Calif’s new granny unit law & ADU flips: is CA the next Portland?

[Marissa Myers]

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 designers, owner/developer consulting, ADU breakeven calculator. With our new law, I see opportunity to build:

• zero step, accessible units for aging parents and retirees
• micro-units for students (CSU Hayward, Berkeley)
• ADU's for millennial professionals who are still saving for down payment
• garage conversions (I'm planning for this)
  
  

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

• bill text
• legal brief