Southern New Hampshire Planning Commission Meeting 12/18/2018

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Todd Nicholson
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1 Southern New Hampshire Planning Commission Meeting 12/18/2018

2 Overview What is an ADU? Why Allow ADUs? ADUs Social Benefits Housing Trends Costs to Develop ADUs ADUs in the SNHPC Region ADU Resources

3 People Refer to ADUs in Many Different Ways An ADU by another name: Granny Flat In-Law Apartment Backyard Cottage Garage Suites Guest House Carriage House Alley Flat

4 What Characteristics Make an ADU an ADU? Sleeping Arrangement

5 What Characteristics Make an ADU an ADU? Sleeping Arrangement A Full Bathroom

6 What Characteristics Make an ADU an ADU? Sleeping Arrangement A Full Bathroom A Kitchen With Stove

7 What Characteristics Make an ADU an ADU? Credit: Dickinson Architects

8 What Characteristics Make an ADU an ADU? An ADU is NOT a Tiny House On Wheels! Credit: Dickinson Architects

9 Why Allow Accessory Dwelling Units Anyway? Preamble from the State Legislature: Need for more diverse affordable housing opportunities for the citizens of NH Demographic trends are producing smaller household sizes Elderly and disabled citizens are in need of independent living space for caregivers

10 What is an Accessory Dwelling Unit or ADU? RSA 674:71-73 became law on June 1 st 2017 A residential living unit within or attached to a single-family dwelling provides independent living facilities for one or more persons including provisions for sleeping, eating, cooking, and sanitation on the same parcel as the principal dwelling unit it accompanies

11 What is an Accessory Dwelling Unit or ADU? RSA 674:71-73 became law on June 1 st 2017 Cannot restrict which unit an owner occupies Additional water/sewer connection not required Can require design of new sewer system in preparation for future failure Town may require architectural standards be met Cannot require familial relationship for occupant Attached units required to have an interior door Cannot require that door to remain unlocked

12 What is an Accessory Dwelling Unit or ADU? IMPORTANT! There is some confusion about the ability of municipalities to allow detached ADUs RSA 674:71 defines an ADU as attached RSA 674:73 empowers municipalities to allow detached ADUs if they want Municipality can require a larger lot size if it allows detached ADUs

13 ADU s Add Social Benefits to a Community Increase the supply of affordable housing without the need for more infrastructure Benefit elderly, single parents, college grads, caregivers, and disabled persons Integrate affordable housing into the community with minimal impact Provide elderly citizens with ability to live in a supportive family environment

14 Trends in the Housing Create Room for ADUs Housing Mismatch: Smaller HH, Larger Homes (Northeast) 28% of HH are 1 Person 85% of Homes have >2BR Source: U.S. Census Bureau, Current Population Survey, March and Annual Social and Economic Supplements. Source: U.S. Dept. of Commerce, Index of Housing Characteristic Tables

15 Trends in Housing and Demographics Average HH Size Vs. Home Size (Northeast) Persons Square Ft Persons Square Ft Source: U.S. Census Bureau, Current Population Survey, March and Annual Social and Economic Supplements.

Since 2010 to $366,000 Source: New Hampshire Housing

16 Trends in the Housing Show Opportunity for ADUs Costs Up 21.5% Over 10Yrs to $1,177 in 2018 New Home Prices Up 35% Since 2010 to $366,000 Source: New Hampshire Housing Finance Authority, Rental Cost Survey & Dept. of Revenue PA-34 Dataset

17 Basement conversion: How Much Does it Cost to $20,000 to $100,000 (depending on challenges) Attic conversion: $20,000 to $140,000 Garage conversion (400 sq. ft.): Approximately $100,000 Detached (800 sq. ft.): $120,000 to $250,000 Attached (800 sq. ft.): $135,000 to $280,000 Develop an ADU?

18 An Attractive Long-Term Investment for Homeowners Return on Investment Calculator (Link to.xls) Total Development Costs $ 80, Total Cash Paid $ 0 Total Financed $ 80, Loan Term in Years 30 Loan APR, 30-Year Fixed 4.375% Payment Frequency monthly # of payment periods 360 Effective Rate 0.357% Monthly Payment Amount $ Starting Value of ADU $ 40, Property Tax added, due to ADU $1,500 Property Appreciation Rate 2.000% Monthly rental Income Gained $ 1, Rent Inflation Rate 2.150% Breakeven: 10 Years Real Value Over 30 Years: $364,000

19 ADUs and SNHPC What concerns you the most about aging in your community? 80% 70% 60% 50% 40% 30% 20% Millennials Seniors Answered: % 0% Housing Transportation

20 What is Livable? Community Preferences of Older Adults AARP Survey Report: 87% of adults ages 65+ say they want to age in their current home or community.

21 ADU s Allow Flexibility for Changing Family Conditions

22 ADUs and SNHPC ADUs are Age-Friendly ADUs can provide housing options for both seniors looking to downsize, and millennials looking for an affordable home ADUs allow communities to keep their character Affordable can housing options attract millennials Housing options can attract employers*

23 Housing options can attract employers* A 2017 study published by Northeastern University found: Of 87 businesses in the Greater Boston Area, over 67% claim home prices and rental costs have affected their ability to recruit qualified candidates.

24 How are Communities Regulating ADUs? Most SNHPC communities allow ADUs by special exception Most SNHPC communities require either adequate or additional parking for an ADU Most SNHPC communities do not allow detached ADUs Every SNHPC community limits ADU size

25 How are Communities Regulating ADUs? Min Sq. Ft Max Sq. Ft Parking Req. Impact Fee Detached Auburn No - Not allowed Bedford Yes Yes Not allowed Candia Yes - Not allowed Chester Yes Yes Not allowed Derry Yes - Not allowed Francestown Yes - Not allowed Goffstown Yes Yes Not allowed Hooksett or 30% Yes - Not Allowed Londonderry or 40% Yes - Allowed Manchester Yes Yes Not allowed New Boston or 50%* Yes - Allowed Weare Yes - Not allowed Windham Yes Yes Not allowed

26 SNHPC s Role Educate on: Impacts of ADUs on housing diversity Benefits of attached and detached ADUs Benefits of relaxed parking requirements where appropriate Promote success stories Provide technical assistance Zoning review Workshops Public Outreach

27 Resources New Hampshire Housing and Finance Authority s guides for municipalities and homeowners New Hampshire Office of Strategic Initiatives Planning for Accessory Dwellings webpage U.S. Department of Housing and Urban Development s Accessory Dwelling Units: Case Study Backdoor Revolution: The Definitive Guide to ADU Development, by Kol Peterson

28 Questions?

ACCESSORY DWELLING UNITS IN NEW HAMPSHIRE. June 2017

ACCESSORY DWELLING UNITS IN NEW HAMPSHIRE June 2017 ADUs What Are They? A second, smaller dwelling on the same grounds as a single-family house attached or detached An apartment over the garage, in the