ADUs in San Francisco May 2017

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Pamela Flowers
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1 ADUs in San Francisco May 2017

2 sf-adu Handbook The handbook project was developed to define: various physical forms for small scale residential infill; when investment in small scale residential infill is financially feasible or beneficial to small property owners; and what level of affordability these units might offer to San Francisco households.

3 sf-adu Project Phases 1. Research a. Master list of residential building types b. Mapping and code research 2. Design a. Narrowing down the master list to prototypes b. Designing and modeling ADUs 3. Financial Analysis a. Prototype pricing b. Analysis of cost versus rental and resale market 4. Conclusions

7 Prototype A - Rooms Down (single family)

8 Prototype B - Rooms Down (multifamily)

9 Prototype C - Multifamily Ground Floor

10 Prototype D - Full Garage Conversion

11 Prototype E - Freestanding Garage Conversion

12 Prototype F - Rear Yard Cottage

14 sf-adu Financial Analysis Goal: provide ballpark pricing for a typical ADU construction project in an existing building and assist homeowners with determining financial feasibility for their own home.

15 sf-adu Financial Analysis Process: 1. Selection of a representative prototype 2. Run this prototype through a database of real-world ADU projects 3. Check these numbers against a bid on the actual prototype 4. Compare this construction cost to potential rental income & increased property value

Prototype B Addition of a unit to a two-unit building Very common in neighborhoods where ADUs are currently permitted Requires a seismic upgrade

16 Prototype B Addition of a unit to a two-unit building Very common in neighborhoods where ADUs are currently permitted Requires a seismic upgrade of the foundation Requires full sprinklers on the ground floor Has egress challenges typical of many prototypes CBC occupancy change from R-3 to R-2.

17 Prototype B Financial Analysis Approximately $170,000 in construction costs Approximately $27,000 in permit costs and professional services Total cost is $197,000, versus $500k+ for a unit in a new multifamily building Approximate rent of $2,600 based on analysis of citywide 2014 Craigslist data Monthly home equity loan payment of $1,221 ($200k loan at 5.44%) Resale value increases proportionally to added area (buildings w/ in-laws sold for within 6% of single family sale prices).

18 After the Handbook

19 sf-adu: After the handbook ADUs were legalized (almost) citywide in California passed additional statewide legislation to ease permitting. San Francisco s legislation continues to evolve. Property owners are permitting ADUs at a much higher rate now that they are allowed in all parts of the city.

20 Castro Program Accessory Dwelling Units (ADU)

21 Mandatory Seismic Program Accessory Dwelling Units (ADU)

22 Two Supervisorial Districts Accessory Dwelling Units (ADU)

23 What helped the ADU program succeed? Changes prior to the ADU program Removed parking requirement for one unit addition Removed neighborhood notification for unit addition with no expansion Within existing built envelope Restrictive controls specific to the ADU legislation Cannot take space from an existing unit Rent Control Flexible controls specific to the ADU legislation Waivers from the Planning Code (instead of Variance) Accessory Dwelling Units (ADU)

24 Unit Additions (under density) ADUs within the Existing Density Limits 300 units in five years Accessory Dwelling Units (ADU)

25 ADU Permits 660 in two years Accessory Dwelling Units (ADU)

26 Specific ADU Controls in San Francisco 1. Built within the existing built envelope 2. Cannot take space from existing units 3. Number of ADUs allowed: Varies 4. Administrative waivers from Planning Code requirements 5. Rent controlled if the existing building waivers are granted. 6. Must meet SF Building and Fire Codes Accessory Dwelling Units (ADU)

27 ADU 2.0 Controls per State Law 1. Applies only to Single Family Homes 2. Can take space from an existing unit 3. Can expand within the buildable envelope 4. No waivers from the Planning Code 5. Ministerial Approval 6. Must meet SF Building and Fire Codes Accessory Dwelling Units (ADU)

28 Who is adding ADUs? Large apartment owners are looking at their portfolios and building ADUs to add value where possible. Some homeowners are adding units to single family homes, but this is less common than was anticipated SF Planning has received hundreds of permit applications since the citywide law went into effect in 2016.

ADU Participation and Permitting Process Overall Participation Permits issued 100 permits resulting in for 200 units Under review 230 permits resulting in 460 units

29 ADU Participation and Permitting Process Overall Participation Permits issued 100 permits resulting in for 200 units Under review 230 permits resulting in 460 units Not over the counter permitting in most cases because the majority of ADU s are also getting waivers from Planning Code requirements. Accessory Dwelling Units (ADU)

30 ADU Challenges Permitting can take up to a year. It has become more predictable as it is now much more common. Construction costs are making some projects infeasible, especially for small property owners. Bids are coming in between $300-$500/SF. Construction work in occupied buildings can be challenging to coordinate

