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How to Choose the Best ADU Builders in San Diego

meeet.chd@gmail.com — Wed, 10 Apr 2024 17:45:07 +0000

Unlocking the Potential of San Diego's Housing Market with ADUs

In the sun-kissed streets of San Diego, a quiet revolution is underway, reshaping the contours of the city’s housing landscape. Accessory Dwelling Units (ADUs) have emerged as a beacon of hope, offering a solution to the persistent housing crisis gripping the region. According to our 2023 ADU Impact Report, San Diego proudly claims a staggering 10% share of all ADU permit applications in California. This statistic not only underscores the city’s commitment to innovation but also highlights the growing recognition of ADUs as a viable housing option.

The journey towards embracing ADUs gained momentum with the implementation of regulatory changes in California back in 2020. Since then, homeowners across San Diego have increasingly turned to ADUs as a means of maximizing their property’s potential. However, embarking on an ADU project requires more than just a desire for additional space—it demands careful consideration and meticulous planning, starting with the selection of the right builder.

Why Choose an ADU Builder?

In a sea of contractors, opting for a builder specializing in ADU construction is paramount. Here’s why:

1. Specialized Expertise:

ADUs come with their own set of regulations and building codes. A builder with specialized expertise in ADU construction is well-versed in these nuances, ensuring compliance and quality craftsmanship throughout the project.

2. Quality Assurance:

Seasoned ADU builders prioritize quality in every aspect of construction, from foundation to finishing touches. By emphasizing durability and aesthetics, they ensure that your ADU not only meets regulatory requirements but also exceeds your expectations.

3. Cost Efficiency:

Established ADU builders leverage their industry connections to secure cost-effective solutions without compromising on quality. Through bulk discounts and strategic sourcing, they help homeowners maximize their investment.

4. Timely Completion:

With their streamlined processes and experienced teams, ADU builders are equipped to deliver projects on time and within budget. Their efficient workflows minimize delays, ensuring a smooth construction experience for homeowners.

5. Project Management:

From procurement to occupancy, experienced ADU builders handle every aspect of the construction process with precision. By serving as a single point of contact, they streamline communication and ensure seamless coordination among all stakeholders.

Choosing the Right ADU Builder: Key Criteria

Amidst the multitude of options, selecting the ideal builder for your ADU project requires careful consideration. Here are the essential criteria to prioritize:

1. Track Record: Look for builders with a proven track record of successful ADU projects. Their portfolio of completed ventures serves as a testament to their expertise and reliability.

2. Local Compliance: San Diego’s ADU regulations may vary, necessitating a builder well-versed in local zoning laws and permit requirements. By choosing a builder with local expertise, homeowners can navigate the regulatory landscape with ease.

3. Customer Reviews: Seek builders with positive reviews from satisfied clients. Past homeowners can offer valuable insights into the builder’s communication, transparency, and overall satisfaction.

At Fortune ADU, we understand the challenges of finding a reputable ADU builder. Our rigorous vetting process ensures that only the best builders join our network, offering homeowners peace of mind and exceptional service.

Navigating San Diego’s ADU Regulations

San Diego boasts progressive ADU regulations aimed at fostering innovation and easing construction barriers. From zoning allowances to parking requirements, understanding these regulations is essential for a successful ADU project.

As San Diego embraces the rise of ADUs, let’s not lose sight of the transformative impact these structures have on communities. ADUs aren’t just buildings; they’re symbols of resilience, adaptability, and opportunity.

Together, let’s embark on a journey to redefine housing in San Diego, one ADU at a time. With trusted builders by our side, we can unlock the full potential of ADUs, creating vibrant communities where every resident has a place to call home.

Understanding ADU Regulations in San Diego

San Diego stands at the forefront of ADU innovation, boasting progressive regulations that facilitate ADU construction. Here’s a brief overview:

Zoning: Properties zoned for single-family and multi-family use are eligible for ADU construction, providing homeowners with ample opportunities to expand their living space.

Number of Units: San Diego homeowners can add up to three additional living spaces on their property, including one attached ADU, one detached ADU, and one Junior ADU (JADU).

Building Size: The maximum size for detached ADUs in San Diego is an impressive 1200 sq. ft., exceeding the state-regulated maximum of 800 sq. ft. Additionally, the minimum size for an ADU is set at 150 sq. ft., ensuring flexibility in design and construction.

Setbacks: ADUs below 16 ft. in height are permitted to have zero side and rear setbacks, allowing for maximum utilization of space. However, taller ADUs are subject to setbacks from existing structures, ensuring harmonious integration with the surrounding environment.

Parking Requirements: Thanks to recent regulatory changes, off-street parking is not mandatory for ADUs meeting specific criteria, such as proximity to public transit or inclusion within historic districts. This flexibility encourages ADU construction while alleviating concerns regarding parking congestion.

Renting: To address the housing shortage, San Diego prohibits short-term rentals of ADUs, promoting their use as long-term housing solutions. This ensures stability for both homeowners and tenants while fostering a sense of community within neighborhoods.

Permits: Homeowners must obtain a building permit to construct an ADU in San Diego, with additional permits possibly required based on project scope and property characteristics. Navigating these regulations demands expertise, underscoring the importance of selecting a knowledgeable builder.

Cost Considerations

While the benefits of ADU construction are undeniable, it’s essential to understand the associated costs. On average, ADUs in San Diego can range from $200,000 to $400,000, depending on various factors such as size, location, and design specifications.

Soft Costs: These include fees for design, consulting, and permits, which are crucial for initiating the ADU project and ensuring compliance with regulations.

Hard Costs: encompass site preparation, materials, labor, utilities, and finishes. While construction constitutes the bulk of the expenses, investing in quality materials and skilled labor yields long-term benefits in terms of durability and aesthetics.

By partnering with Fortune ADU, homeowners gain access to competitive bids from vetted contractors, ensuring cost-effective solutions without compromising quality.

Design and Build Your San Diego ADU With Fortune ADU

At Fortune ADU, we are dedicated to helping you bring your custom ADU vision to life while ensuring the best value and a streamlined process. Whether you’re considering adding an ADU for rental income, accommodating family members, or creating a versatile space, we’re here to guide you through every step of the journey. Here’s how our process works:

Feasibility:

We begin by discussing your goals and preferences, and conducting a thorough assessment of your property to determine feasibility. Our team works closely with you to outline the scope of your project based on your property size, design vision, and budget constraints.

Design & Bid:

Once we’ve established feasibility, you’ll collaborate with a dedicated designer who will work closely with you to bring your architectural and interior design ideas to fruition. After finalizing your design plans, we’ll provide you with competitive bids from vetted contractors in our Builder Network, ensuring you get the best value for your investment.

Permitting:

Sit back and relax as we handle the entire permitting process on your behalf. From preparing and submitting your plans to obtaining necessary approvals, we’ll ensure that your project complies with all local regulations and requirements.

Construction:

With permits in hand, construction can commence. Throughout the construction phase, we’ll provide ongoing support and guidance to both you and your contractor, ensuring that your project stays on track, on time, and within budget. Our goal is to deliver a high-quality ADU that exceeds your expectations.

Ready to explore the possibilities for your San Diego property? Schedule a free consultation call with our team today and take the first step towards realizing your ADU dreams!

Why Hire an ADU Builder?

Choosing the right ADU builder is crucial to the success of your project. While there are many general contractors available, it’s essential to select one with expertise in building ADUs. Here’s why:

Specialized Expertise: ADUs have their own set of regulations and requirements, particularly in San Diego. Working with a builder who specializes in ADUs ensures that your project complies with local building codes and safety standards. Their specialized knowledge allows for a smoother construction process and faster project completion.

Commitment to Quality: Experienced ADU builders prioritize quality in every aspect of construction, from electrical and plumbing to solar installation and more. They go beyond meeting basic requirements to deliver a space that is not only safe and functional but also aesthetically pleasing and built to last.

Cost-Effective Solutions: Seasoned ADU builders have established relationships with material providers, allowing them to access bulk discounts and cost-saving solutions. This translates to savings for you without compromising on the quality of materials or workmanship.

Efficient Timelines: With their experience and skilled teams, ADU builders can complete construction projects much faster than contractors who specialize in other types of construction. This means you can move into your new ADU sooner and start enjoying its benefits.

FAQs

How much does it cost to build an ADU in San Diego?

The cost of building an ADU in San Diego can vary depending on factors such as the ADU type, location, size, design, and specifications. On average, the cost can range from $200,000 to $400,000. At Fortune ADU, our team of experts can provide a full feasibility analysis of your property and offer tailored budget guidance for your specific project.

What is the most affordable way to build an ADU in California?

One of the most cost-effective ways to build an ADU in California is through garage conversions. Converting an existing garage into an ADU can be more affordable since you are working with an existing structure. However, the feasibility of a garage conversion project depends on the condition of your garage. Our team can assess your property and determine if a garage conversion is possible.

