Toward More Permitted Development Image of Caravan- The Tiny House - PowerPoint PPT Presentation

11) A Pathway for Planners and Advocates Toward More Permitted Development

Image of Caravan- The Tiny House Hotel: tinyhousehotel.com

Household sizes Home sizes

Household sizes Home sizes

11) A Pathway for Planners and Advocates Toward More Permitted Development

11) A Pathway for Planners and Advocates Toward More Permitted Development

11) A Pathway for Planners and Advocates Toward More Permitted Development

Cons of permitting • Use restrictions • Additional parking requirements • Must go through lengthy, bureaucratic and expensive process • More expensive to comply with code than not to • Tax increases

Pros of permitting •Appraisal value (…and loans) • Legally rent it--less stress • Insurance • Quality assurance

Good news • ADU neighborhood impacts already exist • Permitted ADUs would provide safer ADUs

Example ADU STREET Development Regulations SIDEWALK Maximum Size of ADU • 800 sq ft or PARKING • 75% of the living area of the primary dwelling Retain existing space Building Lot Coverage HOUSE (9’x18’) • Footprint of accessory structures can not exceed 15% of the total lot Height 40 ft • Midpoint of the primary gable must be <20ft high 5 ft Exterior finish materials can match the primary house or….. ADU • Roof pitch= 6/12 pitch or greater 20 ft • Trim= 3 ½” or greater • Siding reveal= 6” or less • Eaves= 1ft eaves on all side • Windows must be at least at tall as they are 5 ft wide on street facades

Breakeven for ADU Development How long will it take to pay for the cost of the ADU construction via the property’s rental income? Example A: For an 800 sq ft ADU, Joe spends $160K. Joes lives in the house and rents out the ADU for $1,500/month for $18K/year $18K/year x 8.9 years = $160K Example B: For an 800 sq ft ADU, Joe spends $160K. Joe lives in the ADU and rents out the house for $2,500/month for $30K/year. $30K/year x 5.3 years = $160K Example C: For an 800 sq ft ADU, Joe spends $160K. Joe rents out the ADU and the house for $4,000/month for $48K/year. $48K/year x 3.3 years = $160K Ex. A) Lives in the house Ex. B) Lives in the ADU Ex. C) Rents out the ADU and and rents out the ADU and rents out the house the house ADU construction cost $160K $160K $160K Rental income $1,500/month $2,500/month $4,000/month Breakeven period 8.9 years 5.3 years 3.3 years Breakeven w/ADU value 2.2 years 1.3 years 10 months

Jumping the Capital Hurdle: ADU Financing Options Most common ways to fund ADU development: • Home Equity Line of Credit Loans - refinancing existing house if there’s significant equity in the main house. With a “HELOC” you wouldn’t need to refinance the existing property but need enough equity. • Cash Out Refinance : refinancing existing house and taking out cash at a new, fixed, amortized rate. • Liquid assets (savings, stocks, 401K loans) • Sweat Equity- rule of thumb: half for material, half for labor. • Family Loans and other non-secured lines of credit

Design/Permitting Process 1. Funding 10. Integrated Design Process 2. Brainstorm project scope 11. Designer refines schematics 3. Talk to a City planner determine feasibility 12. Have designer build a 3D model of the design 4. Rough sketch some ideas 13. Designer finalizes design 5. Talk to neighbors with input from owner and 6. Interview architects or builder designers 14. Develop drawings and 7. Find builders and subs structural engineering 8. Initiate financing as calculations for City needed 15. Submit drawings to the City 9. Designer draws up for permit schematic drawings for 16. Hire land surveyor consideration 17. Obtain permits

The Austin Alley Flat Initiative

ADUs in Los Angeles

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 50 Permitted ADUs from 1981 to 1996 Pre-1996 NO OFF FF “A” ALL LLOWED WED OWNER WNER IMPACT FEES STRE REET OVERLAY BY RIG IGHT HT OCCUPANCY OCCUP ANCY ??? PARK ARKING ZONE ONLY NO NO INTERNAL SIZE CAP: DESIGN MIN INIM IMUM UM CONVERSION PRIMARY COMPATIBILITY ONLY LOT SIZE T SIZE HOUSE

