Several types of ADU can be installed on a property. Examples include:
Yes. The Fannie Mae Homestyle Conventional Renovation can be used to finance either the purchase of the property, or the construction of an ADU, or both. The loan amount will be based on the future value of the home, which may include the value added by the ADU.
As of 2021, the maximum loan available under this program is $753,250 with 85% loan-to-value for investment properties, 97% LTV for primary residences. Note that this is the value after the renovation, i.e. with the added value of the ADU.
Costs can vary, especially since the price of materials and labor can change quickly. Nevertheless, if you need a rule of thumb, go with $225-$350 per square foot.
A 750 square-foot 2bedroom/1bathroom ADU might cost around $215k to build. Add on another $20k for site costs, $8k for design work, and $8k for permitting costs, and youâre looking in the neighborhood north of $250k.
A number of fees that used to apply to ADUs have been waived, but some still apply. Fees to look out for include:
Impact Fees. ADUs below 750 square feet do not incur impact fees. ADUs larger than 750 square feet will incur impact fees proportional to the size of the ADU vs. the size of the primary dwelling â typically ranging from $3k-$5k.
Sewer Connection Fees. First-time sewer connection usually incurs fees ranging from $2k-$4k. Recurring sewer fees will run in the neighborhood of $1k. For properties that use septic systems, see below where we address that separately.
School Fees. Typically $4/square foot, or around $2k-$5k.
Hereâs a breakdown of a recent project in Los Angeles for a one story 800 sq ft. two bedroom ADU (subject to change, will vary in other jurisdictions):
Sewer Facility Charges + Fees (LA Bureau of Engineering): $841
Application for Building Permit + Certificate of Occupancy: $5,337.30
LADBS Express Inspection: $367.64
Equity Title Master Covenant and Agreement: $135
Notary for LID + Covenant Agreement: $480
Bureau of Sanitation Fee: $206
Pre-Inspection Fee: $230.82
Asbestos Report: $650
New Building Permit Fee: $629.28
Title 24 Fee: $200
On our first meeting or kickoff call, we will quote a high-level price based on your description of the project you have in mind. If you decide to move forward, we will present a proposal to move to Phase 1 (site plan, feasibility study), including anticipated costs for each phase of the project.
As we proceed to Phase 2 (elevation and floor planning), we will keep track of any cost implications of the decisions you make and inform you of them.
In Phase 3, we create a set of construction drawings to present to the city. After we get comments back from the city, we present you with a Guaranteed Maximum Construction Estimate (GMAX) including all anticipated costs of materials and labor.
Finally, we will present a final finish-material cost (depending on your selected finish-outs) that, when combined with the GMAX, gives you your final all-in costs. After this point, we anticipate no surprises in the pricing â unless they are pleasant surprises of lower-than-expected costs.
From signing the proposal to the delivery of a move-in ready ADU, weâre usually looking at a turnaround time of 7-12 months. This roughly breaks down to:
We serve the Greater Los Angeles area, as well as Ventura, Orange, Riverside and San Bernardino Counties. Itâs a long list, so use your browserâs search function (Ctrl-S or Cmd-S) to see if your region is in our service zone. The complete list:
Los Angeles Area: Agoura Hills, Burbank, Calabasas, Canoga Park, Chatsworth, Encino, Glendale, Granada Hills, La Canada Flintridge, La Crescenta, North Hills, North Hollywood, Northridge, Pacoima, Panorama City, Porter Ranch, Reseda, San Fernando, Sherman Oaks, Studio City, Sun Valley, Sunland, Sylmar, Tarzana, Toluca Lake, Tujunga, Universal City, Valencia, Valley Village, Van Nuys, Verdugo City, West Hills, Winnetka, Woodland Hills, Alhambra, Altadena, Arcadia, Azusa, Baldwin Park, Covina, Duarte, El Monte, Glendora, Hacienda Heights, La Puente, Monrovia, Monterey Park, Montrose, Mount Wilson, Pasadena, Rosemead, Rowland Heights, San Gabriel, San Marino, Sierra Madre, South El Monte, Temple City, West Covina, Alta Loma, Bryn Mawr, Claremont, Crest Park, Diamond Bar, Guasti, La Verne, Moreno Valley, Patton, Pomona, San Dimas, Walnut, Artesia, Bell Gardens, Bellflower, Cerritos, City of Industry, Downey, Hawaiian Gardens, La Mirada, Lakewood, Long Beach, Norwalk, Paramount, Pico Rivera, Santa Fe Springs, Signal Hill, Sunset Beach, Whittier, Bell, Huntington Park, Los Angeles, Maywood, Montebello, South Gate, South Pasadena, West Hollywood, Beverly Hills, Carson, Compton, Culver City, El Segundo, Gardena, Harbor City, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Lynwood, Malibu, Manhattan Beach, Marina Del Rey, Pacific Palisades, Palos Verdes Estates, Playa Del Rey, Redondo Beach, San Pedro, Santa Monica, Topanga, Torrance, Venice, Wilmington, Mission Hills
Ventura County: Bell Canyon, Oak Park, Simi Valley
Orange County: Anaheim, Brea, Buena Park, Cypress, Fullerton, Garden Grove, Huntington Beach, Stanton, Westminster, La Habra, Los Alamitos, Seal Beach
Riverside / San Bernardino Counties: Bloomington, Calimesa, Chino, Chino Hills, Colton, Fontana, Grand Terrace, Highland, Loma Linda, Mentone, Montclair, Muscoy, Ontario, Rancho Cucamonga, Redlands, Rialto, Running Springs, San Bernardino, Upland, Yucaipa, Aguanga, Anza, Banning, Beaumont, Cabazon, Cherry Valley, Corona, East Hemet, Eastvale, French Valley, Hemet, Home Gardens, Jurupa Valley, Mead Valley, Menifee, Moreno Valley, Mountain Center, Murrieta, Norco, Nuevo, Perris, Riverside, Temecula, Wildomar, Winchester, Woodcrest, Bermuda Dunes, Cathedral City, Coachella, Desert Center, Desert Hot Springs, Indian Wells, Indio, Indio Hills, Joshua Tree, La Quinta, Morongo Valley, Palm Desert, Palm Springs, Pioneertown, Rancho Mirage, Sky Valley, Thermal, Thousand Palms, Twentynine Palms, Vista Santa Rosa, Whitewater, Yucca Valley
Not necessarily. If you are converting an accessory structure (like a detached garage or shed) or an existing space within the primary dwelling unit, no changes in parking requirements will apply. Even if you tear down an existing garage or carport and replace it with an ADU, this doesnât change your parking requirements.
Additionally, if the property is located within half a mile of public transit, you do not need extra parking capacity. Finally, no extra parking is needed if you add a JADU.
 If none of these exemptions apply, however, you may face changes in your required parking capacity for the property. The rule is one parking space per unit or per bedroom â whichever number is smaller.
Traditionally, an ADU may be rented out, but it could not be sold separately from the home. However, since 2022, Senate Bill (SB) 9 has opened a window for it to be possible. SB 9 made it easier to split lots, as long as each resulting lot is no less than 40% of the original size and at least 1,200 square feet (other restrictions apply, but those are the first two big ones).
If you successfully split your lot under this provision, with the primary dwelling unit on one parcel and the ADU on another, the ADU becomes the primary dwelling unit on one of the parcels, and the parcel can be sold separately â ADU included.