Accessory Units

Accessory Units
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WHAT ARE ACCESSORY UNITS?

Accessory "units" are private housing arrangements in, or adjacent to, existing single family homes. There are two types:

	Accessory Apartments, created within single family homes, are complete living units including a private kitchen and bath.
	Elder Cottage Housing Opportunity Units are complete, portable, small homes installed in back or side yards of single family house lots.

WHY ARE ACCESSORY UNITS IMPORTANT?

	Accessory units are a source of affordable housing for small households.
	Accessory units adapt existing housing stock.
	Installation upgrades and improves the property.
	Accessory units make efficient use of land and existing infrastructure.
	Accessory units may encourage economic and personal support between two separate households.
	Accessory units generate rental income for home owners.

PROBLEMS ASSOCIATED WITH BUILDING ACCESSORY UNITS AND POSSIBLE SOLUTIONS
PROBLEM/CONSIDERATION	POSSIBLE STRATEGY/SOLUTIONS
Legal Restrictions:
1) Zoning Ordinances	Explore with local zoning commission the procedure for securing a "conditional" or "special use" permit.
2) Covenants	These conditions written into deeds are generally difficult to change and costly to fight.
NIMBY�s (Not In My Backyard)
Neighbors May Object To a Multifamily Setting	Inform neighbors and neighborhood associations about your building plans.
	Meet with local officials and neighbors to address concerns
Costs and Tax Issues	Determine the economic feasibility and availability of home remodeling loans with your accountant or bank loan officer.
	Consult with a tax advisor or benefits specialist to determine the impact renting an accessory unit will have on your tax situation or eligibility for public programs.
	Total general costs for accessory apartments can cost $20,000 or more. ECHO units may cost $30,000 or more.
Sharing a Home	Obligations of the landlord and the tenant should be clearly defined in rental contracts.
	Develop a list of detailed interview questions prior to seeking tenant.

HOW TO BEGIN

Building an accessory unit involves a fair amount of time, planning and expense. Consider taking the following steps:

Determine that your home can be modified to install an apartment or is on a lot that has adequate space and terrain for an ECHO unit.

Ask yourself these questions:

Is the unit legal in my jurisdiction?

What regulations and upgrades will have to be met?

How do I apply for the necessary permits?

Can I afford the time and expenses which will be incurred in the application and building process?

Once you decide to hire a contractor:

	Get recommendations from friends who have had similar projects completed.
	Ensure that they are licensed and bonded
	Ask for a written agreement, with only a small down payment. Make the final payment only after the project is completed.
	Check with your local Better Business Bureau regarding the contractor�s reliability and performance record.