The Clock is Ticking: Your Last Chance to Lock in 2025 Pricing on ADU Home Kits

The holiday season brings more than just twinkling lights and warm gatherings—it brings an unprecedented opportunity to invest in your future home or ADU at prices that won't last. But here's the catch: time is running out faster than you might think.

Your Year-End Savings Window

At The ADU Wizard, we're offering something we don't shout about every day: a genuine, no-strings-attached discount on ALL MODELS through December. But this isn't just any sale. This is your chance to lock in today's pricing by putting down just a 20% deposit before 2026 price increases take effect.

Think about it. The housing market waits for no one, and neither do material costs. Every year brings new pressures on the industry. By acting now, you're not just getting a discount—you're protecting yourself from the inevitable increases coming in the new year.

The Bonus That Makes It Even Better

Here's where this gets really interesting. Add a solar package to your order, and we'll throw in a Level 2 EV charger absolutely free. That's not a limited promotion or fine-print offer. That's us saying thank you for choosing to build your ADU with us during this special window.

A Level 2 EV charger typically costs thousands. If you've been thinking about going solar anyway, this addition turns an already smart investment into an exceptional one. You're looking at a home kit that's future-proof, energy-independent, and ready for electric vehicles—the direction the world is moving.

But There's Something Critical You Need to Know

Now, we need to be completely transparent about something that affects orders placed starting December 1st: Chinese New Year production slowdowns.

Our factory partners around the world honor this significant holiday. It's not just a day off—it's an extended break that runs through February 1st. What does this mean for you?

An order placed on December 1st is effectively the same as placing your order on February 1st.

Let that sink in. You could be waiting 8+ weeks longer than necessary simply because of timing.

The Real Deadline

While the sale runs through December, the actual critical date is November 30th.

Any order confirmed by the end of November will be processed and move through production before the holiday break. Any order placed after that date enters a queue that won't budge until early February.

If you're already behind on a timeline, this delay could push your project further into spring—a time when weather and construction schedules become less favorable in many regions. For some, it means missing an entire building season.

Here's What We Recommend

If you've been considering an ADU—whether it's for a guest house, rental income, aging parents, or your own downsized living situation—now is the moment to act. Not because of artificial urgency, but because the stars genuinely align right now:

1. Lock in today's pricing with a manageable 20% deposit

2. Get that free Level 2 EV charger if you add solar

3. Avoid the 8+ week holiday production delay by ordering before December 1st

4. Stay on schedule for your spring or summer build

The Bottom Line

This is the most wonderful time of the year for a reason. It's when we give thanks, plan for the future, and make decisions that matter. If you've been dreaming about adding an ADU to your property or building your own home, you now have the pricing incentive, the free upgrade opportunity, and the production window all aligned in your favor.

But that alignment doesn't last forever. In just weeks, the year will turn. Prices will rise. Production delays will begin. The opportunity will have passed.

The question isn't whether you should act. It's whether you'll act in time.

Ready to get started? Visit The ADU Wizard today and secure your order before the year ends. Your future home (and your future self) will thank you.

Have questions about our home kits, solar packages, or the production timeline? Our team is ready to help you make the right decision for your unique situation. Don't let this opportunity pass you by.

How much value will an ADU add to my property, and is it a good investment in San Diego’s market?

How Much Value Does an ADU Add in San Diego?

• Properties with legal, permitted ADUs in San Diego sell for 25–35% more on average than comparable homes without ADUs.

• In dollar terms, many San Diego homeowners see $200,000 or more in added value after completing an ADU, with some reports of smaller units costing about $200,000 and yielding $300,000 in increased equity.

• National data backs this up: California homes with ADUs often sell for up to 35% above similar homes without, according to the National Association of Realtors.

Is an ADU a Good Investment?

• Rental Income Potential: ADUs typically rent for $1,900–$3,700 per month, depending on size and location (studios to 2-bed units).

• ROI and Payback: Typical ROI (return on investment) for detached ADUs in San Diego is estimated at 25%–35% just from value added, and 40%–55% when first-year rental income is included.