What is the minimum size requirement for an ADU in San Diego?

The minimum size requirement for an ADU in San Diego is 150 square feet. The maximum size for a detached ADU is 1,200 square feet, but if you are converting an existing structure, such as a garage, that is larger than 1,200 square feet, you can exceed this limit.

Is it worth building an ADU in San Diego?

Yes, building an ADU in San Diego can be highly beneficial. ADUs provide valuable additional living space on your property, which can be used for various purposes such as housing family members, working from home, or renting out for additional income. Additionally, ADUs can increase your property value by up to 30%, making them a valuable asset when it comes time to sell your property.

When it comes to finding the best ADU builders in San Diego, it’s important to consider their experience in building ADUs, their commitment to providing excellent customer service, and their knowledge of the ADU regulations in San Diego. At Fortune ADU, we have already done the research and vetted numerous local builders in San Diego to create our Builder Network. We have handpicked the best builders who meet our high standards of expertise and professionalism.

Conclusion

In conclusion, building an ADU in San Diego can be a great investment and solution for homeowners looking to add additional living space or generate rental income. However, it is crucial to choose the right ADU builder to ensure a successful and smooth construction process. Consider factors such as the builder’s experience, understanding of ADU regulations, positive reviews, licensing and insurance, and familiarity with the local permitting process. By conducting thorough research, getting recommendations, and interviewing multiple builders, you can find the perfect ADU builder for your project in San Diego. At Fortune ADU, we have already done the groundwork and have a network of reputable builders who meet our high standards. Contact us today to get started on your ADU project in San Diego.

The post How to Choose the Best ADU Builders in San Diego appeared first on fortuneadu.

The Ultimate Guide to Renting Your ADU in San Diego: Everything You Need to Know

meeet.chd@gmail.com — Mon, 11 Mar 2024 18:28:01 +0000

Guide to Renting Your ADU in San Diego: Everything You Need to Know

Embarking on the journey of exploring Accessory Dwelling Units (ADUs) for additional rental income? You’re in good company. Many homeowners, like yourself, are delving into the potential of their properties by incorporating an ADU. Whether your focus is on immediate rental returns or planning for future space when the nest empties, the path to transforming your ADU into a lucrative rental space is both thrilling and fulfilling. This comprehensive guide serves as your go-to resource, covering everything from grasping the fundamentals to navigating the intricacies of short-term versus long-term rentals, ensuring you make the most of your ADU investment.

What exactly is an ADU Rental?

Renting out an ADU essentially involves managing a miniature apartment, conveniently located right in your backyard. It revolves around converting a section of your property into a living space that others can call home, be it for a few months or several years. The adaptability of ADU rentals, influenced by both your preferences and local regulations, provides a unique opportunity to customize your rental strategy to align with your lifestyle and financial objectives. This guide delves deeper into the essence of renting out an ADU and how you can capitalize on this promising opportunity.

Can I lease my ADU? Can I construct an ADU on a rental property?

Absolutely, you can rent out your ADU, and you can also construct an accessory unit on a rental property for additional ADU rental income. Previously, California state law mandated specific regulations regarding owner occupancy requirements. However, a bill permanently eliminating these requirements was passed in October 2023. Consequently, property owners can now add ADUs to their rental homes without any owner occupancy constraints.

Can I offer my ADU as a short-term rental?

ADUs typically adhere to California state law, allowing rentals for periods of 30 days or more. This regulation aims to encourage the utilization of ADUs for long-term housing rather than vacation rentals. Certain municipalities, such as Los Angeles and San Francisco, have waived this requirement. Rental limits, stipulated in the form of a covenant, must be agreed upon before obtaining building permits for your ADU construction. Platforms like Airbnb or VRBO offer options to set minimum rental periods, facilitating compliance with the law.

Another emerging option involves entering into a “master lease” with a company specializing in corporate housing. Such firms lease for periods of 30 days or more to professionals like military personnel, healthcare workers, and business executives relocating for work. The corporate housing company typically finalizes the rental contract before the ADU’s completion, enabling immediate renting.

What considerations should I weigh before building an ADU for rent?

Before committing to the creation of an ADU rental space, several factors merit consideration:

1. Property Value and Taxes: Adding an ADU increases property value, accompanied by a 1-2% rise in property taxes. Although taxes will escalate, renting out the space can offset a substantial portion of these expenses.

2. ADU Floor Plan and Design: Optimize your ADU’s layout for rental purposes. Inform your contractor if you intend to rent it out, as the design may vary based on your usage plans. Contractors often offer ready-to-build floor plans and possess expertise in maximizing the ADU’s value.

3. Space-Efficient Features: Embrace open floor plans, eat-in kitchen islands, standard-sized bathrooms, and ample storage to enhance livability and efficiency.

4. Size Breakpoints: Be mindful of size thresholds like 500 sqft, 750 sqft, and 1000 sqft, as staying under these limits can save on impact fees, per state regulations.

5. Durable Yet Cost-Effective Finishes: Choose materials like luxury vinyl plank flooring, quartz countertops, and shower inserts for a balance of aesthetics, durability, and cost-effectiveness.

What are renters looking for in ADU rentals?

In addition to optimizing design and floor plans, renters often seek specific features in ADU rental residences:

1. Privacy from Primary Residence: Privacy is a top priority for potential renters. Physical barriers, such as walls or hedges, can provide separation, or consider installing personal storage spaces disconnected from the primary residence.

2. Access: Ensure easy and clear access to the unit, including walkways or paths from parking areas.

3. Full Kitchen & Laundry: Including a full kitchen and onsite laundry facilities enhances convenience for tenants.

4. Attractive Finishes: Renters are willing to pay more for stylish cabinets, countertops, and fixtures. Options like quartz counters and luxury vinyl plank flooring are both appealing and cost-effective.

5. Outdoor Space: Creating an aesthetically pleasing outdoor area around the ADU contributes to a welcoming atmosphere, adding value to the rental.

Considering Upgrades: Luxury ADU Rentals

Introducing luxury features to your ADU can elevate its status to a premium rental, attracting tenants willing to pay more for high-end amenities. Consider enhancements like high-quality appliances, quality finishes, modern amenities, and well-designed outdoor living spaces to distinguish your ADU in the market.

Furnished ADU Rentals as a Short-Term Strategy

Offering a furnished ADU can be a strategic move to attract short-term renters or those seeking a turnkey living solution. Furnished rentals often command higher rents due to the convenience they offer. This approach is particularly appealing to professionals on temporary assignments, traveling medical personnel, students, and individuals relocating and in need of immediate accommodation.

Balancing Cost and Benefit with ADU Rentals

While adding furnishings and luxury elements can increase rental income, it’s crucial to balance the initial investment with potential returns. Research the rental market in your area to gauge demand for furnished and luxury rentals. Consider the target market, competitive pricing, and return on investment when making decisions to maximize profitability.

How to Rent Out Your ADU

Learn from the experiences of other homeowners who have successfully rented out their ADUs. Check out the video below to gain insights into finding tenants and effectively managing your role as a landlord with an ADU rental.

What is the Average ADU Rental Rate in San Diego?

In San Diego, ADU rental properties typically command similar or higher rent rates compared to comparable apartments in the vicinity. Comparable apartments should be chosen based on similar square footage, bedroom and bathroom count, and features such as garages and laundry facilities. Finishes and amenities also play a role in determining rental rates. Utilize platforms like Zillow and Craigslist to explore current rental listings and compare your ADU to other available units in your neighborhood. The following data is based on the past 12 months, focusing on ADU-sized rentals (1BR at 750 sqft, 2BR at 1000 sqft, and 3BR at 1200 sqft).

[Average ADU Rental Rates in Greater San Diego - March 2024]

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These example rents serve as a starting point, and it’s crucial to consider units with comparable amenities and finishes for accurate rent rate comparisons. Conduct thorough research to determine your potential ADU rental income by comparing your property to other units available in your local market.

The post The Ultimate Guide to Renting Your ADU in San Diego: Everything You Need to Know appeared first on fortuneadu.

Attached ADUs vs. Detached ADUs: What’s The Difference?

meeet.chd@gmail.com — Wed, 21 Feb 2024 01:04:42 +0000

Attached ADUs vs. Detached ADUs: What’s The Difference?

In recent years, Accessory Dwelling Units (ADUs) have gained popularity as a solution to the housing crisis in many cities, including San Diego. ADUs, also known as granny flats or backyard cottages, are secondary housing units that can be built on the same property as an existing single-family home. They provide homeowners with the opportunity to create additional living space for family members, generate rental income, or simply increase the value of their property.

When it comes to building an ADU in San Diego, homeowners have the option to choose between attached ADUs and detached ADUs. Both types have their own unique advantages and considerations. In this blog post, we will explore the difference between attached ADUs and detached ADUs, with a focus on prefab ADUs in San Diego.

