The City of Santa Cruz has successfully implemented an alternative dwelling unit (ADU) program. Carol Berg, housing and community development manager for the City of Santa Cruz spoke at the California Chapter of the American Planning Association on September 30. She explained the steps that Santa Cruz took to implement the program.
First, the community was made aware of this program through “great press,” public hearings and a website. Measures were taken to maintain the neighborhood scale keeping entry stairs oriented away from the neighbors' properties and paying particular attention to alley orientation.
In order to make ADUs work, parking regulations were reduced. Covered parking was no longer required while spaces in driveways fulfilled requirements. To further simplify regulations, water meters could be shared and sprinklers were not required for the main house. These regulatory changes were initiated by City Council acting “advanced politically,” said Berg. A fee waiver program also provided reduced fees for water hook-ups. As a last but not least benefit, ADUs did not have to be approved through the public hearing process.
The City provided these incentives for ADUs because the additional rental housing provided will not cost the city anything. If 40 units are added over five years, explained Berg, 200 rental units will fill a niche that the city needs. Homeowners benefit by being able to afford or stay in their homes. This program helps them adjust to changing needs and encourages mixed income neighborhoods.
Typically, existing garages are converted into ADUs as apartments for renters or additional living space for family members. The property owner must live in either the main house or the smaller unit. This minimizes the possibility of property neglect.
Property owners benefit from these units for several reasons. First, converting a garage can be done for an average of $50,000. If the owners rent this unit for $1,000, they can recoup their investment within five years. Also, the property value will increase well above the investment in most cases. (If the home is sold, the same owner-occupancy rules apply to a new owner.) One Santa Cruz woman rented out her ADU to pay for her son’s college expenses, explained Berg. Another option is to rent out the main house and live in the unit. This could help a cash-strapped homeowner or simply allow them to save money if they no longer require a larger home to live in.
The City of Santa Cruz ADU Development Program has won national awards. These are: the EPA Smart Growth Achievement Award, the American Planning Association Implementation Award and the American Institute of Architects Honors Award for Regional and Urban Planning. They also won the Helen Putnam Award of Excellence from the California League of Cities. (Berg handout at presentation)
Seattle is currently working on a similar program and plans to use the Santa Cruz manual to create theirs, said Berg.
For more information of the Santa Cruz program, visit their website at www.ci.santa-cruz.us/pl/hcd/ADU/adu.html.
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Berg, Carol, housing and community development manager for the City of Santa Cruz, presentation at the California Chapter of the American Planning Association, 30 September 2007.
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