The Rise of Accessory Dwelling Units in California
Accessory dwelling unit California laws and regulations are changing the housing landscape, offering innovative solutions to the state’s housing crisis. These compact, self-contained living spaces—also known as ADUs—are built on the same lot as an existing or proposed primary home. They vary from detached backyard cottages to garage conversions and even basement apartments.
To quickly address the key points:
- ADU Definition: A small, independent living space on the same property as a primary residence.
- Popularity: ADUs are gaining traction due to their cost-effectiveness and flexibility.
- Housing Crisis: ADUs offer affordable and immediate housing options, addressing California’s severe housing shortage.
California has implemented laws to make ADUs easier to build. Streamlined permits, relaxed zoning regulations, and the ability to sell ADUs as separate homes are key changes driving their popularity. Homeowners now see ADUs as viable options for rental income, extra living space, and increasing property value.
I’m Michael Kootchick, a seasoned real estate developer in San Diego specializing in ADUs. With my background in multifamily housing and development projects, I aim to simplify the complexities of accessory dwelling unit California laws for homeowners.
What is an Accessory Dwelling Unit (ADU)?
An Accessory Dwelling Unit (ADU) is a secondary, self-contained living space located on the same property as a primary residence. These units are designed to provide additional housing options without needing to buy new land. They come equipped with their own kitchen, bathroom, and living area, making them independent from the main house.
ADUs are versatile spaces that can serve multiple purposes, such as housing family members, providing rental income, or serving as a home office. They are often referred to by various names like granny flats, in-law units, or backyard cottages.
Types of ADUs
There are several types of ADUs, each offering unique benefits:
Detached ADUs: These are standalone units separate from the main house. Often located in the backyard, they provide maximum privacy. Think of a small cottage or guest house.
Attached ADUs: These units are built as an addition to the main house. They share a wall with the primary residence but have a separate entrance.
Conversion ADUs: These are created by converting existing spaces like garages, attics, or basements into livable areas. They are cost-effective because they repurpose existing structures.
Junior Accessory Dwelling Units (JADUs): JADUs are smaller units (up to 500 sq ft) created within the walls of the main house. They may share some facilities, like bathrooms, with the primary residence, making them a more affordable option.
Benefits of ADUs
ADUs offer a range of benefits that make them an attractive option for homeowners:
Affordable Housing: ADUs are more affordable to construct compared to traditional homes. They don’t require new land, major infrastructure, or expensive features like elevators.
Source of Income: Homeowners can rent out ADUs to generate additional income. This can help offset mortgage payments or other expenses.
Extended Family: ADUs provide a way for extended families to live close together while maintaining privacy. They are ideal for housing aging parents or adult children.
Flexibility: ADUs offer flexible living arrangements. They can serve as guest houses, home offices, or rental units. This versatility makes them a valuable addition to any property.
Cost-effective Construction: ADUs are typically built with wood frame construction, which is more cost-effective than building new multifamily units. Conversion ADUs, like garage changes, can further reduce costs.
ADUs are becoming increasingly popular in California, thanks to streamlined permits and relaxed zoning regulations. They provide a practical solution to the state’s housing crisis by offering affordable, flexible, and cost-effective living spaces.
California ADU Regulations in 2024
Navigating the rules for building an accessory dwelling unit (ADU) in California is easier than ever, thanks to updated state regulations and local ordinances. Here’s what you need to know about the 2024 regulations.
Owner Occupancy Requirements
Starting in 2023, California’s ADU laws have permanently removed the requirement for owner-occupancy on parcels containing an ADU, as per AB 976. This means you no longer need to live in the primary residence to build or rent out an ADU on your property. This change increases flexibility for property owners.
However, for Junior Accessory Dwelling Units (JADUs), the owner must still occupy either the primary residence or the JADU itself.
Condo-ization of ADUs
Another significant change is the introduction of AB 1033, which allows for the separate sale of ADUs, even in areas governed by Homeowners Associations (HOAs). This means you can now legally split your property and sell the ADU as a separate unit, provided it meets local zoning and subdivision requirements.
Pre-approved ADU Plans
AB 434 aims to speed up the ADU approval process by encouraging cities to offer pre-approved ADU plans. These plans have already passed through many of the regulatory hoops, making it quicker and easier to get your ADU project off the ground. While you will still need to pay processing fees, using a pre-approved plan can significantly reduce the time and complexity involved.
Height and Setback Requirements
Height and setback rules have been relaxed to make ADU construction more feasible. Under SB 897, the following height limits apply:
- 16 feet: Minimum height allowed for any ADU.
- 18 feet: Allowed if the ADU is within half a mile of public transit or if the property has a two-story multi-family dwelling.
- 25 feet: Allowed for attached ADUs, depending on local zoning codes.
Building an ADU in California
Building an accessory dwelling unit (ADU) in California involves several key steps: design, permitting, and construction. Understanding these steps can help you steer the process smoothly.
Design
Designing your ADU is crucial. It needs to be functional and comply with local regulations.
- Size and Layout: ADUs are typically smaller than primary homes. Common size limits range from 600 to 800 square feet.
- Style: Choose a style that complements your main house. Options include Contemporary, Craftsman, and Spanish/Mediterranean.
- Accessibility: Ensure that your ADU is accessible, especially if it’s for elderly family members.
- Utilities: Plan how your ADU will connect to water, electricity, and sewage systems.