31 Multifamily ADUs: From 9 parking spaces to five ADUs

32 ACCESSORY DWELLING UNITS (ADU) PROGRAM FREQUENTLY ASKED QUESTIONS Disclaimer: This document is for reference only. To ensure you meet ALL requirements of the ADU program, please consult the Planning Code or speak to a Planner at the Planning Information Counter. Accessory Dwelling Units (ADUs), also called secondary units, in-law units, or cottages, are units added to existing residential buildings. Nationwide, cities have been adopting ADU programs into their local laws to allow underutilized areas such as parking, yards, storage, or boiler room space to be converted to new homes. San Francisco, first adopted its ADU program in 2014 for select districts. As of September 4, 2016, the Accessory Dwelling Unit program is available for use Citywide. 1. What is an Accessory Dwelling Unit (ADU) as defined in the San Francisco Planning Code? An ADU is a new dwelling unit added entirely within an existing building or an existing authorized auxiliary structure in areas where residential use is allowed. ELIGIBILITY 2. Where are ADUs allowed? ADUs are permitted in all districts that allow residential use. However, the ADU program does not apply to RH 1-(D) districts. ADUs in RH-1(D) districts should follow State Law requirements. 3. How many ADUs are allowed per building? In buildings with four or less existing units, you are permitted to add one ADU. In buildings with five or more existing units, you may add as many ADUs as fit and meet all planning and building code controls. 4. When and where ADUs are not allowed? The program can t be used in buildings that have had owner move-in evictions in the last five years or other no-fault evictions in the last 10 years, prior to the permit application. Also, ADUs cannot take space from an existing resudential unit. Additionally, an ADU will not be permitted if it removes space from ground floor retail in Neighborhood Commercial Districts or in Chinatown Business or Visitor Retail District. 5. Where in the building can you put them? ADUs must be constructed within the existing building envelope or existing and authorized auxiliary structures on the site, as they existed three years prior to application. Conversions of garages and storage rooms are the most common. SF-PLANNING.ORG/ACCESSORY-DWELLING-UNITS 1 of 6

33 DESIGN 6. What does existing built envelope mean? The existing built envelope is the area within the walls of an existing building as it has existed three years prior to the ADU permit application. For the purpose of the ADU program, minor expansions are allowed as follows: 1. Under cantilevered or column supported rooms. 2. Under decks that are no more than 10 feet in height above grade. 3. As infill into light wells if not visible from anywhere off-site, and are against a blank neighboring wall. These expansions cannot encrouch on the required rear yard. Also, any of the expansions require Neighborhood Notification under Planning Code Section 311 or Under cantilevered room 2. Under deck 3. As infill into light wells 7. Can I increase the height of my building to add an ADU? Only if you are simultaneously undergoing full seismic retrofitting of the entire building. In this case, you may raise the building up to three feet to create ground floor ceiling heights suitable for residential use. PERMITTING 8. Can I get my ADU permit over the counter? No. A permitting intake process by San Francisco Planning is required for all ADU permits. 9. What impact fees apply to ADU construction? The impact fees for ADU construction are the childcare fees and all impact fees listed in the associated area plan. These are due when the building permit is issued by the Department of Building Inspection (DBI). There is an additional intake fee for the application. Check our website for current rates. SF-PLANNING.ORG/ACCESSORY-DWELLING-UNITS 2 of 6

34 10. Is any Neighborhood Notification required when adding an ADU? Usually, no. Neighborhood Notification under Planning Code Section 311 or 312 is only required if you are expanding (per question 6). CODE REQUIREMENTS 11. Can I waive any of the Building Code requirements? No. All Building Code requirements must be met, including head height, proper ventilation, light, fire safety, and egress. However, a pre-application meeting with the Department of Building Inspection and the Fire Department can determine if there are applicable equivalancies for meeting the Building Code. Please also see Administrative Bulletin FS-05 for information on sprinkler requirements on the ground floor. For more on building code requirements, please visit DBIs website at What Planning Code requirements can I waive? The Zoning Administrator may waive rear yard, parking, open space, and density requirements, and may reduce the amount of exposure required for the dwelling unit. 13. What is the exposure requirement reduction? Standard Planning Code requirements state that units must face an open area that is 25 x 25 on the ground floor and expands at subsequent floors. The Zoning Administrator is allowed to reduce the exposure requirement for an ADU so that qualifying windows may face an open area that is no less than 15 x 15 at any floor, as illustrated below. Any exposure that is less than 15 x 15 will require a variance through the standard variance process. STREET EXISTING BUILDING NEW UNIT unobstructed view to sky 15 ft 15 ft 14. Are there Planning Code requirements I can t waive? All Planning Code requirements must be met for bike parking, landscaping, and street trees (under the regulations of Public Works). RENTAL AND SALE 15. Will my new unit be rent controlled? If the existing building is rent controlled, and Planning Code waivers are granted, the new unit will also be rent controlled. A regulatory agreement will be created adding the new ADU under rent control. SF-PLANNING.ORG/ACCESSORY-DWELLING-UNITS 3 of 6

BUILDING ADDITIONAL UNITS ON YOUR PROPERTY

BUILDING ADDITIONAL UNITS ON YOUR PROPERTY SF Planning Department Department of Building Inspection EARTHQUAKE FAIR ADU/ LEGALIZATION WORKSHOP June 15, 2017 What is an accessory dwelling unit (ADU)? A