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rent payments priced below $1,875/month (in 2019 dollars), a range in which ADUs typically fall.13 Homeowners who rent their ADUs benefit financially: rental income can offset mortgage costs and help lower -income homeowners remain stably housed over time. ADU construction is a significant upfront investment, however, ranging from $50,000 to more than $150,000 depending on type and scale.14 Financing mechanisms including home equity lines of credit, ADU loan programs, and municipal fee waiver programs are therefore critical enablers of homeowner participation. 1 s C. To offer more choices for aging in community and multi -generational living ADUs directly address the evolving demographic composition of American households. Four - fifths of projected household growth in the Twin Cities will be in households headed by individuals aged 65 and older, many seeking options to downsize in their own neighborhoods.16 ADUs allow older homeowners to move into an accessory unit, rent out the primary home, or house a caregiver nearby supporting independent living without displacement from one's community.17 The AARP Home and Community Preferences Survey (November 2021) found that while only 4 percent of respondents had an ADU on their property, 26 percent of those without one said they would consider adding one if they had the space.18 AARP emphasizes that ADUs can help ensure that people of all ages, including older adults, have more options in where and how to live in their own communities.19 Multigenerational households adult children, aging parents, and extended family members are well -served by ADUs that allow independent living while maintaining family proximity. AARP's Livable Communities hub describes ADUs as family -friendly, flexible housing options that can serve changing household needs across multiple generations.20 Nearly half of the region's projected household growth will be individuals living alone, a segment for which ADUs are ideally sized. ADUs expand the range of housing types available in predominantly single-family neighborhoods without fundamentally altering neighborhood character or requiring major infrastructure investment.21 D. To capitalize on potential environmental and economic benefits ADUs are environmentally friendly housing options: they are smaller, use less energy than the average home, and can reduce transportation -related environmental impacts when located near employment centers and, where they exist, established public transit routes.22 ADUs also have the benefit of increasing net tax capacity as improved properties gain assessed value, resulting in the potential for additional property tax revenue and reducing the overall residential property tax burden. Because homeowners typically hire local construction and design firms to build ADUs, 13 Family Housing Fund (2019) and Metropolitan Council (2015). 14 Spevak and Stanton (2019), The ABCs of ADUs; and Grant et al. (2019), Accessory Dwelling Units: A Step -by -Step Guide. 15 Family Housing Fund (2019). 16 Metropolitan Council (2015). 1' Family Housing Fund (2019). 18 AARP Home and Community Preferences Survey, November 2021 (Binette 2021). 11 AARP Public Policy Institute and American Planning Association. "Expanding ADU Development and Occupancy: Solutions for Removing Local Barriers to ADU Construction." 2023. aarp.org/pri/topics/livable- communities/housing/expanding-adu-development-solutions-local-barriers/. 20 AARP Livable Communities (2019). 21 Metropolitan Council (2015). 22 Stephan & Crawford, 2016, Energy 116(1), 1158-1171; and Oregon Department of Environmental Quality (DEQ), 2014, ADU residents in Portland survey. Page 3 of 8