We're aware that the LGIS application is temporarily unavailable. We are looking into the issue--please check back for updates.

 
1

Additional Opportunities to Support Homeowners

Additional Opportunities

You can submit information about one or more of these opportunities as part of your Supportive Jurisdiction Certification Report, utilizing the Other Strategies section of that form. The eligibility of any “Other Strategy” submitted will be determined by the Department as part of its review of your submission. Other Strategies are generally expected to be as impactful and durable as the nine strategies listed in the statute. See the Certification Report form for details on required items for submission. 

Building an ADU is a daunting task for any homeowner, even if they have some relevant experience. Dominant challenges include (but are not limited to):

  • Determining what’s possible on their property
  • Hiring an architect and completing an architectural design process
  • Estimating a project budget and securing funding
  • Securing permits
  • Hiring a contractor
  • Managing construction and inspections
  • Becoming a landlord and finding a tenant
  • Managing a rental property 

Jurisdictions can support homeowners through any of these challenges, even the parts of the process that don’t typically touch Planning and Building Departments. It may be worthwhile to start by conducting outreach, surveys, and other engagement to determine the biggest challenges for homeowners in your community, then designing programs and supports where most needed. 

Potential Strategies

Opportunities for changes include but are not limited to:

Relatable success stories from homeowners who have built ADUs are incredibly powerful motivators for building an ADU. Hearing directly from someone whose reason for building an ADU mirrors your own interest can be far more motivating than a traditional public service announcement. When ADU owners share their stories and motivations, their experience building the unit, and how the ADU has impacted their lives, the audience is left feeling “if they can do it, so can I.”

Case studies can take the form of written stories, documentary-style short videos, idea books with layouts and project details, and in-person ADU tours allowing people to visit ADUs in your community as part of a celebratory event (similar to home and garden tours, which your community may already do). Content can be readily used repeatedly for print materials, website content, social media posts, and any other marketing or homeowner technical assistance efforts. 

It can be particularly impactful to showcase ADU stories in line with your high-priority programs – including affordable rentals, pre-approved designs, accessible ADUs, and others. 

DOLA is likely to approve this when combined with another strategy from the list.

Examples: Denver (West Denver Renaissance Collaborative; see the Denver West case study)

Complementary opportunities: ADU Technical Assistance for Homeowners

Toolkit resource: Homeowner TA: ADU Case Study Interview Questions

Much attention has been given to the concept of pre-approved ADU plans, allowing a homeowner to use (for free or a low cost) an existing structural design that has been pre-reviewed for code compliance. However, homeowners often desire more customization and choice than what is provided in a small number of pre-approved plans. Either along with or instead of pre-approved designs, jurisdictions can grow a list of non-pre-approved existing ADU designs that homeowners can purchase from the designer (there may also be designs available for free, especially with non-profit involvement). Starting with a base design saves substantial time and money over a completely custom design, and helps grow the market for architects/designers who may be able to “reuse” base designs for new income streams. 

These “catalogs” can be thought of as a combination idea book and designer directory, connecting homeowners with design professionals and base designs available for purchase or use and providing inspiration for what’s possible on their property. How much the jurisdiction controls what’s in the listing is up to you; these plans don’t come with any commitment to expedited review or approval and homeowners may customize them further before permitting. 

In most cases, homeowners will contact the architect/designer directly to move forward with using a design. Those professionals may be available to support the homeowner through customization, site planning, and permitting, otherwise the homeowner can hire another professional to navigate the process. 

The most user-friendly way to provide these designs is in a browsable, filterable web platform that allows homeowners to narrow their view to applicable designs (number of bedrooms, total size, etc.). Listings should have attractive images and detailed descriptions of exterior and interior features, layout, and important characteristics like accessibility and climate-resilient features, as well as updated contact information for the designer and estimated costs of using the design. 

