Accessory Dwelling Units (ADUs) are known by many names: granny flats, in-law suites, backyard cottages, secondary units, to name a few. Whatever you choose to call them, ADUs are proving to be an innovative, affordable, effective option for single family and multi-family property owners to add value to their property and passive income through rental opportunities.
The three main types of ADUs are: Attached, Detached, or Conversion units.
Whether an attached, detached, or conversion ADU, each unit must have a separate entrance, kitchen, bathroom and sleeping facilities.
Junior Accessory Dwelling Units (JADUs) are exactly as the name implies, a smaller version of a Single Family ADU with a few noted restrictions. It must be erected within a proposed or existing single family dwelling. Most often, they share utility service and mechanical appliances with the main unit. These units are the most common ADU homes. JADUs present no additional stress on utility services or infrastructure because they simply repurpose existing space within the residence and do not expand the dwellings planned occupancy.
One of the most significant ADU rule changes for 2020, is a provision that allows both an ADU and a Junior ADU (JADU) on the same lot with a proposed or existing single-family dwelling. Now you can add two rental units to your property: an ADU and a JADU. This law applies not just to Los Angeles, but statewide, throughout California.
The principal reason most property owners decide to build an ADU is to increase the value of their property and/or generate passive income through the rental market. ADUs can also serve as independent living space for family members or loved ones. They create the possibility for multigenerational households which makes it easier and less expensive to care for aging parents. Moreover, ADUs cost less than other forms of housing and make efficient, environmentally friendly, use of existing land. Finally, downsizing and minimalist living is a trend that continues to grow. ADUs allow people to simplify their lives and still live in a neighborhood setting.
ADUs are particularly attractive in markets like Greater Los Angeles where available housing is in short supply, and they can also help create more affordable housing that can help mitigate the ongoing housing crisis in Southern California.
Prefabricated means that our revolutionary Light Gauge Steel (LGS) prefabricated, modular ADUs are built off site in a state-of-the-art factory by skilled tradesman on a production line (just like the majority of items we use on a daily basis).
In our exhaustive search to find the most innovative construction methodology, we found prefabricated construction to be a more efficient, faster and sustainable way to build, and allows for efficiencies in the overall process that realizes significant cost and time savings over traditional site construction methods.
Even with today’s challenges, our typical time frame to complete a prefabricated ADU project is 6 to 9 months from permit submission to project completion with minimal project site disruption.
Yes, if the garage is a legal structure. Although, it must meet current building and fire codes since it will be considered a change in use.
Yes, converting your basement to an ADU or a Junior ADU is allowed. However, you must meet the building code, which includes adequate ceiling heights and minimum sizes on windows for ingress and egress.
es, we can typically match the colors and style of most homes. We also have many options available that can increase the “curb appeal” of your ADU including: dormers, porches, bay windows, board/batt, stucco, tile roofing, and solar.
ADU Concepts is a Full Service General Contractor, Authorized Dealer & Certified Installer of Lytemods Dwellings with combined experience of the company principals and key employees of over 50 years building with traditional and prefabricated construction. ADU Concepts provides all services necessary to complete your project from design, to permitting, to fabrication, to site work and installation of your Accessory Dwelling Unit. We offer a complete turn-key ADU construction project.
Cities that we currently work with in Southern California: Long Beach, Santa Ana, Seal Beach, Signal Hill, San Pedro, Rolling Hills Estates, Rancho Palos Verdes, Lomita, Torrance, Redondo Beach, Hawthorne, Compton, Lakewood, Norwalk, Cerritos, Los Alamitos, Cypress, Buena Park, Downey, Whittier, Los Angeles, Culver City, Santa Monica, Manhattan Beach, El Segundo, Montebello, Hacienda Heights, Fullerton, Anaheim, Garden Grove, Westminster, Fountain Valley, Yorba Linda, Placentia, Villa Park, Tustin, Orange, Irvine, Lake Forest, Laguna Beach, Huntington Beach, Costa Mesa, Newport Beach, Laguna Niguel, San Juan Capistrano, Mission Viejo, San Clemente, Rancho Santa Margarita, Alhambra, Arcadia, Pasadena, Glendale, Burbank, Encino, Calabasas.
Even though many property owners are able to do their own zoning research, getting an expert opinion will give you another level of confidence about your project. We are experts in city zoning and planning office communications, so we can help you alleviate confusion and frustration, and make sure you’ve covered all your bases. This includes checking overlapping and underlying zoning requirements of your city.
Our Free ADU Evaluation Report provides you the easiest way to take the first step on your ADU project without commitments.
Find out if your home qualifies and get a free ADU Evaluation.
It depends on your financing option, and the amount of rent that can be collected in your area. In most situations you can refinance your home and include the new ADU at a much better rate.
Depending on the financing option you choose, as a rental property owner, you can likely deduct a portion of their mortgage interest, insurance, property taxes, depreciation and utilities. Please consult your tax advisor for specific guidance.
Yes, but not by very much. When you build an ADU, your city will conduct a blended assessment, which does not affect the value of your existing property, but instead assesses the cost of the construction and adds that to your original property value. Your taxes will only increase by 1.1% of the total cost of the improvements. In most cases, this equals only a couple hundred dollars extra per year — a small price to pay compared to the rental income your ADU will make.
You should notify your insurance company if you decide to rent your ADU. They may increase your annual premium by $20-$35 to cover the liability if your ADU is constructed out of lumber. One of the benefits of working with us is that we use LGS in all of our new construction projects, which could potentially save you up to 50% in your insurance premium.
The California Health and Safety Code (HSC), Section 65583(c)(7), requires that cities and counties develop a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent for very-low to moderate-income households.
As recapped below, HCD has developed a list of existing state grants and financial incentives in connection with the expenses for the planning, construction and operation of an ADU with affordable rent for very low to moderate- income households.
Potential State Grants and Financial Incentives for ADUs
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