Embarking on the journey of building an ADU can feel like a complex undertaking. However, with the right information and guidance, it is very feasible! Thousands of homeowners in California have successfully navigated this process, and in this post, we aim to shed light on the critical steps and costs involved. Let’s get started! How Much Does It Cost to Build an ADU? One of the first questions that we get asked is how much it costs to build an Accessory Dwelling Unit (ADU). The price of an ADU can vary widely depending on the type of ADU, size, design, and location. Typically, a garage ADU o ..read more

ADUs are gaining popularity as a flexible housing solution that provides additional living space without needing to purchase a new property. One of the fastest growing types of ADUs is “conversion ADUs”. Conversion ADUs involve repurposing an existing structure, such as a garage, basement, or attic, into a separate living unit. Conversion ADUs offer numerous benefits to homeowners, including increased rental income potential, more housing options, and the ability to accommodate multigenerational living or provide space for guests. They can also contribute to addressing housing shortages in de ..read more

In this article we aim to provide a general explanation of how building an ADU affects your property taxes. Keep in mind though that specific rules and exemptions vary by location and jurisdiction. Does adding an ADU increase Property Taxes? Building an ADU will raise your property taxes due to the increased value of your property, but not as much as you may imagine. The good news is that in California adding an ADU does not trigger a property tax reassessment of the existing main home. Only the ADU itself will be assessed, much like doing a home addition. The property tax of the ADU will be ..read more

If you’re considering adding an Accessory Dwelling Unit (ADU) to your property, you’ll need to find the right contractor to handle your construction project. An ADU, also known as an accessory dwelling unit, is a separate and independent unit located on the same property as a primary residence. ADUs are becoming increasingly popular as a solution to the housing crisis, especially in large cities like Los Angeles, as they offer families the opportunity to generate rental income or provide independent living space for aging parents or adult children. Why is it so Hard to Find a Good ADU Contrac ..read more

The recent passage of SB-9, which was signed into law in California in 2021, has opened up new possibilities for homeowners seeking to increase the supply of housing in the state. This legislation allows for the creation of up to two residential units on single-family zoned parcels, effectively allowing for lot splits and the development of accessory dwelling units (ADUs) on properties that were previously limited to single-family homes. What does SB-9 allow? SB 9 allows for two main things: Lot splits: It allows for the creation of up to two residential units on a lot that currently has only ..read more

With property prices and interest rates increasing, the traditional American Dream of owning a single family home may seem like a pipe dream. Thankfully, there are still creative ways to afford a home, such as making your property generate income for you. This concept of building financial wealth through property ownership is what we at HOMEPLEX call the New American Dream. In this article we’ll go over 8 ideas to ‘house hack’ your way to home ownership. 1. Buy a duplex, live in half A duplex is a compound of two homes on one property that typically (but doesn’t always) share a wall with anot ..read more

Los Angeles is considered one of the most viable places to build an ADU. When looking into building an ADU in LA, pay attention to both city and county ordinances. If you reside in the city of Los Angeles you must follow the city’s ADU guidelines. If you live in an unincorporated community of LA county you would follow the county’s guidelines. Building an ADU in Los Angeles In 2021 Los Angeles Mayor Eric Garcetti announced an initiative to give builders and homeowners pre-approved ADU building plans to allow for a faster and less expensive permitting process. You can find those on LA’s Depart ..read more

California ADU Financing – How to Finance an ADU in California One way California has been working to solve its housing supply crisis is by making ADUs more feasible to build both from a legislative and financial point of view. The ADU bills that went into effect in 2020 made ADU requirements more lenient, and this year, California Housing Financing Agency (CalHFA) started offering a $40,000 ADU grant for California residents, a great opportunity for those looking for an alternative ADU financing option.  How Do I Fund an ADU in California? Funding an ADU in California can be accomplish ..read more

For many homeowners, financing an ADU (Accessory Dwelling Unit) is one of the most challenging parts of the ADU-building process. In this comprehensive ADU financing guide, we’ll go over your financing options to help you clear the first hurdle along your ADU journey. What Is An ADU in Real Estate? Simply put, an ADU is an Accessory Dwelling Unit, otherwise known as a granny flat, in-law suite, casita, or backyard home. Accessory dwelling units are assisting with housing supply as well as helping homeowners pay their mortgage, and enabling multigenerational housing. How Much Does an Accessor ..read more

January 2023 Update: CALHFA has paused new grant reservations until further notice CalHFA has stopped taking new grant applicants as the funds from the current fund have all been reserved. Certain CalHFA grant administrators, such as CCEDA, are still accepting grant applications and establishing a waitlist in the event that prior applicants cancel their grant reservation or additional funds become available. To apply through CCEDA go to: https://adu.cceda.com In January 2022 the California Federal Housing Agency (CalHFA) created a $40,000 grant to help you build an ADU (Accessory Dwelling U ..read more