Permitting
Getting the necessary permits can be the trickiest part of the process. Each city has its own requirements, and some areas have stricter regulations than others.
Steps to Get Permits:
- Research Local Requirements: Check your city’s zoning laws. Some areas require special permits or have specific guidelines for ADUs.
- Feasibility Study: Conduct a feasibility study to understand what’s possible on your property. This includes assessing the lot size, existing structures, and local zoning regulations.
- Submit Plans: Once you have your plans ready, submit them to your city’s planning department for approval.
- Wait for Approval: The approval process can take several weeks or even months. Be prepared for possible revisions.
Construction Process
Once you have your permits, you can start the construction process.
- Hire a Contractor: Choose a reputable contractor with experience in building ADUs.
- Site Preparation: Prepare the site according to the approved plans.
- Building: Follow the construction timeline, ensuring all work meets local building codes.
- Inspections: Schedule necessary inspections to ensure compliance with building regulations.
Funding and Financial Incentives
Funding an ADU can be a significant expense, but several programs can help.
- CalHFA ADU Grant Program: Provides up to $40,000 in assistance for pre-development and non-recurring closing costs.
- State Grants: Programs like the CalHome Program and Local Housing Trust Fund (LHTF) offer funds for ADU construction and rehabilitation.
- Local Incentives: Various cities, such as San Diego and Santa Cruz, offer financing programs and forgivable loans for homeowners building ADUs.
For example, the Santa Cruz County ADU Forgivable Loan Program offers up to $40,000 in forgivable loans to homeowners who rent ADUs to low-income households at affordable rents for up to 20 years.
Property Tax Implications
Building an ADU will likely increase your property value, which means higher property taxes.
- Property Value Increase: An ADU can increase your property value by up to 30 percent.
- Blended Assessment: California assessors treat ADUs like home additions. They complete a blended assessment, accounting only for the new square footage.
- Construction Cost Impact: Your taxes will likely increase by 1 to 1.5 percent of the construction cost. So, if your ADU costs $250,000 to build, you might pay around $2,500 annually in additional property taxes.
For instance, if your ADU is valued at $100,000, your tax bill would only increase by $1,000 ($100,000 x 1% = $1,000). Over 12 months, the tax impact is only $83 per month.
Next, we’ll explore the frequently asked questions about accessory dwelling units in California.
Frequently Asked Questions about Accessory Dwelling Units in California
What qualifies as an ADU in California?
An Accessory Dwelling Unit (ADU) in California is a separate living area on the same property as a primary residence. To qualify as an ADU, it must have:
- A separate living area: This means it can function independently of the main house.
- Kitchen and bathroom facilities: An ADU must have its own kitchen and at least a ¾ bathroom (toilet, sink, and shower).
- Independent access: It needs a separate entrance from the main house.
These features make ADUs versatile spaces for rental income, guest housing, or even as a home office.
How big can an ADU be in California?
The size of an ADU can vary based on local ordinances, but here are the general state guidelines:
- Minimum size: All ADUs must be at least 150 square feet.
- Maximum size: Detached ADUs can be up to 1,200 square feet, unless local regulations specify otherwise. Attached ADUs can be up to 50% of the main home’s living area.
Junior ADUs (JADUs) are smaller, with a maximum size of 500 square feet and must be within the walls of the primary residence.
Garage conversions are a popular way to create ADUs. These involve changing an existing garage into a living space, which can be more cost-effective than building a new structure.
Do ADUs need fire sprinklers?
The requirement for fire sprinklers in ADUs depends on several factors:
- Primary residence: If the main house has fire sprinklers, the ADU must also have them.
- Distance from the curb: If the ADU is more than 140 feet from the curb, fire sprinklers might be required to meet “hose pull” requirements.
- High fire areas: Properties in high fire risk zones usually need fire sprinklers.
For ADUs exempt from these requirements, the cost of installing a sprinkler system can be avoided. However, if required, expect to pay between $5,000 and $10,000 for design and installation, plus possible additional costs for upgrading the water line and installing a backflow prevention device.
Next, we’ll dive into the detailed process of building an ADU in California, including design, permitting, and construction.
Conclusion
Building an accessory dwelling unit in California can be a complex process, but it doesn’t have to be overwhelming. At OneStop ADU, we offer comprehensive services to help you steer this journey with ease, especially if you’re in the San Diego area.
Our pre-designed plans are crafted to optimize space, natural light, and energy efficiency. These plans have been “design engineered” to streamline the process from inception to completion. By choosing a pre-designed plan, you can significantly shorten the time it takes to build your dream ADU.
We handle everything—from evaluating zoning and building codes to processing all necessary permits. Our team works closely with the city that presides over your primary dwelling, ensuring that all regulations are met. This comprehensive approach not only saves you time but also reduces the overall cost of construction.
In San Diego, we’ve seen how progressive policies, like the elimination of owner occupancy requirements and the easing of parking regulations, make it easier for homeowners to add ADUs to their properties. These changes have opened up new opportunities for real estate investment and increased the availability of affordable housing.
Choosing OneStop ADU means you’ll have a dedicated partner to guide you through every step of the process, ensuring that your project is completed efficiently and cost-effectively. Whether you’re looking to generate extra income, provide housing for a loved one, or simply increase your property’s value, we’re here to help you achieve your goals.
For more information about our services and to schedule a complimentary feasibility study of your property, visit our San Diego ADU page. Let’s make your ADU dream a reality!
