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AllAboutADUs APrimerCourseforBrokers
ADUSpecialistDesignation
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Classresources
InformationabouttheADUSpecialistDesignationandtheADUExam.
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Questions?
Bend,OregonOctober7th,2016
PleasecontactHeatherKendallatEarthAdvantageat hkendall@earthadvantage.org
AllAboutADUs APrimerCourseforBrokers
ADUs:
TheMarketplace
Economics
ZoningRegulations
SiteSelection
BuildingScience/programs
FurtherResources
ImageofCaravan TheTinyHouseHotelhttp://tinyhousehotel.com/
WhatcananADUlooklike?
TheADUmarket
accessorydwellingstrategies.com
Graphicreference:http://www.jasonmclennan.com/articles/righteous_small_house_tt_winter09.pdf
PersonsperHousehold,Portland,2011
1and2person
33% households
67%
3
3+person
households
Houses
Cait Ford, who moved from Boston eight months ago, said she has yet to
find an apartment of her own and has been renting bedrooms in houses
filled with people she doesnt know.
It stinks that you have to end up living with strangers, Ford said.
Theres so many of us in one house because no one can find anything.
http://www.centraloregonrentalowners.org/resources/Documents/2016%20rental%20survey%20results.pdf
accessorydwellingstrategies.com
http://www.bendbulletin.com/business/realestate/4405526151/rentalvacancyratehits104percentinregion#
https://www.huduser.gov/portal/periodicals/USHMC/reg/BendOR_HMP_May2015.pdf
By2065,Bendisprojectedtohavean127%increaseovertodayspopulation
Metros Nationwide with the Population change,
# Largest Population Growth in 2015 2014-2015
ADUpermittrendsinBend,ORfrom20012016
Roughly250totalADUpermitshavebeenissuedbyBend Generalzoning
mapofBend
Inthefirsthalfof2016alone,
morethan45ADUpermitshavebeenissued.
18%ofallADUpermitsinBendsince2001,
wereissuedinthefirsthalfof2016.
accessorydwellingstrategies.com
Detached new
~66%ofBendslandis construction ADU
zonedresidential.
ADUs canbebuiltinall
residentialzones
accessorydwellingstrategies.com
Basement Conversion ADUs ADU#8
Addition-to-ADU conversion
accessorydwellingstrategies.com
Future Addition-to-ADU conversion Garage to ADU conversions
accessorydwellingstrategies.com
Detached new construction,
garage below.
Modern ADUs
accessorydwellingstrategies.com
Source:MartinJohnBrown
accessorydwellings.org
TheMarketforADUs
Permittedvs nonpermitted
80%ofADUs areinuseaslongtermresidences.The
remaining20%havealternativeuses,butcanbeconvertedto ADUs.
housingwithnofurtherconstructionorpermitting.Changing
Mostofwhatlookand
usesispartoftheattractionforowners.
functionlikeADUs,
areinfact,
MostpropertieswithADUs (64%)areoccupiedbytheir
notpermittedADUs.
owner,eventhoughPortlandhasnorequirementtheydoso.
SelectedexecutivesummaryfindingsfromOregonDEQsurveyofADUowners
accessorydwellingstrategies.com
Planning/ZoningRegulationsOverview
PlanningDepartmentdealswiththeoutsideoftheADU(ie.howtheADUwill
lookfromthestreet)
BuildingDepartmentdealswithbuildinginterior(ie.whetheritssafefor
humanhabitation:firedetectors,ceilingheights,ventilation,egress)
Basementconversionsdonthavetodealwiththeplanning/zoningrules,since
theyrewithinexistingbuildingenvelope
PermittingProcess
StandaloneADUpermitsinBendshouldcost$45K(thisisareducedamount
fromtheADUregulationchangesinspring,2016).
Byrightpermittingcameintoeffect(aconditionalreviewwasrequiredbefore
spring,2016).
Permittingshouldtake46weeks.
