Portland ADU experience

[Bruce Runn]

I'm in Minneapolis and am trying to get the city to follow Portland's lead to allow non owner occupants to build ADU's. Currently our ordinance restricts ADU's to owner occupants. Since Portland lifted that restriction, the number of ADU's has soared to over 600 in 2016- haven't seen 2017 figures and if anyone knows it, please respond. I own a dozen duplex/triplexes and am a GC and would want to build an ADU on every property. I have sufficient lot sizes and room in some of the more popular neighborhoods so I don't have size issues. My question is for landlord owners, what type of financing/appraisal issues did you run into? I can do commercial but to really expand the numbers of ADU's in the city, residential loans availability will be needed long term. Are your local banks open to holding residential loans where an ADU has been built? Has anyone run into appraisal issues? What is the protocol? I assume if a duplex adds an ADU, its treated like a triplex.

[Bruce Runn]

@neal Collins

A big key is you just added another rental housing unit and you guys have a market that's as tight as ours.  We have a 2.1% vacancy rate.  There's a lot of opposition to the 4 plex anywhere concept and the main push back is parking.  We have a lot of people invested in making sure no one else can park in front of their house.  It's crazy.  The other point is most people realize we need more housing but they don't want anyone to make money on it.  They think every developer is just getting rich but there the only one building big apartments.  It's a conundrum.  They want them built but don't want a developer to build it.  It falls into the "somebody out to" club.  They want it but under their rules and it can't cost them anything-LOL