Laserfiche WebLink
o^TFWTIAI Tf% 4RAV1171F CLADnw41 F WeJJJrftJWr <br />As discussed on previous page, the base construction costs and limited options for financing ADU construction present <br />structural challenges to the feasibility of ADUs as a source of affordable housing. Depending on homeowners' desires to <br />offer an ADU as a long-term rental property and their expectations for recouping their initial investment, rents on ADUs <br />may not be affordable relative to local housing markets. <br />Research over the past decade has found evidence <br />that median rents on ADUs can be affordable for <br />moderate income households, though many of those <br />units are rented to households with a relationship to <br />the homeowner. A study of ADUs in Portland, Seattle, <br />and Vancouver, B.C. from 2017 found that 58 percent <br />of ADUs offered for rent had below -market rents. <br />However, 40 percent of those affordable ADUs were <br />rented to friends or family. Many homeowners build <br />ADUs in order to provide affordable or free housing for <br />family and friends; 18 percent of ADUs in California are <br />used in this way. The share of ADUs rented to arms - <br />length tenants for affordable rents can vary widely. Across <br />California counties in a 2021 study, rental ADUs affordable <br />In Portland, the nonprofit <br />Nonprofit affordable housing <br />BACKHOME ADU <br />developer EAST PALO <br />helps homeowners with <br />ALTO CAN DO offers site <br />development planning, <br />planning, financial consulting, <br />connects them with <br />and construction project <br />affordable financing, builder <br />management for income - <br />partners, and property <br />qualified households in East <br />management services <br />Palo Alto, California. As part <br />in exchange for renting <br />of their Packard Foundation - <br />the completed ADU to <br />funded program, the finished <br />a household earning no <br />ADU must be rented at a rate <br />more than 80 percent of <br />affordable at 80 percent of <br />AMI. BackHome ADU <br />Area Median Income (AMI).21 <br />has built five ADUs and <br />has 17 currently under <br />development.26 <br />to households making 80 percent of AMI or less ranged <br />from 12 percent in Los Angeles to 67 percent in Marin.25 <br />Many cities around the country are adding references to <br />ADUs in their comprehensive plans related to supporting <br />and encouraging diverse housing types, including <br />Minneapolis. Some cities refer to ADUs as a potential <br />source of additional affordable housing, but specific <br />programs to support ADUs as affordable rental properties <br />have primarily been limited to pilots, led by nonprofits with <br />varying degrees of municipal partnership or support. Most <br />of these programs are designed to serve lower -income <br />homeowners while others have targeted higher- income <br />owners to create regulated affordable housing. <br />DURHAM COMMUNITY LAND TRUSTEES in <br />North Carolina is piloting a CLTplusOne program to <br />include an attached ADU with a new -build home <br />as part of their portfolio of permanently affordable <br />owned homes within their community land trust <br />(CLT). The new CLT homeowner will own both the <br />home and the ADU, but Durham Community Land <br />Trustees will manage the rental property on behalf <br />of the owners. This pilot project is designed to be <br />affordable to owners making 80 percent of AMI, while <br />the ADU rent will be affordable to households at 60 <br />percent of AMI. In future phases, the CLT hopes to be <br />able to include ADUs in all future new construction <br />projects and to begin adding ADUs to the properties <br />in their existing portfolio.2e <br />