Accessory Dwelling Units (ADUs) are on the rise in the USA. Based on the estimates from a study by mortgage lender Freddie Mac, around 1.4 M homes were built with an ADU unit in the USA by 2019. However, not all states allow building ADUs freely. States such as California and Vermont demand certain permits before you can build an ADU. But what happens if you build ADU without an ADU permit?
What Are The Risks of Having A Unit without ADU Permit?
Owing an unpermitted ADU house carries several risks, especially if you plan on renting it out in the future. Here are some of the most common risks you may experience:
Legal Issues without ADU Permit
Getting an ADU permit can be a hassle in some states, but it can save you from a handful of legal issues. For instance, without a Certificate of Occupancy for your ADU, renting out an ADU unit or even collecting rent becomes illegal. Similarly, if your ADU rental ever falls victim to a fire or an unwarranted tragedy, insurance won’t be able to protect you. Besides this, you may face fines and even potential lawsuits from tenants if your ADU is not legal.
Lengthy Rebuilding and Processing
One of the reasons many people shy away from getting an ADU permit is because of the lengthy process and additional permit fees you will have to ensure. While some state laws demand that authorizing agencies respond to ADU applications within 60 days, it may take longer in practice. In case you have an ADU built without a permit, it will take just as long to bring it under compliance.
This is because built ADU homes that bypass the permitting process tend to have many issues hidden in their foundations. Poor wiring, framing and plumbing can all slow down your ADU permitting process. Until you bring your ADU under code, you won’t be able to get a certificate.
Contractor Risks
Finally, the biggest risk you will eventually face is from the contractors you hire. When you are not too worried about adhering to city codes and there is no one to keep an eye on things, your contractor may likely end up cutting corners. More so, you won’t be able to hold them accountable for any problems that arise in the future. Therefore, you must always choose a reliable ADU contractor for the job.
Can You Bring Unpermitted ADUs Into Compliance?
You now understand how important it is to get an ADU permit before you build an ADU unit. In case you have already built one, there are ways to bring your property under compliance. According to Senate Bill 1069, you can bring any “existing structure that has been or could have been converted to an ADU” into compliance through ADU permits.
Of course, the real issue lies in the cost of upgrades you will have to bear in bringing your ADU unit up to code. That’s not all, once you have notified the city, you may even have to stop using it as a living space until you get your ADU permit. For more severe problems, you may have to demolish it altogether and rebuild from scratch.
This is why we recommend that you look up your local state laws and bring your ADU addition into compliance early on. Not only will this help you save money, but also valuable time in the future.