Planning to convert your garage or use your backyard to add an in-law unit? The State of California has passed new legislation (SB 1069 and AB 2299) which gives homeowners the right to build Accessory Dwelling Units (ADUs) on most single family properties, effectively doubling the housing potential of these residences.

Why build an ADU?

Building a new ADU or converting existing space can be a smart investment for many homeowners in California. Adding living space, appreciating property value, generating rental income and helping solve the housing crunch, one unit at a time are just a few reasons that building an ADU can be an excellent move. Use the city search bar above to learn about the ADU process in your city.
I am happy that California has passed a new law that eases restrictions on secondary units, effective January 1. When Portland did something similar, it sparked an ADU boom. Permitted ADU projects skyrocketed, and a cottage industry sprung up, including ADU designers, owner/developer consulting, ADU breakeven calculator. With our new law, I see opportunity for you to build: Single story zero step accessible units for aging parents and retirees. Micro-units for additional rental income. ADU’s for millennial professionals who are still saving for down payment.

CA Granny unit law: Summary
No extra parking space required for ADU if it’s within 1½ mile of a public transit stop, or part of an existing primary residence, or part of an existing accessory structure, or in an area requiring on-street parking permits. Parking can be tandem on existing driveway, when a garage is demolished or an ADU and off-street parking spaces must be replaced, they can be anywhere on lot, including tandemno set back required for a garage conversion; side/rear setback of 5 feet max for ADU above a garage. No extra
utility, water or sewage hookup fees, detached ADU’s shall not exceed 1200 sq ft. A majority of the people are asking about the existing or grandfathered ADU units? What can they do for this to be a legal ADU? The answer is to get it permitted so that when you sell it will add value to your property. If you will rent the ADU unit out, you are now a landlord and you want to make sure your
tenants rights are protected. Your unit would have to comply with local district guidelines so you won have any legal issues with your tenant later on. This is one of the main reason too why the ADU bill passed.

Choose the right contractor and make sure you get good references for legitimate contract work. Mortgage rates are still pretty low, more and more borrowers are trying refinance now to save on interest payments. Get in while you still can, I have seen property appraisal values coming in lower than expected.

Call Ken Go of 1st Innovative Finance Group for your mortgage needs. Call Ken at 562-508-7048
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