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Considering An ADU?

By Adam Hamalian

I recently heard someone say they were leaving California because they were afraid of being forced to build an ADU (Accessory Dwelling Unit). Which, I think it's  safe to say, we all watch too much commercial news and need to check the facts more often. No one is being forced to build ADUs, but the state has made it easier to get ADUs approved by city and county planning and building departments.

Laws regarding ADUs are legislative tools that encourage flexible housing in a general climate of housing shortages. California over the past several years has made it easier for homeowners to add ADUs and removed some zoning obstacles. While you may not be able to stop your neighbor from building an ADU, no one is forcing you to build one.

What is an ADU? As the name suggests, it is a dwelling unit that is smaller than the primary dwelling unit on a property. It must have all the components of a home such as power, heat, a kitchen, and a bathroom. Basically it has to be a stand alone dwelling and independent of the main dwelling unit. In some cases, a Junior ADU can also be a space added to, or the conversion of a  part of, the main dwelling that shares some of the main home’s amenities but also has its own space.

The benefit of an ADU is the addition of housing in a land-scarce environment. For the homeowner, it can be used to house family members. Or it can produce income as a long-term or short-term rental, depending on local laws. If all that is needed is a home office, studio, or salon, you may not need an ADU but rather just an additional outbuilding with electricity, connectivity, and HVAC. 

ADUs can be prefabricated and installed via crane on a poured in place foundation. It can also be prefabricated in parts and assembled on site. And lastly it can be custom built from scratch on site. The cost varies greatly depending on size and quality. A permit is required for all dwelling units with some limitations on square footage and height.

ADUs can add value to a property if done well and thoughtfully. When considering an ADU, some things to consider: 1) The architectural design should be compatible with the main house. 2) Site location that provides some privacy for both the ADU and the Main House. 3) A robust HVAC system adequate for regional comfort. 4) Access from the street and/or off street parking that is not too intrusive. 5) Construction quality that will stand the test of time and retain its value when the home is sold.

If you are considering an ADU please visit California HCD ADU Research for more information and reach out to us to best understand how it will effect your home's specific value.

Adam Hamalian

Broker Associate
As a fourth generation Bay Area real estate professional, Adam Hamalian has unparalleled knowledge...

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