What is an Attached ADU?

An attached ADU is a secondary dwelling unit that is physically connected to the main house. It shares one or more walls with the primary residence and may have a separate entrance or be accessed through the main house. Attached ADUs are often converted from existing space within the main house, such as a garage or basement, or they can be built as an extension of the existing structure.

Advantages of Attached ADUs:

1. Cost-Effective: Building an attached ADU can be more cost-effective compared to constructing a detached unit. Since it shares walls and utilities with the main house, there are potential savings in construction costs.

2. Convenience: Attached ADUs provide easy access to the main house, making it convenient for homeowners and their families. It allows for a close-knit living arrangement while still providing privacy and independence.

3. Utilization of Existing Space: Converting existing space within the main house into an attached ADU allows homeowners to make the most of their property without sacrificing the backyard or outdoor space.

Considerations for Attached ADUs:

1. Limited Design Flexibility: Attached ADUs may have limitations in terms of design and layout due to the constraints of the existing structure. Homeowners may need to work within the existing footprint and structural limitations.

2. Noise and Privacy: Since attached ADUs share walls with the main house, there may be some noise transfer between the units. Privacy can also be a concern, especially if the ADU has a shared entrance or is accessed through the main house.

What is a Detached ADU?

A detached ADU is a separate structure that is built on the same property but is not physically connected to the main house. It is typically located in the backyard or side yard of the property and has its own entrance and utilities. Detached ADUs can be built as standalone structures or as prefabricated units that are assembled on-site.

Advantages of Detached ADUs:

1. Design Flexibility: Detached ADUs offer more design flexibility since they are not constrained by the existing structure. Homeowners have the freedom to create a custom design that suits their needs and preferences.

2. Privacy: Detached ADUs provide a higher level of privacy compared to attached units. They have their own separate entrance and do not share walls with the main house, offering a more independent living experience.

3. Potential for Rental Income: Detached ADUs can be rented out separately from the main house, providing homeowners with an additional source of rental income.

Considerations for Detached ADUs:

1. Higher Construction Costs: Building a detached ADU can be more expensive compared to an attached unit. It requires the construction of a separate structure, which may involve additional permits and site preparation.

2. Limited Yard Space: Detached ADUs take up space in the backyard or side yard, potentially reducing the outdoor area available for other activities.

Prefab ADUs in San Diego:

When it comes to building an ADU in San Diego, homeowners have the option to choose prefab ADUs. Prefabricated ADUs are factory-built units that are assembled on-site, offering a faster and more efficient construction process. They are built to high-quality standards and can be customized to meet the homeowner’s preferences.

Prefab ADUs in San Diego offer several advantages, including:

1. Speed of Construction: Prefab ADUs can be constructed in a fraction of the time compared to traditional construction methods. This allows homeowners to have their ADU ready for occupancy sooner.

2. Cost-Effective: Prefabricated units are often more cost-effective compared to traditional construction. The controlled factory environment reduces material waste and labor costs.

3. Quality Control: Prefabricated ADUs undergo rigorous quality control measures during the manufacturing process, ensuring a high level of craftsmanship and durability.

Finding the Best ADU Contractors in San Diego:

When considering building an ADU in San Diego, it is essential to find the best ADU contractors who specialize in ADU construction. Look for contractors with experience in building both attached and detached ADUs, as well as expertise in prefab construction.

To find the best ADU contractors in San Diego, consider the following:

1. Research and Reviews: Look for contractors with positive reviews and a proven track record of successful ADU projects. Check online platforms, such as Yelp or Google, for customer feedback.

2. Portfolio: Review the contractor’s portfolio to see examples of their previous ADU projects. This will give you an idea of their design aesthetic and construction quality.

3. Licensing and Insurance: Ensure that the contractor is licensed and insured to protect yourself and your investment.

4. Cost and Timeline: Obtain multiple quotes from different contractors and compare their pricing and estimated timelines. Choose a contractor that offers a fair price and can complete the project within a reasonable timeframe.

In conclusion, when it comes to building an ADU in San Diego, homeowners have the choice between attached ADUs and detached ADUs. Each option has its own advantages and considerations. Additionally, prefab ADUs offer a faster and more cost-effective construction process. By finding the best ADU contractors in San Diego, homeowners can turn their ADU dreams into reality and create additional living space or generate rental income in one of the most desirable cities in California.

It is important to remember that an ADU serves as a practical solution to the housing shortage and can significantly increase the value and functionality of a property. Contact Fortune ADU design builder in San Diego to make the most of your ADU investment.

The post Attached ADUs vs. Detached ADUs: What’s The Difference? appeared first on fortuneadu.

ADU vs Traditional Home Addition: Which is right for you?

meeet.chd@gmail.com — Mon, 11 Sep 2023 23:13:25 +0000

ADU vs Traditional Home Addition: Which is right for you?

The majority of homeowners view their primary residence as not only their primary residence but also their most significant investment. Also, both main living place proprietors and property managers know that it means a lot to make the right ventures to update their properties.
Rebuilding or redesigning are surely choices, yet numerous landowners need to add decent areas, and this implies gauging the upsides and downsides of an ADU versus option. What exactly does each choice entail, and which one provides the most advantages for your home and way of life? Let’s examine each one in greater detail.

What is an ADU?

A backyard or side yard structure that is separate from the main house is usually an accessory dwelling unit. Every ward will have boundaries for the level, area, and position of this construction, and it should stick to pertinent drafting and allowing principles.
The Accessory Dwelling Unit Handbook of the California Department of Housing and Community Development outlines a variety of ADU-related laws in the state. The zoning, size, parking, occupancy, and other aspects of the handbook are all covered.
Choosing a structure that was built off-site for your convenience is one of the simplest ways to add an ADU to your property. Estimating normally incorporates the construction as well as utility hookups, licenses, plans, site prep and establishment, conveyance, establishment, and wrapping up.
Depending on your preferences, costs could be as little as tens of thousands of dollars or much more. Additionally, you may be eligible for ADU aid programs with a variety of incentives.

What distinguishes guest houses, accessory dwelling units (ADUs), and traditional home additions?

The fact that traditional home additions are not distinct structures is the primary distinction between an ADU and additions. All things being equal, they include adding an area to the current main living place. You could, for instance, transform a non-living space like an attached garage or unfinished attic, enclose a covered porch, extend the ground floor into the backyard, or add a second story to the building.
The expense of an expansion will fluctuate broadly, contingent upon the work you have done. It could go from an extremely safe few thousand bucks to make a carport decent up to many thousands for bigger increments. Anticipate that work should require as long as a while, during which you’ll need to manage development in the main living place.
In any case, what’s the distinction between an ADU versus a visitor house? These terms are sometimes used interchangeably. However, guest houses typically cater to short-term stays; It gives your overnight guests some privacy when they come to visit. At times, these isolated units might not have a kitchen.
An ADU can be utilized as a visitor house, however, it likewise has all the solace and conveniences required for day-to-day residing. You can likewise involve it as a drawn-out rental, as lodging for a relative, or as a transient rental on the off chance that nearby laws permit it.
Before making a decision—guest house vs. ADU vs. traditional addition—think about the overall benefits to ensure that you select the option that best meets your objectives and expectations.

Compared to Adding

Things to think about Sometimes, improving your property is about using the best real estate strategies, but you might also choose an ADU or an addition for personal reasons. To get the most out of your decision now and in the future, you need to give it careful thought. Before making a decision, let’s look at some of the most important factors to keep in mind.

The motivation behind the space

Perhaps you need retirement land that offers recurring, automated revenue open doors, a long-lasting residing space for a senior parent or a grown-up kid, or a visitor house for incessant family visits. Contingent upon your necessities, you might need to seek an ADU over another choice. For instance, an ADU is preferable to renting a spare room if you want the space to generate passive income. So first, recognize what reason you believe that the space should serve, and afterward go from that point.

Comfort

Basically, what’s the distinction between an ADU versus increases? Convenience.
At the point when you have work done on a main living place, you’ll need to reside with the commotion, wreck, and bother of development in your residing space. The work might take longer than a year.
This isn’t the situation when you pick an ADU. Most of the development is finished off-site, passing on just the site prep and establishment to do nearby very quickly. Even better, you won’t have to deal with workers constantly wandering through your house or open walls.

Privacy

You will still share a wall, which can have an impact on everyone’s lifestyle and comfort, even if you make an effort to create a separate entrance for your home addition to make it private for guests. Having a separate structure separate from the primary residence can increase privacy significantly in the ADU vs. addition debate.

Return for Capital Invested Potential

Most landowners look for land speculation methodologies that will bring about the best profit from the venture (return on initial capital investment). Adding area is quite often a decent wagered, however with regards to an ADU versus room option, which will show a more prominent return?
A single-family rental that already has an ADU could benefit from an additional, enticing source of revenue. If you put one in your primary residence’s backyard, it could provide you with passive income into retirement. Additionally, when it comes to resale, an ADU almost certainly will increase your property’s value.

