Accessory Dwelling Units (ADU) & Junior Accessory Dwelling Units (JADU) Building a Bridge to Housing Security

Agenda: Overview ADUs & JADUs Creating an ADU Financial considerations Rental considerations Resources

Lilypad s Mission Supporting and facilitating the development of accessory dwelling units (ADUs) that offer a viable form of more affordable housing to both homeowners and renters Reducing carbon emissions from commuter traffic by providing housing for the people who participate in our community and creating greater efficiency in homes Advocating for policy, code, and fee changes Educating the community and consulting with agencies Working with homeowners to overcome barriers in creating ADUs i.e. financing, permitting, design, construction and leasing

Disclaimer: Lilypad Homes is not a licensed provider of architectural, legal, tax, insurance, or financial advice. The material in this class is general in nature and not specific to any participant s particular situation and is subject to change.

Accessory Dwelling Units (ADUs) & Junior Accessory Dwelling Units (JADUs)

Housing in California Majority of housing in state - residential single-family 60% of housing developed after WWII with focus on nuclear family Multi-generational housing common model prior to that time House size has increased by 30% over the past 60 years Traditional family accounts for less than 33% of population Household size has diminished to 2.3 during the same period Single-parent families, couples without kids, retirees, emptynesters, young professionals, and individuals of all ages make up the majority of the demographic in households

Cottage Homes Conversion Units Carve-out Units $200-400,000 $10* -100,000 $100-200,000 Estimated Development Costs of ADUs * Starting price for junior accessory dwelling units

What is an Accessory Dwelling Unit (ADU)? Often referred to as a granny flat, in-law apartment or second unit They are complete independent living spaces that have their own kitchen, living, sleeping and sanitation facilities. ADUs are located within the walls of a single-family home, or can be an addition to a home, either attached or detached. Jurisdictions have size limitations for lot and unit size, and often require that a property owner resides on the premises.

Benefits for homeowner of creating a legal ADU: Generate secure income Rent at market rate or reduced rate for services rendered Have assistant or caregiver near by House loved ones, i.e. parents and children Live in it yourself Have companionship with privacy Have the security of an occupied house when traveling Increase property value

Other Benefits Renters more affordable housing options, decreases commute time Community less commuter traffic, housing consistent with neighborhood character, new customers for local businesses, housing for first responders, teachers, and service workers, movement in housing market Government JADUs with private baths count toward RHNA, meet permitting and safety standards Planet reduction in carbon emissions from commuter traffic and more efficient use of resources

Historic impediments to developing ADUs: High permitting and connection fees (Marin $15K - $32K) Minimum lot size requirements Additional parking requirements (est. $10K) Fire sprinkler requirements (est. $10K) Lack of access to capital Misunderstandings about the law

Permits = Secure Income, Housing and Financing Discovery of Unpermitted Units Pre-sale inspections Written complaints Required Action If habitable (legal ceiling height, safe, etc.) must apply to legalize or must remove kitchen If uninhabitable must remove improvements Amnesty Programs Various offerings: lower fees, sprinkler requirement waived, must still meet parking requirements, building codes Changing regulatory environment

California State Law HCD Division of Housing Policy Development 3 July 2003 Intent of Second-Unit Law (Government Code Section 65852.150) It is the intent of the Legislature that any second-unit ordinances adopted by local agencies have the effect of providing for the creation of second units and that provisions in these ordinances relating to matters including unit size, parking, fees and other requirements, are not so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create second units in zones in which they are authorized by local ordinance.

Three Bills Signed by Governor AB-2406 Junior Accessory Dwelling Units effective immediately Must be adopted by jurisdiction AB-2299 and SB-1069 ADUs effective January 1, 2017 Mandate Unit size: 50% or 1200 sf - discretionary Rental over 30 days or owner occupancy discretionary No additional parking requirement No setback requirements for existing accessory structures No discretionary approval requirements No fire sprinkler requirement No utility agency connection fees

New Laws Ease Parking Requirements No parking required for an ADU if it: Is located within one-half mile of public transit Is located within an architecturally and historically significant historic district Is part of the existing primary residence or an existing accessory structure

Accessory Dwelling Units (ADUs) - Urban Infill Housing

closet DW REFR. kitchen / eating skylight living room vaulted ceiling UP owner's storage closet hall bath vaulted ceiling W/D bedroom vaulted ceiling skylight skylight Jack Barnes Architect Eco Cottage

Jack Barnes Architect Eco Cottage Photograph by Sky Rocket Photography

Jack Barnes Architect Eco Cottage Design Photograph by Sky Rocket Photography

AccessoryDwellings.org

Jack Barnes Architect

AccessoryDwellings.org

Dennis Myers Lifespace Design

Dan Lajoie Departure Design

Resource: New Avenue Homes.com

Junior Accessory Dwelling Unit (JADU)

