Is building an ADU a good investment in Long Beach?

Accessory Dwelling Units (ADUs) in Long Beach present a significant opportunity for supplementary rental income, especially given that owner occupancy is not mandatory, with the exception of Junior Accessory Dwelling Units (JADUs). Taking into account construction costs spanning from $250 to $400 per square foot and factoring in additional development fees, the prevailing average market value for a square foot of living space in Manhattan Beach is approximately $690. This positions ADUs as a compelling and financially rewarding investment.

Long Beach Accessory Dwelling Unit Requirements.

ADU permits are rapidly increasing in Long Beach. Here is a breakdown of ADU requirements in Long Beach for 2024.

General ADU requirements

Detached, attached, and conversion ADU types, along with JADU’s are all allowed in Long Beach. Both, single and two-story ADU’s are permitted.

For independent living your ADU must be equipped with: Exterior access separate from primary residence, Living, Sleeping, Dining, Cooking, and Bathing.

The kitchen must have at minimum the following: A sink, a refrigerator, a cooktop or range and cabinetry.

JADU can share a bathroom with the primary residence. However, JADU’s must have their own separate entrance.

Zoning

All zones single-family and multi-family most probably are eligible for ADU’s.

Number of Units

  • One ADU + One JADU in lots zoned single-family
  • For lots zoned multi-family 1 ADU or 25% of number of units whichever is greater.
  • For lots zoned multi-family, up to two detached ADU’s.

Building Size

  • JADU, maximum 500 SF
  • 150 SF Minimum for ADU’s and JADU’s.
  • Detached ADU’s maximum 850 SF
  • Attached ADU’s maximum 850 SF. (Not to exceed 50% of main residence)

Building Height

  • Detached ADU’s 18 feet if near transit.
  • 25 feet if attached ADU; 16 feet otherwise

Setbacks

Minimum setbacks:

  • 4 feet side and rear yard setbacks
  • 5 feet separation from existing structure.

Parking

Unless the property is exempt, one parking space is required for an ADU. Your ADU is exempt from parking in the following situations:

  • Your property is situated on a street where a parking permit is mandatory.
  • You property is within 1/2 mile of public transportation.
  • Your property is less than a block away from a care share area.
  • Your property is situated in an area of architectural or historical significance.
  • On-street parking permits are required and not offered to the ADU tenants.
  • The ADU is part of the proposed or existing primary residence or an accessory structure. (No proposed addition)

Fees

The exact number of fees depends on the zoning of your lot and the overall scope of your ADU project. This is a list of some of the typical fees you can expect to pay.

  • Plan Check fees
  • City Impact Fees
  • School Impact Fees
  • Building Code and Green Code Fees
  • Permit Fees
  • Utility Connection fees

Sprinkler System

When a fire sprinkler is not required for the primary residence, they are not required for your ADU or JADU.

Owner Occupancy

Owner occupancy is not a requirement for permitting an ADU. Owners are required to live on the property only if a JADU has been constructed on it. This is a state law requirement.

Taxes

Building an ADU does not trigger a reassessment of the value of the primary residence. However property taxes are based on property values and an ADU does increase the value of the property.

Rental Limitations

Short-term rentals under 30 days are not allowed Long Beach.

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