What is an ADU
What is an Accessory Dwelling Unit?
Accessory Dwelling Units (abbreviated ADUs) are most commonly understood to be a separate additional living unit, including separate kitchen, sleeping, and bathroom facilities, attached or detached from the primary residential unit, on a single-family lot. ADUs are subordinate in size, location, and appearance to the primary home. ADUs have also been referred to as "mother-in-law apartments", "accessory apartments", "garage apartments", or "second units". In the 1940s and ‘50s many American families rented out an extra apartment over their garages or in the basement of their homes as a way to earn some extra income to help with the mortgage payment or with other household expenses. In fact, backyard cottages and attic and basement apartments were a common feature in many communities across the country.
New growth management laws are requiring many communities to plan for and accommodate higher housing densities. Against this backdrop, many communities are modifying their zoning regulations to allow and encourage the addition of ADUs in residential zones. Both California and Washington have encouraged the use of ADUs for years. As of February 2, 1998, Portland Oregon has modified its zoning code dramatically to allow ADUs in most residential areas of the city.
What are the benefits of building ADUs?
ADUs provide a surprising number of benefits to communities, homeowners and renters. Although much of the attention given to ADUs revolves around their potential for increasing the supply of affordable housing opportunities, ADUs may also help to address other social issues, particularly those relating to housing options for the growing elderly population.
Homeowner Benefits:
Housing for Extended Family
ADUs can provide needed housing for young adult family members and young couples who are just getting started. Elderly family members can avoid both the emotional and financial costs of having to move into a nursing home. Another possible option to assist the elderly is for the elderly homeowner to build and move into the ADU and rent out the main house to relatives or the public. This scenario allows the elderly homeowners to live their lives out on their property without the expense and maintenance of the larger home.
Additional Income
ADUs can provide homeowners with extra income to help meet rising home ownership costs. ADUs can provide many homeowners with needed additional income to meet high mortgage and maintenance costs. In addition to assisting young families or single parents, additional income from ADUs may be particularly helpful for many elderly homeowners who are living on fixed incomes. ADUs can provide homeowners with the ability to trade rent reductions for needed services.
Increased Property Value
The addition of an ADU can increase the current and resale value of the property significantly above the initial cost of the ADU. A secondary rental unit or "guest house" can be very attractive to potential buyers. Also, if financed through a mortgage on the property, the interest payments and some of the closing costs are usually tax deductible.
Community Benefits:
Increase Supply of Affordable and Aesthetically Pleasing Housing
ADUs are one way communities can provide more affordable housing opportunities without the necessity of local government expenditures or subsidies. ADUs are very cost-effective housing to build because they do not require additional land or construction of additional infrastructures. ADUs are required to be of the same style, have the same exterior treatments, and be subordinate in size to the primary home, thus blending into and complimenting the neighborhood.
Encourage Better Housing Maintenance and Neighborhood Stability
ADUs can encourage better upkeep of existing housing since homeowners can apply a portion of the rental income to maintaining their property. Homeowners can also exchange rent reductions for maintenance services by tenants.
Tenant Benefits:
Moderately-Priced Rental Housing in Single Family Neighborhoods
ADUs can be rented for reasonable rents since construction costs are less than conventional apartment projects. Also, ADUs offer housing opportunities in more desirable single-family neighborhoods for some that might not be otherwise be able to afford to live there. Living in an ADU would give these households the opportunity to enjoy the amenities typically found in many single-family neighborhoods, including more privacy, a quieter environment, and less traffic congestion.
