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Call now: 619-327-9513 "Total Building Solutions"

All World Construction LLC

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Building Your Dreams with All World Construction LLC - Additional Dwelling Unit Fact Page

 

Addressing California's Housing Crisis with Legislative Solutions and Opportunities

California's housing market, particularly in major cities like San Diego and Los Angeles, faces significant challenges characterized by limited inventory, affordability issues, and rising rents. However, recent legislative measures such as Assembly Bill 68 & 434 (AB 68 & AB 434), Assembly Bill 1033 (AB 1033), and Senate Bill 9 (SB 9) are designed to tackle these issues and create new opportunities for homeowners, buyers, and the broader real estate market.

California’s Housing Challenge

Inventory Shortage

  • Statistical Insight: As of 2023, San Diego and Los Angeles are facing a combined shortage of over 500,000 housing units (California Housing Partnership).
  • Impact: Limited housing inventory drives up property prices, making homeownership increasingly unattainable.

Affordability Crisis

  • Statistical Insight: The median home price in San Diego is approximately $900,000, and in Los Angeles, it’s around $850,000, far above the national average (Zillow, 2023).
  • Impact: High prices limit access to housing, particularly for first-time buyers and low-income families.

Rising Rents

  • Statistical Insight: Average rent in San Diego has increased by 36% and in Los Angeles by 30% over the past decade (Apartment List, 2023).
  • Impact: Rent increases outpace wage growth, exacerbating housing instability and homelessness.

California’s Legislative Solutions

Assembly Bill 68 & 434 (AB 68 & AB 434)

  • AB 68: Allows homeowners to add two additional units (an ADU and a JADU) on residential lots, promoting the development of triplexes.
  • AB 434: Mandates that cities have pre-approved ADU plans by 2025, streamlining the approval process and reducing bureaucratic delays.

Assembly Bill 1033 (AB 1033)

  • AB 1033: Permits the separate sale of ADUs from the primary residence, allowing for individual ownership of ADUs and primary homes, which can stimulate the housing market.

Senate Bill 9 (SB 9)

  • SB 9: Facilitates the conversion of single-family homes into duplexes and allows for lot splits, significantly increasing the potential housing stock in urban areas.

Opportunities Created

Increased Housing Supply

  • Impact: Legislative measures are expected to significantly boost housing inventory, helping to meet demand and stabilize prices.
  • Statistical Insight: The potential for an additional 1.5 million housing units statewide, with a significant portion in San Diego and Los Angeles (California Department of Housing and Community Development, 2023).

Increased Affordability and Qualification

  • Impact: More housing units lead to more affordable options, improving access for low-to-moderate income families.

Additional Income for Homeowners

  • Impact: Homeowners can generate rental income from ADUs, improving financial stability and offsetting mortgage costs.
  • Statistical Insight: Homeowners in San Diego and Los Angeles can see rental income increases of up to $2,500 per month from ADUs (RentCafe, 2023).

Multi-generational Living

  • Impact: ADUs provide flexible living arrangements for extended families, enhancing family support and reducing living expenses.

Increased Property Value

  • Impact: Properties with additional units often see higher market values, benefiting homeowners' equity.
  • Statistical Insight: Properties with ADUs in Los

Angeles and San Diego can see an increase in value by 20-30% (Redfin, 2023).

Who Benefits?

Homeowners

  • Gain additional income, improved property value, and flexible living arrangements.

Homebuyers

  • More housing options at potentially lower prices, improving access to homeownership.

Realtors

  • Expanded inventory and new market opportunities drive business growth.

Contractors

  • Increased demand for construction and renovation services.

Lenders

  • New financing opportunities through HELOCs, cash-out refinances, construction loans, and home improvement loans.

Legislative Details

AB 68 & 434

Single Family Homes:

  • One ADU (up to 1,200 sq. ft.) and one JADU (up to 500 sq. ft.) per lot.
  • One detached ADU up to 1,200 sq. ft. on the same footprint as an existing structure.

Multifamily Dwellings:

  • Multiple ADUs within existing structures.
  • Two detached ADUs on a multifamily lot.

AB 434:

  • Requires cities to have pre-approved ADU plans by 2025, simplifying the approval process.

AB 1033:

Separate Sale of ADUs:

  • Allows ADUs to be sold separately from the primary residence, potentially increasing property sales and ownership opportunities.

