Multi-Family Property Owners:
New 2020 California Laws allow for the addition of ADUs (Accessory Dwelling Units) to multi-family properties with certain conditions. You may be able to add one or more additional rental units to your property. With the average per unit sales price in Los Angeles County coming in at $336,000 in Q4 2019 (Costar), owners have a very considerable opportunity to capitalize on!
Homelessness & Affordability Solutions
The California State Legislature pushed very hard for this legislation last October as a remedy to shortages of affordable and homelessness housing. These new laws will allow for hundreds of thousands, possibly millions, of additional rental units to be added to the market without destroying any units or displacing any tenants. This is exactly what the state legislature was looking to do.
All of California Benefits
The new laws are valid at the state level and apply to all cities throughout California. Under previous ADU laws, certain cities had found ways to not approve building permit application, but these new laws come with some teeth. Municipalities have 60 days to respond to permit applications or they are automatically approved. Before, some cities like Pasadena, had sat on the applications, effectively disallowing ADUs. So far, most cities, particularly the big ones like Los Angeles, appear to be embracing the new laws wholeheartedly.
Will My Property Qualify? There are 2 Options
- Conversion: ADUs can be “converted” from existing, non-living, spaces such as garages, carports, attics, basements, rec rooms, or storages rooms. These converted spaces must be able to be brought up to current health/safety building codes (fortunately the rest of the building does not!). Each property can convert 1 ADU per every 4 existing units with a minimum of 1. If you have a 7-unit building or less, you can convert 1 ADU. 8 units would allow for 2 ADUs, 12 units would allow for 3 ADUs, and so on.
- Open Space: If you have open space on your property you can build up to 2 (Yes – 2!) detached ADUs. These units are typically set up in the form of a side-by-side duplex. You can only build 2 new detached ADU units regardless of how big your lot is. These detached units are IN ADDITION TO other spaces that may be converted to ADUs.
What About Parking??
If you convert any existing space – including parking spaces – no additional or replacement parking is required. If you are within ½ mile of transit (bus stop), which most of LA County is, you do not have to provide any additional parking for detached ADUs.
How to Get Started:
If you have a multi-family property and are interested in adding an ADU, please give me a call.
My company specializes in working with multi-family owners to capitalize on this new ADU opportunity, providing end-to-end project advisory, management, and oversight to maximize the value of each project.
We bring all the pieces together take your project from initial concept to leased-up rental unit without you having to “take on” a construction project.
We can also help identify and execute on acquisition opportunities with ADU development potential. Please reach out if you are interested in acquiring multi-family assets.
Kyle Young, Managing Broker
3L Properties, Inc. (BRE 02025209)
213.291.0701 | [email protected]