California’s interest in Accessory Dwelling Units (ADUs) stems from the housing shortage. A new law effective January 1, 2020 streamlines the ADU approval process by requiring cities to approve applications within 60-days or it is considered automatically approved.

ADUs are commonly known as granny flats, in-law units, backyard cottages, or tiny houses and help California’s housing shortage by increasing rental unit availability.

The benefits are:

Economic: creating construction jobs, tax revenue, and owner income.

Environmental: as newer, smaller places use less energy and less sprawl by using existing footprints and infrastructure.

Social: by helping retiring seniors age in place, creating space for boomeranger’s and multi-generational families, and renters looking to live closer to work.

Possibilities: are many such as place a pre-built ADU unit as a standalone or attach to an existing structure, converting garage, basement or attic space, or add on next to or above garages.

Even HOAs that do not allow additions or property conversions must now comply.

Landlords may want to consider this as an investment strategy. Yet, do your due diligence as there are requirements that must be met such as deed restrictions, owner occupancy, square foot restrictions, lease term, etc.

There are easy financing options available too and I hope this was a helpful article.

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