After a series of state laws, every city in California is being required to ease their regulations around the construction of accessory dwelling units. Cities are relaxing rules on setbacks, parking requirements, water and sewer connection fees, and allowable size of ADUs in accordance with these laws, which went into effect in January.
An accessory dwelling unit is a small dwelling constructed on the property of a single-family home, designed exclusively for residential purposes, with kitchen and bathroom facilities. The unit can either be attached, such as an apartment over the garage or a converted bedroom with its own entrance (also known as a junior accessory dwelling unit), or a small house with its own foundation on the backyard of a single-family home. Also known as granny flats or in-law units, ADUs have been around for many years, but started gaining popularity in recent years because of the state's critical housing shortage.
Signed by Gov. Jerry Brown late last year, SB 1069 lifts obstacles and speeded up the process of building ADUs, while AB 2299 sets standards for maximum size, setbacks and parking requirements. AB 2406 permits the creation of junior accessory dwelling units in a single-family residential neighborhood. The primary goal of these bills is to increase the supply of affordable housing in the state.
Many homeowners, especially seniors, are interested in building ADUs to create income, as well as tax benefits, from property they already own, while being able to stay in their home. Renters are also keen on ADUs because these units tend to rent about 30 percent lower than equivalent apartments in the same areas.
Denise Welsh, president of the Silicon Valley Association of Realtors, says ADUs were already a topic of discussion among Realtors as a valuable form of housing over 10 years ago. "This form of housing addresses family members, students, the elderly, health care providers, the disabled. It makes financial sense since the land upon which the unit is built is already paid for," says Welsh.
Not everyone is happy with this change. Those who oppose ADUs say these units would create parking problems, bring down property values, and change the appearance of existing neighborhoods.
ADU advocates say these units would create affordable housing, enable seniors to remain in their homes, and could even strengthen family ties. They say it is highly unlikely ADUs would be concentrated in one neighborhood and cause parking problems, and that parking may be more of an issue in transit-oriented developments. The Bay Area Council estimates if 25 percent of homeowners would add an in-law unit, it could mean an additional 400,000 new and affordable units to the housing stock.
Despite some apprehension, California cities have amended or are in the process of amending their regulations and zoning codes regarding ADUs. The Palo Alto City Council held multiple meetings about ADUs that often grew contentious. A number of cities, like Los Gatos, have seen an increase in inquiries about building ADUs.
Realtors advise homeowners interested in building an ADU to contact their city's planning department to find out specific rules. Welsh adds, "In determining whether to build a second unit, you always have to consider value, cost and city issues. ADUs may not solve the critical housing shortage, but they are a step toward affordable housing."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.