Thinking About Building an ADU?

An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger, primary house. It might be attached or detached. It might be a brand new build, a garage conversion or an add-on. With the current housing crisis in California and on the Monterey Peninsula, our state and local governments are looking for ways to find more housing. Many families have multi-generations living under the same roof and finding creative ways to house everyone can be a challenge. Creating an independent unit for grandparents or young adults allows some independence while keeping the family close and costs down.

ADU's can also be a good source of additional income but a home owner should do their research before they get started.

• Make sure your city or county allows ADU's

• Check rental restrictions. Some cities will only allow long term rentals, no short term rentals. Other ordinances may apply too

• Check building codes regarding size, height and set backs

• Do you need to update your electrical panel?

• Do you have water restrictions that may prevent you from adding a unit with a bathroom ?(the Monterey Peninsula has strict water rules and requirements)

• How much will it cost to build? Is it cost effective?

• What are the property tax implications?

There is a lot to think about so do your homework before you start.

Oh.......one last thing

Assembly Bill 69 is currently in the works. This measure seeks to provide financing for homeowners to construct ADU's by establishing a new program in the State Treasurer’s Office which authorizes the California Housing Finance Agency (CalHFA) to issue revenue bonds to fund the program. The California Association of Realtors supports this measure. AB 69 is currently pending in the Senate Appropriations Committee.