SB 9:

Duplexes and Lot Splits:

  • Permits conversion of homes into duplexes and lot splits with ministerial approval.
  • Projects must meet specific criteria, including urbanized area designation, parking requirements, and local short-term rental regulations.

Financing Options

  • HELOCs, Cash-Out Refinance, Construction Loans, Home Improvement Loans
  • Note: Financing agencies typically allow only one ADU per property despite state allowances for two.

Conclusion

California's legislative efforts are paving the way for significant changes in the housing market, particularly in cities like San Diego and Los Angeles. By increasing the housing supply, improving affordability, and creating new income opportunities, these measures promise to address some of the state's most pressing housing challenges. As more homeowners and developers embrace these opportunities, the real estate landscape in these cities will continue to evolve, offering hope for a more sustainable and accessible housing future.

Resources

  • California Housing Partnership
  • Zillow
  • Apartment List
  • California Department of Housing and Community Development
  • RentCafe
  • Redfin

These statistics and insights underscore the pressing need for ADUs and other legislative measures to address the housing crisis in California's major cities, offering a multi-faceted approach to urban living and economic stability.

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    ADU Builder in San Diego

    Things to know about the process of Building and ADU

    Additional Dwelling Units in San Diego California

     

    Ahoy, San Diego dwellers and dreamers of extra space! Let’s navigate the seas of adding an Additional Dwelling Unit (ADU) to your homestead. 🏡✨


    • Seeking eligible zip codes for an ADU extravaganza? 
    • Fancy a deep dive into the City/state ADU code treasure trove? 

    Timeframe for ADU Magic to Happen:

    • We begin with a Sherlock-Holmes-level inspection, concocting designs that fit your land like a glove. Roughly a month, we sketch dreams onto paper.
    • Plans then waltz through the city's hallowed halls for approval.

    Cost of Your ADU Adventure:

    • Fancy a free stroll and chit-chat estimate? We've got you.
    • Costs swing from $40,000 to a swanky $850,000, potentially boosting your estate's value like a charm spell – more gold in your pocket, really. (Tip: Chat with your gold-counter... erm, financial advisor, for the juicy details.)

    The Rulebook of ADU Creation:

    • Fence line blues? Pshaw! Build from 0'-4' away and make every inch count.
    • Craving altitude? Shoot up 24'-35' high – sky's almost the limit!
    • Play nice with size: Your ADU shouldn't overshadow your main castle – keep it to half the size.

    The Red Tape Waltz:

    • City and state maestros conduct the building symphony – occasionally, they improvise new notes.
    • Beware the "CDP" – a shapeshifter of a permit.
    • Builders are swift; bureaucracy, not so much. Cushion your timeline with a 1-3 month safety net.

    The Countdown to Construction:

    1. Site review, customer pow-wows, and design doodling – 30 days.
    2. Plan parades and permit pilgrimages – add 60-100 days of paperwork tango.
    3. With permits in hand, we'll hammer and hustle – 16-28 weeks to your ADU kingdom!

    Ready your quill and ink your dreams – your ADU quest awaits! 🛠️💫 



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    "Maximize Your Space: San Diego's Guide to Tiny Homes & Units!"

    March 18, 2024|ADU, ADU laws in california, All World Construction LLC, Central San Diego Builder, general contractor, learning, real estate, Southern California Homes, Tiny Home, Tiny home laws

    • Building Smaller Additions:
      • San Diego's zoning rules allow for some creative additions to your property, such as companion units, junior units, and movable tiny houses.

    WHY?! 

     

    San Diego, like many other cities in California and across the United States, is addressing a pressing need for affordable housing. The city's initiatives to make it easier to build companion units, junior units, and movable tiny houses stem from several factors:

    1. Housing Shortage: There's a significant shortage of affordable housing in San Diego. Allowing homeowners to build additional dwelling units can help increase the supply of available housing.
    2. Cost-Effectiveness: Tiny homes and accessory dwelling units (ADUs) are often more affordable to construct than new, full-size houses. They offer a cost-effective way to utilize existing lots to create more living space.
    3. Density Increases Without Overdevelopment: These units increase the density of housing without the need for extensive land development. This helps preserve the character of existing neighborhoods while accommodating more residents.
    4. Flexible Housing Options: They provide more flexible housing options for family members, renters, and others, which can be particularly beneficial in multigenerational living situations or for homeowners who want extra income from rentals.
    5. Legislative Push: California has passed several laws in recent years aimed at easing restrictions on ADUs and other similar housing types, forcing cities to align with these more lenient state-wide regulations.
    6. Sustainability: Smaller dwelling units typically have a smaller carbon footprint, aligning with sustainability goals by reducing resource use and encouraging a more efficient living space.
    7. Aging Population: As the population ages, there's a growing need for housing that supports seniors living close to family or caregivers in a way that maintains independence and privacy.

