A highly competitive housing market and intensifying need for affordable housing is sparking greater interest in accessory dwelling units (ADUs), which, for some homeowners, can be an attractive housing solution and ideal way to maximize the use of their property.
What is an ADU? As defined by the American Planning Association, an ADU is “a smaller, independent residential dwelling unit located on the same lot as a stand-alone (i.e., detached) single-family home.”
ADUs — which are also known by other names like mother-in-law suites, secondary suites, or accessory apartments — can be located within an existing home (i.e., internal ADU), attached to an existing or new home (i.e., attached ADU), or constructed as a standalone accessory structure (i.e., detached ADU).
A recent Freddie Mac consumer survey found that familiarity and interest in ADUs have been on the rise in recent years. In fact, the survey revealed that 32% of those who did not own an ADU reported interest in having an ADU on their property in the future. Furthermore, a 2020 Freddie Mac research insight found that, between 2009 and 2019, the number of first-time ADU listings averaged 8.6% in year-over-year growth.
The top cited reasons for considering an ADU, according to Freddie Mac research, include:
Hosting out-of-town visitors (37%)
Renting to tenants (33%)
Short-term vacation rental (21%)
Moving in family permanently with rent payment (19%)
Moving in family temporarily without rent payment (18%)
It is also interesting to note that a separate survey conducted by OnePoll found that more than half (61%) of homeowners surveyed cited multigenerational housing (i.e., housing for aging parents or family members) as their main reason for constructing an ADU. OnePoll research also revealed that one-in-four homeowners either house a disabled family member in their ADU or have plans to do so in the future.
Given the benefits to be gained with an ADU, the growing interest in the concept comes as little surprise. For example, an ADU may add value to a home while also providing the homeowner with rental income if used as a short-term or long-term rental. That rental income can help a homeowner offset higher living expenses and the cost of necessities like gas and groceries.
However, that’s not to say that challenges and concerns do not exist when looking to construct an ADU. According to Freddie Mac research, roughly half of surveyed homeowners without an ADU believed it would be somewhat to very difficult to create or build an ADU on their current property.
That’s why it is important for homeowners to turn to a trusted contractor who can help them navigate the complexities of constructing an ADU. Let’s take a closer look at some of the key factors to consider.
Covering the cost
The cost to construct an ADU will, of course, vary from project to project depending on such factors like whether it is an existing structure that is being converted, if it is a new structure being developed, the size of the ADU, etc.
According to Freddie Mac research, the most frequently cited ways to finance the costs of building and maintaining an ADU include leveraging personal savings and collecting rent from tenants. Seventeen percent cited taking out a personal loan from a bank and 14% would use their tax refund.
Fortunately for Washington residents, a number of regulatory incentives have been established to help ease the financial burden and to make the ADU permitting process easier. As noted in an article by Steadily, a provider of property insurance for landlords, such efforts include, but are not limited to, relaxing parking requirements for ADUs, prohibiting the requirement of street improvements as a precondition for the approval of ADU projects, and capping impact fees.
ADU zoning requirements, permits
To ensure compliance, it is imperative to become familiar with the specific ADU requirements of your municipality. Some questions homeowners must consider include, but are not limited to:
Are the property owners required to live in the principal unit or the ADU?
Are there any size restrictions on the ADU?
Are there restrictions on who can live in the ADU?
How do you apply for an ADU permit?
Will the ADU connect to the utilities of the main house?
What are the parking requirements for the ADU?
Are there fee waivers or reductions offered in your area to help reduce costs?
Example of local ADU zoning requirements
In Steilacoom, for instance, it has been legal to have an ADU on a lot since 1995. Property owners are not required to live in the principal unit or the ADU, and the minimum gross floor area of an ADU is 320 square feet and the maximum gross floor area is 1,000 square feet.
If the property is located within Steilacoom’s historic district and installation of the ADU will require exterior modifications to the home, then the Historic Preservation and Review Board must review and approve the ADU plans before the ADU permit can be issued. The homeowner must also demonstrate that one off-street parking space is available for the resident of the ADU, in addition to the two parking spaces required for the main home.
The Town noted that, in 2023, State Legislature passed HB 1337, requiring cities and towns to allow up to two ADUs on every residential lot, subject to standard building code and zoning requirements. In December 2023, the Town updated its ADU regulations to comply with HB 1337.
These are just a few of the zoning requirements that must be considered to have an ADU in the Steilacoom.
As explained on the Town’s website, the ADU permit application process looks similar to the following:
Obtain (from the Town website or the Town Public Works Building on Roe Street) and complete an ADU permit application and a building permit application. Return the completed application materials to the Planning Department at the Public Works Building.
Within 30 days of receiving these materials, the Town will either deny or give preliminary approval to your ADU permit. If the proposed ADU complies with the ordinance, the Town will notify adjacent property owners that an ADU has been given preliminary approval. This notice gives the neighborhood an opportunity to appeal the ADU permit based on the grounds that the plans do not comply with the ADU ordinance. If no appeal is filed, the Town will issue a building permit to begin construction of the ADU.
After the unit is installed, the ADU will receive final inspection. If the unit passes final inspection, the ADU permit is issued by the Town. The building department will notify the utility billing department of the new ADU permit and applicable utility charges will begin during the next billing cycle.
Partner with the right contractor.
To learn more about how VAZ Kitchen & Bath can help you successfully navigate the complexities of constructing an ADU, contact us at 253-800-9696 or via email at viczamora23@gmail.com.
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