The ADU Revolution Goes National
ADUs have steadily been gaining national attention over the past two years as one solution to so many issues brought to light by the COVID-19 pandemic: a way to create more space, house family and community members, and create intergenerational wealth. Now, with the release of the Biden-Harris Administration’s Housing Supply Action Plan on Monday May 16, a true national conversation about ADUs begins - and the implications are certainly promising.
The Biden-Harris administration highlighted ADUs back in February when they hosted the first-ever national ADU webinar. The event featured Casita Board President Denise Pinkston alongside leaders and officials from other states and local jurisdictions that have passed legislation and ordinances to adopt ADUs. Speakers also called for federal ADU finance reform to broaden families able to benefit from small housing reforms sweeping the nation by allowing future ADU income to count towards federal mortgage underwriting.
Recent research from the Urban Institute displayed an acute need for financing options in California: Los Angeles received almost 12,000 ADUs building permit applications in 2018-2019, but because of the lack of financing options, only a fraction of these has resulted in complete ADUs. California housing advocates have learned the hard way that zoning changes do not always increase housing supply: time and capital are needed for homeowners to take advantage of zoning changes that allow for more low-density infill like ADUs. It is absolutely essential that the Biden-Harris administration and FHFA work towards inventive solutions that make capital available for the people who want to take advantage of it but do not have the means: seniors, moderate- and low-income families, and communities of color.
We are excited and hopeful that the Biden-Harris Administration and FHFA will finally open up new avenues for everyone to borrow and realize small home dreams through the Housing Supply Action Plan.
What Does The White House Housing Supply Action Plan Propose?
The Biden-Harris Administration’s plan to “close the housing supply gap in five years” made several promises to increase ADUs across the country and make them more attainable for low- and moderate-income Americans:
Scale up ADUs by expanding access to financing:
Federal housing agencies (FHA & FHFA) will help lenders launch pilot programs with ADU financing for low- and moderate-income homeowners
New data tracking effort for ADU loans will allow federal housing finance agencies to fine-tune their features and flexibilities, with a goal of expanding affordable finance options for homeowners and builders
New financing options for home renovations and rehab of smallplexes (2-4 unit multifamily properties)
Provide Housing Supply Fund financing to develop 500,000 units of housing affordable for low- and moderate-income renters and homebuyers:
Investments to bring vacant/underutilized properties back to useful life as housing
Funds for State and local governments to design their own programs to get affordable ADUs built
Funds for promoting innovative building types and systems such as modular, panelized or manufactured housing, with a goal of bringing down costs
A Nationwide Coalition for a National Movement
California’s statewide small housing laws require each local government to accept different forms of housing and generate development provisions that help expand small housing. The power of statewide ADU law is immense - and because we have it in California, we are now able to identify and tackle second-generation barriers to ADU implementation, such as access to financing. California’s uniform ADU standards have enabled housing construction and delivery innovations that lower the cost to build, deliver, and permit small homes in every community and generate growing demand for changes in federal lending practices. Housing advocates from California (and other early adopters of statewide ADU laws like Washington and Oregon) have brought these barriers to the attention of federal housing advocates, who can help make it easier for communities all over the country to build small housing.
The movement towards State ADU laws began on the West Coast, and is now expanding across the country. In 2021, AARP with the American Planning Association created the first ever model State ADU law to provide guidance to small home advocates across the US interested in delivering the ADU promise to their cities and states. Connecticut, Maine, and New Hampshire all have statewide ADU legislation, and several other states are currently working on ADU bills. As housing advocates continue to document the stunning success of major ADU and smallplex zoning reform, more cities and States look to these examples to combat the housing crisis in their own backyards.
Major urban metro leaders across the U.S. have successfully reformed zoning in their local jurisdictions to promote small homes, including (but not limited to):
Atlanta, Georgia
Austin & Dallas, Texas
Boise, Idaho
Burlington, Vermont
Charlotte & Raleigh, North Carolina
Chicago & Evanston, Illinois
Denver, Colorado
Des Moines, Iowa
Madison, Wisconsin
Minneapolis & St. Paul, Minnesota
Philadelphia, Pennsylvania
Princeton & Maplewood, New Jersey
Salt Lake City, Utah
Santa Fe, New Mexico
Board and Staff members at Casita Coalition have been fortunate to meet with housing leaders in several of these places (most recently, in Chicago and Evanston) - and we are constantly struck by the ingenuity and tenacity of ADU advocates, no matter where they come from. So much learning takes place as part of these conversations as leaders share their triumphs and lessons learned. We look forward to continuing these conversations with leaders from all over the country as ADUs and other small housing forms are more widely understood and embraced as powerful tools to help families and communities meet their housing and financial needs.
Member Corner
Save the Date for Maxable Space’s San Diego ADU Tour - June 11th & 12th
Join the Maxable for the return of their highly praised in-person ADU event and expo, How to Kickstart Your ADU Project.
Save the Date for ADU Academy - June 24th, 2022
The ADU Academy is an event designed for industry practitioners (designers, builders, entrepreneurs, developers, realtors, real estate investors, lenders and appraisers, and advocates), though anyone is welcome to register.
7 continuing education credits available for CCB, OREA, ACLB, AIA, and an ADU Specialist designation.
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