• Strong Demand: Homes with ADUs often sell faster, up to a month sooner, due to higher buyer interest from both investors and multi-generational families.

• Long-term Appreciation: Properties with ADUs appreciate at about 9.3% annually, outpacing homes without ADUs which average 7.7%.

• Versatility: An ADU can be used for rental, home office, guest housing, or family, adding flexibility and market appeal.

• Rental Income Example: A well-located 2-bedroom ADU renting for $3,000/month can gross $36,000/year, easily offsetting financing payments and generating positive cash flow.

Factors That Influence Value Added

• Size, Design, and Quality: Larger, well-finished units tend to add more value. (MOMO Homes by LuxMod is a strong contender as the come complete with high end finishes and include all appliances!)

• Neighborhood and Demand: ADUs built in high-demand areas or near transit and jobs generally see the strongest returns.

• Permitting: Only properly permitted ADUs unlock full market value; unpermitted units may not be counted by appraisers or buyers and can cause headaches!

• Rental Strategy: Long-term rentals deliver steady income, while short-term rentals (where allowed) can further boost ROI.

Table: ADU Value and Investment Snapshot – San Diego

Conclusion:

Building an ADU in San Diego can boost your property’s value by up to 35%, or more, provide strong ROI and deliver reliable rental income. For many local homeowners, an ADU is a smart investment with lasting benefits for equity, flexibility, and resale potential, especially in one of California’s most competitive housing markets.

Sources:

1. https://www.blockrenovation.com/guides/how-much-value-does-an-adu-add-in-california-markets

2. https://waymakerca.com/blog/how-adus-impact-san-diego-home-value-and-resale

3. https://betterplacedesignbuild.com/blog/is-it-worth-it-to-build-an-adu-assessing-the-roi-of-building-an-adu/

4. https://betterplacedesignbuild.com/blog/adu-cost-san-diego/

5. https://www.adugeeks.com/news/financing-costs-roi

6. https://www.kbbeyond.com/post/how-profitable-are-adus-profit-potential-from-an-adu-in-san-diego

7. https://sandiegobr.com/rent-your-adu-in-san-diego/

8. https://www.housetohome.com/what-value-does-an-adu-add-for-your-home-in-san-diego/

9. https://snapadu.com/blog/roi-adu-good-investment-valuation-appraisals/

10. https://streamlinedesigngroup.com/blog/garage-adu-conversion-cost

When Listings Go Cold, Smart Real Estate Agents Heat Up Their Income with MOMO Homes powered by LuxMod Homes

When the market slows down, commissions shrink, listings sit, and deals drag on. Open houses go quiet, leads dry up, and agents start asking themselves: What’s next?

If you’re a real estate agent feeling the pinch, here’s the truth, downturns don’t have to mean downtime. The best side hustle in real estate right now is partnering with MOMO Homes, where you can earn up to $10,000 per referral helping homeowners, investors and builders.

Up to $10k per referral

Why Real Estate Agents Are Turning to MOMO Homes powered by LuxMod Homes

Homeowners are looking for new ways to create income and increase property value. ADUs (also called backyard homes, casitas, and granny flats, are the fastest-growing trend in housing across the country.

MOMO Homes builds modern, steel-frame ADUs designed to last longer, install faster, and deliver better returns. And when you become a MOMO Partner, you get paid for every qualified referral!

Instead of chasing slow listings, you can offer clients something different: a new stream of equity, income, and freedom through ADUs. And line your pockets at the same time. A true win-win scenario.

What Makes the MOMO Partner Program So Powerful:

Earn up to $10,000 per referral!
No inventory or selling required - just connect interested homeowners or investors
Perfect side income for agents during a market slowdown

You already have the connections. MOMO gives you the opportunity to earn more from them!

How to Become a MOMO Homes Partner

Becoming a partner is FREE and takes less than five minutes! Here’s how to get started:

Step 1: Go to www.theaduwizard.com and click “Start Building Smarter.”
Step 2: Click Menu and choose “Industry Partners.”
Step 3: Scroll down and find the “For Realtors” section. Click “Get Started.”
Step 4: Enter your information — and you’re on your way to becoming a MOMO Partner, earning up to $10,000 per referral!

