How Can An ADU Provide Extra Living Space And Income?

Why ADUs?

• Have your family move near you
• Earn rental income & reduce monthly payments – we can show you how!
• Have an extra room for private working space
• Increase your property’s value
• Build offsite
• Affordable housing solution (prices starts at $229,000 all-in)

CA Laws
ADU requirements

Every ADU must have…

• A bathroom, kitchen(ette), and
• Bedroom/Studio space
• 4 ft lot line setbacks
• 6 or 10 ft setbacks from other structures

All cities in California must…

• Allow ADUs up to 800 sq ft
• Waive parking requirements within 0.5mi of public transit
• Respond to your plan submission within 60 days

Most cities must…

• Allow ADUs up to 1000 sq ft or even 1,200 sq ft
• Have permitted or are permitting ADORE projects (Bay Area)

Single-family Zoning (As of January 1, 2020)

• Statewide consistent guidelines
• 1 ADU and 1 JADU per lot
• 60-days approval – ministerial
• Reduced permit fees
• No parking requirements (if w/n 1⁄2 mile of transit stop)
• No owner occupancy laws
• 4-ft. side and rear setbacks
• Front yard ADU’s possible

Duplexes & multi-unit (As of January 1, 2020)

• Existing multifamily dwellings qualify
• 2 detached ADUs per multifamily lot
• Developers can build ADUs concurrent with a new multi-family structure

Depending on your space

ADORE Homes offers the largest selection of models.

Flagship models

• ADORE Crema 510 $267,900, all in
• 510 SQ FT – 1 BR/1BA Dimensions: 34′ x 15′

• ADORE Horizon 800 $313,900, all in
• 800 SQ FT – 2 BR/2BA Dimensions: 40′ x 20′

• ADORE Horizon 933 $319,900, all in
• 933 SQ FT – 3BR/2BA Dimensions: 40′ x 23′ 4′′

Why NOW? (From the Realtor’s Perspective)

• Sellers on the fence – add an ADU to increase your property value and be more appealing when its time to sell
• Buyers

( a ) Target smaller homes that are ADU-feasible – deals close faster than the more expensive homes
( b ) Buy above desired monthly payment limit and use the ADU rental income to help with the mortgage payments.

Why NOW? (From the Homeowner’s Perspective)

• Rising interest rates- Since early 2022, mortgage rates have climbed from 3% to over 6%
• Housing market uncertainties- HUGE growth rates in housing prices for the last 3 years…with uncertain future
• Erratic material costs- Fuel, lumber, labor, etc.
• Bearish stock market- A looming recession?

But lastly…

• The CalHFA funds are limited. First come, first serve basis.
• A CalHFA grant can shave $40k off your ADU.
• The CalHFA ADU grant offers qualifying homeowners up to $40,000 to offset pre-development and non-recurring closing costs.

How to Finance?

• Home Loan- Cash-out refinance
  Home Equity Line of Credit (HELOC)
• ADU Grant programs (for qualified homeowners)
• Renovation or construction loan
• Cash
• Home equity contracts and other innovative financing
• Other personal loans

Why ADORE Homes?

• ADORE offers the largest selection of ADU models ranging from 378 sq ft – 2,400 sq ft
• ADORE ADUs are pre-approved in cities — Cupertino, San Jose, Fremont, Napa and Sonoma Counties, and Santa Rosa
• Budget-friendly
• ADORE models can be customized to fit YOUR needs
• Topnotch partner providers: Designers, Architects/ Engineers, Permitting Contractors
• Excellent customer support experience
• Specialized lenders in ADUs
• Start to finish 6-8 months