10 April 2024
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?
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 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
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, 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.
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.
◆ 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 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
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, 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.
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.
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
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 square feet)
◉ 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.
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
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
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