The Bottom Line

While other agents wait for the market to recover, the smart ones are already earning with MOMO Homes. Every homeowner, investor, landlord, and builder you know could benefit from an ADU — and every referral could put thousands of dollars in your pocket.

Don’t just survive the slowdown. Profit from it.

Visit www.theaduwizard.com and become a MOMO Homes Partner today.

What are the size limitations for ADUs and JADUs in San Diego?

San Diego allows a wide range of ADU (Accessory Dwelling Unit) and JADU (Junior Accessory Dwelling Unit) sizes. With MOMO ADU models from The ADU Wizard, you have flexibility, from compact studios to large multi-bedroom homes. MOMO’s models, like the 428 sq ft Seed Studio and the 1,002 sq ft Umbra 2BD XL, are designed to fit city regulations perfectly, making them an ideal, build ready choice for your property.

Size Limitations for ADUs in San Diego

• Detached and Attached ADUs: The City of San Diego permits detached or attached ADUs up to 1,200 sq ft, with a minimum of 150 sq ft. For many homeowners, this means significant flexibility in design and space planning.

• ADUs Up to 800 sq ft: Units 800 sq ft or less are especially advantageous: they are exempt from certain lot coverage, open space, and floor-area-ratio requirements, making them easier and faster to approve. MOMO ADUs have 3 models that are 800 sq ft or less.

• JADUs: Junior ADUs must be carved from existing space within a single-family dwelling and are limited to 500 sq ft. JADUs must include an efficiency kitchen and typically require owner occupancy.

Seed Studio ADU from MOMO Homes.

MOMO Models: From Efficiency Studios to Spacious Family Homes

MOMO ADU models are selected to fit precisely within San Diego’s regulations, so you can choose the right size and function for your property:

• The Seed Studio: At just 428 sq ft, this ultra-efficient studio is ideal for small backyards or as a compact rental unit, well above the city’s 150 sq ft minimum, and below the key 800 sq ft threshold for regulatory exemptions.

• The Umbra 2BD XL: Offering 1,002 sq ft, this spacious 2-bedroom, 2-bathroom home is nearly at the city’s maximum but still fully permit-compliant. It’s perfect for extended family or as a lucrative rental, combining comfort and style on a larger scale.

• Other Models: MOMO offers a variety of designs and footprints between these two sizes, ensuring a solution for almost any lot and housing need.

Umbra XL from MOMO Homes

The ADU Wizard Advantage

With The ADU Wizard and MOMO models:

• You get pre-engineered, build ready designs that fit San Diego’s detailed size and zoning rules, reducing uncertainty and delays.

• Every MOMO model includes a stamped site plan ready for permit submission, so your project moves forward faster while staying compliant with local code.

If you’re exploring your options and want expert guidance, plus a portfolio of high-quality, build ready ADUs, explore MOMO ADU models at www.theaduwizard.com. With sizes ranging from 428 sq ft to just over 1,000 sq ft, there’s a perfect fit for every San Diego property.

San Diego ADU Permits: Step-by-Step Process and How to Get Approved Fast

To build an ADU (Accessory Dwelling Unit) in San Diego, homeowners must obtain a building permit by submitting thorough and city-compliant plans to the city's Development Services Department. Using a MOMO ADU models from The ADU Wizard, which includes a stamped site plan for permit application, is one of the best ways to streamline this process and maximize approval speed.

What Permits Are Needed for an ADU in San Diego?

Every type of ADU, standalone or attached, or a garage conversion, requires a building permit from the City of San Diego. There are no exemptions: approval is always required to ensure that your proposed ADU meets local zoning, building codes, fire regulations, and California energy standards. Additional permits may be necessary if your project is in coastal or historic zones, or if it involves more complex issues or site conditions.

The Step-by-Step ADU Permit Process

Building an ADU involves several mandatory steps:

• Confirm Zoning and Eligibility: Before investing in design, verify your property’s zoning, lot coverage, setback regulations, and parking standards using city bulletins and Planning Department resources.

