What are the owner-occupancy requirements for ADUs in San Jose?

Building an Accessory Dwelling Unit (ADU) in San Jose is a great way to optimize your property’s potential, given the city’s ongoing housing needs and the state’s push for increased residential density. Let’s delve into your questions regarding the owner-occupancy requirements and other pertinent considerations for your ADU project in San Jose.

### Owner-Occupancy Requirements in San Jose

As of recent legislative changes, San Jose does not impose an owner-occupancy requirement for ADUs. This shift was influenced by California state laws, specifically SB-13, AB-68, and AB-881, which aimed to reduce barriers to ADU construction statewide. These laws generally prohibit local jurisdictions from requiring owner-occupancy for new ADUs built between January 1, 2020, and January 1, 2025. Thus, you are not required to live on the property, allowing for both the main house and the ADU to be rented out simultaneously, should you choose to do so.

### Budgeting for Your ADU

Given your budget of $150,000, achieving a well-designed, cost-effective ADU is feasible but will require careful planning. Here’s a breakdown of potential costs in San Jose:

- **Design and Permits**: Expect to allocate $10,000 to $20,000. This includes architectural designs and permits. San Jose’s building department is efficient but thorough, so plan for a few months for this phase.
- **Construction**: The cost per square foot for ADU construction in San Jose can range from $200 to $300, depending on materials and finishes. For a 500 square foot unit, this translates to $100,000 to $150,000. To stay within budget, consider a smaller footprint or cost-saving materials.
- **Utilities and Site Work**: Additional costs for utility hookups and site preparation can range from $20,000 to $30,000.

### Timeline

The timeline for an ADU project in San Jose typically spans 12 to 18 months from conception to completion:

1. **Pre-Planning and Design (3-4 months)**: Engage with a local architect or designer familiar with San Jose’s ADU guidelines.
2. **Permitting (2-3 months)**: Submit plans to the San Jose Building Division. The city prioritizes ADU applications, but it’s wise to anticipate a few rounds of revisions.
3. **Construction (6-12 months)**: Depending on your contractor’s schedule and the complexity of your design.

### Important Considerations

- **Zoning and Setbacks**: San Jose allows ADUs in most residential zones, but ensure your design respects setback requirements: generally 4 feet from side and rear property lines.
- **Parking**: Recent state laws have relaxed parking requirements for ADUs, especially if your lot is within a half-mile of public transit.
- **Utilities**: Consider the cost and feasibility of connecting your ADU to existing utilities. This can be a significant hidden cost.

### Common Pitfalls and Tips

1. **Overlooking Soft Costs**: Don’t forget about soft costs such as impact fees. While San Jose has reduced these for ADUs, they still apply if your unit exceeds 750 square feet.
2. **DIY Mistakes**: While DIY projects can save money, they can also lead to costly errors. Engage professionals, especially for design and structural work.
3. **Contractor Selection**: Vet contractors carefully. Local experience in San Jose’s permitting process can save time and headaches.

### Resources and Next Steps

- **City of San Jose’s ADU Program**: The city offers a dedicated ADU website with resources, including pre-approved ADU plans which can expedite the design and permitting process.
- **Local ADU Workshops**: Attend workshops or webinars held by the city or local real estate groups for insights and networking with ADU professionals.
- **Consult a Professional**: Engage with a local ADU consultant or architect early in your planning process to navigate regulations and ensure a design that meets your needs.

### Conclusion

Building an ADU in San Jose is an excellent investment, both for personal use and potential rental income. By understanding and leveraging local regulations, and adhering to a well-planned budget and timeline, you can successfully add an ADU to your property. Keep in mind the temporary waivers and changes due to housing shortages, as they can significantly impact your plans positively. Good luck with your project, and feel free to reach out for further guidance!