Which property redesign is ideal for you?

Choosing between an ADU and an addition will depend on your budget, convenience, intended use, privacy concerns, and potential return on investment. You can make the best decision for your property and preferences if you know what each option offers.
Fortune ADU is ready to assist you with quality buildings, an immediate price, and the high level of customer service you need if you’re prepared to install a practical, prefabricated ADU. To get started, create an account right away. Creating an account with Fortune ADU will allow you to access their wide range of customizable options and receive personalized recommendations based on your specific requirements. Additionally, their team of experts can guide you through the entire process, from design to installation, ensuring a seamless experience and maximizing the potential return on your investment.

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THINKING ABOUT ADU’S

meeet.chd@gmail.com — Sun, 12 Jul 2020 06:52:37 +0000

THINKING ABOUT ADU’S

Trend set In-law Suites in San Diego

Accessory dwelling units or ADUs have become very popular in San Diego’s competitive housing market. Both accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) have exploded phenomenally over the last few years. San Diego’s, rising cost of living, increasing population density and land scarcity pave way to create affordable housing. ADU’s stand as a solution to these emerging issues that leave many homeowners looking for alternative housing / rental within the premises.

Communities and neighborhoods throughout San Diego County are following the state’s lead, and several municipalities are lowering and waiving ADU permit and inspection fees, as well as easing regulations to build accessory dwellings on owner-occupied property.

Accessory dwelling units can provide a viable option to many residents, but navigating through the processes of the ever-changing world of ADU permits, codes, and regulations can be frustrating. For homeowners considering building ADUs/in-law Suites for a loved one or rental income, it’s important to understand the benefits, processes and potential challenges as well as the ADU rules and regulations in San Diego County. This Section, shall give a homeowner a brief overview on what it means like when building an ADU.

To start with___

Why to consider an ADU?

ADUs are additional dwelling units, maximum build up to 1200 sq. ft., they can be garage conversions, attached or detached to the existing single-family home. And what’s great is there’s more flexibility with ADUs on where they can be placed on your lot and you can get closer to the property line.

It is important to understand the pros and cons of ADU / JADU before building an in-law suite,but there are a handful of very compelling reasons why you should consider building an accessory dwelling unit in San Diego.

Increased Prices and Land Scarce

San Diego is known to be “United States of America’s Finest City” and is one among the most desirable places to live in the United States. This popularity lead to housing shortage and steep cost of living, both rental, as well as the real estate markets.

City building ordinances came up with relaxations and supportive residential development schemes to address the current crisis. Few to mention – Incentive include affordable housing density bonuses, reduced or eliminated parking requirements, and waived usage fees for accessory dwelling units.

Potential Rental Income

With San Diego’s home scarcity and rising prices, adding an ADU to your existing property as a rental unit can be a great investment. Favourable, regulations, starting from October 3, 2022, Short-Term Residential Occupancy licenses are available through the office of the City Treasurer, which allows homeowners to explore on offering accessory dwelling units as vacation rentals. That’s an awesome way to mint money.

Additional Space for Family/Friends

An in-law suite provides a comfortable, separate space for visitors, family, or tenants, and can be a much better (and cheaper) option for housing aging loved ones compared to retirement living facilities.

Homeowner-friendly Regulations

San Diego continues to make significant changes that impact homeowners seeking to construct accessory dwelling units – many of them in positive ways. Some of those updates included:

1. New Resources– City officials provide pre-approved ADU flat designs and instruction manuals to speed up construction.

2. Fee Waivers– The City of San Diego passed a waiver of development and impact fees, which makes it favorable to homeowners. Homeowners who are building ADU’s up to 1,200 sq. ft can save significantly since usage fees for additional units are in waived fees.

3. Expanded ADU Size– ADU’s may be up to 1,200 sq. ft in San Diego. Some areas are 1,200 sq. ft or 50% of the primary home’s size, whichever is less. This is up from 700 sq. ft. For example, if an existing house is 3,000 sq. ft, the attachment can’t exceed 1,200 sq. ft in size.

4. Vacation Rentals– In some cases, short-term vacation rentals – Air BNB’s are allowed. San Diego has a limited number of licenses obtainable through the City Treasurer. Check your local municipality for more information.

To start with___

Why to consider an ADU?

◆ Increased Prices and Land Scarce

◆ Potential Rental Income

With San Diego’s home scarcity and rising prices, adding an ADU to your existing property as a rental unit can be a great investment. Favourable, regulations, starting from October 3, 2022, Short -Term Residential Occupancy licenses are available through the office of the City Treasurer, which allow homeowners to explore on offering accessory dwelling units as vacation rentals. That’s an awesome way to mint money.

◆Additional Space for Family/Friends

◆ Homeowner-friendly Regulations

San Diego continues to make significant changes that impact homeowners seeking to construct accessory dwelling units – many of them in positive ways. Some of those updates included:

1. New Resources– City officials provide pre-approved ADU flat designs and instruction manuals to speed up construction.

2. Fee Waivers– The City of San Diego passed a waiver of development and impact fees, makes favourable to homeowners. Homeowners who are building ADUs up to 1,200 sq. ft can save significantly since usage fees for additional units are in waived fees.

◆ Increased Prices and Land Scarce

◆ Potential Rental Income

With San Diego’s home scarcity and rising prices, adding an ADU to your existing property as a rental unit can be a great investment. Favourable, regulations, starting from October 3, 2022, Short -Term Residential Occupancy licenses are available through the office of the City Treasurer, which allow homeowners to explore on offering accessory dwelling units as vacation rentals. That’s an awesome way to mint money.

◆Additional Space for Family/Friends

◆ Homeowner-friendly Regulations

San Diego continues to make significant changes that impact homeowners seeking to construct accessory dwelling units – many of them in positive ways. Some of those updates included:

1. New Resources– City officials provide pre-approved ADU flat designs and instruction manuals to speed up construction.

Planning, Designing, and Building an ADU

ADU / JADU Planning : Once the thought of adding a dwelling unit to your property pop’s up, careful thought to be given on the typology of Dwelling Unit suitable for the lot, that which meets the need of the homeowner. There are endless ways to take advantage of new regulations and improve your property value for decades to come. There are 3 main types of ADUs:

Ø Detached full ADU or JADU (junior unit up to 500 sq.ft.)
◉ Detached units are standalone structures that are separated from the primary residence.

◉ ADU area ≯ 1,200 sq. ft, and there is no link to the ADU area to the square footage of the main building. This option is especially alluring if you already own a detached garage or shed, and you want to enhance that structure with the addition of an ADU.

Ø Attached full ADU or JADU (junior unit up to 500 square feet)
◉ An attached unit is built onto an existing residence and has its own private entrance, bath, and kitchen. Eg.. Garage, attics and basements.
◉ ADU area ≯ 1,200 sq. ft. attached to the existing dwelling or garage. However, in some areas, the formula it’s 50% of the existing residence, not counting the garage and up to 1,200.

Ø Repurposed Existing structure.
◉ Space (e.g., master bedroom, basement or garage) within the primary residence is converted into an independent living unit. Either whole or part of the structure can be utilised to build the ADU.
◉ ADU area ≯ the existing structure. In fact, it may be beneficial to add a second story to the garage and preserve the existing space the way it is. This is advantageous to homeowners who want to maintain their garage and yard space but still want to add living space to their property.

Planning, Designing, and Building an ADU

Ø Detached full ADU or JADU (junior unit up to 500 square feet)
◉ Detached units are standalone structures that are separated from the primary residence.

What are these JADU’s and how different are they from the ADU’s?

Junior Accessory Dwelling Units (JADUs) are the smaller versions of ADU’s (≤ 500 sq.ft), but with a few other specific differences. JADUs are contained entirely within an existing or attached structure (e.g. a garage), and can share sanitation facilities with the primary dwelling and must definitely cater an independent efficiency kitchen and should be offering a separate entrance from the primary dwelling.

Table Data Source: https://www.housable.com/adu-guides/adu-jadu-difference

JADU/ADU Designing and Building

Hiring an Architect Vs a Design-Build Firm:

While you research about building your ADU, you may realize that hiring a professional is the right choice for you. But what type of professional should you pick? The choices ought to be are:

1. Old school method involving high risk and hassles: Hire an architect to draw up the plans, then choose a contractor to do the work, and then pick a designer to put the finishing touches on the interior.

2. Design-build method: A One-stop solution to takes care of the complete process through a professional supervision saving your time, anxiety, and additional hassle of managing multiple contractors by hiring a design-build firm that does all of this in-house. This off late has turned out to be a primary model for construction projects.

