Some homebuyers struggle financially to purchase a home, and the ability to construct an Accessory Dwelling Unit ("ADU") may provide them an incentive to purchase the property because it can provide a source of rental income that can assist in the mortgage payment.
An ADU is an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons. It needs to include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family residence ("SFR") is situated. ADUs include efficiency units as defined in California Health and Safety Code section 17958.1, manufactured homes as defined in section 18007, and Movable Tiny Houses.
An ADU is allowed up to a maximum of 1,200 square feet, and detached ADUs cannot be greater than two stories. Attached ADUs may not result in an increase in total floor area exceeding 50% of existing or proposed living area of the primary structure. For this purpose, living area means interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure.
The purpose of the Los Angeles proposed ADU Ordinance dated November 29, 2018 is to provide for the creation of ADUs in a manner consistent with California's Government Code section 65852.2 that became effective on January 1, 2017.
Except where specifically prohibited, an ADU is permitted in all zones where residential uses are permitted by right. Only one ADU is permitted per lot that contains an existing SFR or where a new SFR is proposed. The ADU must follow the same building code and residential code requirements as the existing or proposed SFR.
ADUs may be rented out, but cannot be sold separate from the existing or proposed SFR on the same lot. Movable Tine Houses may be sold when removed from the lot.
No passageway for the ADU, nor space between buildings, is required. No additional setbacks are required for a lawfully existing garage or space above or abutting a garage that are converted to an ADU or portion of an ADU. This facilitates the conversion of a garage into a ADU that can be rented by the owners of the SFR, and thereby provide income that can be used to pay the mortgage, taxes, and insurance for the SFR.
An important requirement for the ADU is one parking space is required per ADU. However, no parking is required if the SFR is located within one-half mile of a public transportation stop along a prescribed route according to a fixed schedule, or within one block of a car share parking spot, or located in an architecturally and historically significant district. Parking is allowed in setback areas, except in required front yards when parking must be located on an existing driveway. Parking may be provides in tandem parking.
When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, any lost off street parking spaces must be replaced.
Conversions of lawfully pre-existing space is allowed if the ADU has an independent exterior access from the existing residence. An ADU cannot be built between the front of the primary residence and the street.
Because the Los Angeles Rent Stabilization Ordinance provisions apply to properties with 2 or more single-family dwelling units on the same lot, it does not apply to dwelling units created after October 1, 1978 and to owner-occupied dwelling units. However, these exemptions will normally exclude a newly created ADU.
LESSONS:
1 An ADU provides incentive to purchase because it can be a source of income that can be used to offset mortgage, taxes, and insurance payments.
2. At lease one parking space is required, including tandem parking, unless the lot is within a certain distance of scheduled transportation, such as buses or rail.
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