It’s not often I cover breaking news here, but this is pretty exciting. Sacramento just passed a raft of new laws designed to help ease the state’s urban housing crunch, with two huge standouts for homeowners interested in accessory dwelling units (ADUs): one increases the number of units allowed per home while mandating favorable policies from local authorities; another eliminates or restricts certain fees and makes it easier to convert noncompliant units to official residences.
This is great news, particularly for the swelling ranks of house hunters who have been showing up at my open houses asking the same question: Can I add another unit to this property?
It’s no wonder they’re asking; ADUs have become a hot topic thanks to the San Diego area’s approach to regulations and fees that encourage homeowners to build or convert extra livable space on their parcels. In case you’re not familiar with how this works, you may be able to add an ADU to a residence by converting existing space, building onto an existing structure (say, an expansion on the house or a garage), or building a new detached structure.
An ADU is a great way to increase the value of your property, and maybe even draw an income. Some homebuyers plan to build so they can house their folks or kids; some are interested in adding a long-term rental to help with their mortgage, often so they can afford a larger main home or one in a pricier neighborhood; some are interested in the potential income from a vacation rental.
Seeking ADU-worthy property? Savvy homeowners should do some good homework before asking their agent to schedule any listing visits. Get familiar with San Diego’s restrictions and requirements — start with the link at bottom of this article, and look up new laws AB 68 and SB 13. Much like you might for your own dream home (and just as important to you if residents will be sharing your premises), make your own checklist of needs and wants for the ADU: minimum square footage, rooms, privacy, amenities, parking, and so on. Start working together with your REALTOR®, the contractor you’re hiring to build or convert the ADU, and a good lender.
When your agent presents you with potential properties, you’ll have some boxes to tick. What does the property’s zoning allow? Is there enough space for the unit you want? How large a unit does the current house size qualify for? Are there any easements to worry about? If you’re hoping to convert a previously unpermitted rental space, is it eligible, and what work would it need to qualify? What hoops will the county make you jump through, and in what order? Is there any special financing that might apply to the purchase and construction? This is all part of a buyer’s due diligence, but you’re not alone; you can confer with your team to assess which properties are appropriate for your ADU dreams.
If you’re looking for a perfect home or property where you can add units, or if you need an introduction to professionals in related industries, call me anytime at 619-944-2798 with your questions!