ADU Knowledge
June 27, 2024

Building an ADU in Midtown, Palo Alto: A Step-by-Step Guide

Argi Avetisyan
Argi Avetisyan
Gather ADU expert
Building an ADU in Midtown, Palo Alto: A Step-by-Step Guide
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Building an Accessory Dwelling Unit (ADU) in Midtown, Palo Alto presents a unique opportunity for homeowners to enhance their property in numerous ways. Whether you're looking to create additional living space for loved ones, generate rental income, or simply increase your home's value, an ADU can be an excellent investment. In this guide, we'll walk you through the process of planning, designing, and building an ADU, ensuring you're well-prepared to make informed decisions.

What is an ADU?

An Accessory Dwelling Unit, commonly known as an ADU, is a secondary housing unit on a single-family residential lot. ADUs come in various types, each serving different needs and preferences. Understanding these options is critical to finding the best fit for your property and lifestyle.

Types of ADUs

  1. Detached ADUs  

  A new freestanding structure separate from the main home. This could be a site-built or prefab/manufactured unit.

  1. Attached ADUs  

  A new structure, possibly including converted space, that shares at least one wall with the main home.

  1. Multi-Family ADUs  

  A detached, attached, or conversion ADU on a multi-family property such as a duplex, triplex, or apartment building.

  1. Conversion ADUs  

  Converted existing space within the main home or on the property, such as a bedroom, basement, or detached garage.

  1. Junior Accessory Dwelling Units (JADUs)  

  A smaller conversion ADU within the main home or attached garage, up to 500 square feet with an efficiency or full kitchen.

What’s Not an ADU?  

RVs, tiny homes on wheels, yurts, and storage structures are not considered ADUs.

The Benefits of Building an ADU

Building an ADU offers several advantages that go beyond just adding extra space. Here are some key benefits:

Financial Benefits

  1. Rental Income  

  An ADU can be rented out to generate additional income. This can be particularly beneficial for retirement savings or a rainy day fund.

  1. Increased Property Value  

  Adding an ADU can significantly increase your property's resale value, making it a smart investment in the long run.

Lifestyle Benefits

  1. Housing Family Members  

  An ADU provides a separate living space for adult children, aging parents, or loved ones with special needs, allowing them to live independently while still being close.

  1. Downsizing for Aging Adults  

  Older adults can move into the ADU and rent out the main home, ensuring they remain close to family while enjoying a more manageable living space.

Community Benefits

  1. Supporting Local Workers  

  ADUs can provide affordable housing options for local workers and young families, fostering a sense of community.

  1. Enhanced Safety  

  Having an additional residence on your property can offer an extra layer of security, with more people around to keep an eye on things.

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Understanding the Legal and Zoning Considerations

Before you can start building your ADU, it's crucial to familiarize yourself with the legal and zoning requirements in Midtown, Palo Alto. Here's a comprehensive guide to help you navigate through the regulations and permits.

JADU Rules and Regulations

  1. Owner Occupancy Deed Restriction  

  JADUs require a deed restriction stating that the owner must live on-site, either in the main home or the JADU. This form must be notarized and recorded with the San Mateo County Clerk-Recorder.

  1. JADU Standards  
  • Size: Up to 500 square feet.
  • Number: Only one JADU is allowed per property.
  • Zones Allowed: JADUs are permitted on lots zoned for a single-family home but are not allowed on two-family or multi-family properties.
  1. Parking  

  No new parking is required for JADUs. If converting a garage to a JADU, replacement parking is required for the main home.

ADU Rules and Regulations

  1. Size and Height Restrictions  
  • Detached ADUs: Up to 1,000 square feet.
  • Attached ADUs: 50% of the primary dwelling's size.
  • Height: Varies based on location and property type.
  1. Setbacks  
  • New Construction: 4 feet side/rear setbacks.
  • Converted Structures: Must comply with existing structure setbacks.
  1. Parking  

  Generally, additional off-street parking is not required for ADUs. However, if converting a garage, replacement parking is not required.

Designing and Planning Your ADU

Designing an ADU that complements your property and meets your needs involves careful planning and consideration. Here are some tips to guide you through the design process.

Choosing a Design

  1. Complement Your Main Home  

  Ensure that the ADU's design aligns with the architectural style of your main home. This creates a cohesive look and adds to the overall aesthetic appeal of your property.

  1. Maximize Space  

  Use the available space efficiently by incorporating smart storage solutions and multifunctional furniture. Open floor plans can also make the ADU feel more spacious.

  1. Consider Future Needs  

  Plan for potential future uses of the ADU, such as accommodating aging parents or renting it out. This can influence decisions on accessibility features and layout.

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Budgeting and Financing Your ADU

ADU in Midtown, Palo Alto

Budgeting is a critical aspect of any ADU project. Here’s how to plan your finances effectively.

Estimating Costs

  1. ADU Calculator  

  Use tools like the ADU Calculator to estimate your costs and potential rental income. This helps in planning your budget accurately.

  1. Initial Expenses  

  Consider initial costs such as design fees, permits, and construction. It's essential to have a clear understanding of these expenses before starting the project.

Financing Options

  1. CalHome ADU/JADU Loan  

  The City offers income-eligible households a $100,000 low-interest loan for ADU construction costs.

  1. CALHFA Grant  

  The California Housing Finance Agency provides grants of up to $40,000 for ADU pre-development costs, including impact fees.

Finding the Right Contractor

Selecting a reputable contractor experienced in building ADUs is crucial to the success of your project.

Vetting Contractors

  1. Check References  

  Ask for references from previous clients and follow up on them. This gives you an idea of the contractor's reliability and quality of work.

  1. Verify Credentials  

  Ensure the contractor is licensed and insured. This protects you from potential liabilities and ensures compliance with local regulations.

  1. Review Portfolio  

  Look at the contractor's previous projects to assess their expertise and style. This helps in determining if they are a good fit for your ADU project.

The Construction Process

Understanding the construction process can help you manage expectations and ensure a smooth experience.

Phases of Construction

  1. Pre-Construction  
  • Permits: Ensure all necessary permits are in place before starting construction.
  • Funding: Confirm that all financing is secured.
  1. Construction  
  • Timeline: Typically, construction takes 6-12 months. Regularly check in with contractors to monitor progress.
  • Inspections: Schedule inspections throughout the construction process to ensure compliance with building codes.
  1. Post-Construction  
  • Final Inspection: Once the ADU has passed the final inspection, it's ready for occupancy.

Getting Your ADU Ready for Occupancy

The final steps to make your ADU livable involve meeting all legal requirements and ensuring the space is comfortable and welcoming.

Legal Requirements

  1. Certificate of Occupancy  

  A certificate of occupancy is required before moving into a detached ADU. This ensures that the unit meets all safety and building standards.

  1. Utilities  

  Ensure all utilities are properly connected and functional. This includes water, electricity, and gas.

Conclusion

Building an ADU in Midtown, Palo Alto offers numerous benefits, from increasing your property's value to providing additional living space for family members. By understanding the legal requirements, planning your design, budgeting effectively, and finding the right contractor, you can successfully create a valuable addition to your home. If you're considering adding an ADU, now is the perfect time to start planning. Reach out our ADU experts!

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