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ADU Accelerator Program

Accessory Dwelling Units, known as ADUs, are a highly successful response to LA’s need for affordable living. LA homeowners are building ADUs to provide much-needed living and rental space, while travelers and renters are capitalizing off of these advantageous mini housing units.

Discover what there is to know about the ADU Accelerator Program in LA to find out how the city is addressing the need for affordable housing while benefiting ADU owners.

Related: Side Income ADU

ADU's In Los Angeles

ADUs are highly beneficial secondary housing units built on single-family residential lots with one ADU allowed per lot. These compact houses contain a bathroom, kitchen, and living space as well as a separate entrance. They can house a variety of people and respond to many needs. As living space in LA increases in price, many people turn to ADUs for affordable living in desirable neighborhoods.

garage conversion adu

People entering retirement and looking to downsize also rely on ADUs rental to remain in their neighborhoods of preference without breaking the bank.

Renting an LA ADU is a guaranteed way to make passive monthly income while also investing in profitable equity. ADUs raise property value and provide many unique opportunities for Los Angeles homeowners. In addition to renting out ADUs, homeowners can also use the space to house loved ones and visit friends. Others use ADUs as studios, home offices, or home gyms. LA ADUs can also be converted into living rooms, game rooms, family rooms, or anything the homeowner desires. Another option that LA homeowners now have is the LA ADU Accelerator Program to rent ADUs to people in need.

Related: Junior ADU Guide

LA ADU Accelerator Program

Since January 1, 2020, there have been five laws passed to increase the construction of ADUs. The LA ADU Accelerator Program was implemented to help single-family residential unit property owners take advantage of LA ADUs and address the need for affordable living for older residents in Los Angeles. Since only a small percentage of eligible properties contain an ADU in Los Angeles, the main obstacles preventing homeowners from building an ADU were identified. Common issues included understanding laws, financing options, and the development process.

Many homeowners also lacked knowledge about what an ADU is and why it is advantageous to have. To address these concerns and help educate homeowners, a statewide policy change was proposed. The past several years have seen California policy changes put in place to remove the confusion of the ADU process and make it easier for Los Angeles property owners to build an ADU. The ADU Accelerator Program has now created a roadmap for creating ADUs, meaning that LA ADUs are now more affordable and accessible than ever. The goal of this project is to address homelessness in Los Angeles through a proposal that provides many benefits for both the ADU owner and the ADU tenant.

Addressing LA Older Adults in Risk of Homelessness

The ADU Accelerator Program encourages the construction of LA ADUs to benefit people in need. The program aims to provide long-term affordable housing solutions to low-income adults. The ADU Accelerator Program pairs older adults who are at-risk for homelessness with homeowners who are willing to add an ADU to their eligible properties to be used as affordable rental units. Homeowners receive benefits including qualified tenant referrals, landlord support, rental income, and more.

The LA ADU Accelerator Program is conceived as a three-year program operated by the City of Los Angeles thanks to a grant from Bloomberg Philanthropies and equal financial contribution from the City of Los Angeles. Through the program, all steps of the rental process are handled including locating tenants and guaranteeing stable rent payments. That means that it is safe and easy for ADU owners to turn to the program to find reliable tenants.

Related: Types of Los Angeles ADU

garage before adu

Eligibility Requirements

The ADU Accelerator Program aims to provide reliable and affordable housing for struggling people over age 62 who live in Los Angeles.

Tenants will be carefully screened before being accepted. The ideal tenant is cooperative, eager to share, respectful, responsible, and communicative.

Tenants must be at least 62 years old, reside in Los Angeles County, earn at or below 30% of the AMI, have a valid phone number, and have a valid email address.

Eligible LA ADU tenants will be guaranteed several years of housing at an affordable rental rate. ADUs will provide them independent living complete with a private entrance, living space, kitchen, and bathroom, while tenant rent will account for 30% of their income. Applications can be made regardless of legal status, though financial documents may be asked for with the application. Qualified tenants will be put through a rigorous screening process before they are selected and recommended to homeowners.

Related: What is an ADU 

Making ADUs Accessible

The LA ADU Accelerator Program simplifies the LA ADU construction process. It includes benefits such as an easy application process that will take approximately three months from the initial homeowner application submission to the tenant moving in. The following monthly rental payments are available to LA ADU owners in the program:
Studio ADU — $1,117
One-bedroom ADU — $1,255
Two-bedroom ADU — $2,094
Three-bedroom ADU — $2,933

Homeowners will have a dedicated case manager to assist them through the landlord process. Since tenants are willing participants who are heavily screened, tenant turnover is limited and rent payments are guaranteed. Through the ADU Accelerator Program, consistent and timely rent and communicative landowner and tenant relationships are ensured. The program aims to utilize ADUs to benefit homeowners while addressing the serious issue of homelessness that many Los Angeles residents face.

Explore LA ADU Construction Today!

ADUs are highly versatile living spaces and they create major advantages for Los Angeles homeowners. Teaming up with a professional contractor will ensure that full LA ADU regulations are met to ensure a successful project. It also allows for the opportunity to explore financing needs and discover how to maximize benefits for your LA ADU. Investing in an ADU is a smart choice in creating both current and future profits.

At California Foundation Works, we’re your one-stop shop for contracting needs in the greater Los Angeles area. Our contractors bring decades of experience and expertise to every project. We value communication, efficiency, and quality when it comes to our projects. Our services include retrofits, renovations, repairs, drainage system installations, and more. We’re happy to discuss your needs to ensure that your LA property meets your full demands and exceeds your expectations.

Does your Los Angeles property have an ADU?

Are you interested in helping Los Angeles address its homelessness problem?

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