    By making it easier to build these types of dwellings, San Diego is taking steps to tackle the complex issue of housing affordability and availability while promoting sustainable growth and diversifying living options for its residents. 

    • Navigating Movable Tiny House Regulations:
      • These tiny homes need to be officially registered, much like a car, but luckily, they're off the hook for parking requirements.
      • There are size limits to keep in mind; they can't be too tall or too large, must remain stationary (no self-driving homes yet!), and share an address with the main house.
      • Placement is key. They should be tucked away behind or to the side of the main residence, maintaining a respectful distance from property lines and other structures for safety reasons.
      • Certain areas are no-go zones for these tiny structures, especially those prone to wildfires. They also have to blend in, with their undercarriage cleverly concealed, yet keeping the wheels on for mobility's sake.
      • They're expected to connect to utilities, excluding natural gas, and adhere to strict safety and design standards. This means integrating sprinkler systems if the main home or local regulations require them, and using materials that are up to snuff with fire safety codes.
      • Design-wise, they have to look the part, with specific requirements for the exteriors, windows, roofs, and no expandable sections allowed.
    • Other Important Bits:
      • Property owners can have one of each type of these units, plus guest quarters. They're meant for longer stays, with no rentals under 30 days.
    • Fee Advantages:
      • On the bright side, these tiny additions are exempt from the development impact fees typically charged for new constructions, making them a more affordable option for expanding your living space

     If you're intrigued by the possibilities of expanding your living space with a movable tiny house or companion unit, our expert team is here to guide you every step of the way. With personalized solutions that cater to your unique needs, we make the process seamless and stress-free. Best of all, opting for these innovative housing options could save you up to half the cost compared to traditional ADUs. Let us help you unlock the full potential of your property in San Diego. Contact us today to explore how we can transform your space with efficiency and elegance. 


    Email: Amitchell@allworldconstructions.com or call/text 619-327-9513 to do a walk through of your property to determine feasibility


    For a feasibility analysis regarding adding a movable tiny house or companion unit to your property, several key factors must be considered to ensure a successful project:

    1. Zoning and Regulations Compliance: Verify that your property is in a zone that allows for such additions. San Diego's zoning laws have specific requirements for companion units, junior units, and movable tiny houses, including size, location, and utility connections.
    2. Budget Planning: Although these housing options can be significantly less expensive than traditional ADUs, it's essential to accurately estimate all costs involved, including permits, construction, utility hookups, and any necessary site preparations.
    3. Site Assessment: Evaluate the physical characteristics of your property to determine the best location for the addition. Consider access, privacy, impact on existing outdoor space, and any required modifications to the landscape or hardscape.
    4. Design and Features: Decide on the design, size, and features of the unit that best fit your needs and preferences while complying with local building codes and standards for safety and efficiency.
    5. Utility Connections: Assess the feasibility of connecting the new unit to existing water, sewer, electric, and gas (if not excluded) utilities. This might involve significant additional costs depending on the distance and complexity of the connections.
    6. Contractor Selection: Choose a reputable contractor or company that specializes in the type of unit you wish to add. Look for experience, good reviews, and a portfolio of completed projects.
    7. Financing Options: Explore financing options if needed. Some lenders offer specific loan products for the construction of ADUs and tiny houses, which might offer favorable terms.
    8. Potential Return on Investment (ROI): Consider the potential ROI, whether through rental income, increased property value, or both. This can help justify the initial expenditure and guide decision-making on the scale and quality of the project.
    9. Timeline and Disruptions: Plan for the construction timeline and potential disruptions to your daily life. Good planning can minimize the impact on your household.
    10. Permits and Approvals: Finally, obtaining the necessary permits and approvals can be a complex process. It's vital to understand local requirements and submit detailed plans that comply with all regulations.

    Email: Amitchell@allworldconstructions.com or call/text 619-327-9513 to do a walk through of your property to determine feasibility


    To see the actual city bulletin see this link: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.sandiego.gov/sites/default/files/dsdib403.pdf

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