Accessory Dwelling Units aka Granny Flats

By ANTHONY MARGULEAS | Special to the Palisadian-Post

You may have heard about “Granny Flats” lately and wondered what they were. Well, California has enacted several bills to open up more affordable housing.

One of those is the passage of Senator Bob Wieckowski’s Senate Bill 1069, that went into effect Jan. 1, 2017, allowing people to build Accessory Dwelling Units or “Granny Flats” on their property.

With affordability getting out of reach for many and the need for more affordable housing, this law came about. It originally got the name granny flats for building an additional unit for one’s elderly parents. It can be a nice way to add some extra square footage by converting an existing garage or to get some rental income.

A converted garage or adding an approximately 800-square-foot two-bedroom with a bath and small kitchen area could generate approximately $3,000 per month, or $36,000, a year in additional income.

Ira Belgrade was the first person in Los Angeles to permit his unpermitted rented guest house into a legal Accessory Dwelling Unit under California’s new state laws. He also started a business out of it by creating YimbyLA! where for a fee, he will walk you through the steps and let you know if you qualify.

One still needs to get city approval and get the proper permits. Accessory Dwelling Units cannot be bigger than 1,200 square feet. The city has also reduced parking requirements, as well as fees for utility hookups, water and sewer.

According to a housing report by statistics group ATTOM Data Solutions, California currently has more ADU permits than any another state with 4,352 issued last year. It also had the biggest increase in permits in year-over-year percent change with a 63 percent increase. It makes sense the most expensive places to live like California, would have by far the most permits issued.

The report showed Santa Barbara with the biggest increase in year-over-year percent change in ADU building permits among 30 major California metropolitan areas. Los Angeles had a 127 percent increase and was third on the list for all metro areas in the country.

With housing getting more and more expensive, the need for property owners to build ADUs becomes greater. Cities are recognizing this need by loosening the building restrictions that had prevented many from doing this in the past.

If you have any questions about adding an ADU to your property, recommended contractors that specialize in this or any real estate questions, feel free to contact us at anthony@amalfiestates.com or 310-293-9280.

Anthony founded Amalfi Estates 24 years ago. He has sold over $1 billion in properties and was selected by the WSJ as one of the top 60 agents in the country out of one million agents. He has been the No. 1 agent in the Palisades over the past three years. He can be reached on his cell at 310-293-9280, amalfiestates.com.or by stopping by Amalfi Estates at 984 Monument Street.