Building an ADU on LLC owned Property in Hayward

Building an ADU on LLC owned Property in Hayward

New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 votes

Hi,

I am looking to acquire a property in Hayward and want to do this by setting an LLC. I was going through the checklist PDF provided by Hayward city (https://www.hayward-ca.gov/services/permits/accessory-dwelling-unit) and one of the requirement says 

Are you the property owner and do you reside on the property?
Applicant. The applicant for an ADU must be the current owner-occupant of the property.

My question is: If the LLC owns the property and if the property is an investment property, are we not allowed to build an ADU on such a property. Is there a workaround for this. Don't want to take this property out of LLC.

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Investor · Bay Area, CA · Member since 2017 · 85 posts · 35 votes
7y

@Gaurav Mehta in general, the cities in bay area are loosing up the rule for ADU. But the nuance of the rule is still different city by city. Some city might have just loose the restrictions and have yet reflect on its website. So the best is to be in the city permit department to ask. I am building an ADU in San Jose w/o owner occupancy required. But just 10 month ago, the ADU rule in San Jose was different. Same as Fremont. I introduced a friend who is in Fremont to use the same contractor for the ADU. Fremont has just loose up the rule to allow him to build a detached 3bed/3bath for 1050 sf ADU which is more favorable than that of San Jose now.

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  • Investor · Cupertino, CA · Member since 2012 · 118 posts · 121 votes
    7y

    I’m curious too to find out.  The rule, the way it is written, doesn’t seem to have any workaround.  

  • Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    7y

    My understanding is primary residence are allowed to built ADU (Popularly known as In Laws unit). For investment properties you need to request for zoning change (SFH to Duplex or triplex), if you want to split the lot and built separate units then it's sub division and so on. Talk to City folks they are super helpful.

    Good Luck

    Vivek

  • New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 votes
    7y
    Originally posted by @Vivek Khoche:

    My understanding is primary residence are allowed to built ADU (Popularly known as In Laws unit). For investment properties you need to request for zoning change (SFH to Duplex or triplex), if you want to split the lot and built separate units then it's sub division and so on. Talk to City folks they are super helpful.

    Good Luck

    Vivek

    Hi Vivek,

    Do you go to the city office or is that something that can be discussed on phone. I have tried reaching them on phone a few times but haven't had success. Easier to get hold of city folks over phone in SJ. Do you generally go to the office for question such as these?

  • Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    7y

    @Gaurav Mehta - It's easier to go there and get it done as there are many departments involved. Once you establish the context they do respond by phone or email. Not sure if things have changed for SJ, it wasn't any better few years back.

    Good Luck

    Vivek

  • Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
    7y

    @Gaurav Mehta - Good for you taking action to build wealth through real estate.  The Bay Area is a lucrative market and doable with the right strategy and systems in place.  Feel free to reach out if you ever want to chat.

    @Sandeep S. You are right. It is purposely vague and does not seem to be clear cut. Hayward is different from other cities as you are basically able to add on or build and ADU in other municipalities with no mention of owner/occupant.

    @Vivek Khoche - It is frustrating dealing with cities sometimes.  Once you establish that face to face contact, they are more receptive to working with you, releasing relevant information, and communicating.  Like anything, building the relationship is key.

  • Investor · Bay Area, CA · Member since 2017 · 85 posts · 35 votes
    7y

    @Gaurav Mehta in general, the cities in bay area are loosing up the rule for ADU. But the nuance of the rule is still different city by city. Some city might have just loose the restrictions and have yet reflect on its website. So the best is to be in the city permit department to ask. I am building an ADU in San Jose w/o owner occupancy required. But just 10 month ago, the ADU rule in San Jose was different. Same as Fremont. I introduced a friend who is in Fremont to use the same contractor for the ADU. Fremont has just loose up the rule to allow him to build a detached 3bed/3bath for 1050 sf ADU which is more favorable than that of San Jose now.

  • Investor · Bay Area, CA · Member since 2017 · 85 posts · 35 votes
    7y

    @Gaurav Mehta in general, the cities in bay area are loosing up the rule for ADU. But the nuance of the rule is still different city by city. Some city might have just loose the restrictions and have yet reflect on its website. So the best is to be in the city permit department to ask. I am building an ADU in San Jose w/o owner occupancy required. But just 10 month ago, the ADU rule in San Jose was different. Same as Fremont. I introduced a friend who is in Fremont to use the same contractor for the ADU. Fremont has just loose up the rule to allow him to build a detached 3bed/3bath for 1050 sf ADU which is more favorable than that of San Jose now.

  • Specialist · San Jose, CA · Member since 2017 · 12 posts · 2 votes
    7y

    Does Fremont requires owner to occupied at least the front or the ADU?

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