Ready to Build Your ADU?

PHOTOS IN THIS SPREAD COURTESY OF JOHN ERWIN REMODELING, INC.

So, You’re Ready To Build Your ADU? HERE’S WHERE TO START

Accessory Dwelling Units (ADUs) have been a hot topic over the past couple of years when it comes to housing in Thurston County. An ADU is most commonly referred to as a “mother-in-law apartment”. It is an additional living unit on a single-family lot with a separate kitchen, sleeping area, and bathroom facilities. ADUs can be attached to the existing home or garage or built separately as a small, stand-alone, structure.

Fortunately for residents in Olympia, Lacey and Tumwater, ADU ordinances have been adopted to help these local jurisdictions meet GMA goals that encourage affordable housing and provide diverse housing densities while maintaining the feel of existing single-family neighborhoods. Over the years there has been a lot of push-back from the community when it comes to ADUs. Many people worry that allowing ADUs will open the door for investors to come in and create rental homes that they worry will change the look and feel of their neighborhoods. John Erwin of John Erwin Remodeling Inc. reassures, “I have been building ADUs for over 10 years now. Every single ADU I have completed has been built for the use of a family member, either aging parents or adult children with disabilities. None of the ADUs that I have built have been built for the sole purpose of rental income. In the end it does not really pencil for an investor to build an ADU. In my experience they are being used primarily to maintain a family unit and to create lasting multigenerational properties.”

There are a number of benefits that come along with investing in an ADU, but the top reasons include increased property value,

I have been building ADUs for over 10 years now. Every single ADU I have completed has been built for the use of a family member, either aging parents or adult children with disabilities. None of the ADUs that I have built have been built for the sole purpose of rental income.

- John Erwin of John Erwin Remodeling, Inc.

increased potential resale value, generating rental income, and creating low-cost housing for adult children and/or aging family members.

Now that you have decided that building an ADU or converting an existing structure to be used as a second dwelling unit makes sense for you and your property, what are the next steps to take?

The best place to start your ADU journey is to meet with your local jurisdiction’s building department to discuss the project options with Planning and Building.

If you are looking to create a new build from scratch, there are several site feasibility considerations that need to be met before you can obtain approval to move forward with your ADU. Some considerations include the size of your lot, building setbacks, sewer connection, a pedestrian walkway or access, privacy, and stormwater runoff just to name a few.

If you are working with an existing unpermitted ADU, talk to your local jurisdiction and have it assessed to meet current standards. Some of these standards include fire, access, mechanical, HVAC, and plumbing. Debbi Boyd, Real Estate Broker and Co-Owner of Real Estate of the South Sound, says, “If you are working with an existing unpermitted ADU on your property, I encourage you to talk to your local jurisdiction and have it assessed to meet current standard codes. This is very important for homeowners who plan to use the unit as rental income or have the intention of selling in the future. It is worth the extra time and money to upgrade the existing unit to code, to eliminate any unnecessary issues when it comes time to sell or rent.” “I would also recommend that you reach out to your HOA about their regulations surrounding ADUs and rental spaces before you start the process. Many times, they have their own set of limitations that are not included in each city’s specific standards,” Debbi adds.

The City of Lacey and the City of Olympia offer a pre-approved ADU design program. The pre-approved plans offer four design options based on the number of rooms and overall size. The designs were created locally by Artisans Group in Olympia and are 100% pre-approved by the cities and FREE. The benefit of utilizing the pre-approved program is that it reduces one more barrier, as well as expedites the review process. And saves you money from

I encourage you to talk to your local jurisdiction and have it assessed to meet current standard codes. It is worth the extra time and money to upgrade the existing unit to code, to eliminate any unnecessary issues when it comes time to sell or rent.

- Debbi Boyd of Real Estate of the South Sound

BEFORE

AFTER

PHOTOS ON THIS PAGE COURTESY OF DICKEY’S REMODEL & REPAIR

paying a designer to draw up unique plans. If you do choose to use the pre-approved designs, make sure you still meet with your local building department as the plans are pre-approved for the structure, but you may need extra permits or approvals that apply to your specific lots.

The second step is to hire a contractor. There are a number of local contractors who have extensive experience building ADUs and converting existing structures for ADU use that are familiar with the process from beginning to end. If you are looking to hire a contractor with experience in building ADUs, visit omb.org to access the searchable directory in the ADU category. Always do your homework. It is important to make sure a contractor is registered, actively licensed, and has a bond and insurance. Call Washington State Department of Labor & Industries at 360-9025800 or look up your potential contractor at https://secure.lni. wa.gov/verify/

Jeff Kuster, owner of Kuster Homes suggests, “When looking to take on any major project like an ADU or converting a detached structure for other purposes, I would strongly recommend you hire someone local and experienced in these specific areas. You

BEFORE

I would strongly recommend you hire someone local and experienced in these specific areas. Over time we have learned to work as a community and support each other in getting these types of projects submitted, approved, built, and completed. - Jeff Kuster of Kuster Homes, LLC

will quickly find that they are familiar with the jurisdiction requirements and have good working relationships with Building Officials as well as the Plans Examiners. Over time we have learned to work as a community and support each other in getting these types of projects submitted, approved, built, and completed.”

Now that you have been cleared by the city and hired a contractor, the next step is to meet with a lender and secure financing. Many local banks and lenders have the flexibility to work with specialized homes like ADUs. OlyFed prides itself on being a leader in local construction financing for over 115 years and they are one of the only banks in the area with a dedicated plan for funding ADUs.

“With the cost of ADUs varying somewhere between $150,000 to $250,000 depending on size and finishes, we offer a number of customizable lending solutions to meet a variety of project needs and budget and financing scenarios,” says Barbara Whitlow, AVP/Residential Relationship Manager.

Ryan Andrews, Planning Manager from City of Lacey advises, “Connect your lenders and builders and keep it local. They will be knowledgeable of the programs and can help you along the way.”

Building an ADU on your property is an exciting venture for any homeowner. Whether you plan to use it as a separate living space for family or a friend, as a guest house, or as an office, art studio, or home gym, it’s a great way to earn passive income and add value to your property.

PHOTOS ON THIS PAGE COURTESY OF JOHN ERWIN REMODELING, INC. With the cost of ADUs varying somewhere between $150,000 to $250,000 depending on size and finishes, we offer a number of customizable lending solutions to meet a variety of project needs and budget and financing scenarios.

- Barb Whitlow of OlyFed