WHY BUILD AN ADU IN CALIFORNIA RIGHT NOW?

 

NEW CALIFORNIA ADU LAWS

In January 2020, a series of state laws [SB-13, AB-68 and AB-881] went into effect easing the burdens on homeowners to design, permit, and build ADU’s. The end goal is a desperate attempt to increase the housing stock throughout the state to support ever-growing demand, and make both rent and home ownership more available and affordable. Additional laws are being added on the state and local levels increasing density allowances on single-family lots including multi-level ADU’s and lot subdivisions to create duplex’s. Let H2 Prefab, and our sister design firm MESH help analyze your site and provide a strategic plan for the best site utilization to meet your short and long term financial and expansion goals.

USING ADU'S AS INCOME

Many homeowners are taking advantage of the equity in their homes through cash-out refi's to build a new ADU rental unit. Even with rising interest rates, many are finding the delta in their monthly mortgage plus property taxes is nominal as compared to the resulting rental income. Building an ADU is becoming a financial vehicle for many homeowners and it's helping to increase the housing stock to provide valuable affordable housing in already established neighborhoods close to transportation, shopping, and work. Let our team of experts walk you through a scenario that works for you.

WHAT DO THE NEW ADU LAWS ALLOW?

The most significant benefit of the new laws is ministerial approval, which means the ADU is approved 'by right' by the planning department, and your neighbors can not object to approvals. Building departments are required to respond with plan check comments within 60 days so the process is expedited. One attached Jr. ADU [up to 500 sf] and one detached ADU [up to 800 sf or greater], up to 16' tall, must be in the rear half of the property and 4' setback from the side and rear property lines. No additional parking is required if your property is within 1/2 mile of a transit stop. Contact us and one of our experts will assist you in creating the best layout for your property.