WHAT & WHERE CAN I BUILD

How large an ADU can I build? You can build a detached ADU of up to 1200 sqft and 24' tall without any local discretionary approvals. Attached ADUs cannot exceed 50% of floor are of the main residence. If a local municipality creates their own ADU ordinance, it must permit an ADU of up to 850 sqft or 1,000 sqft for an ADU that contains more than one bedroom.  

How many ADUs can I build? New laws permit two ADUs on a single family zoned property… one full Accessory Dwelling Unit (ADU) and one Junior Accessory Dwelling Unit (JADU).

What is a Junior ADU? A Junior Accessory Dwelling Unit (JADU) means a complete independent living facility that is no more than 500 sqft in size and contained entirely within an existing or proposed single family home (think garage or spare bedroom). A JADU must have a separate exterior access, as well as a full bathroom and efficiency kitchen. The kitchen must have a cooking facility with appliances and a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.

Where on my lot can I build? Setbacks for new ADUs have been reduced to 4' for side and rear yards. No setbacks are required if an existing and permitted accessory structure is being converted. You may even remove an existing structure and replace it with a new ADU that matches its footprint, maintaining any pre-existing reduced setbacks (though any new addition must comply with setbacks)

What’s the most advantageous size to build? If your ADU is under 500 sqft, it will not require civil engineering review (stormwater, catch basins etc). If your ADU is under 750 sqft, you will not incur impact fees (except for the school fees which are still due even after the new regulations). Our standard 1BR and 2BR designs are under 500 sqft and 750 sqft to help you avoid those additional costs (typically $3-5K).

PRICING

How much will it cost to build a standalone ADU? As a good rule of thumb, figure on $275-325/sqft for all-in ADU project costs…so an 800 sqft 2BR standalone ADU would typically cost around $225K. You can think of costs in two phases… Pre-construction and Construction:

• Pre-construction costs: $10-15K

  • Design: if using a stock plan, the design work costs about $5K. If going with a full custom plan (e.g. you have a unique lot layout that will require a customized layout)… closer to $10K, including construction drawings, title 24 energy report & electrical layout, permit processing

  • Permits: $5K is typically what the total costs to the city will run for an ADU

• Construction costs: $250/sqft + $10K

  • Building costs: typically $250/sf to start, for vertical building only. This is higher than for single family homes, since the cost is spread out over a much smaller footprint (e.g. still a kitchen+bath, but only 1-2 BRs).

  • Site work: typically $10K is a good number to start with, which includes preparing the building pad, connecting utilities, plus a small amount of landscape and concrete work.

• Other costs (not typically required, contact us to discuss your situation): Additional structural engineering, Civil engineering, Soils engineering

How much will it cost to convert my garage into an ADU? The cost would be around $75K for a standard garage conversion project of about 400 sqft.

What are the impact fees? There are no impact fees for ADUs <750 sqft. Impact fees for ADUs >750 sqft proportional to size of the ADU in relation to the primary dwelling unit. School fees are still due, which are typically $4/sqft… so $3-5K is a good number for budgeting purposes.

FINANCING

What are financing options? We work with several providers who can help you navigate financing options to narrow your choices and determine which path is best for you. Here is an overview of financing options that could fund an ADU… please feel free to contact us so we can help you review options:

• Home Equity Line of Credit (HELOC) or Home Equity Loan. Primary residence homes can typically have up to an 80% Loan-To-Value (“LTV”). The LTV is based on the existing “pre-renovation” value of the home, so both loans require home equity to make the numbers work. A HELOC allows for flexibility as you can draw them down as you need the funds, and only be charged interest on the outstanding balance. Home Equity Loans (2nd mortgages) are different from HELOCs because you receive all of the cash proceeds at the closing.

• Cash-out refinance. A cash-out refinance replaces your existing mortgage with a new home loan for more than you currently owe on your house and the difference goes to you in cash that can be used on ADU construction or other renovation. You must have equity built up in your house to use a cash-out refinance. Limits are typically at 80-90% of your home’s equity. So if your home is worth $1M and you currently owe $600K… you could likely get a loan of up to $800-900K for a cash-out opportunity of $200-300K.

• Renovation Loan (203K or Homestyle). These type of mortgages allow homeowners to finance a renovation project (including ADUs) into the mortgage. The renovation funds are released to the contractor during the renovation/construction of the ADU. There are two types of renovation loans that can be used for ADUs… FHA 203K allows for attached ADUs or conversions. Fannie Mae Homestyle allows for detached ADUs. Both loans have a limit of $701,500 and may be based on the “future value” of the property after adding the ADU… up to 95% financing of a primary residence or 85% of an investment property. The Homestyle loan is a 30 year fixed rate loan, and you can choose to refinance it after construction completion to get a better interest rate or different loan amount… rates for the Homestyle are about .5% higher now than a conventional loan would be.

