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ADU. Good Or Not So Good

There Goes The Neighborhood?


By Evelyn (Evie) Preston, Money Lady


Q: What about new rules for R-1 zoning sites?

 If you live in typical California suburbia, single-family lots are currently being carved up for additional living spaces. The law allows it!


Reactions to these extreme changes range from cheering acceptance to the still strong NIMBY cities trying to preserve their uncrowded neighborhoods. These residents cite the loss of privacy and a drain on local resources by allowing ADUs (additional dwelling units) on each property.


Q: Most people know all about adding these “granny flats” or casitas in the back yard. There’s nothing wrong with individual homeowners exercising their property rights!

 A growing number of homeowners agree. They refute the sacred single family homesite and champion on-site rentals. Family housing additions are convenient, affordable to build (no land costs) and profitable as income—innovative and overdue change for the much-lamented lack of local housing.


Q: Any problems so far?

Developers often buy up expensive suburban homes as investments only, then take advantage of the full scope of available ADU laws to maximize their return. They want a quick turnover, not always a plus for the neighborhood.


Q: Can you spell out what’s actually allowed depending on the size of the property?

For a typical 6,000 square foot lot:

1) ADU—a separate structure or detached garage completely new or rebuilt into a self-contained additional dwelling unit (800-1200 sq.ft. max.) with separate utilities billed to a separate address. Already, I’ve noted three addresses on one medium-sized property.


2) JADU (Junior ADUs-up to 500 sq. ft.;) within the existing main dwelling unit. i.e: 3 bed-2 bath home with attached garage turned into a studio apartment; these may share bathrooms and central systems with the main dwelling and use plug-in appliances for mini-kitchens. Less stress on utilities and no separate billing address necessary.


3) Both structures may now add a second floor up to 16 ft. height limits.


4) ADUs may be situated in front, back and side yards, must meet current zoning laws and allow 4 feet around each dwelling.

Q: Yikes! What about parking? There could be a lot of extra people with no garages nor enough street space beyond a driveway!

Parking is not required! That’s a consequence that may turn this enhanced housing solution into a “big city” setback. Add up the comings and goings for various tenant scenarios (families, students) that would be ripe for ADUs; Granny probably won’t jump on her bike and cars still rule which may cause crunch time at the curb. There’re also neighbors with or without their own ADUs. I recently read that parking permits are a thing of the past.



Q: Any other objections or downside?

Besides the fear about property values, there are other on-site concerns: disorderly tenants, over-close neighbors, noise and trash. There are also larger issues due to lack of basic services: schools, parks, shopping, transportation and infill issues of adequate police and fire services.


Q: Who owns all these units?

The new properties can be owned by the current homeowner or new buyer/developer. A caveat—whoever leases out these additional properties immediately becomes a landlord with all that entails. While you won’t kick out your mother-in-law, let’s hope she has enough to cover utilities, etc. Like any rental, tenants living in an ADU must be responsible neighbors.


Ta Da! San Jose has moved the bar for affordable housing even higher. It’s the first city in the country to allow ADUs to be sold separately from the main home, much like a condominium. However, the overall impact, any financial fallout or tax consequences of this groundbreaking law may require another whole column.


Q: Where can readers find more information?

Check out the new laws with your State Assembly and Senate members, a real estate attorney or realtor and online:

Accessory Dwelling Units | California Department of Housing and Community Development

Accessory Dwellings Units | Department of Planning and Development | County of Santa Clara

 

Evelyn (Evie) Preston is a financial columnist for ActiveOver50 and worked as a financial advisor for over 25 years. Reach her at Evierp100@yahoo.com.


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