Should ADUs Count as Affordable Housing?

Accessory dwelling units (ADUs) are often touted as one solution for the affordable housing crisis, allowing homeowners to gain extra income and provide housing for family members or tenants while maintaining the relatively low density of a residential neighborhood. Recent legislation has led to a spike in ADU permit applications in California, where the housing crisis has hit low-income tenants the hardest.

But should an ADU that will likely be used as a pricy short-term rental count toward a city’s affordable housing goals? Writing in The Real Deal, Steven Dilakian reveals that some wealthy Bay Area towns “lan to meet as much as 80 percent of their housing targets through accessory dwelling units.”

According to a report from a civil grand jury in San Mateo County, “this is a problem” because there is no regulation mandating that ADUs be made available or affordable to low-income renters. “The grand jury recommended that city councils stop using ADUs to meet state-mandated affordable housing targets until they have effective monitoring systems.”