I've got my parents living in the ADU (1,000sf), our family of 4 in the Primary (2300sf), and it was designed like that from the start on a large 24,000 sf lot! Glad these guys got it done, only in reverse!
I am planning to downsize into my garage converted studio and rent out the main house. My detached guest house has its own yard about 200 sft. It's too hard to find a small condo or townhouse with a good-sized yard with a privacy fence around it. Yard is very important for my 4legs fur babies. Of course, no HOA😂
We paid for a project manager, survey, civil engineer, geotechnical soil report. I’m sure we have more pre-development costs that we will incur for our ADU build still but if we apply for a grant and get it, could we get some of these pre-development costs reimbursed to us or is the grant only for ADU projects that hasn’t incurred any pre-development costs yet? Also, in the video it was mentioned that Realm provided a computer generated rendering which helped the family visualize the end product. Was it a architectural floor plan that was computer generated or did the computer generated rendering include detail like windows and finished material that really made the family visualize the end product? Curious because I’m being told that pre-development not to worry about how it will look exactly until the city approves the plans. But wouldn’t you think the number of windows and quality of material and actual design is necessary before submitting to the city? I’m worried that what we are getting won’t align with our vision and quality of ADU we are seeking and without a computer generated design, it’s hard to make sure we get what we want.
Nice interview! My grandmother did this in the early 1980s before ADUs existed. Every single elder had their last years at her property, her parents, my step grandpas parents, her elderly siblings and their significant others. They all spent the final days at grannys. 9 folks total passed there , then she was the final one, 10 in total. She passed right after housing bubble and my mother sold a massive home with prop 13 tax rates for fraction of value 😡. It ended up as a quadruplex of sorts and could be divided into 4 different living/rental spaces.....
Wow! What a story. I'm glad so much of your family got to use it so flexibly for that long stretch. Too bad about the sale - but it's hard to time these things!
Based on property tax law and how appraisals are done, the kids should move into the main house and rent the ADU before the parents die. When the house is inherited, $1 million is grandfathered with the prior appraisal. Beyond $1 million is subject to new property taxation. There’s a lot of ways to decide how to structure rental income. The kids should pay rent for living in main house and the rent from ADU is also provided. It could be at least $5K combined for parents to move wherever they want.
Is Realm the same as How to ADU? LLOVE these videos and have been inhaling for about a week. Trying a build ADU in Palm Springs and we have only a few weeks before we are away for months but would love to pick a lane. I went through the link and its a 15 minute call and then the Realm website wanted a model selected and then the email didn't seem to really go anywhere? Googling around this past week I am finding it really difficult to know where to call someone and get things handled as this family appears to have done. We can do a LOT remotely and have but we dont have a ton of time if we are going to meet in person at the site. That may not be so big a deal. Thanks so much!!
Thanks for watching! Realm is one of our sponsors (and the sponsor of this video) but we're different organizations. Hmm, sounds like a glitch. Have you tried this link: calendly.com/kerry-44/realm-advisor-how-to-adu Should let you book a call and Kerry will get you sorted out.
@@HowToADU this am I got a call from Fatima and got all hooked up. Sorry I thought you may be part of Realm but after about 2 weeks of google searching got all I needed. Thanks so much. Going to try to make the ADU tour.
I don't think we covered that but they got the grant in November and were getting a final HUD inspection after we shot this interview in August. So call it 9 months (including permitting)
So it costs $200,000 for them to convert a detached garage into an ADU? When did they finally get the grant from HPP cares. They told me I wouldn't be able to get the grant until I received a certification of completion from the city and then they would pay down whatever loan I got? Was that the same situation that they encountered with HPP cares? How much taxes did they end up paying for the grant?
That’s right. They received the grant money in an escrow account last year, and accessed the funds through draws as they incurred eligible costs. I can’t really speak to what HPPCares told you about your situation but it sounds pretty different. We didn’t discuss their tax situation but the grant counted as $40k of income
If you're in California, a good place to start is the free HCD handbook (although it's a little out of date, the side and rear setback rules are accurate) www.hcd.ca.gov/sites/default/files/2022-07/ADUHandbookUpdate.pdf then check with your local planning department to see if the rules are different than the state rules in any important ways. For building code setbacks between structures, this is a different set of rules than the planning rules. There is not one place I can point you to. But the thing that comes up the most frequently in my experience is the fire safety requirements for structures, and these requirements are based partially on how close the structures are to each other. For example, there are provisions for building 3 ft away safely. Eg Fewer doors/windows and sprinklers up.codes/viewer/california/ca-building-code-2016/chapter/7/fire-and-smoke-protection-features#7
You always want to talk to your tax pro and county assessor. Broadly speaking ADUs are usually assessed at their new value without affecting other parts of the property.
Usually the assessor counts only valuation of cost of construction. Also keep in mind that new ADU bedrooms and bathroom are added to main house bedroom and bathroom count.
@@HowToADU haha! Well the only way I can afford to buy is if I find a house that could easily convert a large portion into an ADU using the grant money. But if all the boomers do it we will have a hard time house hacking!
If you use realm, you will get three quotes for a detailed scope of work - those will be good numbers for build cost. And before the bids, they have a way to estimate costs for your region
I've got my parents living in the ADU (1,000sf), our family of 4 in the Primary (2300sf), and it was designed like that from the start on a large 24,000 sf lot! Glad these guys got it done, only in reverse!
Awesome job!
I am planning to downsize into my garage converted studio and rent out the main house.
My detached guest house has its own yard about 200 sft.
It's too hard to find a small condo or townhouse with a good-sized yard with a privacy fence around it. Yard is very important for my 4legs fur babies. Of course, no HOA😂
That’s awesome. Glad you found a way to make it work in your own yard
Subscribed useful info is there any grants in 2024 in California?
