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Marissa Myers
  • Hayward, CA
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Calif’s new granny unit law & ADU flips: is CA the next Portland?

Marissa Myers
  • Hayward, CA
Posted Oct 30 2016, 11:24

I am happy that California has passed a new law that eases restrictions on secondary units, effective January 1. When Portland did something similar, it sparked an ADU boom. Permitted ADU projects skyrocketed, and a cottage industry sprung up, including ADU designersowner/developer consultingADU breakeven calculator. With our new law, I see opportunity to build:

I'd love to get your opinions: 

  1. Are you ADU's as part of your strategy – househacking, flips, BRRRs?
  2. How do you think the new regulations will impact real estate investing in the Bay Area?

CA Granny unit law: Summary

  • no extra parking space required for ADU if it's within ½ mile of a public transit stop, or part of an existing primary residence, or part of an existing accessory structure, or in an area requiring on-street parking permits
  • parking can be tandem on existing driveway
  • when a garage is demolished or an ADU and off-street parking spaces must be replaced, they can be anywhere on lot, including tandem
  • no set back required for a garage conversion; side/rear setback of 5 feet max for ADU above a garage
  • no extra utility, water or sewage hookup fees
  • detached ADU's shall not exceed 1200 sq ft

 CA Granny Unit law: Background docs

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