Real Estate Articles

Realtors learn more about ADUs

Wednesday, July 15, 2020

Since the state has eased restrictions on accessory dwelling units (ADUs), Realtors have been receiving inquiries about these types of units even during the COVID-19 pandemic. Builders tell members of the Silicon Valley Association of Realtors that their clients need to be aware that while ADU guidelines have loosened, zoning, lot size, rear yard coverage, setbacks, location and other factors, including costs and timeline, vary depending on the local jurisdiction.

Tin Pham with A2Z Tiny Homes told Realtors to alleviate California's housing crisis, Governor Gavin Newsom last year signed five bills into law, making the process of acquiring permits to construct ADUs faster and easier. These laws reduced impact fees, provided amnesty for unpermitted units, removed restrictions by homeowner associations, and made ADUs available for low-income households.

An ADU can be detached or attached to a house, an addition to a house, or a junior accessory unit (JADU). To be classified as an ADU, the unit must have a kitchen, a bathroom which must include a shower or tub, have a height of 18 feet for one-story units and 24 feet for two-story units. Parking is not required.

JADUs are units within the footprint of the main structure. JADUs are allowed up to 500 square feet within the walls of a single-family home. They may share a bathroom with the primary unit, but they must at least include an efficiency kitchen. An owner can have a JADU within their home and a detached ADU at the same time.

Pham said most people build ADUs for the potential income stream, increased property valuation and family or retirement considerations. They provide additional living space for families and others, particularly seniors who wish to age in place and require care or wish to live close to family members.

Many variables determine cost, including the design of the structure, type of roof, wall, utilities, etc. Pham indicated costs of construction and planning can be very expensive in the Bay Area, averaging $180,000-$200,000 for a detached 500 square feet ADU. Add on fees for city planning and permitting, engineering and architectural plans, and the actual city permits. Other additional costs may apply, like fees for additional trenching, fire sprinklers, upgrading an electric panel, school impact fees, geohazard, flood, liquefaction zone fees.

Even with these costs, Pham said, "ADUs are still considered affordable to construct since there would be no payment for land, major infrastructure, and parking."

Robert Bartz, president of Bartz Builders, took Silicon Valley Realtors through the design, planning and permitting stages of an ADU, from property research, determining viability, initial design, city confirmation of the design, application, utility company applications, approval of plans, contactor bidding process to obtaining a building permit. Following this would be stages of construction, from finding a builder, finalizing the contract, breaking ground, managing the budget, to quality checks and inspections.

Like Pham, Bartz stressed, "Every situation is different, and every jurisdiction is different."

Both builders said since the process of building an ADU can be complicated, it is crucial to find an experienced builder and check with the particular city's planning department.


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.

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