Examples: Denver (West Denver Renaissance Collaborative; see the West Denver case study)

Complementary opportunities: Providing Pre-Approved ADU Plans, ADU Technical Assistance for Homeowners, Providing a Vendor Registry or other Connections to Local ADU Professionals 

A spreadsheet-style ADU Cost Estimator tool showing a sample total estimated ADU cost of $9,097.68. The form is divided into sections for inputting costs: Hard Costs (e.g., contractor overhead, site improvements), Soft Costs (e.g., design, geotechnical engineer), and Studies (e.g., soil reports, floodplain permits). A separate section titled Impact/Planning Fees lists example fees such as an ADU planning clearance fee ($50), traffic capacity impact fee ($3,998.04), and others related to parks, fire, police, and floodplain elevation certification. Instructions at the top direct users to enter costs in yellow-highlighted boxes, with the total appearing in a green box.

Homeowners often are unaware of the cost associated with building an ADU. They may think of ADUs as do-it-yourself projects, however, building an ADU is complicated and can be expensive. An ADU cost estimator tool is important for helping homeowners understand the all-in cost for building an ADU and how the cost is affected by variables (ADU size and type, property conditions, etc.). An estimator tool is a great way to familiarize homeowners with the options that will affect total costs. 

Although no tool will be able to provide the exact all-in price of an ADU, giving homeowners an idea of how much it may cost can help them make the decision of whether they can afford to build an ADU. This is an important early step of a homeowner’s journey. 

ADU cost estimator tools can be as simple as a range of costs for various types of ADUs, including soft costs for design and fees and hard costs for construction, or it can include a complex set of cost variables. It can also provide financial projects and return on investment calculations in conjunction with loan data and rental projections (rent levels, vacancy rates, etc.). Either way, it is important to regularly keep your input numbers up to date – at the very least, updating fees and construction costs on an annual basis.

Examples: Grand Junction (see the Grand Junction case study), ADU Accelerator Calculator

Complementary opportunities: Waiving or Reducing ADU-Related Fees for All Applicants, ADU Plans Gallery, ADU Technical Assistance for Homeowners, Partnering with Lenders to Provide Loans and Financing Opportunities

Designing and building an ADU is only the start of a long-term project for a homeowner: becoming a landlord and managing their rental unit. Homeowners may need direction and support on topics such as:

  • Rental law (including rent increases and eviction)
  • Setting the rent
  • Writing a lease
  • Finding a tenant (especially if participating in a program that defines the tenant, by income or otherwise)

Jurisdictions can provide a toolkit of guidance and resources, including written guidance (see our included resource, below) and partnering with housing nonprofits that offer trainings or materials about fair housing, landlord/tenant conflict mediation, and other relevant topics. Jurisdictions can also offer template leases, guidance on pricing a rental unit, and other decisions to make as a landlord. See below for more guidance about tenant matching programs.

These efforts become an important element of any program that targets specific communities of tenants, including affordable and/or accessible ADUs. 

Examples: Denver (West Denver Renaissance Collaborative; see the West Denver case study)

Complementary opportunities: ADU Technical Assistance for Homeowners, Incentivizing Affordable ADU Rentals, Partnering with Tenant Matching Organizations

Toolkit Resource: Homeowner TA: Outreach Content – Renting Your ADU

Renting out an ADU is a particular challenge because it involves sharing a property that might otherwise be for one household. Concerns may include privacy, noise, odors (cooking, smoking, etc.), access to tandem parking spaces, shared outdoor spaces, and landscape/yard maintenance. If participating in a program tied to some characteristic of the tenant (ex: household income, location of employment), it can be even more difficult to find the right tenant. 

Partnering with or helping to start local tenant matching programs can help meet multiple housing goals in your community. Some programs may focus specifically on seniors or tenants that need specific help. Make sure to include on any homeowner outreach materials that the tenant sharing program is available to help them find a tenant. Examples of tenant matching programs in Colorado include Sunshine Home Share (matching senior homeowners to tenants) and Colorado Coalition for the Homeless (matching unhoused voucher holders in Denver with landlords).

Complementary opportunities: Incentivizing Affordable ADU Rentals, Providing Support for Homeowners Becoming Landlords, Incentivizing Accessible ADUs, ADU Technical Assistance for Homeowners

Many homeowners have never hired the types of professionals they’ll need for an ADU project, such as architects and designers, general contractors, or specific subcontractors (e.g., solar, septic, demolition), and find it can be an overwhelming process. Developing a resource that assists homeowners to find their team may seem like the best approach, but it can be tricky. Listing professionals can signal preferential treatment and the vetting process can be time consuming.

