An Accessory Dwelling Unit (ADU) is a secondary residential unit added to a property with an existing or planned single-family home. ADUs are sometimes referred to as granny flats, in-law units, second units, backyard homes, cottages, or basement apartments. While ADUs come in many forms and sizes, they always include a kitchen, bathroom and sleeping area.
Homeowners build ADUs on their properties for a variety of reasons, such as housing a family member, gaining rental income, increasing overall property value, and adding to the affordable housing stock in their community. ADUs are affordable to build because owners don’t have to purchase additional land, and recent revisions to California State Law have made it easier to construct ADUs on single-family properties.
There are many different types of ADUs homeowners can build on their properties. While you may build a new unit entirely, converting an existing garage or room inside your home is the easiest way to add an ADU to your property. In fact, 45% of all ADUs constructed since 2017 in the City of LA are conversions. Read below to learn more about the different types of ADUs and various requirements associated with each.
Size: Can be converted so as long as building is allowed and permitted.
Setbacks: Does not have to comply with setback requirements.
Size: Maximum 1,200 sq ft or 50% of existing living area (whichever is less).
Setbacks: Does not have to comply with setback requirements.
Parking: Not required.
Size: Maximum 1,200 sq ft and within allowable Residential Floor Area square footage on site.
Setbacks: 4 feet rear property line and side yard setbacks no min. size lot requirement
Parking: 1 parking space required, unless within 1/2 mile to public transit.
Size: Maximum 1,200 sq ft
Setbacks: 4 feet rear property line and Side yard setbacks
Parking: 1 parking space required, unless within 1/2 mile to public transit.
Size: Maximum 1,200 sq ft or 50% of existing living area (whichever is less) and within allowable Residential Floor Area square footage on site.
Setbacks: Side and rear must adhere to lot’s zoning code.
Parking: 1 parking space required, unless within 1/2 mile to public transit.
Size: Maximum 1,200 sq ft
Setbacks: 4 feet from side and rear property lines.
Parking: 1 parking space required, unless within 1/2 mile to public transit.
Size: Existing accessory building (i.e. storage shed, office) can be converted to an ADU so as long as it is allowed on site.
Setbacks: 4 feet rear property line and side yard setbacks
Parking: No parking required.
In Los Angeles-area cities and unincorporated Los Angeles County, homeowners must submit their ADU plans to the local Department of Building and Safety for approval. For ground-up construction, this includes providing detailed diagrams and precise measurements in a full set of plans. It’s often a good idea for homeowners to consult with an ADU professional to ensure all requirements are met.
After the ADU is completed, homeowners must obtain a certificate of occupancy before anyone can move in. This process involves a thorough inspection to ensure that the structure meets all safety and functionality standards, including working electricity, plumbing, and heating systems.
Whether you choose to build a new back house, order a prefabricated unit, or expand your existing residence, the cost of construction is likely to be substantial. An analysis by Santa Cruz County found that the average cost of building an ADU is approximately $150,000.
For homeowners who don’t have that kind of cash readily available, financing the project can be challenging. Those with significant equity in their home may be able to secure a second mortgage or explore cash-out refinancing options. However, for others, obtaining financing may involve taking out personal loans or relying on credit cards, as most banks currently do not offer specialized financing for ADUs.
Under the Costa Hawkins Rental Housing Act, Los Angeles' rent control laws only apply to buildings constructed before October 1978, when the city's Rent Stabilization Ordinance was enacted. Single-family homes are also exempt from rent control regulations. However, if homeowners build an ADU and move into it while renting out their original home, rent control will apply to the main residence, provided it was built before 1978. This is because the addition of the ADU changes the property’s classification, eliminating the single-family home exemption.
State regulations allow local governments to decide whether ADUs can be listed on short-term rental platforms such as Airbnb. Some cities, including Santa Monica, Long Beach, and Los Angeles County, have chosen to prohibit ADUs from being used for short-term rentals in order to encourage owners to offer longer-term leases.
Homeowners intending to build an ADU for vacation rentals should carefully review local regulations before beginning construction to ensure they comply with zoning and rental rules in their area.
While ADUs are often seen as a potential solution to the housing crisis, they don’t always have to be used for housing. Some homeowners may simply want extra space for purposes like a home office or a yoga studio, with the added flexibility of using it as a guest room when needed.
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