Updated ADU Laws in California

[@staceylam762]

Tax will go up 5000 a year if your ADU gets appraised for $400k

[@gogreenlocally]

Great video, thank you. How can we get more states to approve these new laws? Thankfully California is leading the way!

[@TylerPKegger]

My landlord said she’s removing our garage and turning it into a ADU, she’s increasing the rent taking away space. 4 bedroom house will now be a 6. Plus having a stranger living with us with a just a wall separating us is not giving us peace of mind. Streets are already flooded with cars after 6PM here in Soledad.

[@Tee-duck]

Good news is you can move out. ADUs destroying neighborhoods

[@ausquiano29]

Greetings, can you please explain AB2533

[@robertjosan]

Thank you for your feedback

[@smellison09]

You are welcome. Any questions?

[@ImranYousufz]

can you explain what do you mean sb897 and ab2221 are "on the horizon"? I thought they already passed and were in effect?

[@mildredcrowl5254]

How do we get the state funding. My parents wants to build and ADU in our backyard and they don’t have the funding for it. How can they biluild and how much?

[@smellison09]

In California, the California Housing Finance Agency (CalHFA) offers a grant program to help homeowners finance the construction of Accessory Dwelling Units. The grant can provide up to $40,000 to help with pre-development and closing costs. To apply for the grant, you must: Be a homeowner in California Own a single-family home Meet any income limits Gather required documents, including: Proof of income Recent utility bills Tax returns Scope of work for your ADU project Complete the application process Await confirmation If approved, the grant funds will be placed into an escrow account. You can use the funds to pay approved third-party vendors throughout the project. What the grant can be used for Pre-development costs, such as site prep, architectural designs, permits, and soil tests Non-recurring closing costs Buying down the interest rate on loans What happens if you receive the grant? You will receive a 1099 from CalHFA for the year the grant funds were wired into escrow You may need to pay taxes on the grant funds the following year Other financing options You can also use other financing options to fund an ADU, such as: A Home Equity Line of Credit (HELOC), Home Equity Loan, Cash-Out Refinance, and 203k Loan. Cities and localities across California may also offer special ADU grant or loan programs

[@calhomeco]

Great video on ADUs!

[@smellison09]

I'm happy to help!

[@hondainsight421]

Is California allowing ADU's to be a separate property. What I mean can the landlord subdivide his property into a owner occupied main building and an ADU and then sell off the ADU

[@hondainsight421]

Land owner

[@smellison09]

That is correct. You can sell the ADU as a separate property now under CA-AB 1033. However, you do not need to subdivide the land first. You can sell the ADU, but before the close of escrow, a mini 'HOA' must be created that outines the usage laws/rules for the land between the two owners.

[@graceweber2822]

I wonder if the senior communities run by HOA can restrict ADU's.

[@smellison09]

Likely no, HOA and senior communities are fairly strict about building.

[@MudvilleMedia]

In California, HOAs can no longer ban ADUs but can put restrictions.

[@stevelopez372]

Yes besides many HOAs have very little space leftover for An ADU. We can’t entirely dump the fire code restrictions. ADUs are fine but really do not handle affordable housing problems does it?

[@robertjosan]

Can you build an ADU before you build a main house? If we are allowed to build an ADU prior to building the main house, do we need plans for the main house prior to building an ADU. and how much time do we have to live in the ADU?

[@smellison09]

in our area, it is possible, but you will definitely want to check your specific cities restrictions. Every city has different laws around ADUs.

[@robertjosan]

@@smellison09 thank you for the feedback

[@matthewellis3004]

Hi Shannon, what is your area/ County? I’m wondering if in Santa Cruz County if I find the right Lot/ zoning, I can just build all ADU’s on their for maximum rental income ? Are people doing this and making bank?

[@smellison09]

@@matthewellis3004 great question! The Santa Cruz county laws are going to require an existing primary dwelling. More information here: cdi.santacruzcountyca.gov/Planning/Housing/ADU/BasicRequirements.aspx

[@ericrubalcava9428]

I’m in the process now building an ADU.

[@smellison09]

Nice, where are you located?

[@ericrubalcava9428]

@@smellison09 Corona California

[@smellison09]

@@ericrubalcava9428 that’s awesome. Be sure you know all the special California setback rules as it pertains to SB9 so you can maximize its size for the lot!

[@ericrubalcava9428]

@@smellison09 Yes,, thanks for the info! It’s currently under construction and just about half way through the build. 879 sqft, 2 bed and 2 bath. So far so good! 😊

[@dumbeezy5480]

@@ericrubalcava9428 If you don't mind how much per square foot?

[@kendallevans4079]

Anyone that can squeeze one of these into their property will do it. This will destroy neighborhoods if allowed. HOA's need to adapt rules NOW to make them illegal!

[@MudvilleMedia]

Why would you want them to be illegal? And California already passed laws that make it illegal for HOA’s to ban ADUs

[@kendallevans4079]

@@MudvilleMedia Think about it! People will rent them out to anyone. Druggies, illegals. Just having more people in any given square footage decreases the quality of life for everyone

[@MudvilleMedia]

@@kendallevans4079 I’m pretty sure, most people would not rent them out just to anyone. Being that most homeowners live on the same property as the ADU

[@kendallevans4079]

@@MudvilleMedia I would like to agree but many people will do anything for extra money when in a jam.

[@youaintlyin3388]

@@kendallevans4079Quality of life is already compromised,too many people,too much traffic,etc.etc.