CostofbuildinganADU CostPerSqFtforADUConstruction
Detached:garageconversionsandnewconstruction Expensive
Basementconversions Lessexpensive
FixedCostsvs.VariableCostsforADUConstruction
Fixedcosts:kitchen,bathroom,electricalconnection
Variablecosts:framing,roofing,insulation,permitfees,painting
Design/buildcostforbasic,customnewconstructiongenerallyrangesbetween$175
$400/sqftforafullylivabledetacheddwellingunit.
Foran800sqftcustomADU,ownersshouldcountonspending$175$300persqft,
or$140240K.Medianof~$200persqft.
$145persqftaverage $65persqftaverage
Smallerdetachedstructurescostmorepersquarefoot.
accessorydwellingstrategies.com
PaybackPeriodforADUDevelopment
CostsofOtherAlternative
SmallHousingOptions HeresasimplemethodforcalculatingPaybackPeriodsforADUs:Howlongwillit
taketopayforthecostoftheADUconstructionviathepropertysrentalincome?
Tinyhousesonwheels are~$15Kforakit,$30Kbuilt.
ExampleA:Foran800sqftADU,Joespends$160K.
Detachedbedrooms,oraccessorystructures(office/studio/art JoeslivesinthehouseandrentsouttheADU for$1,500/monthfor$18K/year
space),whichcanbepermittedandcancostfrom$2050K $18K/yearx8.9 years=$160K
PaybackPeriods PaybackPeriodsforthecostofADUconstruction
http://djcoregon.com/news/2012/09/25/aduconstructionstillfacesfinancinggap/
Example#1 Example#2
accessorydwellingstrategies.com
PaybackPeriodsforthecostofADUconstruction Ispent$112KformyADU,rentoutthehouseat$3,000K/month.
$23K/yearx5.6years =$130K.
Inreality,thehousemortgageis$1,700.After
mortgage,rentalexpenses,taxes,andbills,the
propertyisgrossing~$1,300/month(or
$15.6K/year).$15.6K/year x6.4years =$112K
ADUoperatingexpenses AveragePropertyTaxIncreasesafterADUdevelopment
utilitybillswillbelow
accessorydwellingstrategies.com
PrivateValuation
ofADUs
Aneasywaytoestimatetaximpactofanypropertyimprovement
(includinganADU)
Bothunitscanbe
rented.
Assumed(ADU)propertyimprovementvaluex0.014
Considertheincome
Example:$100KADUx 0.014=$1,400/yearincrease approachtovalue
appraisalmethod
IfusingFannieMae
form1004,checkthe
"OnewithAccessory
Unit"boxinthe
Improvementssection
CallDeschutesCountyAssessor(541)3886508togetanofficialestimate.
Youllhavetoprovideanestimateoftheimprovementvalue ofthe
ADU.
Seeclasshandout
ADUFinancingOptions
butitsgettingbetter
pdxadu.blogspot.com andAccessoryDwellings.org
JumpingtheCapitalHurdle:ADUFinancingOptions AlternativeFinancing
OptionsforADU
MostcommonwaystofundADUdevelopment:
Development
Liquidassets(savings,stocks,401Kloans)
HomeEquityLineofCreditLoans refinancingexistinghouseiftheres
significantequityinthemainhouse.WithaHELOC youwouldntneedto http://www.homedepot.com/c/Project_Loan
refinancetheexistingpropertybutneedenoughequity.
Note:Recenthomerealestateinflationwillprovidea
methodformanyhomeownerstoaccesssignificant
capitalforanADU
SweatEquity ruleofthumb:Halfformaterial,halfforlabor.
FamilyLoansandothernonsecuredlinesofcredit
https://www.umpquabank.com/personalbanking/loansandlines/
accessorydwellingstrategies.com
LesscommonwaystofinanceADUdevelopment RenovationFinancingforADUs
ConventionalRenovationFinancingOptions
203Kloan FHAbackedloanforupdatinghomesuponpurchaseor
refinance.HomeStreet BankandProspectMortgage
Constructionloan Fortearingdownandstartingfromscratch.