We paid for a project manager, survey, civil engineer, geotechnical soil report. I’m sure we have more pre-development costs that we will incur for our ADU build still but if we apply for a grant and get it, could we get some of these pre-development costs reimbursed to us or is the grant only for ADU projects that hasn’t incurred any pre-development costs yet? Also, in the video it was mentioned that Realm provided a computer generated rendering which helped the family visualize the end product. Was it a architectural floor plan that was computer generated or did the computer generated rendering include detail like windows and finished material that really made the family visualize the end product? Curious because I’m being told that pre-development not to worry about how it will look exactly until the city approves the plans. But wouldn’t you think the number of windows and quality of material and actual design is necessary before submitting to the city? I’m worried that what we are getting won’t align with our vision and quality of ADU we are seeking and without a computer generated design, it’s hard to make sure we get what we want.
Way to go for your family wealth.
That’s the ticket!
Nice interview! My grandmother did this in the early 1980s before ADUs existed. Every single elder had their last years at her property, her parents, my step grandpas parents, her elderly siblings and their significant others. They all spent the final days at grannys. 9 folks total passed there , then she was the final one, 10 in total. She passed right after housing bubble and my mother sold a massive home with prop 13 tax rates for fraction of value 😡. It ended up as a quadruplex of sorts and could be divided into 4 different living/rental spaces.....
Wow! What a story. I'm glad so much of your family got to use it so flexibly for that long stretch. Too bad about the sale - but it's hard to time these things!
Based on property tax law and how appraisals are done, the kids should move into the main house and rent the ADU before the parents die. When the house is inherited, $1 million is grandfathered with the prior appraisal. Beyond $1 million is subject to new property taxation. There’s a lot of ways to decide how to structure rental income. The kids should pay rent for living in main house and the rent from ADU is also provided. It could be at least $5K combined for parents to move wherever they want.
Interesting!
Is Realm the same as How to ADU? LLOVE these videos and have been inhaling for about a week. Trying a build ADU in Palm Springs and we have only a few weeks before we are away for months but would love to pick a lane. I went through the link and its a 15 minute call and then the Realm website wanted a model selected and then the email didn't seem to really go anywhere? Googling around this past week I am finding it really difficult to know where to call someone and get things handled as this family appears to have done. We can do a LOT remotely and have but we dont have a ton of time if we are going to meet in person at the site. That may not be so big a deal. Thanks so much!!
Thanks for watching! Realm is one of our sponsors (and the sponsor of this video) but we're different organizations.
Hmm, sounds like a glitch. Have you tried this link: calendly.com/kerry-44/realm-advisor-how-to-adu Should let you book a call and Kerry will get you sorted out.
@@HowToADU this am I got a call from Fatima and got all hooked up. Sorry I thought you may be part of Realm but after about 2 weeks of google searching got all I needed. Thanks so much. Going to try to make the ADU tour.
Ryan I might’ve missed it but did they say how long their build took? Great story
I don't think we covered that but they got the grant in November and were getting a final HUD inspection after we shot this interview in August. So call it 9 months (including permitting)
So it costs $200,000 for them to convert a detached garage into an ADU? When did they finally get the grant from HPP cares. They told me I wouldn't be able to get the grant until I received a certification of completion from the city and then they would pay down whatever loan I got? Was that the same situation that they encountered with HPP cares? How much taxes did they end up paying for the grant?
That’s right. They received the grant money in an escrow account last year, and accessed the funds through draws as they incurred eligible costs.
I can’t really speak to what HPPCares told you about your situation but it sounds pretty different.
We didn’t discuss their tax situation but the grant counted as $40k of income
Yay!
Off topic question but how do you research set backs and building codes? Is there a book I can buy?
If you're in California, a good place to start is the free HCD handbook (although it's a little out of date, the side and rear setback rules are accurate) www.hcd.ca.gov/sites/default/files/2022-07/ADUHandbookUpdate.pdf then check with your local planning department to see if the rules are different than the state rules in any important ways.
For building code setbacks between structures, this is a different set of rules than the planning rules. There is not one place I can point you to. But the thing that comes up the most frequently in my experience is the fire safety requirements for structures, and these requirements are based partially on how close the structures are to each other. For example, there are provisions for building 3 ft away safely. Eg Fewer doors/windows and sprinklers up.codes/viewer/california/ca-building-code-2016/chapter/7/fire-and-smoke-protection-features#7
Does prop. 13 (and some of those other related props.) get wiped out in this case or able to work it to be kept in?
You always want to talk to your tax pro and county assessor. Broadly speaking ADUs are usually assessed at their new value without affecting other parts of the property.
Usually the assessor counts only valuation of cost of construction. Also keep in mind that new ADU bedrooms and bathroom are added to main house bedroom and bathroom count.
I wish I watched this video a year ago. No more cal hfa grants in may 2024. Damn it.
Hey quiet! I’m a millenial trying to buy houses from wealthy boomers that are downsizing … stop teaching them to just rent me their garage
Oh shoot 🤣 you should hit up all the nimbys in the comments who claim I’m destroying their property value 😅😅
@@HowToADU haha! Well the only way I can afford to buy is if I find a house that could easily convert a large portion into an ADU using the grant money. But if all the boomers do it we will have a hard time house hacking!
❤thank you save money for rent and babysitter it is good for three generations hahahaha
I know right!? :D Way better than leaving the state or downsizing into a stranger's garage while your kids get fleeced on rent.
So is there any number they can tell us how much it cost to build it?
If you use realm, you will get three quotes for a detailed scope of work - those will be good numbers for build cost. And before the bids, they have a way to estimate costs for your region