• Prepare Complete Plans: Submit a full architectural set, including site plans, floor layouts, elevations, Title 24 energy reports, and structural calculations if needed. Incomplete or substandard plans are the leading cause of project delays.

• Digital or In-Person Submission: San Diego encourages online applications for fastest processing. Upload all documents via its Digital Permit Portal, pay the initial fees, and watch for correction requests from the city’s reviewers.

• Plan Review and Corrections: City officials meticulously review the application for code compliance. Timely responses to correction notices are crucial; most delays happen during this back-and-forth phase.

• Permit Issuance and Inspections: Once all corrections are satisfied, permits are issued digitally. Construction may begin, but multiple city inspections (structural, electrical, energy) are required for final occupancy approval.

Why The ADU Wizard and MOMO ADU Models Make Permitting Faster and Easier

Navigating San Diego’s complex permit process can feel overwhelming, especially for first-time homeowners. Ready-to-build ADU solutions like the MOMO ADU models from The ADU Wizard significantly simplify the experience. Here’s how:

• Stamped Site Plan Included: MOMO ADU models come with permit-ready, architect-stamped site plans tailored for San Diego’s code requirements, addressing this hurdle for permit approval.

• Streamlined Build: By providing a panelized package, MOMO ADU models are a faster build, with less labor, than a traditional build. Time equals money and this is where MOMO ADU models have a huge advantage.

Conclusion

Securing a building permit for your San Diego ADU is a multi-step but manageable process with the right resources. The ADU Wizard and its MOMO ADU models offer a streamlined solution, combining stamped plans for cost-effective permit approval.

If you want a worry-free journey to your ADU with the least hassle, choosing The ADU Wizard is the best step you can take. Visit www.theaduwizard.com to learn more about MOMO ADU models and contact them today!

P.S.

If you are looking for permit assistance in California, I recommend My Permit Solutions.

What is an ADU?

An ADU is an Accessory Dwelling Unit that some zones allow. It is a complete dwelling unit with a bedroom, kitchen and bathroom.
They can be ether attached to the main primary home, or detached.

In both cases, the structure(s) will still have to comply with the zoning regulations of setbacks from the front, side and rear property lines. Depending on where you live there may be height restrictions or other areas of concern like critical areas, shorelines or slopes. Check with your local planning department, they probably have online resources you can use also.

The Seed ADU by MOMO Homes.

Your local planning commission department should have a section in the zoning code about ADUs and if they are allowed, how they are allowed, and list any restrictions such as how large or small they can be, and if they require any additional parking.

One thing to keep in mind is the site plan requirements when submitting for permits (If you hire a permit specialist or the ADU Builder knows about this and is handling this for you, they should already know this) the site plan must be accurate, to scale, and include all the relevant and needed information for review. Again the local planning department should have a resource on their webpage as to what is required for the site plan.

In some cases the zoning will allow for more than one ADU on your lot, which is great news! You can add more units for a larger equity gain and greater cash flow, or you can rent one out and use the other for a family member in need.

But what if your lot, with the required setbacks, can’t accommodate the size? Go up my friend, go up. Building a two story ADU, with the second story unit having an external stair case for access, could be your answer. If yes, you may want to consider asking the building what it would take to build the ceiling/floor slightly thicker with better sound dampening material and what that would cost extra, if anything.

The Seed ADU Floor plan.

How much can they cost? There are many variables that go into this, including tariffs, access to building materials and goods, and labor. On average an online search shows about $200 - $350 per sq ft to build, plus your permit fees, drawing fees for building designs and site plans, plus any fees from the utilities and power departments to hook up. Also, if you are near a critical area, stream or shoreline, the planning department may require additional environmental reports submitted to demonstrate it meets those sections of the local code, and those reports will need to be done by a qualified licensed professional which will also cost money.

You may consider choosing a more modern, complete option like something from the MOMO Homes ADU line which includes complete solid wood cabinets with soft close hinges, quartz countertops and backsplashes, brushed nickel finishes, and Bosch and LG appliances. Also included in the price is a stamped site plan for permit application, which equates to thousands of savings. These models also install faster than a traditional build, which is great because we all know time is money.

