With the high cost and perennial shortage of housing, the falling size of the average family and the desire to squeeze more housing into more walkable bikeable high demand areas, comes the rise of the granny unit, au pair unit or multi generational housing. These types of units are also called Accessory Dwelling Units and Junior Accessory Dwelling Units or ADU and JADUs.
ADUs are loosely defined as a detached or attached secondary unit of up to 1200 square feet with complete independent living facilities which include sleeping, cooking and sanitation. A JADU is a Junior ADU that is no more than 500 square feet and contained within the primary dwelling structure and may share sanitation facilities and may have an efficiency kitchen. Both may be rented out as long term rentals but not as vacation rentals.
There are no country wide tracking of the amount of ADUs but the country is home to 25,000-1000,000 legally permitted units and several million unpermitted units. California, in an effort to promote more housing, loosened restrictions in 2016. For example, in Los Angeles in 2015 there were 90 applications and in 2017 applications were up to 2000. And, by issuing the permits, municipalities can capture more property taxes.
In October 2019, Governor Gavin Newsom passed State Bill AB 68 into law which allows for homeowners of single-family homes who apply to build accessory dwelling units, or “granny flats,” to also build a second, “junior” ADU on their property. In other words, it rezones all of California’s single-family homes into triplexes and effectively acts as a de facto ban on single-family zoning. It will be interesting to see how each municipality sorts through their own regulatory requirements and that of their constituents to comply with this new law.
Marin has created an incentive program to cover the first several thousand dollars in building fees. In addition, the Board of Supervisors for Marin has authorized the Director of Public Works to waive the fees for roadway work for ADUs and JADUs which means that these units no longer need to provide additional parking. The County hopes to incentivize property owners to expand the supply of ( hopefully affordable) rental housing within the footprint of single family dwellings.
The demand for ADUs can attract three types of buyers. People who are looking to house aging parents: create a separate home work space or earn additional income by renting out the unit.
There are several companies that build prefabricated ADUs. They include Living Homes, Shed, Plus Hus, and Sonderpods. All of these companies can deliver and install their units in California. The units typically arrive with standard appliances. The cost of the units does not include site preparation, permits and utility hook ups. Make sure to do your research to find out what is included and not included.
Having an ADU within the footprint of your property just makes financial and flexibility sense. So build it and they will come!