Accessory Dwelling Units 101
Accessory Dwelling Units, or ADUs as they are commonly known, are growing in popularity as many of our local municipalities make planning, zoning and permitting changes to make them easier to build and a more affordable housing option. ADU’s make for a great home office, a guesthouse for visitors, an income-producing rental, or a space for multi-generational living.
ADUs provide an affordable housing option because they allow homeowners the opportunity to build an income property on their existing lot while providing a reasonably priced rental unit for our community. In addition, they also provide a solution for multi-generational families looking to create a cost-prohibitive living space for aging parents or young adult children. There is so much flexibility that an ADU can provide.
We have been a leader in local construction financing for 115 years and we’re one of the only banks in the area with a dedicated plan for funding ADUs.
With the cost of ADUs varying somewhere between $100,000 to $200,000 depending on size and finishes, we’ve developed six different loan options to meet your needs.
If you don’t have enough equity in your current home, this loan option allows you to include the ADU into the appraised value of your home, giving you more borrowing power. With this selection, you keep your first mortgage and you can choose from either an adjustable or fixed-rate loan.
Refinance | Construction
If you have insufficient equity in your current property, this option gives you the lowest rate and payment all in one mortgage. This loan choice also allows you to include the ADU in your appraised value, giving you more borrowing power. This is also a great loan option for expanding the income potential of an existing rental property.
If you look up OlyFedder in the urban dictionary you’ll find a description of our extraordinary group of financial professionals who find joy and purpose in the meaningful work we do with our customers and community. We look forward to helping you!
Olympians for People-Oriented Places (OPOP) will be hosting a free four-part Zoom webinar series all about ADUs.
Please register through the link provided below.
PART 1 of 4: Rules & Regulations (February 27)
PART 2 of 4: Financing (March 13)
PART 3 of 4: Planning & Design (March 27)
PART 4 of 4: Construction (April 10)
Virtual webinars will run from 10 to 11 a.m.
Part 2: Financing Presentation
With the lack of housing supply and affordable home options, ADUs are one way of bringing additional accessible housing to our area.
The following are resources to help you with the design and build process.
The Artisans Group
The Artisans Group has designed four ADU options that have been pre-approved for use and permitting by many of our local municipalities. Their flexible designs allow for these ADU’s to fit various kinds of lots and siting situations.
Options range from a 480 square foot studio or one-bedroom model to an 800 square foot, two-bedroom, two-story home.
The designs are the intellectual property of The Artisans Group but rented indefinitely by the cities, can be modified through the firm for a small fee.
Olympia Master Builders
The Olympia Master Builders (OMB) is an excellent resource for finding contractors to help with the construction of ADUs. OMB has the guides, resources and expertise to connect you with any professional help you might need in building an ADU.