• Home Equity Conversion Mortgage (HECM, ages 62+). Applicable when at least one of the owners is 62 or older and the property is a primary residence. Owner can borrow up to 42% of home at age 62, all the way up to 70% at age 86 or older. Any existing loan would need to be paid off with the new one, and remaining money from the new loan can be used on the primary residence or on an investment property. The loan is structured as a line of credit and the borrower has access to the line with no fund control requirements (e.g. no construction draws required). Also, interest is tacked onto the balance of loan…so no debt service is due before or during construction.

Do you work with construction financing? Yes, we work with you and your lender to ensure you have the required plans, scope of work, and budget required to submit for loan documentation. If you don’t already have a lender, we are happy to put you in touch with some contacts and help you through that process.

How much detail do I need to have for the lender in order to get construction financing? In our experience, we've found it to be sufficient to produce an intended floor plan and elevations, plus scope of work along with a budget that specifies the full construction costs by trade (framing, plumbing, electrical, insulation, sheetrock, etc). If a lender has worked with the contractor in the past, it can be a smoother process since the lender is familiar with the documentation & work of the builder. If you are looking for a property to construct an ADU on, we suggest asking the seller for an "extended due diligence period" of 75-90 days. This allows you more time to research the feasibility of the project you intend to do (e.g. bring in an architect for an initial consultation, review zoning & any special site requirements that may affect project cost). After you submit the plans & budget to the lender, they will then order an appraisal, which will take into account the value of the "future state" of the property.

TIMELINE

How long does the whole process take? The entire process from signing a proposal to moving into an ADU takes 6-9 months.
PLANS & ENGINEERING: 4-6 weeks Once the proposal is signed, we start designing your unit. We incorporate your needs into the design and check the plan against costs to ensure we deliver a great design within budget.
PERMITTING: 4-6 weeks We submit plans to the city & pull required permits. We work closely with the building department to ensure submitted construction plans move as swiftly as possible through plan review & processes.
FINAL BUDGET: 1 week We will refine budget as we move through planning processes, working with you to ensure the design will be within budget. Once we lock final plans, we’ll sign a final construction cost estimate with you.
BUILDOUT: 14-18 weeks Once we have permits, construction can typically start moving within a week. We handle the entire process, all the way to the final punch list with you to make sure your ADU meets your expectations.

How long is the approval process with the city? Cities must provide approval (or denial) of ADUs within 60 days of receiving the application in cases where there is an existing single family dwelling on the lot.

WORKING WITH MOORE CONSTRUCTION

Do you provide free consultations? Yes, we are happy to answer your questions about your project specifics. Contact us to get started.

What is your typical process for working with a new customer? We get into the details with you right away to make sure your vision is aligned with your budget.
1 - CLARIFY SCOPE.  We will ask questions about your site location & requirements, building size & specifications, as well as your vision for finishes in the unit. From there we provide high-level feedback on feasibility & cost.
2 - SIGN PROPOSAL. We will deliver a proposal laying out our process & fee schedule with budgetary pricing for each project phase. This gives you a comprehensive view of all-inclusive costs from the outset of the project.
3 - SECURE FINANCING. You may want to pursue financing options, such as using a line of credit or construction loan. We ensure you have the required plans, scope of work, and budget to submit to a lender for loan requirements.
4 - BEGIN DESIGN PHASE. After you have reviewed & signed the proposal, you will submit a deposit for the preliminary plan design work to begin. Those plans will be used to refine the budget for a final construction cost estimate.

What work does Moore Construction do in-house? We provide a design/build service, meaning you can work with us for your entire project. We self-perform about 70% of the work, including framing, drywall, painting, doors, finish carpentry, windows, flooring, cabinetry, roofing, insulation, siding, bath accessories (mirrors, hooks, towel bars, etc.). We subcontract specialized trades like concrete, plumbing, electrical, HVAC, tile & stucco. We also partner with design firms, geotechnical engineers, civil engineers, and structural engineers for the architectural & site planning phase of the work.

Do I need to have plans before I start with Moore Construction? No, we will work with you on that process hand in hand with our preferred architect. But if you already have plans drawn and permitted, we can also just build for you.

What areas do you serve? We serve North San Diego County, including Oceanside, Carlsbad, Encinitas, Cardiff, Solana Beach, Del Mar, Carmel Valley, Rancho Santa Fe, Vista, San Marcos, Escondido, Rancho Bernardo, Poway, San Clemente, Fallbrook, Bonsall and surrounding areas.

What construction type does Moore Construction use? Our homes are not mobile or manufactured homes. All of our ADUs are built on site, though we utilize some offsite processes that improve quality control and schedule. 

PRE-APPROVED PLANS FROM SAN DIEGO COUNTY + ENCINITAS

What are the “pre-approved” or “permit-ready” ADU building plans? San Diego County and Encinitas have produced several ADU plans that are “permit ready.” Encinitas calls theirs the Permit-Ready Accessory Dwelling Unit (PRADU) Program. You can search all their plans on our SnapADU plans page.

