Aug. 24, 2022

What’s Up with ADU’s?
What’s an ADU? ADU stands for Accessory Dwelling Unit. The are also called companion units, and he old school title of “granny flats”. It’s basically an additional unit on the same lot with your home used for rental purposes.
California is in a severe housing shortage crisis. We have underbuilt homes at the rate of 5,000,000 in the last 20 years by some estimates. California legislators decided that one of the easiest ways to help the crisis was to make it easier for homeowners to add ADUs. So in 2016, a bill passed that cities would not be able to prohibit ADU’s. Many cities didn’t like this, and used other methods to try to prohibit ADU’s, such as a water meter moratorium, so a couple of years later the State revised the rules again to make the process more streamlined.
The City of San Diego, along with many other cities in San Diego County, have embraced this plan and have streamlined the process even further and reduce the fees charged. San Diego and Encinitas, for example, have already approved plans in various sizes that can be used so homeowners wouldn’t have to reinvent the wheel when hoping to build one. Fees were also greatly reduced.
Many homeowners in residential neighborhoods have raised concerns, thinking that EVERYONE would have an ADU built, increasing population density and traffic/parking issues. There concerns have largely not occurred. There are some barriers to building an ADU, mostly regarding how to finance the construction. Many cost estimates are $100,000+ and not a lot of people have that additional cash sitting around. Even if they do, at an estimated $2,000 a month in anticipated rental income, it would take them close to five years just to recoup the original investment. It just doesn’t seem worth the hassle of most homeowners. Then there is the little thing about having a stranger living on the same property in close proximity to them. Not everyone’s cup of tea.
ADU’s make a lot of sense though for housing senior family members, or your college age kids. And they make sense for many homeowners in higher end area with high rents. They can also increase your property value substantially.
If you’d like to learn more, a great resource is https://livemodal.com/blog/what-does-it-cost-to-build-an-adu-in-california/. San Diego has waived ALL FEES through 2024, so there is a short window in which you can save money. I would be happy to help you navigate this journey, so don’t hesitate to contact me.