Requiresgettingabanktoappraisevalueofpropertywithfuture
ADUataratehighenoughtoallowthemgiveyoualoan.ADU
constructionloanshavebeenissuedforADUs throughAdvantis
CreditUnion,WashingtonFederal,Unitus
https://accessorydwellings.org/2014/11/03/financeguideforadus/ Seeclasshandout
DesignersandGeneralContractor(GC)/Builders
DesignersandGeneralContractor(GC)/Builders
Homeowner,Designer,andGeneralContractor/Builder
WhattolookforinaDesigner
WhattolookforinaDesigner
WhattolookforinaGeneralContractor
Somebodytheycanafford
Somebodywhoyoucanafford
Somebodywithwhomtheyhavegoodcommunicationandtrust
Somebodywithwhomyouhavegoodcommunicationandyoutrust
Somebodywithgoodreferences.
ResourcesforFindingaGoodGC
DesignBuild Companies
Dobothdesignandconstructionandinsistthatthe
Wordofmouth,neighbors,andCraigslistarefineplacestostart
holisticdesignbuild approachisbetter.
EarthAdvantage NewHomeBuildersorAccreditedRemodelers
http://www.earthadvantage.org/ourpartners/findaprofessional.html
DesignBuild doesnthavetoberestrictedto
EnergyTrustofOregon>Findacontractorpage
DesignBuild companies
Enter:NewHomesIneedhelpwith:Builder
http://energytrust.org/library/findacontractor/ orjustGoogleit
Itsmoreabouthavingaholisticdesignprocessthat
includesmorethanjustthehomeownerandthe
architect.
Contracts ADUSiteSelection
FixedPrice TimePlusMaterials
Itpaystobespecific Owner/buildercanbemore
Changeworkorders flexible
Goodforsmallertasks
Fixedpricecontracttips
allowancetoselectfixtureswithinabudgetlineitem
apaymentschedulebymajortasksthatleavesatleast 5%asa
reserveuntilthefinalpunchlist iscompleted
anincentivesforfinishingtheworkonscheduleorforachievingcertain
benchmarks(eg.airsealingto1ACHat50pascals)
goodtohavealawyerreviewthecontract.
accessorydwellingstrategies.com
EnergyUseforaResidentofaSingleFamilyDetachedHouse
250 240
www.epa.gov/smartgrowth/location_efficiency_BTU.htm
200
Location,
132 158
MillionBTUPerYear
147
150
71 39
110
100
50
Location,
108 87 10
8
23
87
0
Location
ConventionalSuburban
Development
TransitOriented
Development
TransportationEnergyUse w/GreenAutomobiles
www.epa.gov/smartgrowth/location_efficiency_BTU.htm HomeEnergyUse w/GreenBuildings
www.walkscore.com
Location2): Location#3):
Siting theADU
Themicroneighborhood. Privacyconsiderations
Orientation
HowwillanADUfitintothe Bestviews/worstviews
contextoftheadjacent
propertiesintermsof
adjoining:architecture,
privacy,landscaping,parking
accessorydwellingstrategies.com
TypicalWallAssembly
OtherpropertyconsiderationsfordetachedADUs
Adequateaccesstobackyardforexcavation
Alleysaregreatforconstructionandtenantaccess
Goodviews/BadviewsforADU
Basementinmainhouseforstorage?