A online search shows that adding an ADU can increase equity by 30%-50%, will generate cash flow (if being rented out), and in most cases adds up to 200% value when it comes time to sell the property. Although check with your local laws, some places now allow for the selling of an ADU separate from the main home if the ADU has been condo-ized.

An ADU is a great addition to you property and financial security. Personally, I would not hesitate to add one, and add one (or more if allowed) as soon as I was able to to take advantage of the equity and cash flow.

The ADU Revolution: Taking Back What’s Ours

They told us to work hard, buy a home, raise a family, and live the dream. But while we were grinding away, they were rewriting the rules. Hedge funds, foreign investors, and mega corporations swooped in and bought the homes right out from under our noses. And they want to do it again!

Look around, entire neighborhoods turned into rental portfolios for Wall Street. The same people who crashed the housing market in 2008 are now buying the recovery. They want to own it all.

And you think they’re doing it because they care about “affordable housing”? Please. They care about control. Control of where you live, how much you pay, and how much you struggle to keep up.

But here’s the part they didn’t see coming: we’re fighting back…one backyard at a time.

They Control the Streets. We Control the Backyards.

You can’t outspend a hedge fund. You can’t out-lobby a billionaire. But you can outsmart them.

Accessory Dwelling Units — ADUs — are the revolution they didn’t anticipate. The zoning laws are changing. Cities and states are saying, “Yes, you can build.”

And when you do, you’re not just adding a guest house, you’re building power and protection.

An ADU means rental income that stays local, wealth that stays in your family, and homes that serve people instead of portfolios. It means your kid can afford to move out and stay close. It means aging parents can live independently but nearby. It means your backyard becomes your fortress of freedom in a system that wants you dependent and priced out.

Follow the Money, Then Take It Back

Here’s the dirty secret they don’t want you to know:
Over 30% of all home purchases in major U.S. markets are made by institutional investors. Foreign buyers are buying up property faster than first-time home buyers. And average wages? Flat lined for decades.

You see the pattern. They tighten their grip while they tell us it’s “just the market.”
But “the market” isn’t natural, it’s engineered.

The average homeowner doesn’t stand a chance in that game unless you play smarter. ADUs are how we play smarter. 

You can’t control the Fed. 

You can’t control Wall Street. 

But you can control your backyard.

An ADU turns one income stream into two, or more if your zone allows for multiple ADUs!

One opportunity into a small legacy.

It’s the classic loophole completely legal, beautifully local, and impossible for them to monopolize.

This Is About More Than Money

Let’s be real for a moment, this is about more than just economics. This is about dignity.
About not being forced to sell the home your parents built because property taxes exploded. About not watching your kids move three states away just to find something affordable.

We’re tired of begging the system for scraps. We’re done waiting for politicians to “fix housing.”

The fix is already here, it’s sitting behind your house, waiting to be built. The humble but mighty ADU.

The ADU Revolution Is Now!

While they’re trying to build luxury towers and corporate compounds, you can be building resilience.
While they lobby for tax loopholes, you can be creating real community wealth.
While they hoard, you can build and share, with family, with neighbors, with people who deserve a chance.

And the time to act is now! You mush be fast, decisive, and smart. The tools are here. The laws are changing. This opportunity won’t last forever.

Don’t wait for permission from the same people who profit off your dependence.

Protect yourself. Protect your family. Protect your community.

Because clearly, they’re not interested in doing that anymore.

This isn’t just construction, it’s real estate war, join the ADU revolution.

They control the streets.
We control the backyards.

Arm yourself with ADUs. Join the movement. Build your freedom.

#HackYardGoldRush #ADUResistance #ADURevolution

www.theaduwizard.com

Why Every Bay Area Engineer Needs an ADU in Their Investment Stack

You’ve built systems that scale, debugged code at 2 a.m., and optimized pipelines until your brain melted — but your money? It’s still trapped in the same volatile markets as everyone else’s. The stock market doesn’t care about your logic, your sprint velocity, or your perfect commit history. It’s chaos dressed in a hoodie.

