The challenge is that we are very short on housing for working families. One reason is that when land becomes available private developers often focus on the “highest and best use” which around here often means building $400,000 condos for retirees.
The problem is that our essential workers, in healthcare, education, public safety, and manufacturing, cannot find affordable housing. This limits everyone’s ability to prosper in our fair valley, employees have a hard time saving or take jobs elsewhere while employers struggle to hire the staff they need.
We have lots of land, but many landowners (families, churches, fraternal organizations, and businesses) do not want to sell their land even if they don’t want to develop it in the near future. Leasing lets the owner own and a developer build with lower upfront costs.
Benefits to the landowner
Retain ownership and future appreciation of land
Regular income
Avoid capital gains that a sale might trigger
Little to no upfront costs to create cash flow
Can support the community by making land available for a great cause
Benefits to the community
More housing faster with lower upfront costs
Secures the land for the life of the building
More people willing to lease than to sell
Prime locations become more accessible – walkability and transit are key
How does it work?
Most land leases are quite straightforward and last 60+ years
Owner agrees to allow the developer to use the property to build and operate housing for upto 99 years
All zoning rules and regular escrow processes are followed
ADU is short for Accessory Dwelling Unit. It can be accessory to detached single-family homes, townhouses, manufactured homes and duplex dwellings on their own lot.
Supports aging in place, generational wealth building, and housing for extended family or friends.
Adds affordable “missing middle” housing options in a moment of critical shortage/ opportunity. Missing middle is everything from ADUs to 8 unit complexes.
Increases property values 25% to 34%. A 2012 study from Portland.
Accelerates mortgage payoff at a time when 24% of Oregon homeowners are mortgage burdened and of that 9% are severely cost burdened- Oregon Center for Public Policy
Reduces the need for cars and increases walking, biking, and transit use.
How an ADU could work for you
ADUs are extremely valuable when it’s time to sell your home.
Studies show that ADUs can increase property values and make homes more desirable to potential buyers, especially those interested in aging-in-place.
Here’s Carlos Delgado, the architect who designed the ADU plans pre approved in the city of Medford talking about his approach to ADUs.
When ADUs might not work
Zoning restrictions – most single family lots can now include an ADU
Not enough space on your lot – buildable area of your lot, set backs, etc.
Access to utilities is expensive – is there enough slope for the sewer line?
Upfront costs of planning and permits
Financing ADU’s can be tricky – check with your banker
The form of your existing house may not make an attached ADU easy – attached ADU example
Check with your local community development staff before you give up on the ADU idea. More info below
How to get started
Here’s Kristen Maze, Director of Community Development at the City of Talent helping you think about preparing to apply for permits to build an ADU.
Trying to Make the Complex Simpler
This process is NOT simple. We are trying to help you get started, but know that there are many options and potential roadblocks along the way. But, as Derek says, the hard work is definitely worth it!
The city of Houston, TX has great ADU resources including a free ebook of plans.
A Few Key Details About ADUs In Your Area
This is only a few key pieces of a much larger puzzle. Check with your local planning department, their contact information is at the top of this table. On your phone, click on the phone number to dial it.
Up to 75% of the primary dwelling’s Gross Habitable Floor Area (GHFA) Detached ADUs cannot be larger than 900 sq. ft.; attached ADUs converted from existing space in the primary home cannot be larger than 50% of the primary dwelling
Other rules
– just a start here, look at more info links for the complete picture
In Portland, some developers who lease your land and build an ADU for you
There is a lot of useful data around cost assumptions and financing options in this document from Santa Cruz County in California. Of course, our fees are different, but many of the construction cost estimates, financing options, etc. are still useful.
ADUs are an important way to fill in the missing middle in our housing supply.
A fun tiny house village in Portland. h/t buildinganadu.com
What Home Builders Can Do to Simplify Later ADU Development
Professional home builders can make ADU development much easier by planning ahead. This video offers a few good ideas.
One creative idea for affordable homes with ADUs is for builders to build the ADU first and sell the large lot with its approved larger home site left for future development. This allows buyers to get started on homeownership more easily while they can look forward to building their larger home once they have built equity in their starter home.
Other Ways to Encourage Missing Middle Development
ECONorthwest put together a very useful list of options for easing the development of affordable housing that might be extended to the development of attainable housing as well.
As we look for ways to support the development of a variety of housing options to meet the needs of Rogue Valley residents, we have compiled a list of relevant online resources.
We are happy to share what we’ve found interesting and useful and hope that you will contact us if there are any important studies we should consider adding to our list.
HUD & State of Oregon Studies on Housing and Southern Oregon
Expand housing options for all economic and demographic segments of Medford’s population with o focus on households with their income at or below 80% of HAMFI
Support and Strengthen Homeless Services and Housing
Expand services that address Homelessness in Medford
Increase Opportunities for Low to Moderate Income and Special Needs Residents to become Self-Sustaining
Improve Quality of Life through Neighborhood Revitalization
Support and Promote Community and Economic Development Efforts that Support Economic Stability
The Disaster Housing Recover Action Plan (DHRAP) provides a roadmap for the State of Oregon to aid impacted communities in their work addressing the housing disaster.
These plans help maximize the available resources to benefit as many impacted Oregonians as possible.
