
A rental unit for additional income
A home you can downsize into while monetizing your primary residence

Bottom line, an ADU adds flexibility.