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What is the process of building ADU, and what steps are involved?

Building an ADU demands careful planning and execution. Homeowners should understand each step and work with qualified professionals to successfully add value to their property and meet their housing needs.

ADU 3D model with accompanying floor plan

Research and Planning

Local Zoning Laws and Regulations

  • This is the most critical first step. Contact your local planning department to obtain detailed information on zoning ordinances related to ADUs.
  • Inquire about size limitations, setback requirements, height restrictions, parking regulations, and allowable ADU types.
  • Understand any specific design guidelines or aesthetic requirements that may apply.

Building Codes

  • Familiarize yourself with local building codes, which dictate safety standards for structural integrity, fire safety, electrical, plumbing, and mechanical systems.
  • These codes ensure that the ADU is safe and habitable.

Feasibility Study

  • Conduct a feasibility study to assess the viability of your ADU project, considering factors such as cost, timeline, and potential return on investment.
  • Evaluate your property's topography, utilities, and existing infrastructure.

Design Development

  • Develop a preliminary design plan that aligns with your needs and complies with local regulations.
  • Consider the ADU's layout, size, materials, and aesthetic appeal.
  • Consider the ADU's purpose, such as rental income, multigenerational living, or a home office, as this will influence the design.

Financing

Budget Planning

  • Develop a detailed budget that includes all anticipated costs, such as design fees, permits, materials, labor, and contingencies.
  • Obtain quotes from contractors and suppliers to accurately estimate expenses.

Financing Options

  • Explore various financing options, including home equity loans, construction loans, personal loans, and cash reserves.
  • Research potential grants and incentive programs offered by local governments or organizations.

Financial Projections

  • Develop financial projections to assess the potential return on investment, considering rental income and increased property value.
TIP: Use our ADU Financing Calculator to explore loan payment options for your ADU.

Design and Permits

Architectural and Engineering Design

  • Hire a qualified architect or designer to create detailed construction plans that meet local building codes and zoning regulations.
  • Engage a structural engineer to ensure the ADU's structural integrity.

Permit Application

  • Submit permit applications to the local building department, including building, electrical, plumbing, and mechanical permits.
  • Prepare all necessary documentation, including construction plans, site plans, and engineering calculations.

Permit Approval

  • Work closely with the building department to address any questions or concerns and obtain permit approvals.

Construction

Contractor Selection

  • Hire a licensed and insured contractor with experience in ADU construction.
  • Obtain multiple bids and conduct thorough reference checks.

Site Preparation

  • Prepare the construction site, including excavation, grading, and utility connections.

Foundation and Framing

  • Pour the foundation and frame the structure according to the approved plans.

Utility Installation

  • Install electrical, plumbing, and HVAC systems, ensuring compliance with building codes.

Interior and Exterior Finishing

  • Complete interior and exterior finishing, including insulation, drywall, flooring, siding, and roofing.
TIP: Use our ADU Construction Cost Calculator to help estimate your ADU's price.

Inspections

Scheduled Inspections

  • Schedule inspections at various stages of construction to ensure compliance with building codes and safety standards.
  • Standard inspections include foundation, framing, electrical, plumbing, and final inspections.

Inspection Approvals

  • Address any deficiencies identified during inspections and obtain inspection approvals.

Occupancy

Certificate of Occupancy (CO)

  • Obtain a certificate of occupancy from the local building department, confirming that the ADU is safe and habitable.

Final Walk-Through

  • Conduct a final walk-through with the contractor to ensure all work is completed to your satisfaction.

Tenant Acquisition (if applicable)

  • If you plan to rent out the ADU, advertise the unit and screen potential tenants.
  • Create a rental agreement that outlines the terms of tenancy.

Move-In

  • Move into the new ADU or allow your new tenants to move in.
TIP: Use our ADU Utility & Maintenance Cost Calculator to help estimate your ADU's ongoing costs.

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