The crucial next would be the ADU Zoning and Regulations. Few to mention are:

ADU Zoning and Regulations

◈ Property Qualifications – Property that is zoned for either single-family or multi-family residences (depending on the local regulations, ideal to check with the City). Additionally, to obtain a permit for a lot, it must be free of code violations. List below are a few additional facts to note:

● San Diego ADUs are always rentable, but in most cases these units can’t be sold separately from the primary home.
● ADUs require a fire sprinkler system when it is required for the main residence.
● Homeowner-occupancy isn’t necessary for renting either primary homes or ADUs, unless you live in San Diego County.
● Existing structures converted to Companion Units aren’t subject to water or sewer charges when it has the correct meter size.

◈ Coastal Regulations – For singles story ADUs or JADUs in the coastal region, as long as the height does not exceed 16 feet, they are exempt. Detached units presently must be submitted for approval of a Coast Development permit. In not appealable coastal zones, the process is much easier than in the past.
◈ Setbacks – Adherence with a specific distance from a property line, curb or structure to a building. For ADUs, San Diego allows encroachment of the side and rear yard setbacks. Only compliance with typical front yard setback is required. Existing permitted garages are exempt from this requirement.
◈ Parking – There are many parking variables based on zoning and geographic area. Garage conversions typically do not require any replacement parking in San Diego. For units built within the San Diego Transit District, typically no additional parking is required either. In some cases, depending on zoning, parking may need to be addressed. The parking Lot size for new parking spaces – Min. 8.5 feet by 18 feet. Below are few exceptions:

● Property within one half-mile of the MTS, a Breeze bus, waterfront shuttles or any other public transportation.

ADU Costs, Fees, and Financing in San Diego

General costs to design and build an ADU in San Diego

● Small ADU: (200 – 300 sq.ft.) = $175,000 to $275,000
● Medium ADU: (300 – 600 sq.ft.) = $275,000 – $395,000
● Large ADU: (600 – 1,200 sq.ft.) = $395,000 and up

Certain additional fees associated with building an ADU include licenses, taxes, utility fees & upgrades, city required upgrades such as sidewalks and driveways, etc. The city may impose certain other fees which can change year-to-year. Few to mention are:

• Plan Review Fee: The cost can vary depending on a number of factors, including the size of the ADU, the complexity of the project, and the specific requirements of the local jurisdiction. Say the base fee for the review of an ADU permit application, fire plan review fee if applicable, structural plan review fee and any other specialized reviews if applicable.

• Permit Fee: The cost of permit fees for Accessory Dwelling Units (ADUs) again can vary depending on certain factors, including the size of the ADU, the complexity of the project and the specific requirements of the local jurisdiction. Fee for an ADU permit, which includes plan review and inspections. However, additional fees may apply for items such as fire plan reviews, impact fees, and other specialized reviews.

Approximately the total cost would be around $3,500 for the plan review and permit of a 500 sq. ft accessory dwelling unit.

Permits have a built-in expiration date, and require renewal after a predetermined amount of time. Permits also typically require inspections every 180 days, although exceptions are being made during COVID to extend timelines on permits.

ADU Taxes

When adding ADU to the property, it shall be assessed only for the new space at the current property tax rate. The primary home will not be reassessed, and it will be unaffected by adding an ADU. However, for resale, the Granny Flat is included in the total square footage which increases the value of your property.

Additionally, school fees can be factored for ADUs of 500 sq. ft or larger, which run approximately $4.00/sq. ft.

ADU Grant

Cal HFA offers a grant of up to $40,000 to cover soft costs which includes architectural, engineering, permit fees, surveying, utilities and pre-construction, closing costs. A great program especially for a from-the-ground-up ADU or JADU. Eligibility criteria for the grant:

Ø Household income cannot exceed $211,000/yr.

Ø The grant applicant must be the owner of the property.

Ø The property owner must plan to live on the property.

Ø The property owner must agree to rent out the newly built unit.

ADU Financing :

There are some great low-interest construction and home improvement loans to finance an ADU project. A home equity loan is a popular choice among San Diegans and there are numerous financial institutions (major banks, online lenders, and credit unions) that offer a variety of rates and options for financing the same. Many banks also offer personal loans, and savvy homeowners can consolidate and refinance these personal loans into one mortgage with a good interest rate when the accessory dwelling unit is complete.

Eligible homeowners can also avail the Grant offered by CalHFA of up to $40,000 to cover soft costs. Furthermore, owners of 62+ years of age qualify to take out a reverse mortgage against your home equity. It is widely recommended that you thoroughly research this option before you decide on getting a reverse mortgage to finance your ADU.

Building a Smart, Sustainable ADU

Solar PV Costs: Fees, Permits, and More : The city of San Diego is currently offering waiver on the cost for plan check and building permits to install photovoltaic cells on the property. There is only one stipulation, mentioned in the city’s website: “Fees for residential solar PV building permits could be incurred if the Department of Environmental Health and/or the Department of Public Works need to review the building plans. Usually only required for ground mount solar PV.”

However few factors to consider deciding whether or not to install solar panels on the property:

• Can you afford to install solar panels? Does the home improvement loan covers both the ADU installation as well as a photovoltaic system?
• Location of the PV cells? Will it be on the roof, or somewhere else on the property?
• Does the property get full view of the sun, or is it shaded by trees or other topographic elements?
• Is there sufficient roof space to accommodate an adequate number of solar panels to make your investment worthwhile?

Talk to your solar installer or your design-build team to find out what other factors you need to consider.

Clean Energy Tax Credits Starting in 2023

With the approval of the Inflation Reduction Act in August 2022, there is a tax credit for solar panel installation.

ADU Automation: Minor Upgrades to the ADU can have a big impact on not only to the day-to-day living, but the amount you can earn from renting the unit to a tenant or boarder.

Smart Power Outlets: Smart outlets (USB cord plug) that can be control with your smartphone are in trend over the traditional 2-prong wall outlets.

Smart Circuit Breakers: Circuit breakers replace the older fuse boxes, eliminating the need to install fuses and instead rely on electromagnetism to prevent power overload. Smart circuit breakers can control and monitor these home automation devices via your smartphone. These can take the power control to save money by monitoring the power consumption to help determine cost of utilities for tenants or predict the upcoming electric bills of the ADU.

Smart Doorbells: Smart outlets (USB cord plug) that can be controlled with your smartphone are in trend over the traditional 2-prong wall outlets.

Motion Sensors and LEDs : Pairing with motion sensors, LEDs turn out to be an inexpensive technology that saves some money, give you infinite interior design options, including mood lighting
both in the ADU and in outdoor

Building a Smart, Sustainable ADU

However few factors to consider deciding whether or not to install solar panels on the property:

Talk to your solar installer or your design-build team to find out what other factors you need to consider.

Clean Energy Tax Credits Starting in 2023

With the approval of the Inflation Reduction Act in August 2022, there is a tax credit for solar panel installation.

ADU Automation: Minor Upgrades to the ADU can have a big impact on not only to the day-to-day living, but the amount you can earn from renting the unit to a tenant or boarder.

Smart Power Outlets: Smart outlets (USB cord plug) that can be control with your smartphone are in trend over the traditional 2-prong wall outlets.

Smart Doorbells: Smart outlets (USB cord plug) that can be controlled with your smartphone are in trend over the traditional 2-prong wall outlets.

The post THINKING ABOUT ADU’S appeared first on fortuneadu.

SOLAR FOR NEW ADU????

meeet.chd@gmail.com — Sun, 12 Jul 2020 06:51:25 +0000

SOLAR FOR NEW ADU????

State of California is constantly making its effort to move all new construction in the direction of sustainability and renewable energy. The Energy Code /Title 24 2022 code defines compliance requirements by whether an ADU is an Addition to an existing residence or a New Construction Building.

■ Conversion of an existing unconditioned space (garage) to an ADU, it is an Addition.
■ Constructing a new ADU that is attached to an existing home or existing garage, it is an Addition.
■ Building an ADU detached from an existing home or attached via breezeway/covered walkway, it is a Newly Constructed Building.

All New Construction Buildings must have solar panels installed if they’re non-manufactured and detached from the main home. As per California Energy Commission, these panels can either be installed onto the ADU or on the primary dwelling unit.

Exempt additions or conversions to add Solar Panels to ADUs may include:

■ Shaded ADUs: ADUs that are shaded, by pre-existing sources, & having annual solar access less than 80 contiguous sq ft, do not need ADUs.

■ Attached ADUs: ADUs that are attached to the house are considered home additions and therefore do not need solar panels.
■Converted ADUs: Converting an existing space of a home to an ADU, you typically do not need to add solar panels.

