ADU Bonus for Affordable ADUs.

[Correy Cooper]

Has anyone built an affordable ADU? I'm considering building a few on a large piece of land near a local college in San Diego. I'm wondering if I would be able to rent them to college students and what exact amount I can charge for monthly rent? Below is some information from the city's website. Any help is greatly appreciated.

Thanks,

Correy 

	Rental ADUs	For-Sale ADUs1
shall be affordable, including an allowance for utilities, at a rent that does not exceed:	shall be affordable at an affordable housing cost that does not exceed:
Very Low Incomehouseholds	30 percent of 50 percent of the area median income, as adjusted for family size appropriate for the unit.	30 percent of 50 percent of the area median income, as adjusted for family size appropriate for the unit.
Low Income households	30 percent of 60 percent of the area median income, as adjusted for family size appropriate for the unit.	30 percent of 70 percent of the area median income, as adjusted for family size appropriate for the unit.
Moderate Incomehouseholds	30 percent of 110 percent of the area median income, as adjusted for family size appropriate for the unit.	35 percent of 110 percent of the area median income, as adjusted for family size appropriate for the unit.

[Whitney Hill]

Adding a note here in case others are looking for resources on this topic. We successfully permitted and are in the process of building a bonus ADU project. There are a number of restrictions to be aware of that were not evident until we actually took a homeowner through the process, saw the documents required etc. Full content on our blog, but here is an important section:

What are other key points of the Affordable Bonus ADU Agreement I will need to sign?

It's important to highlight several key restrictions that apply to the Affordable ADU:

1. No Related Renters: The Affordable ADU cannot be occupied or leased to the owner, any relatives (by blood or marriage) of the owner, anyone employed by the owner, or anyone connected to any entities involved in ownership of the property.
2. Student Dependents: The Affordable ADU may not be leased to student dependents, as defined in the U.S. Internal Revenue Code, unless their taxpayer guardian resides in the same unit.
3. Property Ownership: Individuals or households that own real property are not eligible to occupy or lease the Affordable ADU.
4. Liquid Asset Limitation: Eligibility is restricted to persons or households whose liquid assets do not exceed 110% of the annual Area Median Income. Liquid assets include cash, savings, marketable securities, etc., but not inaccessible retirement funds.