Opportunities with ADUs 

Taking Care of Family,  Create Income

Calif. has recognized the burden of housing shortage statewide.  The scarcity inflates rental costs eliminating affordability.  It disproportionately effects lower income families, students and others.  The impact cascades into longer commutes adding to costs, pollution and quality of life.

In 2017 Calif reacted to impose statewide mandates for Accessory Dwelling Units (ADU) otherwise known as Granny Flats.  The statewide mandate removes barriers and reduces overall costs for permitting and construction.  These mandates override local building ordinance regulations.
Construction of ADUs were impaired from numerous requirements like parking, setbacks, and unreasonable construction costs normally associated with new construction.
Numerous bills passed in 2017 & 2018 that significantly improved the viability and cost reductions saving tens of thousands of dollars.
New 2019 Ordinances
In 2019 additional ordinances have been approved (effective 2020) to remove more barriers and reduce costs making ADUs more viable and affordable statewide.

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General
ADUs - Allows construction of an additional living dwelling on a property.  This is applicable for single family and multi-family zone properties.  Can be attached, detached or utilize existing space like garage conversion.  Size limit is 1,200 sf.  Must have direct access to the public street.  Must meet setback requirements.

What's Driving Demand
Demand is driven from both housing needs and income opportunities. ADUS will add housing to help alleviate housing shortages.   It will also create long term affordable housing.   Homeowners can participate.   You have an affordable housing solution to your aging parents, siblings, young adult children.  If you finance a garage conversion, your mortgage payment will be under $500/mo.  compared to average of $1,500/mo. in the San Diego area.
Income opportunities will draw interest for investment strategies.  Attractive cap rates and instant equity will draw in the seasoned real estate investor.  This will also attract first-time investors and savvy homeowners desiring to diversify their investment portfolio.
What this means Next Step
 for you
Homeowners - This creates an opportunity to add affordable housing for family or an attractive income stream. 
Homebuyers - Addition of square footage adds value to create equity.
Financing
Construction of ADU starts at $80,000 for a garage conversion.  Detached ADU starts at $120,000.  If you don’t have funds, you can consider refinancing a home loan.  Several options exist.  Home equity loans, renovation loans and more.
We are a network of seasoned professionals that collaborate that creates a seamless process that ensures integrity, reliability and cost savings. 

We compiled all available financing.  We can help navigate through all the financing options.  Please visit our Financing Page.

Types of Accessory Dwelling Units
New, Attached - Allows new addition up to 50% of square footage of existing dwelling, not greater than 1,200 sf.
New, Detached - Allows new addition up to 50% of square footage of existing dwelling, not greater than 1,200 sf.
Conversion, Unconditioned - Typically a garage conversion.
Conversion, Conditioned  - Also known as a Junior ADU.  Converting living area.  Must have separate outside access and setback that complies with fire safety code.  Up to 500 sf.  Must have kitchen(ette) and direct access to the outside.  

Updated 2022 ADU Guide from HCD

Calf. Dept. of Housing and Community Development (HCD) recently released an updated ADU Handbook(July 2022).  This well received by the experienced and newbies starting their journey building an ADU.  This is ideal reference guide for the principles of statewide mandates that applies throughout all local & county jurisdictions in California.  Its only 58 pages! Thank you. 
Its important to note that HCD sets the bar for ADUs statewide.  These conditions cannot be more restrictive at a local level.  Local agencies are encouraged to developed local ordinances to meets the unique needs of their local area. 
In the absence of local ADU ordinances,  the state ordinances will govern ADU requirements and conditions.

Download Handbook

Getting Started

The good news is most homeowners are eligible of building and financing an ADU.  From a garage conversion to a 1,200 sq ft detach dwelling unit are now allowable.  Since 2017 & 2019 local & state ordinances have removed major roadblocks and greatly reduced fees that saves homeowners tens of thousands of dollars. 
There are also financing options available to most homeowners to make ADUs viable.
The not-so-good news, is this process can be daunting to even seasoned professionals in the real estate or construction profession.  Our website is organized to assist the entire scope of building an ADU.  You are encouraged to visit our pages.  We're just a phone call away.

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