BENEFITS OF SOLAR PANELS ON ADUs

1) Part of the ADU Permit Process – Compatible permit process with Solar.
2) ADUs built with Solar Panels in Mind – By adding solar to an ADU early while still in the design stages, shall save money and time. We can avoid retrofit of ADU later to accommodate critical solar-specific design specifications to produce the most energy.
3) Decreases the Cost of Maintenance and Living – Solar Panel Installation serves as a long-term investment needing a very minimal maintenance. Adding solar panels to the ADU shall reduce the ongoing cost of electricity consumption and provide additional benefits as well.
4) Can Offset the Cost with Rent Increase – By Installing Solar, homeowners, can increase the rent and improve their rental property valuations. Plus, this can benefit the tenants since they can enjoy the benefits of a lower cost of living by not having to pay for expensive electricity bills.
5) Increases Home Valuation – Solar panels can increase the value of your ADU and, therefore, your whole property, depending on your market.
6) Lower The Carbon Footprint – By switching to solar energy, we can reduce the world’s energy consumption on fossil fuels and combat global warming. This is why solar energy is the cornerstone to sustainability.

Solar panels do not necessarily to be installed on the ADU. They can also be:

■ Installed on the primary house, ground, other eligible structures.
■ Added to existing on-site arrays or, in some cases, community solar arrays.

Regardless the decision to go with solar for your ADU project, our team at FORTUNE ADU is ever ready to help you plan the ADU project that’s right for you and that abides the respective code. Contact us today for your free project consultation.

■ Conversion of an existing unconditioned space (garage) to an ADU, it is an Addition.

■ Constructing a new ADU that is attached to an existing home or existing garage, it is an Addition.
■ Building an ADU detached from an existing home or attached via breezeway/covered walkway, it is a Newly Constructed Building.

Exempt additions or conversions to add Solar Panels to ADUs may include:

■ Shaded ADUs: ADUs that are shaded, by pre-existing sources, & having annual solar access less than 80 contiguous sq ft, do not need ADUs.
■ Attached ADUs: ADUs that are attached to the house are considered home additions and therefore do not need solar panels.
■ Converted ADUs: Converting an existing space of a home to an ADU, you typically do not need to add solar panels.

BENEFITS OF SOLAR PANELS ON ADUs

1) Part of the ADU Permit Process – Compatible permit process with Solar.
2) ADUs built with Solar Panels in Mind – By adding solar to an ADU early while still in the design stages, shall save money and time. We can avoid retrofit of ADU later to accommodate critical solar specific design specifications to produce the most energy.
3) Decreases the Cost of Maintenance and Living – Solar Panel Installation serves as a long-term investment needing a very minimal maintenance. Adding solar panels to the ADU shall reduce the ongoing cost of electricity consumption and provide additional benefits as well.
4) Can Offset the Cost with Rent Increase – By Installing Solar, homeowners, can increase the rent and improve their rental property valuations. Plus, this can benefit the tenants since they can enjoy the benefits of a lower cost of living by not having to pay for expensive electricity bills.
5) Increases Home Valuation – Solar panels can increase the value of your ADU and, therefore, your whole property, depending on your market.
6) Lower The Carbon Footprint – By switching to solar energy, we can reduce the world’s energy consumption on fossil fuels and combat global warming. This is why solar energy is the cornerstone to sustainability.

Solar panels do not necessarily to be installed on the ADU. They can also be:

■ Installed on the primary house, ground, other eligible structures.
■ Added to existing on-site arrays or, in some cases, community solar arrays.

The post SOLAR FOR NEW ADU???? appeared first on fortuneadu.

AN ADU BUILD SOFT COSTS

meeet.chd@gmail.com — Sun, 12 Jul 2020 06:44:29 +0000

AN ADU BUILD SOFT COSTS

The purpose of this guide is to explain all the components of costs that go into building an ADU. Mainly divided into two classifications:

⦿ Hard costs – which includes labour and construction material.
⦿ Soft costs – Predominantly covers all other expenses related to the construction project, which come up before.

LET US EXPLORE ON THE ADU SOFT COSTS
PLANNING & ITS ELIGIBILITY

To determine the eligibility to build an ADU on the property, it involves reviewing the property characteristics with the ever-changing local and/or county regulations. The regulations help determine the size, shape, and design suitable for the property. There are plenty of different types of ADUs to choose from including a detached ADU, an attached ADU, and junior ADUs (JADUs).

ARCHITECTURAL DESIGN
Once the ADU location and type to build on the property is analysed, next steps are to get to the design part wherein one may seek the help of an architectural designer. The industry standard is 10-15% of project value/budget.

In contrast, one may choose FORTUNE ADUs in-house Design Studio specializing in ADU design and value engineering, saving time, money and off the hassles. From inception to permit processes, we help through design decisions that have an impact on the cost of your ADU.

CONSULTANTS & SPECIALISTS

All ADU projects shall require few other consultants, subcontractors, and specialists in the process of putting together the Submission Plan set:

◎Structural Engineer: for framing and load bearing calculations.
◎Title 24 Energy Consultant: for energy efficiency & impact analysis.
◎ Boundary/Site Surveyor: for establishing the official boundaries and space of your property, including property lines, distances, and existing Certain complex projects may require additional specialist-provided documentation for unique conditions or based on city requirements:
◎ Geotechnical/Soils Report: for projects with significant slope, flood zone, or pool infill concerns.
◎ Grading & Drainage Plan: for projects requiring significant drainage oversight for flooding.
◎ Arborist Report: for projects involving protected tree removal, trimming, or root protection requirements.
◎ Fire Prevention Plan: for projects requiring fire sprinklers and/or other fire measures.

CITY PLANNING & PERMITTING

The plan set needs to be submitted for review to the municipality (one/ both by Planning Department and Building Department). The charges her include:

i) Review fee – The first out-of-pocket fees come with your submission to your local Planning Department.

ii) Local Building Permit fee – Based on project valuation, the calculated permit fee can range from $2,000 – $10,000 which varies from city to city. In addition, some municipalities charge fixed fees for ADUs, but this is the exception, rather than the rule.

iii) Next, you may have to file a deed restriction at the County where you pledge not to sell the ADU as separate from the main home.

iv) Impact Fees – For ADUs > 750 sq. ft. in size, some municipalities may charge Impact Fees. The fees is generally proportional to the size of the ADU in relation to the size of the main house. In some cities, these impact fees can quickly become quite significant and can range from $5,000 – $25,000 for a 1,200-square-foot detached accessory dwelling unit apartment.

NEXT PROCESSES

Once we get through the permits process, the soft costs get winded up and we can get ready to proceed with building the new unit—choosing appliances, lighting fixtures, closets, tile countertops, and other aesthetic choices to make your ADU home dream come true.

AN ADU BUILD SOFT COSTS

The purpose of this guide is to explain all the components of costs that go into building an ADU. Mainly divided into two classifications:

⦿ Hard costs – which includes labour and construction material.
⦿ Soft costs – Predominantly covers all other expenses related to the construction project, which come up before.

LET US EXPLORE ON THE ADU SOFT COSTS

PLANNING & ITS ELIGIBILITY

ARCHITECTURAL DESIGN

Once the ADU location and type to build on the property is analysed, next steps are to get to the design part wherein one may seek the help of an architectural designer. The industry standard is 10-15% of project value/budget.

CONSULTANTS & SPECIALISTS

All ADU projects shall require few other consultants, subcontractors, and specialists in the process of putting together the Submission Plan set:

◎ Structural Engineer: for framing and load bearing calculations
◎ Title 24 Energy Consultant: for energy efficiency & impact analysis
◎ Boundary/Site Surveyor: for establishing the official boundaries and space of your property, including property lines, distances, and existing Certain complex projects may require additional specialist-provided documentation for unique conditions or based on city requirements:

◎ Geotechnical/Soils Report: for projects with significant slope, flood zone, or pool infill concerns
◎ Grading & Drainage Plan: for projects requiring significant drainage oversight for flooding.
◎ Arborist Report: for projects involving protected tree removal, trimming, or root protection requirements.
◎ Fire Prevention Plan: for projects requiring fire sprinklers and/or other fire measures.

CITY PLANNING & PERMITTING

The plan set needs to be submitted for review to the municipality (one/ both by Planning Department and Building Department). The charges her include:

i) Review fee – The first out-of-pocket fees come with your submission to your local Planning Department.
ii) Local Building Permit fee – Based on project valuation, the calculated permit fee can range from $2,000 – $10,000 which varies from city to city. In addition, some municipalities charge fixed fees for ADUs, but this is the exception, rather than the rule.
iii) Next, you may have to file a deed restriction at the County where you pledge not to sell the ADU as separate from the main home.
iv) Impact Fees – For ADUs > 750 sq. ft. in size, some municipalities may charge Impact Fees. The fees is generally proportional to the size of the ADU in relation to the size of the main house. In some cities, these impact fees can quickly become quite significant and can range from $5,000 – $25,000 for a 1,200 square foot detached accessory dwelling unit apartment.

