Boston’s ADU Pilot Program - how this can help you

If you've been keeping an eye on the housing market trends, you might have come across the term "ADU" or Accessory Dwelling Unit. These are secondary housing units on single-family residential lots, and they are becoming a hot topic among homeowners and real estate investors alike.

Boston is on its way to becoming the next ADU hub, thanks to efforts by Mayor Michelle Wu. Wu’s ADU Pilot Program comes as a response to increasing housing costs in the city. According to a study by Boston’s Office of Housing, 50% of renters are considered "rent-burdened," meaning they spend more than 30% of their income on rent. Homeownership presents even greater challenges as home prices surge, while household incomes remain stagnant.

Inspired by the success of California’s statewide ADU regulations, Mayor Wu’s ADU Pilot Program aims to encourage the construction of additional dwelling units as a strategy to address the housing affordability crisis in Boston. Let's dissect the details of this program and explore what it could mean for the future of ADUs in Boston.

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Overview of the ADU Pilot Program in Boston

What Kind of ADUs Are Allowed in Boston?

Several types of ADUs are permitted in Boston. However, only ADUs converted from existing space within the primary residence can be built "as of right." This means that homeowners can bypass certain zoning requirements, such as floor-to-area ratio, occupancy type, and off-street parking ratios. This is similar to California’s state-exempt 800 sq. ft. ADUs.

The following ADU types fall under this "as of right" zoning exemption:

• Basement Conversion: Transform existing basement space within the primary residence into independent living units. ADUs must have their own entrance. If the basement isn’t already accessible from the exterior, the entryway will need to be incorporated into the design.
• Attic Conversion: Convert attic space into an ADU. Ensure your designer incorporates an exterior entry to the ADU.
• Carve-out Unit: Part of the first floor of the primary residence can be converted into a studio, complete with a full kitchen, bathroom, and other amenities.

Benefits of Participating in the ADU Pilot Program

For Homeowners

Increased Property Value: Adding an ADU to your property can significantly increase its overall value.

Additional Rental Income: Renting out your ADU can provide a steady stream of additional income.

Affordable Housing Opportunities: By creating more living spaces, you contribute to alleviating the housing affordability crisis in Boston.

What is Required in an ADU?

An ADU is required to have everything necessary for independent living, including:

• Full utilities (water, electricity, and sewage)
• Full kitchen, including cooking stove, countertops, food storage, refrigerator, and outlets
• Full bathroom, including toilet, sink, and shower or bath
• Bedroom or sleeping area with an emergency egress
• At least two means of egress
• Ceiling height of at least 7 ft. 6 in. for a duplex or triplex home adding an ADU and 7 ft. for a single-family home adding an ADU

By enforcing these standards, local authorities aim to guarantee that ADUs meet the necessary criteria for long-term occupancy, supporting the well-being and autonomy of tenants within these additional dwelling units. Get a quote for your ADU project

For Real Estate Investors

Increased Rental Income: ADUs can serve as an additional source of rental income, boosting your overall earnings.

Property Value Appreciation: The addition of an ADU can increase the market value of your property, providing a significant return on investment.

Diversification of Real Estate Portfolio: ADUs offer a unique investment opportunity, allowing you to diversify your real estate portfolio.

How to Get Involved in the ADU Pilot Program

Step-by-Step Guide

1. Assess Your Property’s Eligibility:

• The ADU must be built within the existing footprint of the main home. You cannot extend any part of the existing home for the sole purpose of converting it into an ADU.
• The primary structure must be a single-family home, duplex, or triplex.
• You must occupy the same home in which the ADU is built.
• If you intend on building a basement or first-floor ADU, the structure must be above the Base Flood Elevation if your home is in the FEMA Flood Zone.

2. Apply for Necessary Permits:

• Consult with a contractor or architect to draft plans for your ADU.
• Submit your plans to the Boston Planning & Development Agency (BPDA) for approval.
• Obtain necessary permits from the Inspectional Services Department (ISD).

3. Start Construction:

• Once permits are approved, you can begin construction on your ADU.
• Ensure that all construction complies with local building codes and regulations.

4. Complete Final Inspections:

• After construction, schedule final inspections with the ISD to ensure your ADU meets all safety and building standards.

5. Move In or Rent Out:

• Once your ADU passes inspection, it is ready for occupancy. You can choose to move in or rent it out.

• • Get a quote for your ADU project

Case Studies and Testimonials

Success Stories

Some homeowners said, "We converted our basement into an ADU and rented it out. The additional income has been a game-changer for us. Plus, we love knowing we're helping alleviate the local housing crisis."

Others noted, "As real estate investors, adding ADUs to our properties has not only increased their value but also diversified our investment portfolios. The process was smooth, and the benefits are undeniable."

Challenges and Limitations

Potential Issues:

• Zoning Restrictions: Not all properties qualify for “as of right” exemptions.
• Construction Costs: Despite the ADU loan program, construction costs can still be high.
• Permitting Delays: The permitting process can be lengthy and complex.

Solutions:

• Attend monthly ADU workshops for guidance.
• Work with experienced architects and contractors who understand local regulations.
• Utilize available financial assistance programs.

Conclusion

Boston’s ADU Pilot Program has the potential to transform the city’s housing landscape significantly. By participating in this program, homeowners and real estate investors can benefit from increased property value, additional rental income, and a diversified investment portfolio.

If you're considering participating in the ADU Pilot Program or want to learn more, don't hesitate to reach out. Let's work together to make Boston a more affordable and vibrant place to live.

Call to Action:

Ready to get started? Get a quote for your ADU project today to learn more about how you can benefit from Boston's ADU Pilot Program.

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