The Impact of ADU Legislation on Affordable Housing

Introduction

Accessory dwelling units (ADUs), also known as granny flats, in-law units, or secondary units, are smaller, independent housing units located on the same lot as a single-family home. ADUs can be attached to the main house, detached in the backyard, or converted from existing structures like garages or basements. In recent years, there has been a growing interest in ADUs as a means to increase the supply of affordable housing.

ADUs offer several advantages over traditional housing options, particularly in terms of affordability. They are typically smaller and less expensive to build than single-family homes, and they can be rented out for less money. Additionally, ADUs can help to create more diverse neighborhoods by providing a mix of housing types to accommodate different household sizes and needs.

The Rise of ADU Legislation

In recent years, there has been a wave of legislation at the state and local level aimed at promoting the construction of ADUs. This legislation has taken a variety of forms, including:

• Removing regulatory barriers: Many jurisdictions have traditionally prohibited or restricted the construction of ADUs. New legislation is often aimed at removing these barriers by allowing ADUs by-right, without requiring special permits or variances.
• Providing financial incentives: Some jurisdictions are offering financial incentives to encourage the construction of ADUs, such as fee waivers, tax breaks, or low-interest loans.
• Streamlining the permitting process: Jurisdictions are also working to streamline the permitting process for ADUs, making it easier and faster for homeowners to build these units.

The Impact of ADU Legislation on Affordable Housing

There is growing evidence that ADU legislation is having a positive impact on the supply of affordable housing. A study by the Terner Center for Housing Innovation found that California’s ADU legislation, which went into effect in 2017, led to a 93% increase in ADU permits issued between 2017 and 2019. The study also found that ADUs are being rented out for less money than traditional housing units, with median rents for ADUs in California being 20% lower than median rents for apartments.

Benefits of ADUs for Affordable Housing

In addition to increasing the supply of affordable housing, ADUs offer a number of other benefits for affordable housing:

• They can provide housing for a wider range of household sizes and needs. ADUs are often suitable for smaller households, such as seniors, single adults, or couples without children. They can also provide housing for people who need to be close to family or friends.
• They can help to preserve affordability in existing neighborhoods. ADUs can be built in existing neighborhoods without displacing existing residents. This can help to keep these neighborhoods affordable and prevent gentrification.
• They can create a more diverse mix of housing types. ADUs can help to create a more diverse mix of housing types in single-family home neighborhoods, which can make these neighborhoods more livable and walkable.

Challenges and Barriers to ADUs

Despite the potential benefits of ADUs, there are still some challenges and barriers to their widespread adoption. These challenges include:

• Public opposition: Some residents are opposed to the construction of ADUs in their neighborhoods, citing concerns about parking, noise, and traffic.
• Financing: Financing can be a challenge for homeowners who want to build ADUs. Traditional lenders may not be willing to finance ADUs, and the costs of construction can be prohibitive.
• Regulatory barriers: Despite recent legislation, there are still some regulatory barriers to ADU construction in many jurisdictions. For example, some jurisdictions have size or height restrictions on ADUs.

Conclusion

ADUs have the potential to play a significant role in increasing the supply of affordable housing. However, there are still some challenges and barriers to their widespread adoption. To make ADUs more widely available, we need to address these challenges through education, outreach, and financial incentives. We also need to continue to reform zoning regulations to make it easier and faster to build ADUs.