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 1996 - 2009 ADU Blast Off ?? CAN CA NO OFF FF “A” ALL LLOWED WED RENT RE OWNER WNER ALL ALLOWE WED D IMPACT FEES IMPACT STRE REET OVERLAY BOTH BO BY RIG IGHT HT OCCUPANCY OCCUP ANCY CITY-WI CI WIDE DE FEES 50% ??? PARK ARKING ZONE ONLY UNITS NO NO TYPE TYPES: S: INTERNAL DESIGN SIZE CAP: INT INTERN ERNAL AL SIZE CAP MIN INIM IMUM UM CONVERSION COMPATIBILITY PRIMARY ADDITION AD DITIONS S 33% / 800SF ONLY LOT SIZE T SIZE DETACHE DET CHED HOUSE

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 1996 - 2009 ADU Blast Off ?? CAN CA NO OFF FF “A” ALL LLOWED WED RENT RE OWNER WNER ALLOWE ALL WED D IMPACT STRE REET OVERLAY BOTH BO BY RIG IGHT HT OCCUPANCY OCCUP ANCY CI CITY-WI WIDE DE FEES 50% PARK ARKING ZONE ONLY UNITS NO NO TYPE TYPES: S: INTERNAL DESIGN SIZE CAP: INT INTERN ERNAL AL SIZE CAP MIN INIM IMUM UM CONVERSION COMPATIBILITY PRIMARY ADDITION AD DITIONS S 33% / 800SF ONLY LOT SIZE T SIZE DETACHE DET CHED HOUSE

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 2010 - 2015 CA CAN NO OFF FF IMPACT ALL LLOWED WED RENT RE IMPACT ALL ALLOWE WED D STRE REET FEES BOTH BO BY RIG IGHT HT FEES 50% CI CITY-WI WIDE DE PARK ARKING WAIVED UNITS NO NO TYPES: TYPE S: SIZE CAP DESIGN INTERN INT ERNAL AL MIN INIM IMUM UM 33% / 800SF COMPATIBILITY ADDITION AD DITIONS S LOT SIZE T SIZE DETACHE DET CHED

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 2010 - 2015 CA CAN NO OFF FF IMPACT ALL LLOWED WED RENT RE IMPACT ALL ALLOWE WED D STRE REET FEES BOTH BO BY RIG IGHT HT FEES 50% CI CITY-WI WIDE DE PARK ARKING WAIVED UNITS NO NO TYPES: TYPE S: SIZE CAP DESIGN INTERN INT ERNAL AL MIN INIM IMUM UM 75% / 800SF COMPATIBILITY ADDITION AD DITIONS S LOT SIZE T SIZE DETACHE DET CHED

Portland’s ADU History ADUs permitted per year & Applicable Regulations 700" 600" 500" 400" 300" 200" 100" 0" 1991"1992"1993"1994"1995"1996"1997"1998"1999"2000"2001"2002"2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018" 2015 - 2016 CA CAN NO OFF FF IMPACT ALL LLOWED WED RENT RE IMPACT ALL ALLOWE WED D STRE REET FEES BOTH BO BY RIG IGHT HT FEES 50% CI CITY-WI WIDE DE PARK ARKING WAIVED UNITS NO NO TYPE TYPES: S: SIZE CAP DESIG IGN DESIGN INT INTERN ERNAL AL MIN INIM IMUM UM 75% / 800SF COMPATIB MPATIBILITY ITY COMPATIBILITY ADDITION AD DITIONS S LOT SIZE T SIZE DETACHE DET CHED

Preconditions of an ADU Movement • Affordable Rental Housing Crisis & High Land Values • Predominance of ‘Single Family’ Residential Zoning • Political Leadership