Introduction to the Junior Accessory Dwelling Unit (JADU) A flexible unit that shares home s central utility systems Repurposing bedroom(s) and optional bath into a small, private apartment (max 500 sq. ft.) An innovative solution for housing that is more affordable for renters and homeowners Asm. Thurmond Junior Accessory Dwelling Units (AB-2406)

What sets Jr. Units apart? Repurpose spare bedroom(s) up to 500 sq. ft. Flexible interior connection to main living area Do not increase designed occupancy of homes Scale of project and cost to develop are greatly reduced Share home s central utility systems Efficiency kitchen = wet bar Minimal impact on environment All water, energy, waste, parking, road usage, etc. has been accounted for in the original permit for the home

Permitting Code Definition of a Jr. Unit Must include conversion of bedroom(s) no expansion Addition of a wet bar kitchen: Limited sink size, small drain line Limited counter space No gas or 220 V electrical service Interior and exterior access Up to 500 sf Private or shared bath No additional parking required Deed restricted to require owner occupancy

Junior Unit ($10 - $50K)

Wet Bar and Entryway

Connecting Door and Office Area

Sleep and Living Room Area

Jr. Unit with Shared Bathroom

Flexible Housing Meets your changing needs over time Utilize whole home Rent out apartment Live in apartment Like an insurance policy Job loss Divorce Health issue

Lifecycle of a Junior Accessory Dwelling Unit

Marin County Definition of Rental Room with Wet Bar for Non-Coastal Zones Can rent out up to three bedrooms in a home Can add wet bar to each: Accommodates small food preparation appliances May include a small wet bar-type sink No full-sized refrigerator, stove, or food prep area Exterior access not required Private or shared bath No additional parking or fire protection required No utility connection fees

Creating a ADU or JADU

Project Tasks Explore financing Select architect/designer Archi -tect Meet to explore layout options Full measure Create existing plan and draw layout options Select layout preference Prepare prelim drawings for layout, budget, permit review Homeowner Contractor Planning permit review with planning department Specify finish materials Specify products (appliances, equipment, etc.) Develop contractor bid package, send out

Project Tasks cont d. Archi -tect Homeowner Contractor Provide bid for construction Secure financing Review bids, interview building contractors, check references, make selection, sign contract with selected contractor Develop drawings and construction documents required for a construction permit application in accordance with owner s consultants Submit permit application and plans to building department Construction phase for building and landscaping Final inspection, close permit Rent/lease unit (or move into it and rent/lease rest of house)

Landscaping Project Tasks Homeowner Architect Contractor Develop bid package for landscape contractors, send out to multiple contractors Provide bid for landscape improvements Review bids, interview landscape contractors, check references, make selection, sign contract with selected contractor

Construction Process Tasks

Construction Process Tasks cont d.

Financial Considerations

Junior Accessory Dwelling Unit

Traditional ADU

Other Financing Options Savings Home equity loan Loan that considers future value and income from ADU friendly institutions Reverse mortgage

Insurance Check for additional coverage requirements with insurance company for attached units Detached structures need Rental Dwelling Policy In Marin homeowners can require Renter s Insurance Minimum $1M in Liability Coverage Renter must name homeowner on policy

Rental Considerations

Roommate Matching HomeShare Program matches Marin homeowners with renters Personal interviews and needs assessments Facilitation of potential matches Matching and selection tips Writing of shared housing agreements Conflict resolution Contact Christine Ness at cness@jtm-esc.org

The Lease: a clear written agreement is key to success! Nolo Leases & Rental Agreement Guide Fixed-term Lease Month-to-month rental agreement Rental application Tenant reference and credit check forms Move-in and move-out letters Property inspection checklist

Fair Housing: anti-discrimination requirements apply when advertising a private rental unit (no shared bath) Ad should describe characteristics of unit, not renter Landlord should define criteria for qualified applicants Must accept first applicant that meets criteria Fair Housing Advocates of Northern California fairhousingnorcal.org/

Termination: a month-to-month rental agreement can be terminated with 30 days written notice Eviction: Landlord must state and prove valid reason Give 30 days notice or 60 days notice if over a year Landlord files unlawful detainer lawsuit Tenant has 5 days to file written response Judge hears case within 20 days after trial request is filed Tenant has 5 days to vacate

Rent Increase: landlord requirements Give 30 days written notice for rent increase of 10% or less Give 60 days written notice for rent increase for more than 10%

Resources San Mateo Second Unit Resources Center secondunitcentersmc.org www.accessorydwellings.org