Agenda Packet 2-20-19 Work Session

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Eugene Housing Tools & Strategies Evaluation 26 ACCESSORY DWELLING UNITS This chapter summarizes the evaluation of Accessory Dwelling Unit (ADU) policy in Eugene. Strategic Economics conducted several analyses to evaluate the potential to increase ADU production, including: 1) conducting a parcel analysis to consider how current ADU policies may be limiting ADU production and the overall potential of ADUs as a tool to increase Eugene’s housing stock and the overall potential of ADUs as a tool to increase Eugene’s housing stock; 2) reviewing the Eugene land use code to identify areas of conflicting interpretation on ADU policy; 3) reviewing existing literature on ADU production in other cities; and 4) conducting an analysis of the financial feasibility of building an ADU under various scenarios. An ADU, also sometimes referred to as a “granny flat,” “in-law unit,” or “backyard cottage,” is a housing unit of modest size, typically ranging from studios to two bedrooms, added to the lot of single-family home. ADUs come in many forms. They can be detached from or incorporated into the primary dwelling. They can be newly constructed or converted from existing structures, such as garages. ADUs are considered a type of “gentle density” in which building them increases the housing supply while minimally impacting their neighborhoods. Who Lives in ADUs? ADUs have been promoted in high-cost cities to meet the needs of aging homeowners. An ADU could provide retirees with both an additional income source, and a means to “age in place.” A 2014 survey of over 200 Portland homeowners with ADUs found that owners are typically older than ADU tenants. The median age of ADU owners in Portland was estimated to be 53, while that of tenants was 36.25 The vernacular nicknames for ADUs suggest that they are inhabited primarily by family members, be it an elderly parent or an adult son or daughter. However, in regions with high housing costs, homeowners are increasingly building ADUs as units on the general rental market. A study that surveyed homeowners that had recently built ADUs in Seattle, and Portland, and Vancouver, BC, found that over half of the 414 respondents’ ADUs were occupied by “arm’s length renters,” or those with no previous relationship with the owner. Friends and family occupied approximately 30 percent of ADUs, and the remaining respondents reported their ADUs were either unoccupied or occupied by homeowners.26 Benefits and Opportunities Associated with ADUs An effective ADU policy can contribute to achieving or maintaining affordability while accommodating growth because ADUs are a relatively low cost housing type since there are no land costs and because they capitalize on existing infrastructure. Other benefits of ADUs include: ADUs do not require the demolition of existing buildings, and therefore have a significantly smaller displacement impact, compared to larger-scale development. 25 Brown, Martin and Jordan Palmeri, “Accessory dwelling units in Portland, Oregon: evaluation and interpretation of a survey of ADU owners,” Oregon Department of Environmental Quality, 2014. 26 Chapple, Karen, Jake Wegmann, Farzad Mashhood, and Rebecca Coleman. “Jumpstarting the Market for ADUs: Lessons Learned from Portland, Seattle, and Vancouver.” The Terner Center for Housing Innovation, 2018. February 20, 2019, Work Session – Item 1