Apparently, one of the reasons the owner occupancy 5 year reprieve was put into the bill was to help address concerns about a run of big investors coming in and snapping up SFRs and building ADUs affecting the character of neighborhoods. After the 5 year period, the bill will be up for review and, if repealed, those who have built ADUs during the reprieve will be grandfathered in to the no owner occupancy requirement. All the more reason for folks to build now if they’re on the fence!
JADUs require owner occupancy, but is that just during the permitting process? What happens if you owner occupy, build a JADU and eventually move out years later? You don't have to demolish the JADU and convert it back, right?
Realistically, nothing. Here is what my local city states “The property owner shall record a deed restriction indicating that owner occupancy is required at all times.” This would limit your pool of buyers if you ever sold since you couldn’t sell it to another investor. Enforcement will just depend on your city.
My interpretation is that the JADU must be in the existing, permitted square footage of the main dwelling. Approved plans will tell for sure, but this is all up to your local governing body's interpretation.
I'm building a 1000 sq ft 3 bed 2 bath detached ADU and my strategy on this is to design with the possibility to split this into 2 units 1/1 units (by replacing a bedroom with a kitchen) or a 2/1 + studio (by adding a kichenette to the master). My plans are most symetrical so I can split the ADU in half with each side getting a bathroom. I'm also having french doors to each of the bedrooms for separate access to the outside and making sure my plumbing is close by if I need to add another kitchen or kitchenette.
Another thing to check if you can get freddie / fannie lending on a property with 2 accesory dwelling units. Would hate to do that work and not be able to refi or sell using standard loans.
None of the federally backed mortgages (FHA/Freddie/Fannie) allow for two ADU's on one property. Additionally no zoning allows for the building of two ADU's on one lot. You can build an ADU and a JADU but not two ADU. So if you did do this the ADU would be non-permitted as it would pass finial or if you did the conversation after the final then it would be an illegal conversion. Needless to say you'd have a tough time selling that property to anyone other then a cash buyer who isn't concerned with the permitting issues.
@Dan Heuschele : no, sorry. My jurisdiction has narrow views of what constitutes new. Yes a completely new build on an empty lot would count, but not something that involves adding to an existing building. This jurisdiction even has units that are 2/3 under rent control, because they defined part of it as pre-existing.
I am assuming that the state rent control regulation (AB1482) is what applies and that there is not a local ordinance. Local ordinances have to be in compliance with Costa-Hawkins.
AB1482 (Tenant protection Act of 2019: tenancy: rent caps) explicitly states that "housing that has been issued a certificate of occupancy in the last 15 years" is exempt ("This section shall not apply to the following types of residential real properties or residential circumstances"). I do not know if you want to force the issue, but AB1482 is fairly clear that a new unit does not fall under the state rent control regulations.
In addition, the rationale for the 15 year exemption is to encourage the introduction of new units. So applying rent control to a new ADU or JADU is both against the wording of AB1482 and the rationale of exempting new units from the regulation.
If you wanted to push the issue, I would start by contacting HCD. I suspect they would get the jurisdiction to change the policy that is resulting in rent control being applied to the unit.
I believe Costa-Hawkins prevents rent control on any units "built" after 1995, but "built" may be questionable in the case of JADU that is created out of existing space. The Costa-Hawkins rationale for the exemption on new builds is the same as AB1482. They do not want to discourage new units, so a ADU or JADU should not have rent control applied per the intent of Costa-Hawkins.
I have an attached adu garage conversion I recently completed. I have a bedroom right between the original home square footage and the ADU. I was considering converting it to a JADU but want to connect it the the ADU for bathroom access and close the access to the original home square footage. The room already has its own exterior access. If this is allowed it should be relatively simple. Anyone know the answer?
Here's a method that could work that I am exploring.
Where I'm building my ADU. I am allowed to reclassify the existing structure as the ADU and the new construction as the SFR main house. So if you have a small house like I do on the lot and plan to build another. By classifying the new unit as the main house, in theory I could construct a garage in that house. Then turn it into a JADU. This would only work for those who have the room to build something with a garage on their new construction and have the capability to swap the structures classification (old being the ADU and new being the SFR).
I don't know if this is possible, but the idea seems feasible. Does anyone else have any updates to this year old thread on how things have progressed for them?