NEXT PROCESSES

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ADU PERMIT PROCESS

meeet.chd@gmail.com — Sun, 12 Jul 2020 06:37:31 +0000

ADU PERMIT PROCESS

Thankfully, there is Good News for all ADU Planning Homeowners. California’s permit process for ADUs is lot more streamlined over the Residential dwelling units. Recent legislative reforms are encouraging the residents in adapting to growing ADU popularity. Although streamlined, it is not as simpler as it appears to be. To ease the complexity, the current post, summarizes the steps involved in the permitting process for an ADU.

ADU PERMIT PROCESS

STEPS FOR PERMIT

Step 1 : Plan Submission and City Initial Review.

Step 2 : Clearances and Resubmission.

Step 3 : “Ready to Issue”

Step 4 : Inspect on Site – Compliance.

Step 5 : Issue of Occupancy against Compliances and Fee payment.

How long will it take to get my ADU permit?

STEPS FOR PERMIT

Step 1 : Plan Submission and City Initial Review.

Step 2 : Clearances and Resubmission.

Step 3 : “Ready to Issue”

Step 4 : Inspect on Site – Compliance.

Step 5 : Issue of Occupancy against Compliances and Fee payment.

How long will it take to get my ADU permit?

STEPS – ADU PERMITS

Step 1. Plan Submission and City Initial Review.

Submit the Complete ADU plan set, and permit application to your city’s department of building and safety. Against every application a Plan Checker is assigned, who decides the application completeness, provide comments and issue approval. If all the necessary documentation submitted is thorough then the Plan checker issues application ‘complete’, meaning application is ready for review.

Against finding the application complete*, permit fees ranging between $1,000 – $10,000 depending on the city, size of ADU and the project complexity needs to be paid.

After the plans have been fully reviewed, they are returned with comments and required clearances. As a part of initial review, the Plan Checker confirms if the ADU Design meets the Building code, Safety standards and T-24 guidelines. Further to this, the application is escalated for Clearance from various City departments and Utilities that are involved in the review process.

Step 2. Clearances and Resubmission

The comments received from the Plan checker in his initial review, must be addressed, if need may be minor changes to be done. This may involve working with the building department to sort out any issues identified. Simultaneously coordination for acquiring clearances from suggested departments/ agencies got to begin that the Plan Checker requires to approve the permit set. Each clearance may require a varying level of documentation and review.

⬗ Bureau of Engineering: Assigns clearances for sewer capacity and the ADU’s new address.
⬗ Planning Department: Reviews the site plan to ensure that it conforms with local zoning rules.
⬗ Water Provider: Responsible to issue “Will Serve” and “Fire Flow” letters affirming that your ADU will receive sufficient water (for ground up ADUs, the Water Provider may also require a separate water connection directly from the street to the unit as a condition of providing these letters)
⬗ Power Provider: Guides on any issues regarding construction near power lines or electrical service modifications.
⬗ Historic Preservation District: If the ADU belongs to a historic preservation district, the district’s board may need to approve the design of the ADU and any associated demolition.

Once through, then the permit application needs to be resubmitted for approval. The Plan Checker may then identify additional issues that need to be addressed. Tentatively the 2nd or there after review usually takes not more than a week’s time as the comments received at this stage are usually minor. Once all issues are resolved, the Plan Checker approves the application.

STEPS – ADU PERMITS

Step 1. Plan Submission and City Initial Review.

Against finding the application complete*, permit fees ranging between $1,000 – $10,000 depending on the city, size of ADU and the project complexity needs to be paid.

Step 2. Clearances and Resubmission

PLAN SUBMISSION

CLEARANCES & RESUBMISSION

READY TO
ISSUE

Plan Set for City
Initial Review:

Plan Check
routing:

Time sensitive:

• Initial Review of
submitted Plan
set on Proposed ADU
compliance

• Public Works
• Building & Safety Fire
• Planning
• Water Utility
• Electric Utility

• Permit issued
against Code
compliance and
valid for 12 months.
• Time extension
possible with
inspection

BUILD

OCCCUPANCY

Inspections:

Final Occupancy:

• On Field Compliance is
verified by Inspection
Officers with respect to
codes for final sign off

• Final Sign off by City
• All fees paid and
inspections passed.

Step 3. “Ready to Issue”

Once the application is approved, it’s deemed “Ready to Issue”. As a final step, the building department will verify the general contractor’s insurance, confirm that all outstanding permit fees have been paid, and issue a permit. Now construction can start!

How long will it take to get my ADU permit?

Each city has its own terms of timelines to approve an ADU permit application. A recent California state law now requires all permitting agencies, not just the planning department, to return comments on an ADU application within 60 days — and if they don’t, the project is deemed approved. We think this will reduce ADU permitting timelines, particularly in jurisdictions whose processes are known for being slow.

Step 4. “Ready to Issue”

Post the Permit issue and Contractor insurance verification is done, the ADU gets clearance for Execution. Series of stagewise inspections to be conducted for Code Compliance Check on Field.

Step 5. Final Occupancy

Against clearances of Field inspections and receipt of 100% Permit fee, the Inspector gives final Sign-Off and issues Occupancy Certificate, meaning the ADU is all set for Occupancy.

Conclusion

Despite the recent changes in law to simplify ADU permit and construction, the process is still rather involved. If time is a concern for you and the process seem overwhelming, then reach us, FORTUNE ADU to feel a design build experience to communicate with various city departments and alter design plans.

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COMMON ADU QUESTIONS ANSWERED

meeet.chd@gmail.com — Sun, 12 Jul 2020 06:35:32 +0000

COMMON ADU QUESTIONS ANSWERED

By Professionals in the Field

ADU BASIC FACTS RELATED

1. What Is an Accessory Dwelling Unit (ADU)?
An accessory dwelling unit (ADU) is a small dwelling on the same premises as, or attached to, a single-family house. For example, it could be an unit over the garage, a basement unit, or a stand-alone house in the backyard. An ADU can be used to house a family member or for additional income through rent.

2. What are the Different Types of ADUs?
There are four main types of ADUs.
◈ New Attached ADUs – Shares a wall with the primary home.
◈ New Detached ADUs – Stand-alone units.
◈ Garage Conversion – Converting an existing garage.
◈ Internal ADUs – Constructed within the existing floor plan of a primary home. There are also basement and attic ADUs, that technically fall under internal ADUs.

3. What are JADUs?
A Junior ADU (JADU), is a secondary unit < 500 sq. ft. It is basically a smaller unit that can be built within the ‘envelope’ of an existing home. JADU has got few varying rules from that of an ADU:
◈ Can have a sharing bathroom with the main residence.
◈ Either JADU / Single-family residency (primary unit) must be owner-occupied.
◈ Has no parking requirements
◈ Must be attached to the primary residency.
◈ Needs an efficient kitchen.

4. What are advantages and disadvantages of JADUs?
Advantages: Can avoid various fees and have the option to share sanitation and utilities which makes it easier to build and more affordable.
Disadvantages: Must be < 500 sq.ft and should abide to owner occupancy regulations.

5. Where on property can the ADU be built?
The ADU must typically go in the backyard. It must be located at least 4 feet from the rear and side property lines (unless covering an existing garage). It can be fully Detached/attached to the main house/garage.

6. How Big Can an ADU Be?
◈ New 2023 ADU laws require all cities to have a height limit of min. 16 ft.
◈ If the property is within a ½ mile of public transit or already has a multi-family dwelling that is 2-storey high, the height limit must be min. 18 ft.
◈ If the ADU is attached to the primary dwelling, the height limit must be min. 25 ft or the zoning code of the property if that is lower. Cities can have higher height limitations than 16 feet, so where you live could be higher.
◈ A Detached ADUs can have a max. built up to 1,200 sq. ft. An Attached ADU, can be the lesser of 1200 sq. ft or 50% the size of the main unit. It can be either one or two stories.
◈ Consult your local planning board or an ADU professional to determine the ADU size limitation within your city.

7. What Are the Benefits of Building An ADU?
There are a multitude of benefits associated with building an ADU.
◈ Offers multi-generational housing opportunities.
◈ Income opportunity from renting the unit out.
◈ Helps the local community by offering affordable housing.
◈ House hacking opportunities
◈ Increases the value of your home.
◈ Provides extra living or non-living space.

ADU BASIC FACTS RELATED

2. What are the Different Types of ADUs?
There are four main types of ADUs.
◈ New Attached ADUs – Shares a wall with the primary home.
◈ New Detached ADUs – Stand-alone units.
◈ Garage Conversion – Converting an existing garage.
◈ Internal ADUs – Constructed within the existing floor plan of primary home. There are also basement and attic ADUs, that technically fall under internal ADUs.