An ADU — Accessory Dwelling Unit — is the missing line of code in your financial architecture. A physical, income-generating node that compounds over time instead of disappearing into algorithmic smoke. MOMO Homes has cracked the formula: high-quality panelized builds that go up fast, stay strong, and start earning faster than traditional builds or conversions. They’re engineered, not improvised.

Think of it as the real-world version of passive income: you deploy once, maintain occasionally, and watch your investment pay dividends in rent and appreciation. In a region where housing is a blood sport, owning an ADU isn’t just smart — it’s a necessity for a best approach wealth portfolio.

It’s time to move part of your portfolio from the cloud to the ground.

Visit www.theaduwizard.com to see options available, and contact me for details and current pricing.

Why Smart Contractors Are Ditching Big Builds for Fast, Modular ADUs That Pay in Weeks

For years, contractors have been chained to the same grind — giant builds, endless delays, clients breathing down their necks while inspectors shuffle paper like medieval monks. Every project a gamble, every payout months away. But a quiet revolution is spreading through California’s backyards, and the contractors who spotted it early are already cashing in. It’s not condos or high-rises. It’s ADUs — panelized, precision-built homes that install faster than most people can finish a kitchen remodel.

Traditional construction feels prehistoric next to the new modular process. MOMO Homes’ ADUs, for instance, arrive pre-engineered, panelized, and ready to assemble in days instead of months, and with less labor! There’s no waiting for subcontractors to show, no fighting the supply chain apocalypse, and no praying the weather holds out. Every detail is handled off-site, so by the time the unit hits the foundation, half the job is already done. For builders used to juggling chaos, that’s not innovation — it’s liberation.

And then there’s the money. While most big builds take half a year or more before a dime clears, these modular ADUs can be producing rental income within 6 months. The margins are good, the turnaround is quick, and the client satisfaction rate blows traditional projects out of the water. That’s why so many contractors are pivoting — not out of nostalgia, but survival instinct.

The market’s only getting hotter. California’s housing shortage isn’t a problem — it’s an invitation and golden opportunity! Homeowners are hungry for ways to turn their property into income, and cities are finally cutting through red tape to make ADUs easier than ever to build. The contractors who position themselves now — those who can say, “Yeah, we offer MOMO ADUs” — will own the next decade of small-scale development. The rest will still be buried in paperwork, wondering where the money went.

For the builders paying attention, this isn’t about chasing trends. It’s about adapting before everyone else wakes up. Big builds will always have their place, but smart contractors know the game has changed. Panelized ADUs are faster, cleaner, and profitable — and they’re not the future. They’re right now.

Visit www.theaduwizard.com and see why the smartest players in the Bay Area are already on board. Contact me for pricing information and more details.

San Diego ADU Builders: Stop Chasing Projects. Start Owning Them.

San Diego’s (and California in general) ADU market is exploding. Every week, more homeowners wake up to the value of adding a backyard unit for rental income, increased equity and resell value, family living, or lifestyle flexibility. The demand is massive — and only growing larger! Of course you already know this.

But for builders and general contractors, that growth can come with headaches:

• Material delays that wreck timelines.

• Labor shortages that eat into profits.

• Unpredictable schedules that keep you chained to the phone instead of running your business.

• Razor-thin margins that make winning bids feel like losing battles.

Sound familiar?

Enter MOMO: The Partner That Changes the Game

At MOMO, we don’t just supply ADUs. We deliver luxury panelized homes designed to make you look like a rockstar to your clients while keeping your business profitable and your schedule sane.

Here’s how:

• Luxury, turnkey quality. Included in the price, every model comes with solid wood cabinets, premium appliances (Bosch & LG), and the option for solar panels. Every model also includes a stamped site plan for permit application. This isn’t cookie-cutter prefab — it’s panelized luxury excellence that sets you apart.

• Sure Foot Foundation. Our proprietary Surefoot foundation system is a concrete-free alternative that spreads load over a larger surface area, achieving higher load capacities faster and more cost-effectively. Designed to meet compliance requirements and adaptable to various soil conditions, it ensures a solid base for each and every build.

