California Experts Weigh in on the ADU Equity Gap

Casita Coalition was proud to partner with the Terner Center for Housing Innovation and the Center for Community Innovation to host a webinar and panel discussion on achieving equity in ADU production. The webinar was hosted and moderated by David Garcia (Policy Director, Terner Center for Housing Innovation), with Dr. Karen Chapple (Faculty Director, Center for Community Innovation) presenting the findings from Terner Center’s recent research on ADUs & Equity. The panel included Nikki Beasley (Executive Director, Richmond Neighborhood Housing Services), Charles Ampate (Keys to Equity), Iliana Nicholas (EPA Can Do), and Katherine Peoples (HPP Cares).

Karen Chapple’s presentation revealed what many in the ADU world already know - that the main barriers to building ADUs include cost, lack of finance options, and the complex and frustrating process that is made even more prohibitive by language barriers, lack of familiarity with the construction process, and a general sense of mistrust in cities (many of which had cultures of redtagging for a very long time). One of the homeowners interviewed by Terner Center said that the ADU permitting process feels like “going to court without a lawyer.” As a result, only 31% of the ADUs that get permitted in communities of color actually get built. The solution to this problem appears to be in cultivating partnerships between cities and intermediaries, such as nonprofits, community-based organizations, credit unions, and others, to re-establish trust and grow ADU adoption in historically marginalized communities. 

The panel of speakers represented a number of these intermediary groups interviewed by Terner Center for their report, most of whom work directly with homeowners of color on ADUs. The discussion centered on the report findings, ADUs as a community stabilization tool, what to do about unpermitted units, the role of financing programs such as CalHFA’s ADU pre-development cost grant program, how best to use state funds to expand access, and the efficacy of one-stop-shop ADU companies. 

The panelists raised several suggestions for things that could help begin to break down barriers to ADU equity, including:

  • More municipalities investing in a homeowner-friendly multilingual information desk or dedicated staff where homeowners can get support for ADU development

  • Outreach and education efforts to help homeowners recognize scams, designed within the language and values of the communities they are designed to help

  • Increased understanding that in many communities, the impetus to build an ADU often comes from the desire to house family, and not from the desire for an additional revenue stream from rental income, and these family-occupied ADUs are also important as housing

  • Widespread support for and conversation with housing agencies and other small community organizations that work with homeowners on multiple facets of housing, including financial literacy and preparedness

  • More options for lower-cost ADUs

  • Higher standards and accountability for companies that market their products to lower- and middle-income communities to avoid predatory practices

The webinar is available to watch here.

Read the Terner Center’s report here.


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