ADU BASIC FACTS RELATED

8. How Much Does Building an ADU Cost?
Based on the ADU typology, location and the design taste the construction cost of an ADU shall vary. Depending on the ADU unit build, the prices can range from $80,000 to $300,000+.
◈ A 499 sq.ft new construction ADU can cost approx. $150,000 – $300,000.
◈ A 2-car garage conversion can cost approx. $70,000 – 120,000.
◈ Prefab: Depending on the make of the unit and the company you purchase it from; the prices can vary.
◈ Design and Local permit regulations incurring soft cost should also be considered in the ADU costing.

9. What are the City Fees Associated with ADUs?
◈ Plan check & permit fee for ADUs under 500 sq. ft : $3,000 – $5,000
◈ Plan check & permit fee for ADUs up to 749 sq. ft : $6,000 – $7,000
◈ Plan check & permit fee for ADUs over 750 sq. ft : $6,000 – $7,000 + Impact Fees (City shall add New development impact fees which will add thousands of dollars)

10. How Do I Finance An ADU?
There are a variety of local government grants and loans such as the CalHFA $40K ADU grant that can be utilize based on eligibility to fund the ADU project. Few other finance options are:
◈ Home Equity Loans and HELOCs
◈ Cash-out refinancing
◈ A personal line of credit
◈ Construction loan
◈ Renovation loan
◈ Chattel loan
◈ CDFI or local partnership loan program
◈ Peer-to-peer lending
◈ Cash savings
Its ideal to apply for grants and look at government programs, and then identify the best loan that will work for your financial situation.

11. Are There Ways to Save Costs on ADUs?
Few quick cost-saving tips to consider:
◈ Keeping your designs simple
◈ Use pre-approved floor plans to expedite the permitting process
◈ Buy customizable floor plans to save money on the design phase.
◈ Use affordable raw materials.
◈ Choose contractors who got established relationships with local raw material stores.
◈ Build a smaller unit.
◈ Consider doing a garage conversion if it is in good shape currently.

12. Does an ADU increase property tax?
Adding an ADU does increase your property tax, but it will not re-asses your existing house. That is, you’ll pay property taxes for your ADU for the present year while you continue paying the old property taxes for your main home. This is called a blended assessment.

13. What Is the Most Affordable ADU?
Usually Garage conversion is said to be the most affordable option for building an ADU yourself, since there is an existing structure, and probably may already have utilities and water hooked up to them.
Exception: However, if the garage foundation and structure are in bad shape, then it may cost more to fix them than to build an entirely new unit.

ADUs CONSTRUCTION RELATED

14. Best Way to Find an ADU Contractor?
To identify the best practitioner to execute your ADU project, make a checklist of qualifications you may want the contractor to have:
◈ Specialized in ADUs.
◈ Be licensed and insured.
◈ Have a network of subcontractors.
◈ Have good reviews.
◈ Be timely and responsive.
◈ Be familiar with local ADU laws.
◈ Have a supply chain plan.

15. How Do You Build An ADU?
Predominantly three ways of ADU construction:
i. Stick build construction: A contractor along with a team of subcontractors builds in the same way a traditional wood-frame home right on site.
ii. Modular (pre-fab) construction – Companies build the entire ADU in a factory and then assemble it on the property.
iii. Unique ADUs – Made of recycling shipping containers & other resources.

16. How Long Does It Take to Build An ADU?
Depending on the size and style of the build,
◈ A new construction ADU can take approx. 4 – 6 months depending on size.
◈ A garage conversion can take approx. 2 – 3 months depending on the condition the garage is in.

17. Can I Legalize an Unpermitted ADU or Garage Conversion?
To legalize an unpermitted ADU, you will have to bring it up to code and go through a series of inspections. Make a note, various states and cities have developed unit legalization programs to make this process easier. Suggest consulting the local planning board/ADU professional to determine what needs to be done to legalize your unpermitted ADU.

ADUs AND THEIR USES RELATED

18. Can ADUs Generate Rental Income?
ADUs can generate passive income by renting out the unit. However, one needs to be aware of the ADU rent control factors in respective city prior letting it for rental.

19. Do ADUs Help the Housing Crisis?
ADUs offer affordable housing options to low-income individuals, helping from becoming homeless. Therefore, many states like California have updated the laws to make ADU development easier for everyone in order to improve the housing crisis.

20. Do ADUs Make Good Retirement Homes?
ADUs serving as retirement homes is a great option to move your aging loved ones into your backyard so that can be assisted when they need help, yet they get to maintain a level of privacy and independence.

21. Does an ADU Make a Good Guest House?
ADUs make excellent guest houses if you often have company. Your guests can maintain a level of privacy while still being close to you. Using an ADU as a guest house is great for lodging traveling nurses, caretakers, or other personnel that often visit the home.

22. Can ADUs Be Used as Non-Living Space?
ADUs can be used for anything as long as it houses an efficient kitchen, bathroom, and living area. Few examples of how an ADU can be used:
◈ Art studio
◈ Home office
◈ Man cave
◈ Personal gym
◈ Personal movie theatre
◈ Pool house
◈ She shed.
◈ Yoga studio

23. Can ADUs Boost Property Value?
Depending on the property and its location, an ADU can improve the value of your home by 30%. ADU certainly help to boost the property value when you decide to sell in the future.

OTHER ADU QUESTIONS

24. Can You Sell an ADU Without the House?
An ADU cannot be bought or sold separately from the primary dwelling. Since it is on the same lot of land, it is considered a part of the primary dwelling’s property.

25. Can I Build an ADU And JADU?
You can build both an ADU and a JADU on your property. However, a JADU has an owner occupancy requirement that does not go away even if you already have an ADU on the property.

26. What Are Some of The Biggest ADU Mistakes?
Sharing a quick list of some of the biggest ADU mistakes you can make.
◈ Not comparing construction estimates
◈ Not creating a budget
◈ Not including laundry units
◈ Not planning for contingency when creating the budget
◈ Not planning for enough storage space
◈ Skipping ADU feasibility research

27. Do You Have ADU Appliance Recommendations?
When buying ADU appliances and furniture, also choose the options that have a dual purpose and save the most space. Here are a few options for you to consider.

◈ Refrigerator
◈ Range & microwave (or microwave/range hood combo)
◈ Dishwasher
◈ Ductless mini-split air conditioners and heaters
◈ Water heaters with Tank
◈ Workstation sink
◈ Washer and dryer combo
◈ Sectional sleeper sofa with storage compartments

28. Can My ADU Have a Separate Mailbox?
If you are renting out your ADU or using it for multi-generational housing, you probably don’t want your tenants’ mail getting mixed in with yours. Few of the cities, like Los Angeles, can issue you a separate address for your ADU.

29. Is There a Minimum Lot Size for Building An ADU?
There is no minimum lot size required for building an ADU. As long as the plot meets ADU zoning requirements and can allow for an ADU of at least 150 square feet to be built on it, it is good.

30. What Property Type Can I Build an ADU On?
Any residentially zoned property (single or multi-family) can have an ADU built on it, as long as there is an existing primary home on the lot.

31. Does building an ADU turn my property into a duplex?
Not officially because the zoning of your property doesn’t change. But for all intents and purposes, you will have a duplex-like property with two units you can rent.

32. Is Parking Required for ADUs?
If the unit is located within a 1/2 mile from public transit, no parking is required. However, if it is not, then probably you need to provide parking.

33. What Is the Best ADU To Build?
This depends on how you plan to use the ADU. Garage conversions tend to be the most affordable and less time-consuming. However, detached ADUs allow for more creativity in design. Attached JADUs are great for multi-generational housing because you can access them from your home without having to go outside. Therefore, the best ADU to build is different for everyone. A rental unit, with more bedrooms, equates into higher rent. Weigh the pros and cons of each type with an ADU professional before deciding what will be right for your needs.

34. Will ADUs require to have Fire sprinklers?
Construction of an ADU will not require fire sprinklers to be added to any existing primary dwelling.

35. What are the next steps after an ADU application is rejected?
When an ADU / JADU application is denied, a full list of items with descriptions of how the application can be fixed is required to be given. The applicant then can fix the items within a 60-day timeframe to act on the permit application.

36. Can My ADU Tap into Existing Utility Lines?
Since ADUs are generally stand-alone buildings, it will most likely require its own utility meters. However, some localities allow ADUs to tap into existing utility services on your property such as gas or water lines. View the respective City guidelines for ADUs.

37. Can we have separate utility meters for the ADU?
Yes, you can have separate meters for water and electric service but it will cost more to install. Instead ‘sub-meters’ shall be a lower-cost alternative.

38. Do ADUs require pedestrian access from the street?
Yes, a walking path access of 3’ wide is required from the front yard/sidewalk to the ADU (driveway is acceptable).

39. How much does an architect charge for ADU plans?
Depending on the size and complexity, full ADU plans should cost between $4,000-$12,000.

40. Are modular or pre-fab ADUs cheaper?
Not always. Although the price from the factory is often cheaper than from an ADU contractor, this price often may not include transportation or craning, and more importantly the foundation and utilities.

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