• Onsite Training. Our team offers hands-on training during the first build to ensure a smooth construction process.

• Customizable designs. Your clients want choices. With MOMO, they get flexibility without the chaos of redesigning from scratch. With models from as small as the Seed Studio at 428 sq ft, Alpen Mini (2BR 1BA) at 685 sq ft, to the Umbra XL (2BR 2BA) at 1,002 sq ft, we have options that meet your customers needs.

• Faster builds with less labor. Our cold-formed steel framing and precision panelization go up quickly and cleanly — saving you time, headaches, and crew stress.

• Clear, profitable pricing. Quote your customer with confidence: MOMO model cost + your installation labor + your margin.

That means you stay competitive, solvent, and profitable — without the endless cost overruns and material wild goose chases.

Why This Matters in San Diego

The San Diego ADU market is booming. Homeowners are searching for reliable builders who can deliver quickly, beautifully, and without drama. By becoming a MOMO partner, you position yourself as a preferred provider — the contractor with the luxury, speed, and certainty everyone else wishes they could offer.

When you’re backed by MOMO, you’re not chasing scraps of the market — you’re dominating it.

Smoke the Competition. Build Smarter. Earn More.

Stop wasting hours juggling delays and razor-thin bids. Start giving your clients luxury ADUs they rave about — while you pocket stronger margins and reclaim your schedule.

Click here to become a MOMO Partner today

KITSAP REGIONAL COORDINATING COUNCIL PRE-APPROVED ADU PLANS

The Kitsap Regional Coordinating Council has posted on their webpage they have begun work on coordinating for pre-approved ADUs plans for Kitsap County, as well as the cities of Bainbridge Island, Bremerton, Port Orchard and Poulsbo.

Kitsap Regional Coordinating Council Pre-Approved ADU plans

The Pre-Approved plans will ideally help speed up the planning, permitting and construction process so the applicants can use it as soon as possible.

I like this approach to add ADUs and help incentivize their utilization. Making them more approachable, like an online shopping process where you just click and the purchase is done and the item is on the way, makes sense.

It seems like four plans are available now, with an additional two more plan sets coming later.

I’d like to see one of those set plans be a 2 ADU unit, ideally stacked for those lots in Kitsap County UGAs (Urban Growth Areas) that allow up to two ADUs per lot. Some of the lots are constrained in footprint size, and building up is a great way to address this.

True Built Homes Shasta Model, which can be configured as a two story ADU.

While this is a step in the right direction for helping applicants utilize ADUs, I still feel strongly about cities, counties and governments using a tax abatement program for ADUs for a set period years, such as 5 years for one ADU, or 10 years for two ADUs. They could make the requirements for earning this abatement be something like the ADU has to be rented out at or below fair market value, and if that requirement is not met the remainder of the tax abatement time period is forfeit.

I am looking forward to seeing more density and value added from ADUs.

Unlocking the Potential of Accessory Dwelling Units to Address Housing and Financial Challenges

Accessory Dwelling Units (ADUs) represent a viable solution to the dual crises of housing affordability and housing supply shortages. By leveraging existing properties to create additional living spaces, ADUs can increase urban density usually without extensive new infrastructure. Furthermore, they offer homeowners financial benefits while addressing community housing needs. This post explores the challenges and opportunities of ADUs, reviews case studies such as Des Moines, Iowa, and provides actionable recommendations for policymakers to incentivize ADU development.

The Housing Crisis: A Call for Action

The United States faces a severe housing shortage, with a national deficit of 3.8 million units as of 2022 (National Association of Realtors). This shortage drives up costs, disproportionately affecting low- and middle-income households. ADUs—small, self-contained residential units located on the same lot as a primary residence—are uniquely positioned to address this crisis by:

1. Increasing housing supply within established neighborhoods.

2. Providing affordable housing options for tenants.

3. Generating supplemental income for homeowners.

Despite these benefits, barriers such as regulatory restrictions, high construction costs, and lack of homeowner awareness have limited the widespread adoption of ADUs.

