Indisputably, there is an affordable housing crisis in California. Rents have been unaffordable mainly due to years of bad housing policies. The policies have resulted in unaffordable rents and many think there is no end in sight. In the Bay Area, we have been experiencing the lack of affordable housing for so long that Bay Area residents – and rightly so – may be skeptical about any possible solutions.
Accessory dwelling units (ADUs), however, can be part of the solution to create more affordable housing in Bay Area communities. They cannot solve the issue alone, but they represent a relatively fast way to add safe and decent housing that’s affordable. The terms fast and affordable are relative compared to a regular zoning process.
Property owners of duplexes, triplexes and larger multi-unit buildings that have non-livable space that is underutilized and/or units that currently exist but are unpermitted may have an unrealized gem of an opportunity.
Multi-unit buildings are one of the most efficient ways to increase property values and cash flow while helping to address the affordable housing issue. Despite the obstacles our local jurisdictions place in front of us when we are trying to add housing, this approach can result in a win-win initiative if handled properly and with the guidance of experts in designing and building ADUs the right way. An even more effective process also involves working with specialists who understand Bay Area real estate from an investment point of view.
Making ADU Affordable Housing a Reality
In the Bay Area; there simply is not enough housing. Historically, as well as now, this constrained housing supply has driven rents up. Logic dictates that when you increase the supply of rental housing by adding ADUs, particularly on multi-family properties, you increase the rental housing supply. When you increase the rental housing supply, you create more options for renters.
Fortunately, The State of California is slowly understanding this and so has made it much easier to build ADUs state-wide, despite many local jurisdictions doing everything they can to reduce the housing stock in their areas. This support from the State has dramatically increased the number and attractiveness of ADUs over the last several years by streamlining the zoning process to build ADUs. Currently, state law affords two options for ADU affordable housing to be built on multi-family properties:
- ADU AFFORDABLE HOUSING CONVERSIONS:
Conversion of existing non-habitable (non-residential) space. This includes basements, storage rooms, garages or unused land around the structure. Properties that have two-seven units can add one conversion ADU. Those with eight or more units can add one conversion ADU for every four existing units. - DETACHED ADU AFFORDABLE HOUSING CONSTRUCTION:
As many as two detached ADUs can be constructed on a lot as long as setback requirements are met, as well as height and square footage limitations. These can easily be designed to be consistent with the existing property’s aesthetics when working with an ADU expert that can both build and design your ADU (or ADUs). As well, ADU affordable housing can be designed and built in keeping with the character of the neighborhood in which your property is located.
Sometimes it is possible for a property owner or investor in multi-unit rental housing to do both. A professional and thorough feasibility study will help you identify all that is possible on your particular property – or properties – so that you know how to best maximize the value that the addition of ADUs means for both you, as well as the supply of rental housing.
Optimizing The Value Of ADU Affordable Housing Is Where Experts Like Adapt Dwellings Pay Huge Dividends.
The Bay Area is a unique rental housing market, in terms of government regulation, to say the least. Many property owners simply do not have the time or knowledge to facilitate getting an unique type of dwelling like an ADU designed and built. Working on adding or legalizing units with city governments in the Bay Area may not be in your wheelhouse. At Adapt Dwellings, we take the guesswork out of the entire process, starting with our Adapt Feasibility Study.
Adapt Dwellings, under the leadership of Steve Edrington, is a team of Oakland ADU specialists with over 25 years of experience in Bay Area real estate. We serve as your ADU partners to both design and build your ADU/s, handling your project from “concept to keys.” Along with our parent company, Edrington & Associates, our combined experience in Bay Area real estate; architecture and design; building inspections; local planning and building departments; property management; legalizations; construction services; and landlord consulting positions us as your Bay Area ADU team of choice for adding or converting ADUs on Bay Area Properties.
Steve’s distinctions include being a Certified Commercial Investment Member (CCIM), a Certified Property Manager (CPM); a California Certified Resident Manager (CCRM); a California Licensed Real Estate Broker (#01129470); a California Class B General Building Contractor (#1098831); and a former California Licensed Residential Real Estate Appraiser. He and his team know how to identify and execute the most attractive options for creating ADU affordable housing in the Bay Area, resulting in win-win situations for both multi-family property owners and the renters in their properties.
Learn more about what ADU options are feasible and available to you – and how these options help solve the affordable housing issue we have today.