GaragesmayprovideavisualADUqueueforhomeowners,but
dontnecessarilymakeforcheaperADUs developmentthannew
construction
RedFlags
Buriedoiltanksorcess pools
Watermetersizeandcurrentwaterpressure
HOAs
Ifadditionalparkingisgoingtoberequired,streetswhereyou
arentabletoutilizeanonstreetparkingspot
Heating,VentilationandAirCooling(HVAC)
AirSealing
Ductless
Radiant MiniSplit
Woodorgasstove
CadetHeater
Passivesolar
Greenhomesarehomesthatenhance
Comfort
Health
Wallassemblymoisturecontrolformold/mildew
Durability
Hardsurfacesratherthanrugs,whichcollectdustanddeposition EnergySavings
Freshaircirculatingthroughhouseventilation(eg.airfilters)
Usingnontoxicbuildingmaterials
Greenproducts reduceheating,water,andenergyuse
Eliminatingleaksthatwillslowlybringtoxicparticlesinthroughthewallassembly
Radonmitigation ConserveResources
Reducematerialuse>usedmaterials/salvage
Ventingcombustiongasesproperly
Recycledandrecyclable
Pestcontrol Durableorlowmaintenance
Humiditycontrol
Lowerembodiedenergy
Localsources
Usedmaterials
IndoorAirQuality
Usehardflooring,notrugs
Haveagoodwallassemblytokeepthehumidityout
Ventilation>humiditycontrol
accessorydwellingstrategies.com
Theresidentialbuildingsectoraccountsfor22%
ofthetotalenergyconsumedintheUS.
Newresidentialconstructioncanhelpimprovethis
Themostsignificantfactors
Heating,VentilationandAirCooling(HVAC)
toreducetheenergyfootprintofahomesoccupants:
Ductless
MiniSplit Location
Radiant Homesize
Walkability
Microneighborhood
Woodorgasstove
Buildingenvelope
CadetHeater
AirSealing Insulation
Passivesolar
Siting onthelot
accessorydwellingstrategies.com
EPS(EnergyPerformanceScore)rebateprovidedbyEnergyTrustofOregon
EnergyPerformanceScore Oregon'smostcommonlyandwidelyusedstandardfor
'scoring'energyperformancelikeMPG
Themoreefficientthebuildingis,thebiggertherebate.Minewas$1,750.Could Homeowner,Designer,andGeneralContractor/Builder
beashighas$5,000
Usually,theresatriangularrelationshipbetweenthedesigner,
ContactEnergyTrusttofindbuildingverifiersforyourproject builder,andhomeowner
newhomes@energytrust.org or1.877.283.0698
DesignBuild companiesdoarchitectureandbuilding,andinsist
thattheholisticdesign/buildapproachisbetter.
DesignBuilddoesnthavetoberestrictedtoDesignBuild
companies;itsmoreabouthavingaholisticdesignprocessthat
includesmorethanjustthehomeownerandthearchitect.
OregonDepartmentofEnergyTaxCredits
Taxcreditsonenergyefficientappliancepurchases.
Appliances,HVAC,Solar,WaterHeater,Wind,WoodStoves
3D Model
Commonsmallspacedesignprinciples
Greatroom(kitchen,living,diningroom)
Tallceilings
Longsightlines
Southfacingglazing(windows,doors)
Elevatedwindowscastnicelightacrosssmallspaces
LearnmoreaboutADUs:
DetachedADUs
AccessoryDwellings.org Frenchdoorsthatleadintotheyard
pdxadu.blogspot.com
Greatroomseparatedvisuallybycolor,ceiling,textures,furniture
AccessoryDwellingStrategies.com
Takeadvantageofthegoodviews
Considerprivacyimpactsonadjacenthomes
BasementADUs
Recessedlights
accessorydwellingstrategies.com
Greatroombelow,loftedbedroomabovehalf
Greatroombelow,loftedspaceabovehalf
accessorydwellingstrategies.com
Tallceilings
Longsightlines
accessorydwellingstrategies.com
Highwindows
accessorydwellingstrategies.com
Acousticprivacy
Frenchdoorsorlargewindowsthatleadintotheyard
accessorydwellingstrategies.com
Urbandensity sightlines Alternatingtreadstairs
Ladders Exposedwoodbeams
accessorydwellingstrategies.com
Stackingfunctions
Pocketdoors Blankwalls
accessorydwellingstrategies.com
Gooduseof5 setback Waste of 5 setback
Accessorystructures
accessorydwellingstrategies.com
Cantilevers
Coveredentries ADU#3
accessorydwellingstrategies.com
accessorydwellingstrategies.com