Barriers to ADU Development

1. Regulatory Hurdles: Zoning laws often restrict the construction of ADUs by imposing minimum lot sizes, parking requirements, occupancy limits, or needing additional permits for their construction.

   • Example: Many municipalities still treat ADUs as non-conforming uses, requiring costly variances or additional permits.

2. High Upfront Costs: The average cost of building an ADU ranges from $100,000 to $250,000 (Urban Institute). Although some financial institutes are using some creative solutions to address this, financing options for homeowners are limited, further deterring potential builders.

3. Awareness and Education Gaps: Many property owners remain unaware of ADU policies and the financial incentives available to them from owning an ADU.

Case Study: Des Moines, Iowa

Des Moines’ innovative ADU program demonstrates how tax incentives can encourage property owners to embrace ADU development. Key features include:

• Tax Abatement: Property owners receive a tax break on the increased value of their property due to the ADU.

• Streamlined Permitting: A simplified approval process reduces administrative burdens and costs.

• Community Outreach: Workshops and educational campaigns help homeowners understand the benefits of building ADUs.

As a result, Des Moines has seen a significant increase in ADU construction, contributing to housing density and affordability.

Benefits of ADUs

1. Affordable Housing Supply: ADUs provide low-cost rental options, particularly in high-demand urban areas.

2. Financial Stability for Homeowners: Rental income from ADUs can help offset mortgage payments and provide financial security. Increased property value and resell value are also benefits.

3. Efficient Land Use: ADUs in some cases can utilize existing infrastructure, reducing the environmental and financial costs of sprawl.

4. Multigenerational Living: ADUs offer flexible housing options for families, allowing for close proximity while maintaining privacy.

Recommendations for Policymakers

To maximize the potential of ADUs, governments should look at implementing the following strategies, or some form of them:

1. Tax Incentives:

   • Offer property tax abatements for ADU construction, as seen in Des Moines, Iowa and other locations.

   • Provide income tax credits for rental income generated from ADUs.

2. Grants and Low-Interest Loans:

   • Establish grant programs for low- and middle-income homeowners to help offset construction costs.

   • Permitting agencies should refund or have grant money available for needed permits, or perhaps provide a tax break for the permit cost.

   • Partner with financial institutions to offer low-interest loans specifically for ADU projects.

3. Regulatory Reform:

   • Where feasible and needed, relax zoning restrictions to allow ADUs by right in residential zones.

   • Reduce or eliminate parking requirements for ADUs near public transit. This would need to be coupled with a focus on alternative modes of connectivity such as walking, biking and bus routes.

4. Educational Outreach:

   • Conduct workshops and informational campaigns to educate property owners about ADU benefits and available incentives. Partnerships with real estate agents to disseminate this information would be effective as well.

   • Mail brochures and fliers to home owners educating them about the opportunities. Canvasing to hand out these is also recommended when possible.

   • Develop online resources, including cost calculators and step-by-step guides for ADU construction.

5. Streamlined Permitting:

   • Create streamlined permitting processes, as needed, for ADU projects to reduce time and cost barriers.

   • Implement standardized design templates to simplify construction approvals. See the Seattle ADU page for example of pre-approved designed that help reduce the time to construction.

The Path Forward: Investing in ADUs for a Sustainable Future

ADUs present a scalable, cost-effective solution to address housing shortages while empowering private property owners. Government incentives such as tax breaks, grants, and educational programs can significantly accelerate ADU adoption, fostering a more equitable and sustainable housing market.

By adopting proven strategies and tailoring them to local contexts, policymakers can transform neighborhoods into vibrant, inclusive communities. Now is the time to act decisively, leveraging the potential of ADUs to create a brighter future for all.

References

1. National Association of Realtors (2022). “Housing Shortage and Its Impact on Affordability.”

2. Urban Institute (2021). “The Costs and Benefits of Accessory Dwelling Units.”

3. City of Des Moines (2023). “ADU Tax Abatement Program Overview.”

4. Terner Center for Housing Innovation (2022). “Regulatory Barriers to ADU Development.”

5. American Planning Association (2021). “Innovative Housing Solutions: Lessons from Global Cities.”