Introduction

Los Angeles is one of the most dynamic cities in the United States, but like many urban areas, it faces a housing crisis. As demand for affordable housing grows, many homeowners in LA are turning to Accessory Dwelling Units (ADUs) as a practical solution. ADUs—often referred to as secondary suites, granny flats, in-law units, or backyard cottages—are secondary housing units on the same lot as a primary residence. These units offer a variety of benefits, including generating rental income, housing family members, or adding extra living space.

However, the permit process for ADUs in Los Angeles can be daunting for homeowners, with complex regulations, long approval times, and substantial fees. This article will walk through a real-life case study of a homeowner who successfully navigated the ADU permit process in Los Angeles. We’ll examine the steps they took, the costs involved, and the benefits they reaped from building a permitted ADU.

What is an ADU?

An Accessory Dwelling Unit (ADU) is a self-contained living space located on the same lot as a primary single-family residence. These units can be:

• Detached ADUs: Standalone units separate from the primary residence.

• Attached ADUs: Units attached to the main house, often through a common wall.

• Garage Conversions: Converting an existing garage into a livable space.

• Basement or Attic Conversions: Repurposing unused areas of the home to create a new living space.

ADUs are a cost-effective way to add housing to urban areas and are often used to generate rental income, provide housing for aging family members, or simply increase living space. In Los Angeles, ADUs are becoming increasingly popular as a solution to the city’s affordable housing crisis.

Check Attached and Detached ADU Permits in California

The Case Study: The Johnson Family’s ADU Journey

In this case study, we will examine the story of the Johnson family, homeowners in Silver Lake, Los Angeles, who recently completed an ADU project on their property. Their journey highlights both the challenges and successes of navigating LA’s ADU permit process.

Background

The Johnsons had a large lot with an underutilized garage that they wanted to convert into a livable 1-bedroom ADU. With the high cost of housing in LA and the growing demand for affordable rental units, the Johnsons saw this as an opportunity to provide a secondary rental unit for tenants while also adding value to their property.

However, like many homeowners in Los Angeles, they faced a number of hurdles:

• Zoning and Land Use Regulations: Their neighborhood was subject to strict zoning laws, which created uncertainty about whether they could even build an ADU.

• Permitting Process: LA’s permit process can take several months, and it was unclear how long it would take to receive approval.

• Cost: The financial investment required for the ADU project was substantial, and they were unsure whether the potential rental income would offset the costs.

Step 1: Understanding the Zoning and Permit Requirements

Before starting the construction process, the Johnsons worked with an ADU consultant and a licensed architect to understand the city’s ADU regulations. Los Angeles has relaxed many of its zoning laws to make it easier to build ADUs, especially in residential areas. Some of the key factors they needed to address included:

• Lot Size: The lot had to meet minimum size requirements to allow for an ADU. The Johnsons’ property met the criteria.

• Setback Requirements: The ADU had to be built within specified setbacks from property lines, which affected the design and location of the unit.

• Parking: Los Angeles’ parking requirements for ADUs were a potential issue. However, the Johnsons were able to take advantage of the city’s relaxed parking rules, which allow for reduced or no parking requirements when the property is near public transit.

By understanding these requirements, the Johnsons were able to move forward with their plans.

Step 2: Submitting the ADU Permit Application

After finalizing their design, the Johnsons submitted their ADU permit application to the Los Angeles Department of Building and Safety (LADBS). The application process included:

• Site plans and building plans: Detailed architectural and engineering plans that outlined the construction process and compliance with local building codes.

• Structural calculations: The conversion of the garage required structural adjustments, so the Johnsons submitted the necessary calculations to demonstrate the unit's safety.

• Utility connection approval: The ADU required new plumbing and electrical connections, which had to be approved by the city.

The ADU permit application was processed under LA’s ministerial approval process, which allows for faster approval of projects that meet all the requirements. This helped the Johnsons avoid long delays and move forward with construction.

Step 3: Addressing Challenges and Cost Management

Despite the streamlined permit process, the Johnsons encountered a few challenges along the way:

1. Unexpected Construction Costs: During construction, they encountered some unforeseen issues with the foundation of the garage. This added about $15,000 to the overall project cost.

2. Impact Fees: Although LA has significantly reduced impact fees for ADUs, there were still costs associated with utility connections and site preparation. These fees amounted to $5,000.

However, the Johnsons were able to mitigate some of these costs by securing a construction loan and by keeping the project’s design simple, which reduced the overall square footage of the ADU.

Step 4: The Finished ADU and Rental Income

Once the ADU was completed, the Johnsons were able to rent it out for $2,200 per month, providing them with steady rental income and helping them offset the cost of their mortgage. The total cost of the project, including permits, construction, and design, was around $250,000. However, the rental income is expected to cover the majority of that cost over time, making it a solid financial investment.

Learn more about How to Get an ADU Permit in Los Angeles