HelloADU will offer participating homeowners free ADU feasibility and project management services from nonprofit organization Hello Housing. Our goal is to make it easier for homeowners to navigate the complex and often confusing process of designing, financing, permitting, constructing, and leasing an ADU or JADU. We believe that partnering with homeowners like you to create new housing units in your community can help move the needle on addressing the County’s housing affordability challenges.

Simply put, we want more people to build ADUs and we want to help make it easier!

Homeowners who meet the basic eligibility criteria and have decided that they want to build an ADU or JADU should apply. If you aren’t ready to start now or are still saving up to build your ADU/JADU, we encourage you to subscribe for updates. We hope to see the program expand. However, for now, we have a limited number of spots and need to prioritize households that are ready to act by committing their time and resources now.

For starters, you might be ready if your household has had conversations about building an ADU or JADU and pending feasibility confirmation is ready to move forward. Additionally, it is important to have a plan in place for how you will finance it. It is also helpful to think about the time you need to make available in your schedule to connect with professionals and what it might be like to have a construction project taking place at your home. You may have also started to research different designs, or started talking with lenders, and perhaps you have met with the County to learn more about what you can build.

• Your property must be residentially zoned and located within the Unincorporated Areas of the County. If you are not sure if your property meets these requirements, reach out so we can check for you.

• You must own your home and occupy it as your primary residence at the time of application and throughout the ADU/JADU construction process.

• Once your ADU/JADU is completed, you must occupy one unit (either the primary home or the new ADU/JADU) and rent out the other to a bona fide tenant, which may be a relative, a friend or acquaintance, or someone brand new to you.

• Participants selected to receive 1:1 technical assistance through this program must meet one of the following three eligibility options:

A. Homeowner’s household qualifies as a Moderate-Income household based on current County income limits (see below)

B. Homeowner is building the ADU/JADU for occupancy by an adult with developmental disabilities or other permanently disabled dependent (to be identified at time of program application).

C. Homeowner agrees to rent the ADU/JADU to be developed (or the main home if homeowner moves into ADU) to a moderate- or lower-income household at an affordable rent within the program limits, for at least the first three years of occupancy. Affordable rents are capped at 100% of AMI by unit size. As an example, the current rent limits are as follows: Studio $2,300, One-bedroom $2,700, Two-bedroom $3,000.

Santa Cruz County Moderate-Income Limits

(120% of Area Median Income)

• You must have access to financial resources to fully finance the design and construction of your ADU. HelloADU offers free feasibility and project management services but not construction capital. We will support participants with understanding the different types of financing options that are available in the market and help evaluate which options may make the most sense to pursue.

• All participants in the TA program must own and occupy a home located in a residential zone (R-1, RB, RA, RR or RM) in unincorporated Santa Cruz County. The proposed ADU/JADU must be developed on the property that is the owner's principal residence.

If your household does not meet Eligibility options A or B as described in the question above, you will need to agree to lease your ADU/JADU (or the main home, if you move into the ADU) subject to the program’s rent and income limits for the first three years of occupancy. The maximum rent limits are based on 100% of Area Median Income for Santa Cruz County which are typically adjusted on an annual basis. As an example, the current rent limits are as follows: Studio $2,100, One-bedroom $2,400, Two-bedroom $2,700. The income limits for the tenant are the moderate-income limits shown above. If your household is verified to qualify for Eligibility Options A or B, your ADU/JADU is not subject to these rent and income restrictions.

Yes! Participating homeowners will select their own tenant. If you know someone you would like to rent to, you are welcome to do so, so long as you enter into a lease with the tenant. If you would like assistance finding the right tenant, we can refer you to HelloADU's tenant matchmaking partners. It is important to note that in advertising your unit, screening applicants, and selecting a tenant, you must comply with all applicable fair housing laws. Landlord training for HelloADU participants will help ensure that you understand these laws and other landlord responsibilities.

Yes, so long as you have a bona fide lease with your relative that meets the requirements of the program. If you qualify for this program based on Eligibility Option C, described above, the rent you charge may not exceed the Program’s rent limits (above), and your relative will need to meet the Moderate-Income limits (above) in order to occupy your ADU/JADU. If you qualify to participate based on Options A or B, no rent or income limits will apply to your ADU/JADU.