Is using pre-approved plans cheaper? Sometimes. If you can use a plan exactly as-is, you may not need to pay for architectural plans. However:

1. In addition to these plans, your project will still require a site plan (also called a plot plan). The site plan must show the property layout with the footprints of all existing and proposed structures, electrical services, fences/walls/gates, setbacks, parcel area, easements, driveways and slopes, drainage for storm water. When applicable, grading plans, septic design and other plans/calculations must be created and also submitted with the pre-approved plans.

2. The vast majority of plans require at least some amendments… e.g. a door or window needs to be moved due to site layout or constraints. ANY change means you’ll still need to pay for plans to be drawn up (unfortunately it’s not as simple as just “editing” the county plan… a new set would need to be drawn up entirely). Also, the standard plans were not designed with a strong eye toward value, which is why we prefer to offer clients our own pre-designed plans.

Is using pre-approved plans faster? Maybe. Pre-approved plans are expedited, though in some instances the pre-approval queue is just as long as the standard queue. Also, if for any reason the pre-approved plan has a deviation, the plan will end up in the standard queue.

RENTALS & INVESTMENTS

Can I use an ADU for short term rental? Any newly constructed ADUs cannot be rented for less than 30 days… however, you do have the option of moving into the ADU and renting out your primary residence as a short-term rental. The 30 day rule is a state-wide requirement that cities cannot overrule. A city cannot issue a building permit until you have signed a covenant that agrees you will not rent the ADU for less than 30 days.

Can I add ADUs to multifamily property? Yes. If you have a structure of two or more residential dwellings that are attached to each other (e.g. a duplex) and in a residential zone, you may add two detached ADUs. The new standalone structure has a 16’ height limit with 4’ rear/side setbacks. You can also convert accessory space within the existing structure to an ADU… one per every four existing residential units. You can convert portions of space that are not used as livable space, such as storage rooms, garages, carports, mechanical rooms, attics or basements.

Is there an owner occupancy requirement? There is a five year moratorium on owner-occupancy requirements… you can lease out both your home and ADU until 2025.

OTHER FAQS

Do I need to add parking for the ADU? ADUs do not require parking if they are within a half mile of public transit or created within an existing space in your house or an accessory structure, like a garage or carport. Additionally, no replacement parking is required for the main residence when a garage or carport is demolished or converted to create an ADU. Otherwise, parking requirements for ADUs are one parking space per unit or per bedroom (whichever is less). JADUs do not require parking.

What about utilities? No new utilities or meters are needed. You can connect “behind curb” on your private property. We can install a private, sub-meter to read usage if desired.

What about my HOA? Neither HOAs (Home Owners Associations) nor property CC&Rs (Covenants, Conditions and Restrictions) can reasonably prohibit development of an ADU or JADU.

Do I need to install solar on my ADU? Solar is mandatory for all detached ADUs that do not currently have a solar array on the main home. Typically a 1.44KW system is the minimum size and will run about $7,500.

Can I sell the ADU separately from my house? An ADU may be rented but is not intended for sale separate from the primary residence at this time.

Will the ADU affect my taxes? Yes, the state will conduct a “blended assessment” to determine your taxes. This means the base value of the existing house will stay the same, and your ADU’s additional value will be added to the existing home’s value. The assessed value set when the ADU is added to the property will then be taxed at 1% and up to 2% annually. This is generally an increase of $1-2K a year.

Can I add an ADU in a Coastal Zone? Probably yes. Usually if there is a Local Coastal Program (LCP) in place by the city to handle low impact Coastal Commission projects, then it can be handled by the LCP at the city level. A detached ADU can be granted a waiver “if the executive director determines that the proposed ADU is de minimis development, involving no potential for any adverse effects on coastal resources…” Some cities have designated sections that will require the project to go through the Coastal Commission.

What about existing “illegal” or non-permitted ADUs or Junior ADUs on my property? When you build your new ADU, we can at the same time handle permitting for any "illegal" ADUs on the property. The process is similar to bringing an illegal addition into compliance. It would require drawing a plan for the existing structure (typically $2000-3000), sending it to plan check at the city (planning, building, and fire), potentially conducting an exploratory phase where walls are opened up for inspection with the city (typically no more than $1000-2000 for opening walls and repairing them), addressing anything in the structure that is not within compliance (cost will of course depend on what’s going on with your structure), and paying for any permits (typically $1000). Any tenants in your existing ADU likely will not need to vacate during this process.

What advice would you give a customer looking to hire an ADU contractor? Pick someone you trust & will be excited to talk to about your project on a regular basis... it should be a pleasure to discuss your project, not a chore. Consider the visibility you will have into the project... how does the company handle project management, what tools will enable you to stay up to date on progress and provide timely feedback if needed. It's also important to engage a contractor early on to provide cost analysis and make sure you are designing within your budget.

California ADU laws & local ordinances governing ADUs are evolving… the above FAQs are guidance based on September 2020 publicly available information. While we believe this information is current, Moore Construction will not be liable for any claims or loss arising from relying on this content.