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Can I Build Two Houses On My Land?

Published in Property Development 5 mins read

Yes, in many cases, you can build a second house on your land, particularly in areas like California where regulations support this through Accessory Dwelling Units (ADUs), also known as "Granny Units" or secondary units. While specific rules vary greatly by location, the concept of adding an additional residence to an existing single-family property is increasingly common and often encouraged.

Understanding Accessory Dwelling Units (ADUs)

An Accessory Dwelling Unit (ADU) is a smaller, independent residential living unit located on the same lot as a standalone primary residence. These units are complete with their own kitchen, bathroom, and sleeping facilities. They serve various purposes, from providing housing for family members to generating rental income.

In California, for instance, a significant push has been made to facilitate the construction of ADUs. State law mandates that all single-family home zoning must allow for ADUs. While there are often limits on size, such as units generally being restricted to around 840 square feet, and other specific building restrictions, the zoning itself permits the addition of a second dwelling unit on the same property. This statewide allowance significantly simplifies the process compared to many other regions where such additions might be more heavily restricted or require rezoning.

Types of Accessory Dwelling Units

ADUs come in various forms, offering flexibility to property owners:

  • Detached ADU: A standalone structure separate from the primary house, often built in a backyard or side yard.
  • Attached ADU: An addition to the existing primary home, sharing at least one wall with the main residence.
  • Junior ADU (JADU): A unit no more than 500 square feet, located within the existing walls of a single-family home, typically requiring a separate entrance but often sharing a bathroom with the main house.
  • Conversion ADU: Created by converting existing space within the primary home (e.g., a garage, basement, or attic) into an independent living unit.

Here’s a quick overview of common ADU types:

ADU Type Description Typical Location
Detached Separate building on the same lot. Backyard, side yard
Attached Extension of the main house, sharing a common wall. Side, rear of main house
Conversion Repurposed existing space (e.g., garage, basement). Within existing structure
Junior (JADU) Small unit (up to 500 sq ft) within existing home, separate entrance. Inside main house

Key Considerations for Building a Second House

Before embarking on building a second dwelling, it's crucial to understand the various factors that will influence your project. While regulations have eased in many places, specific local rules still apply.

Zoning Regulations and Local Ordinances

Even with state mandates like those in California, local jurisdictions (cities and counties) have the authority to impose specific development standards. These can include:

  • Setbacks: Minimum distances from property lines.
  • Height limits: Maximum allowable height for the structure.
  • Lot coverage: The maximum percentage of your lot that can be covered by structures.
  • Owner occupancy requirements: Some areas may require the owner to reside in either the primary dwelling or the ADU.

Size and Design Restrictions

Most areas have limits on the maximum size of an ADU. For example, some jurisdictions in California might cap ADUs at 840 square feet for one-bedroom units or 1,200 square feet for two-bedroom units, or a percentage of the main home's size, whichever is smaller. Design restrictions might also be in place to ensure the ADU is aesthetically compatible with the primary residence and the neighborhood.

Permits and Inspections

Building a second house requires obtaining proper building permits from your local planning and building departments. This involves submitting detailed plans for review and undergoing various inspections throughout the construction process to ensure compliance with building codes and safety standards.

Utility Connections

Consider how the ADU will connect to existing utilities, including water, sewer, electricity, and gas. In some cases, separate utility meters might be required or beneficial, especially if you plan to rent out the unit.

Parking Requirements

While many jurisdictions have reduced or eliminated parking requirements for ADUs, especially if they are close to public transit, it's essential to check if you need to provide additional parking spaces for the second unit.

Benefits of Building a Second Unit

Adding a second dwelling unit to your property offers several advantages:

  • Rental Income: A significant benefit is the potential to generate passive income, which can help offset mortgage payments or other living expenses.
  • Multi-Generational Living: ADUs provide an ideal solution for housing aging parents, adult children, or other family members, allowing them to live close by while maintaining their independence.
  • Increased Property Value: A well-designed and legally permitted ADU can significantly enhance the overall value of your property.
  • Flexibility: An ADU can serve multiple purposes over time, adapting to changing family needs or market demands.

Steps to Take

If you're considering building a second house on your land:

  1. Research Local Regulations: Start by contacting your city or county planning department. They can provide detailed information on local zoning ordinances, permit requirements, and specific ADU laws applicable to your property. A good starting point might be your state's housing and community development department, such as the California Department of Housing and Community Development (HCD) for those in California.
  2. Consult Professionals: Engage with architects, general contractors, or ADU specialists who are familiar with local building codes and design requirements. They can help you design a unit that fits your needs and complies with all regulations.
  3. Financial Planning: Determine your budget and explore financing options, which might include home equity loans, construction loans, or cash.

By understanding the rules and planning carefully, building a second house on your land can be a rewarding and beneficial investment.