Developing an ADU is becoming rather popular in states like California thanks to new laws and regulations. However, before you commit to building an ADU yourself, there is some ADU information you should know.
If you live in the state of California, see if you qualify for the $40k ADU grant from CalHFA. This grant gives you up to $40k for pre-construction costs and can save you a lot of money if you qualify for it.
Changes In Freddie Mac Regulations
There have been a number of changes in Freddie Mac regulations that make it easier than ever to qualify for loans. For instance, you can now use your future rental income to qualify for a loan to develop your ADU.
Plus, they are now allowing ADUs on mortgages secured by property types other than single-family residences. This means you can now build an ADU on a multi-family plot.
Easier To Legalize ADUs
If you already have an ADU on your property but it is not a legal unit, it is now easier than ever to legalize it. Many local governments have created legalization programs that make it simple to legalize your unit as long as it is not a safety hazard.
Height Restrictions Are Being Redefined
All ADUs can now be up to 16 feet. If the ADU is attached, it can be up to 25 feet. If the property is within a half mile of public transit or already has a multi-family dwelling that is two stories high, the ADU can be 18 feet. These new regulations pave the way for more two-story ADUs that can house more people.
60 Day Rule
The 60-day rule requires that your ADU permits be approved or denied within 60 days. Changes in legislation now require that city officials tell you all the reasons your permit was denied before giving it back to you. That way, your permit is not denied for small reasons and you don’t have to keep reapplying because you aren’t fixing all the mistakes. If you know all the mistakes, you can fix them all for the next time.