• We expect you to meet all eligibility criteria for the program (see above) including access to sufficient financial resources to support design and construction costs without financial assistance from the County's program.

• We expect you to be ready to start moving your project forward after entering into a Participation Agreement for project management services.

• We expect you to be available to meet with your project team on occasion during regular business hours Monday through Friday.

• We expect you to be willing and able to get all household members and decision-makers on the same page. Your family or household does not need to be in total agreement about your goals when you apply, but we will need you to get there before we can help you proceed with the design and construction phases of your ADU/JADU project.

• We expect you to meet with and engage with third-party professionals who will help move your project forward.

• Because this is a publicly funded program, an important aspect is our evaluation of what worked well for owners and what could be improved. Participating owners must agree to participate in our evaluation activities, such as filling out occasional surveys and engaging in one or more interviews about their experience in the Program. This critical feedback allows us to improve processes and (we hope!) showcase successful projects to inspire other owners to build an ADU/JADU on their property.

Yes! You are welcome to apply, however your project’s ultimate fit for the County's free services may depend, in part, on your project’s specific circumstances.

Yes! We invite you to apply! Depending on the prefab builder you choose, our services may be modified to match their process.

Yes, you will be the one to choose the product type and design/construction professionals for your project. We are here to help guide you through that selection process, helping you understand various product types (from prefabricated/modular to on-site panelized construction to traditional “stick-built” construction) and connecting you to a list of experienced professionals.

We encourage you to apply so that we can help you determine if it is the right fit for our services. Legalizing units can be tricky, and we want to make sure that the project can be legalized and that you are ready for the work that may be involved to bring your informal unit up to current building codes.

Yes! There are two basic types of Tiny Homes: tiny homes on a foundation (THOF), and tiny homes on wheels (THOW). THOF are any dwelling units on a foundation with a total floor area of 400 square feet or less. Many ADU/JADU meet this size criteria, and there is no requirement that your ADU/JADU be larger than 400 SF. Now, based on recent updates to the County Code, Tiny Home on Wheels (THOW) can also be used as an ADU pursuant to County Code Section 13.10.680. Please see the link below for details.

https://www.sccoplanning.com/PlanningHome/SustainabilityPlanning/TinyHomes.aspx

Yes, a non-permitted accessory structure is potentially eligible, but would be considered a new construction ADU, so the entire structure would need to meet current ADU setbacks, building standards and applicable County codes. When considering this option, it is important to note the overall condition of the structure, as the costs to ensure that it meets current building standards can be expensive. Unlike permitted structures, which can be reconstructed in place, if you demolish a non-permitted structure and build new, the new structure will also need to conform to the proper setbacks.

Yes, but only in the case of rebuilding after a disaster, and the location for the development envelope for the future primary dwelling must be indicated on the plans submitted for the ADU. In other cases, when only one dwelling is constructed on a parcel, it is considered a primary dwelling, and standard permit process, development standards and fees apply. However, this initial dwelling can later be “converted” to an ADU, if it meets maximum size and other criteria, and a new primary dwelling can be constructed.

Yes, if your septic system can handle the additional flow from the ADU or can be upgraded to do so. Anytime you add bedrooms or convert existing finished or unfinished space to ADUs or JADUs, the septic requirements increase. Applicants should consult with Environmental Health Services early in the process regarding the capacity of the existing system and the feasibility of improving it if necessary. If your property was affected by the 2020 CZU fire, and you have received all 3 required preclearance certificates for your proposed ADU, including from Environmental Health, that would increase the feasibility of your ADU project. More information about the necessary pre-clearances for the CZU burn area is available here:

https://www.santacruzcounty.us/FireRecovery/RecoveryPermitCenter/Step4Pre-ApplicationClearances.aspx

IMPORTANT NOTE:

If you are seeking to project management support services offered through the program, you must have a completed Environmental Health Site Evaluation. Without this critical information, the HelloADU team will not be able to determine what is feasible on your property. The County's program is a three-year pilot program and therefore, property owners who seek to benefit from the project management services of this program must have a site evaluation that is completed in order to move forward with the ADU project management component.