Some jurisdictions have found a middle ground by soliciting submissions from local professionals and providing a list on their website with a legal disclaimer, making it clear that those participating have opted-in and are not vetted. Others have shared a list of architects and designers that have been vetted as part of their Preapproved or Standard Plan Program. Both examples offer a solution to providing additional information to your community about locally available ADU professionals. 

Examples: San Jose, CA, Preapproved ADU Vendor List, Mother Lode ADU (California) Contractor List 

Complementary opportunities: Encouraging Factory-Built ADUs, Providing a Catalog of Existing ADU Designs, Providing Pre-Approved ADU Plans, Ensuring Factory-Built Units Receive Efficient Review, ADU Technical Assistance for Homeowners, Partnering with Lenders to Provide Loans and Financing Opportunities

Researching and possibly mapping certain types of ADU opportunities within your jurisdiction can help jumpstart new programs and particular communities for outreach and engagement about ADU development. 

For example: Engaging single-family rental property owners to build a second unit on those properties may be a particularly fruitful way to get additional workforce housing built quickly. They may have more financial resources to invest than a typical homeowner and have a financial interest in adding more units. Utilizing existing records and public resources, you could identify and map single-family rental properties that have space for a detached ADU in the yard, then conduct outreach to those landlords/property owners in particular. These types of efforts can be particularly impactful if you have an incentive or benefit to offer them in conjunction with outreach (for instance: reduced permit fees if they rent to local workforce or pre-approved plans). 

Examples of strategic opportunities to identify:

  • Properties with detached garages within a certain size range
  • Single-family rental properties with significant open space in the backyard  (Rental properties may be identified by rental licenses, if locally required, or by looking at assessor/utility bill records for properties where mailing address is different than physical address. In areas with high rates of rental properties, blanket outreach to all single-family homeowners may be most cost-effective.) 
  • If allowing ADUs on multi-family properties, multi-family properties near transit stops that have space for one or more ADUs

Complementary opportunities: Allowing ADUs in Zones Other Than Single-Family, Developing Allowances and Guidance for Garage Conversions, Incentivizing Affordable ADU Rentals, ADU Technical Assistance for Homeowners

Nonprofits involved in housing and community development can take on many of the programs mentioned throughout this toolkit. Supporting or partnering with an existing nonprofit to launch an ADU Resource Center can complement jurisdictional policies and programs by providing on-the-ground assistance to homeowners, resulting in a greater local capacity to advance ADU development and more ADUs built.

ADU Resource Centers offer significant benefits to both homeowners and jurisdictions by serving as a centralized hub for ADU guidance and support. For homeowners, they can provide a wide range of resources, such as webinars and educational materials, that demystify the ADU development process. They can also offer personalized services like feasibility consults or a help line to answer questions and troubleshoot challenges. These services not only empower homeowners to move forward with their projects more confidently but also reduce the burden on local planning staff. 

For jurisdictions, they can be a valuable partner in meeting state mandates and local goals related to ADU production and affordability. They can offer expert assistance with updating ordinances, staying compliant with evolving state laws, and enhancing local ADU processes. They can also help jurisdictions design and implement opt-in programs, improve public outreach, and monitor affordability over time. 

Examples: Napa Sonoma ADU Center (California), ADU Resource Center of San Mateo County (California)

Complementary opportunities: Allowing ADUs in Zones Other Than Single-Family, Developing Allowances and Guidance for Garage Conversions, Incentivizing Affordable ADU Rentals, ADU Technical Assistance for Homeowners, Waiving or Reducing ADU-related fees for Low- and Moderate-Income Households, Waiving or Reducing ADU-Related Fees for All Applicants, Partnering with Lenders to Provide Loans and Financing Opportunities

This form should be used to report problems or issues with this website. Questions pertaining to a program or service provided by DLG should be addressed to contact information located on the specific program pages.

Was this content helpful?