Perpetual Homes is leading the way as Californians turn to ADUs amid housing crisis

Enhancing your property values and providing muchneeded housing solutions for family members and renters have put accessory dwelling units (ADUs) in the spotlight and, most recently, in proposed legislation.

Low inventory, high prices and soaring interest rates have made Californians turn to the ADU as a creative solution. Danville-based Perpetual Homes, one of the most successful companies leading the solution, is here to help.

Since 2019, Perpetual Homes and its team of real estate, homebuilding professionals, civil engineers, architects, and the founders over four decades of experience have been committed to offering sustainable turnkey backyard homes throughout the Bay Area. The team manages the project from the initial site inspection, permits and site preparation to construction, utility connections, site cleanup, and final inspections.

Perpetual Homes Founder and President Katherine Anderson’s vision has become a reality: Creating factorybuilt award-winning designs with eco-friendly and sustainable materials.

The proposed legislation (California’s AB 1033) would further improve and enhance current ADU laws. On the coattails of SB9, a state law effective January 1, 2022, that allows the construction of up to two dwelling units on a single-family lot, AB 1033, if passed, would allow California cities and counties to decide if they want residents to have the option to sell their ADUs as a separate property from their primary residence.

According to Assembly member Phil Ting, the bill’s author, “the lack of homeownership opportunities in most California communities for working families is contributing to the state’s growing population of renters and driving families out of state,” where they can afford to buy a home.

“Many neighborhoods have become de-facto gated communities, with median home prices of $700K to $1 million keeping out all but a small percentage of Californians from ever dreaming of homeownership, reducing the state’s population and harming our economy,” he writes. He adds, “The absence of available homes for purchase at rates affordable to moderate-income working families bars wealth-building and housing stability for Californians harmed by historic discriminatory housing policies.”

By repealing the current law prohibiting the separate conveyance of ADUs, AB 1033 “would allow cities and counties the freedom to pursue homeownership programs and to create a path to wealth-building for families,” he adds.

Up to this point, the only authority to convey ADUs separately from their primary residence was in a relatively narrow set of circumstances for ADUs built or developed by a qualified nonprofit corporation with a tenancy-incommon agreement.

The Senate Housing Committee approved AB 1033 at its June 20, 2023, hearing on a vote of 8-1. The Senate Governance and Finance Committee is hearing AB 1033 as the committee of second reference this month.

Supporters, including the California State Association of Counties, outnumber the opposition by more than 10 to 1.

Another piece of legislation currently under review is AB 976, which seeks to permanently eliminate owner occupancy restrictions for ADUs that presently exist in cities and counties. These restrictions, which prohibit the requirement of the property owner’s occupancy to either the accessory dwelling unit (ADU) or the primary residence, are set to expire soon. However, this new law aims to remove these restrictions permanently.

Built on existing properties, the ADUs expand the housing supply and tend to be used as lower-cost rentals, which play a key role in increasing the housing supply in neighborhoods across California.

According to a report from UC Berkeley’s Terner Center for Housing Innovation, homeowners cite the ability to offer ADUs for rent as one of the main reasons they build these types of homes.

“Rental income can serve as an important source of financial security,” the report reads, and “since ADU rent typically offsets the cost of construction, ADUs are more accessible for lower-income homeowners.”

AB 976 passed the State Assembly last May with a 54-0 vote. It passed the Senate Housing Committee in June and now heads to the Senate Governance and Finance Committee.

Turn to Perpetual Homes when considering adding an ADU to your property. Sizes range from a 430-square-foot model with one bedroom and one bathroom to a 1,200-square-foot model with three bedrooms and two bathrooms.

Take a virtual tour through several models by visiting perpetualhomesadu.com or call Perpetual Homes at (925) 309-0205 for more information.