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  • Writer's pictureFranny Yen

Accessory Dwelling Units (ADU)

  • In America's biggest cities, a home with an ADU is priced 35% higher on average than a home without one

  • Even if zoning is ineligible, ADU could still be eligible with certain conditions

Here are some of the Basic Requirements to be considered an ADU:

  • The accessory unit must be smaller than the primary home.

  • There must be a separate entrance

  • The kitchen in the unit must have cabinets, a countertop, a sink with running water, and a stove or stove hookup.

  • There must be a sleeping area.

  • Bathroom Facilities and a bathing area are required.

  • A manufactured home that is permanently affixed to the property sometimes qualifies.

  • Allowed zoning for accessory units.

Here are some examples of an Accessory Unit – Note that ALL must have a separate entrance!

  • A living area over a garage.

  • A living area in a basement.

  • Small Addition to the primary dwelling.

Normally, most lenders can approve a maximum of one ADU for single-family residences (SFR) and 2-3 units, while four units are not eligible. Additionally, the rental income from an ADU unit is typically allowed in the case of an SFR purchase.

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