ADU

An ADU is an accessory dwelling unit. You have almost certainly seen one before, and you may have even considered adding one to your own home – even if you happened to call it by another name. ADUs go by a wide range of monikers, including in-law units, granny flats, backyard cottages, or second homes. In California especially, because of the rising costs of housing and the extreme demand for affordable accommodations, ADUs have turned into popular options for homeowners who are also interested in increasing the value of their homes.

Another type of ADU is the JADU – which is a junior accessory dwelling unit. JADUs specifically exist within the walls of another single-family home, and they do not measure more than 500 square feet in area. Typically, a JADU will share central systems and utilities with the main home, although there may be a small kitchen or a small bathroom with the JADU. You can think of a JADU as one of many ways to repurpose space inside a home without adding to the overall square footage of the original home.

It’s on the last point that ADUs and JADUs tend to differ. Often, an ADU will add to the overall square footage on the property, existing outside the original home and not within its walls.

The California Legislature passed a new law that changed the way that the government views and treats ADUs and JADUs, and this law went into effect on January 1, 2020. There are several key points that you should understand about this law before you break ground on an ADU or JADU of your own.

* You can now build your ADU or JADU concurrently with your single-family home. You do not need to taper the construction processes, and you do not need to schedule one after another. If you are building a new home, this could significantly reduce the cost that you would have faced as you built your ADU or JADU.

* In any zoning district where you can build a single-family home or a multi-family home, you can build an ADU or a JADU as well. There are no special restrictions on zoning for ADUs and JADUs anymore, eliminating one of the most pressing barriers that builders faced previously.

* You may be able to pay different fees for utilities and water than you would have paid previously, especially if you are zoned in a special district.

* The restrictions on parking are not as stringent as they once were.

* This is an older change, but as of January 1, 2019, you can also bring any ADU you built outside compliance into compliance, applying for an inspection even if you started construction without a building permit or in violation of building standards that were in place at the time.

* Generate a new source of income.

By renting out an ADU or a JADU, you can bring in substantial income comparable to the income that you would bring in if you had purchased an all-new property. Because demand for housing in California continues to surpass record highs, this is a reliable source of income that many other homeowners have already discovered, setting themselves up for greater financial stability in the future simply by opening an ADU to the market. For anyone who is interested in creating a passive form of income for themselves, an ADU or JADU is one of the most dependable options available.

* Save on the costs of home framing.

At the same time that you can generate income for yourself, you can dramatically reduce the upfront capital that you need, thanks to the inexpensive wood-framing used for ADUs and JADUs. Rather than pouring a small fortune into the expensive frames that are common for single-family and multi-family homes, you can get yourself into the rental market more quickly for a lower cost. For all entrepreneurial homeowners, the reality of this situation is clear: by spending less, you are earning more.

* Invite a loved one into your home.

Of course, many homeowners choose to build an ADU or a JADU not to rent to someone but to house a family member or friend on their property. If there is an adult in your life in need of housing, an ADU or a JADU could be the perfect solution, affording them the accommodations that they need without taking away from the accommodations that are still available to you in your own home. You can invite your loved one to live with you without reservation, knowing precisely what you are getting yourself into and maintaining control of your property.

* Strike a balance between proximity and privacy.

To take this idea a step further, look at the balance that you are striking between proximity and privacy in an ADU or a JADU. Although the occupant of your ADU or JADU will be on your property, where the two of you can enjoy life together and spend time together as much as or as little as you both want, you can also go your separate ways as often as you want to also.

* Add to the overall value of your property.

An ADU or a JADU is an improvement that you are making to your home, and it should add to the overall value of the property when it comes time for you to sell your property. Functional and desirable, ADUs and JADUs have become recognized as one of the most intelligent and shrewd additions that homeowners can make to their properties. By building an ADU or JADU at your home, you are increasing the draw of the listing when it is on the market.

For more information: https://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml