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2023-06-21 PC Packet
PLANNING COMMISSION REGULAR MEETING AGENDA June 21, 2023 – 6:30 P.M. 1. Call to Order 2. Roll Call 3. Special Order of Business A. (none) 4. Citizens Requests and Comments Relating to Planning and Zoning Issues Not Already on the Agenda. (Before speaking, please give your full name and address for the record.) 5. Planning Cases A. Resolution 1161-23, Recommending Approval of Ordinance, 1004, Amending Mounds View City Code 160.088 related to Accessory Dwelling Units 6. Other Planning Activity A. (none) 7. Approval of Minutes: A. May 17, 2023 8. Reports A. Upcoming Planning Cases & Activity B. Staff Updates C. Council Updates D. Planning Commissioner Reports 9. Next Planning Commission Meetings: A. Wednesday, July 5, 2023 B. Wednesday, July 19, 2023 10. Adjournment The Mounds View Vision A Thriving Desirable Community Item No: 05A Meeting Date: June 21, 2023 Type of Business Planning Case Planning Case City of Mounds View Staff Report To: Planning Commission From: Jon Sevald, Community Development Director Item Title/Subject: Resolution 1161-23, Recommending Approval of Ordinance, 1004, Amending Mounds View City Code 160.088 related to Accessory Dwelling Units Introduction: During the May 17, 2023 Planning Commission meeting, the Commission briefly discussed Accessory Dwelling Units (ADU), directing Staff to conduct further research, and prepare an Ordinance Amendment to allow Detached ADU’s with a Conditional Use Permit (CUP). Discussion: An Accessory Dwelling Unit is A dwelling unit that is located on the same lot as a single-family dwelling to which it is accessory to, and is internal or an addition onto the principal dwelling.1 In 2016, the City Code was amended to allow Internal ADU’s as a permitted use, and to allow ADU’s attached to a home as a Conditional Use (CUP) in Residential zones. The City Council’s consensus was not to allow Detached ADU’s. The assumption was that, although a detached ADU may be intended to be occupied by an aging parent, once no longer occupied by that person, the ADU was likely to become a rental unit, which the City Council did not desire. In 2016, there was considerable discussion2 regarding homesteading vs. rental, separate utilities vs shared utilities, parking, building height, and architectural similarities between home and ADU. The general intent was to allow ADU’s as an option for residents to age in place, but to discourage homes and ADU’s from both becoming rental properties, thereby creating a duplex-type use in a single-family zoning district. In practice, there has been interest from homeowners in ADU’s for family members. These discussions have steered more towards home additions, in which the addition includes a bedroom, bathroom, kitchen, and living area, and its occupant has full access throughout the original home, and vice-versa (e.g. it is not an independent unit). Staff’s interpretation is that this is a home addition, not an ADU. The deciding factor is that the home is occupied by one family3, and cannot become a rental unit by itself. The 2016 amendment was requested by a Planning Commission member who was interested in a detached ADU above a detached garage (not permitted). In discussions, this proved to be 1 City Code §160.012 (Definitions; Dwelling Unit, Accessory) 2 Previous discussions: Planning Commission; June 1, 2016; July 6, 2016; July 20, 2016. City Council; May 9, 2016; August 1, 2016; August 8, 2016; August 22, 2016. 3 City Code §160.012 (Definitions); FAMILY. One or more persons, each related to the other by blood, marriage or adoption, or a group of not more than four persons not all so related, together with their domestic servants or gratuitous guests, maintaining a common household and using common cooking and kitchen facilities. Item 05A Page 2 of 3 The Mounds View Vision A Thriving Desirable Community cost prohibitive. The cost of a new garage with an ADU was similar to building a new home. It was more practical to move. In 2022, several Planning Commissioners and City Council members toured YardHomes in New Brighton, expressing an interest in allowing these in Mounds View (this led to YardHomes’ inclusion in the proposed Pulte townhome project). YardHomes start at around $200,000. In Mounds View, the average home sale price was $305,000.4 Thus, a homeowner wanting to build an ADU as an investment should not expect to recoup its costs. The choice to build an ADU is more due to a life change. Example, if an ADU is more desirable for a family member compared to assisted living, without regard to costs. Currently, there is a homeowner interested in building a detached ADU for a family member. This is the reason of why this topic is being brought to the Planning Commission now. Strategic Plan Strategy/Goal: Address Absentee Landlords, Attract Affordable Housing Opportunities, Aggressive Code Enforcement, Encourage landowners to maintain their properties. Financial Impact: N/A Recommendation: Staff requests direction. It is Staff’s opinion that whether or not detached ADU’s are allowed, they are not likely to be widely built, due to construction costs. Respectfully, Jon Sevald, AICP Community Development Director ATTACHED ADU Examples Ordinance 1004 Family Housing Fund; Home +home Twin Cities ADU Guidebook StarTribune articles 4 Minneapolis Area Realtors; Mounds View May 2023; Average Sales Price. Item 05A Page 3 of 3 The Mounds View Vision A Thriving Desirable Community ADU Examples Internal ADU. Currently a Permitted Use (Graphic; City of Minneapolis) Attached ADU. Currently a Conditional Use. (Graphic; City of Minneapolis) Detached ADU. Currently prohibited. Proposed as a Conditional Use. (Graphic; City of Minneapolis) MOUNDS VIEW PLANNING AND ZONING COMMISION RESOLUTION 1161-23 ORDINANCE 1004 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF ORDINANCE 1004, AMENDING MOUNDS VIEW CITY CODE CHAPTER 160, REGARDING ACCESSORY DWELLING UNITS The City of Mounds View Ordains: SECTION 1. The City Council of the City of Mounds View hereby amends Chapter 160 of the Mounds View Municipal Code by adding the underlined material and deleting the stricken material as follows: § 160.012 DEFINITIONS. DWELLING UNIT, ACCESSORY. A dwelling unit that is located on the same lot as a single-family dwelling to which it is accessory to, and is internal or an addition onto the principal dwelling, or detached from the principal dwelling. § 160.088 CONDITIONAL USES. The following are conditional uses in an R-1 District (requiring a conditional use permit based upon procedures set forth in and regulated by §§ 160.450 through 160.452 of this chapter): (H) Accessory Dwelling Unit (addition or detached) Accessory Dwelling Unit (addition) Resolution 1161-23 Page 2 of 3 Accessory Dwelling Unit (detached) (1) One accessory dwelling unit may be located on a lot occupied by a single-family home. The lot must comply with minimum dimensional standards. The accessory dwelling unit shall be located within an addition onto an existing single-family home, or may be detached from the home; (2) The single-family home or the accessory dwelling unit shall be occupied by the property owner. The property shall be homesteaded; (3) An accessory dwelling unit shall have a minimum gross floor area of 300 square feet and a maximum gross floor area of 800 square feet. The exterior design of the accessory dwelling unit shall be consistent with the character of the single-family home; (4) A minimum of one-half off-street parking space shall be provided for the accessory dwelling unit; (5) Accessory dwelling units shall be licensed as a rental dwelling, and comply with Ch. 119 of this code of ordinances; (6) Accessory dwelling units shall use the same water and sanitary sewer connections, and water meter as the single-family home; (7) Accessory dwelling units with an exterior entrance different than the single-family home’s shall have a different address (such as, 2401-A). Addressing shall be compliant with §§ 150.020 through 150.022 of this chapter. (8) If the mailbox post is owned and maintained by the city, then the property owner shall reimburse the city for any alterations or replacement; and (9) Property owner is responsible for additional quarterly utility fees upon creation of an accessory dwelling unit, to include the following: sewer service charge; surface water management utility fee; and street lighting utility fee. SECTION 2. In accordance with Section 3.07 of the City Charger, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On ___________, the City Council adopted Ordinance 1004 that amends Chapter 160 of the Mounds View City Code, relating to Conditional Uses in the R-1 Single-Family Residential district. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available online at the City’s website; www.moundsviewmn.org . Resolution 1161-23 Page 3 of 3 SECTION 3. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on __________. Second Reading and Adoption by the Mounds View City Council on __________. Publication Date: ____________. Adopted this __ day of _____, 2023. BE IT FINALLY RESOLVED, that the Planning and Zoning Commission directs Staff to forward this Resolution to the City Council prior to approval of the minutes. Adopted this 21st day of June, 2023. Gary Rundle, Chair Attest: Jon Sevald, Community Development Director ___ LOCAL Pricey accessory dwelling units are slow to take off in the Twin Cities Cost, local restrictions have tempered interest. By Shannon Prather (https://www.startribune.com/shannon-prather/6370507/) , Erin Adler(https://www.startribune.com/erin-adler/6370491/) and Josie Albertson-Grove (https://www.startribune.com/josie-albertson-grove/10010118/) Star Tribune DECEMBER 24 , 202 2 — 7:00PM Retired teacher Janie Morissette was living alone in Montana when her St. Paul-based daughter suggested she move closer. Morissette loved the idea of regular family dinners and impromptu visits from her granddaughters, but moving in with her daughter felt too close for comfort — so she built in the backyard instead. Morissette now lives in a 796-square-foot home — formally called an accessory dwelling unit, or ADU — atop her daughter's garage in the Lexington-Hamline neighborhood. "I giggle when I talk about it because I just absolutely love it here," Morissette said. "I live in a treehouse!" Hers is one of 30 ADUs that have cropped up in the capital city in the five years since local leaders started allowing them. Though backyard cottages, carriage houses or "mother-in-law suites" have been around for centuries, the structures were edged out by restrictive single-family zoning decades ago. The mini-homes are now back in fashion in the Twin Cities and across the country, as communities look for ways to expand housing options and add density to spacious and popular single-family neighborhoods. While residents of the small homes gush about the A A R O N L AV I N S K Y, STA R T R I B U N E Janie Morissette stands for a portrait outside her home Dec. 21, 2022 in St. Paul, Minn. A D V E R T I S E M E N T charm and lifestyle, the associated regulations and cost — which can exceed $300,000 per unit — have meant the concept has been slow to catch on. Minneapolis greenlit the structures in 2014, and 176 building permits have been issued for them. Suburbs, including Stillwater, Eagan, Roseville and Bloomington, have also altered city code to allow ADUs in single-family neighborhoods, and have seen a smattering built. Minnetonka, which has permitted ADUs in some form since the 1980s, has 61 units. "We are talking about building a brand new home with all the amenities and components that go into a single-family home, it's just on a smaller scale," said Minneapolis architect Christopher Strom, who specializes in ADUs. "The reality is new construction is expensive, whether it is a full-sized home or an ADU — it isn't going to be a quick return on investment.." Price, regulations are prohibitive When homeowners do go for it, it's a lifestyle choice, Strom said. Space for aging family or snowbird parents, a home office or a guest house that can generate income as a short- term rental are some of the most common reasons that prompt folks to invest. John Shannon, owner of HyR Building LLC, said he gets lots of inquiries about ADUs but has had plans for them fall through three times in as many years in Minneapolis. Like many cities, Minneapolis has restrictions on the books that can make ADUs a hard sell, Shannon said, including limitations on height and distance from the main residence. Most Minneapolis ADUs must be built above garages because of the small size of city lots, but regular garages can't typically support a structure above them, Shannon said. To make it work, a new garage with a supportive foundation often must be built, which can get expensive for a relatively small living space, he said. "A lot of it comes down to price per square foot for construction," he said. Twin Cities leaders say it's understood that ADUs will not solve the region's housing shortage, but rather are one piece of a larger solution. Both Minneapolis and St. Paul planners say they have repeatedly eased regulations on ADUs to make the process easier, though interest in Minneapolis has waned since the city legalized duplexes and triplexes in the lowest-density residential areas in 2020. "A centerpiece of our comprehensive plan is to expand the range of housing options in all neighborhoods," said Jason Wittenberg, Minneapolis manager of code development. "It's nice to have a variety of tools in the toolbox, including ADUs." Versatile structures According to city planners, ADUs fall into three categories: a detached guest house, often built over a garage; an attached structure built as an addition to the main home; or an internal unit, which includes basement or attic spaces transformed into separate living quarters. Because zoning rules and definitions vary by city, it can be difficult to pinpoint the number of ADUs in the Twin Cities region.Metropolitan Council data based on a voluntary survey of cities show there were 146 building permits issued for ADUs between 2016 and 2021. After losing their detached garage to a fire, Minneapolis couple Michael Graven and Kirsten Jaglo worked with architect Strom to build a new garage with a second-story ADU (https://www.startribune.com/linden-hills-homeowners-rebuilt-destroyed-garage- with-the-greenest-adu/600093630/) . The 650-square-foot home includes an elevator, solar panels and added insulation to reduce energy consumption. They use the space as a guest house, yoga and meditation area and backyard escape for dinner and movies. Looking ahead, it's a potential future home for an aging parent or young adult child moving toward independence. Though the ADU isn't necessarily a great financial investment, Graven said, it's "a good investment for our family and our lifestyle." "Some of our friends joke we built our cabin in the backyard," he said. Slow start in the suburbs ADUs have been slow to catch on in the suburbs, despite some communities' relative abundance of land and financial resources compared to the central cities. Some suburbs with a lot of new housing stock have seen ADUs built as new construction at the same time as the main home. Those units can cost closer to $100,000, according to Lakeville Planning Director Daryl Morey, who said the city has seen about 13 such units built in the last decade or so. Blaine city officials began allowing ADUs in single-family zoning districts in 2021, but despite several inquiries, the city hasn't issued any permits, said Elizabeth Showalter, the city's community development specialist. Cost is likely the reason, she said — and city requirements such as having a separate HVAC unit and a fire wall between the two housing units drive prices up. Plenty of Bloomington residents have called the city to figure out how they could build an ADU, said planning manager Glen Markegard. "Then they find out how expensive new construction is, and they change their plans," he said. The city has allowed ADUs since 2009 but has seen only one built. Markegard said most people are interested in more space for extended family, so they'll opt instead for a home renovation that includes a second kitchen or extra bathroom — but perhaps less privacy than an ADU. Dakota County recently issued a guide to ADUs that includes specific building requirements for the cities that allow them — Apple Valley, Lakeville, Eagan, Burnsville and Inver Grove Heights. The goal of the guide was to inform residents that ADUs are a housing option, specify where they're allowed and give a snapshot of some of the rules, which are nuanced for each city, said Jess Luce, program manager for the county's Communities for a Lifetime initiative. Over the last eight years, about 30 ADUs have been built in the four cities for which data are available, Luce said. "[The low number] makes sense with all these hurdles people have to jump through," he said. Luce said the idea that ADUs are an affordable housing option makes him nervous. The units may be comparable in cost only if a family is looking at the long-term price tag of a nursing home or assisted living facility for a relative, he said. Luce said he hopes that, over time, cities will adopt less restrictive ADU policies as more residents want to build them. "I just think [the number of regulations] is going to change," he said. Shannon Prather covers Ramsey County for the Star Tribune. Previously, she covered philanthropy and nonprofits. Prather has two decades of experience reporting for newspapers in Minnesota, California, Idaho, Wisconsin and North Dakota. She has covered a variety of topics including the legal system, law enforcement, education, municipal government and slice-of-life community news. Shannon.Prather@startribune.com 612-673-4804 ShannonMPrather Erin Adler is a suburban reporter covering Dakota and Scott counties for the Star Tribune, working breaking news shifts on Sundays. She previously spent three years covering K-12 education in the south metro and five months covering Carver County. erin.adler@startribune.com 612-673-1781 erinStrib Josie Albertson-Grove covers the western Twin Cities suburbs for the Star Tribune. josie.grove@startribune.com Home + home Twin Cities ADU Guidebook ADU: ACCESSORY DWELLING UNIT FOR HOMEOWNERS PHOTO CREDIT Jill Greer photography 1 Contents INTRODUCTION ..........................................................................2 How to Use this Guidebook ..................................................................4 What is an Accessory Dwelling Unit (ADU)? ...........................................4 Frequently Asked Questions .................................................................9 GET INSPIRED: WHY BUILD AN ADU? ...................................10 ADU Stories .....................................................................................12 Case Studies .....................................................................................14 GET EDUCATED: HOW TO BUILD AN ADU .........................24 1. Research .......................................................................................28 2. Design Ideas ..................................................................................32 3. Team Selection ..............................................................................34 4. Finances .......................................................................................36 5. Permits .........................................................................................38 6. Construction .................................................................................40 7. Move-In ........................................................................................42 REFERENCES .................................................................................44 Additional Resources .........................................................................44 Twin Cities Planning Departments Contact Information ........................45 Acknowledgements ...........................................................................46 2 Introduction 3 Introduction In this section you will… • Learn how to use this guidebook. • Learn what an ADU is. • Discover the different types of ADUs. • Find answers to common questions. Home + home: Are you interested in building an Accessory Dwelling Unit (ADU) and creating another home in your little corner of the world? ADUs have existed historically throughout the Twin Cities, providing important space to rent out for extra income or to meet other household needs. As the metropolitan region grows and changes, homeowners and city planners alike are rediscovering the benefits of ADUs and the role they play in meeting our housing needs. Still, a homeowner thinking about building an ADU can be uncertain about where to start. This guidebook can help make your ADU dreams a reality. 4 How to Use this Guidebook This guidebook is organized in two sections: A. GET INSPIRED. Learn about the benefits of ADUs and see the ADU experiences of real Twin Cities families. B. HOW TO BUILD AN ADU. Learn the basics of ADU development, from start to finish. This guidebook is a resource to help you get started, but it cannot replace the knowledge and experience of local designers, builders and planners. The size and shape of your property, the rules of the city you live in, your budget and your own design needs and preferences will make your ADU-building experience unique. What is an Accessory Dwelling Unit? An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. ADUs are known by many names: carriage or coach houses, accessory apartments, garden apartments, mother-in-law suites, granny flats, backyard cottages and secondary dwelling units. Whatever it is called, an ADU is smaller than the primary or main house on the same lot. An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. PHOTO CREDIT Jill Greer photography 5 Carriage Houses Backyard Cottages Accessory Apartments Granny Flats Garden Apartments Secondary Dwelling Units Mother-in-law suites An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. ADUs ARE ALSO KNOWN AS: PHOTO CREDIT Jill Greer photography 6 A historic form of housing Although there is a recent resurgence of interest in ADUs, they are actually a historic form of housing that was common in the Twin Cities before World War II. For example, in the Frogtown neighborhood of St. Paul, new immigrants would commonly build an alley house in the back of their lot while saving to build a larger home in the front (McClure 2018). Many carriage houses (living quarters located above garages) were built alongside larger homes and are still used for housing today. Some modest single-family homes included attic or basement apartments that helped to house larger city populations in the early- and mid-20th century. How are ADUs different from duplexes? While they share some similarities, ADUs are generally differentiated from duplexes (two-family houses) in their size, construction timing and use. City building and zoning laws often treat the two housing forms differently. • An ADU is smaller than the main home. Units in duplexes are usually about the same size. • Duplexes are usually in the same building, but ADUs can be located within, attached to or detached from the main home. • Duplexes are usually built as one construction process; ADUs are often built after the main home is completed. • ADUs are designed as flexible housing and can generate rental income, house multigenerational families or serve other uses. Could a tiny house be an ADU? Most tiny houses on the market are set on trailers and have wheels. These are categorized as Recreational Vehicles (RVs) and are usually not allowed as a permanent living space. However, if a tiny house meets residential building standards, is placed on a permanent foundation and is connected to utilities, it could be considered an ADU. Ask your city’s building department to learn more. 1 Jane McClure, “Alley House,” Saint Paul Historical, accessed August 9, 2018 Coach house at Minnesota Governor’s Residence. PHOTO CREDIT Minnesota Department of Administration 7 Is the usable space above my garage, in my basement, or in my attic an ADU? If the space has a living area, a kitchen, a bathroom and its own entrance, it may be an ADU. ADUs must also meet certain residential building code requirements, so check with your local planning office. See also Legalizing an Existing ADU on page 38. Is a granny pod an ADU? In 2016, the Minnesota Legislature approved a definition of “Temporary Family Health Care Dwellings,” the backyard dwellings sometimes called “granny pods.” The statute defines them as mobile residential dwellings or providing care for a mentally or physically impaired family member. Most Minnesota cities do not allow these temporary care dwellings, and they are treated differently from ADUs in local code (Bekker 2016). Types of ADUs There are three basic types of ADUs: Internal Attached Detached ADUs are located within the structure of the main house, for example, a converted basement or attic. These are generally the least expensive to build. ADUs share one or more walls with the primary house. These ADUs are commonly constructed as additions or conversions of attached garages. ADUs are the most visible type of ADU. They are typically the most expensive to build and include freestanding backyard structures, detached garage conversions, same-level additions to a detached garage or above-garage units. 8 What type of ADU works best for you? As you go through this guidebook, return to this question and consider which type of ADU best fits your goals and budget. Local regulations may limit which type you can build. 9 FREQUENTLY ASKED QUESTIONS Am I allowed to build an ADU? How do I legalize an existing ADU? How do I pay for it? How long does it take? How do I get started? How do I find an architect and contractor? How do I become a landlord? Where can I learn more? 28 38 36 26 28 34 42 44 10 GET INSPIRED: ADU Stories PHOTO CREDIT Jill Greer photography (both pages) 11 In this section you will… • Learn about the benefits of ADUs. • Read the stories of other local homeowners who have built them. Benefits of ADUs Building an ADU offers many benefits for you and your neighborhood. ADUs are flexible and can serve many purposes over time. While every home’s story is unique, here a few examples. ADU Stories ADU Benefits EXPANDING HOUSING OPTIONS An ADU can have a positive effect on your community. ADUs provide more housing options in neighborhoods that are already built out, which can help relieve the growing demand for housing in a way that does not alter the character of existing neighborhoods. HOUSING FRIENDS, FAMILY AND CAREGIVERS ADUs can provide important independent living space for friends, family members and caregivers. Many homeowners are motivated to build their ADU to provide a combination of in-home care and independent living for a family member. The cost of ADU construction and maintenance may be comparable or less expensive than some assisted- living or skilled-nursing facilities, with the added benefit of keeping a loved one close by. AGING IN PLACE AND DOWNSIZING Some people move into the ADU while their adult children move into the main house, or they rent out the main house for extra revenue in retirement. EARNINGINCOME Depending on the circumstances, rental income may make it possible to cover the cost of monthly loan payments and, over a number of years, pay back the initial cost of the ADU’s construction. Even when financial returns are not a primary motivation, earning rental income might make it possible to work part-time, stay home with a child or save for a major expense. REDUCING ENVIRONMENTAL IMPACTS ADUs tend to be environmentally-friendly simply because they are smaller and use less energy for heating, cooling and light (Stephan and Crawford 2016). Energy-saving designs can be incorporated into an ADU, further lowering its environmental impact. ADUs may help reduce transportation-related environmental impacts when they are located near employment centers and established public transit routes. A 2014 study found that ADU residents in Portland were less likely than other residents to own cars (Brown and Palmeri 2014). 12 ADU Benefits EXPANDING HOUSING OPTIONS An ADU can have a positive effect on your community. ADUs provide more housing options in neighborhoods that are already built out, which can help relieve the growing demand for housing in a way that does not alter the character of existing neighborhoods. HOUSING FRIENDS, FAMILY AND CAREGIVERS ADUs can provide important independent living space for friends, family members and caregivers. Many homeowners are motivated to build their ADU to provide a combination of in-home care and independent living for a family member. The cost of ADU construction and maintenance may be comparable or less expensive than some assisted- living or skilled-nursing facilities, with the added benefit of keeping a loved one close by. AGING IN PLACE AND DOWNSIZING Some people move into the ADU while their adult children move into the main house, or they rent out the main house for extra revenue in retirement. EARNINGINCOME Depending on the circumstances, rental income may make it possible to cover the cost of monthly loan payments and, over a number of years, pay back the initial cost of the ADU’s construction. Even when financial returns are not a primary motivation, earning rental income might make it possible to work part-time, stay home with a child or save for a major expense. REDUCING ENVIRONMENTAL IMPACTS ADUs tend to be environmentally-friendly simply because they are smaller and use less energy for heating, cooling and light (Stephan and Crawford 2016). Energy-saving designs can be incorporated into an ADU, further lowering its environmental impact. ADUs may help reduce transportation-related environmental impacts when they are located near employment centers and established public transit routes. A 2014 study found that ADU residents in Portland were less likely than other residents to own cars (Brown and Palmeri 2014). 13 14 The old garage in Megan and Rob’s backyard had seen better days. With no need for enclosed parking, they were hoping to put it to better use. Inspired by the tiny-house movement, Megan and Rob started looking into the possibility of building a detached backyard ADU on their roughly 5,000-square-foot lot. Not only could an ADU replace their old garage, but it could add a needed home in the popular Kingfield neighborhood. An ADU could generate rental income or give the homeowners the option to downsize. Megan and Rob had many questions at the beginning, including what information they would need to get started. After doing some research online and sketching out a few layout ideas for the ADU, Megan and Rob scheduled a pre-application meeting with Minneapolis city planning staff. This free service allows city residents to ask planning staff questions and learn about applicable regulations and the permitting process. After going over the general permitting process, planning staff members answered some of Megan and Rob’s questions about their specific property, helping them think through how height limits and parking requirements would apply to their project. With this initial information in hand, Megan and Rob are starting to save for their project and preparing to take the next steps toward their ADU. TYPE Detached STATUS Early planning SIZE TBD BEDROOMS TBD BUDGET TBD CASE STUDY ADU Under Consideration Getting Started The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. 15 20' 40' 11' 11'14'DECK HOUSE STREET DRIVEWAY1,456 sq ft 138'8'8" 4' ADU Not only could an ADU replace their old garage, but it could add a needed home in the popular Kingfield neighborhood. An ADU could generate rental income or give the homeowners the option to downsize. 16 TYPE Interior, basement STATUS Under construction SIZE 702 sq. ft. BEDROOMS 2 BUDGET $80,000 CASE STUDY DIY ADU The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Mike started his ADU journey when his father, Dallas, decided to downsize and sell his home in St. Paul. Mike researched multigenerational living options and decided to build an internal ADU by converting the basement in his south Minneapolis home into an apartment for Dallas. Mike took on the work of being the designer and general contractor for the ADU. He used software to model the design and then drafted plans to submit for the city permit application. Mike’s design features a spacious two-bedroom unit with lots of natural light. This arrangement will allow Mike and Dallas to stay close while maintaining their own personal space. After a few rounds of revisions, Mike’s plans were approved and, with building permit in hand, he quickly got started on construction. Mike hired subcontractors to help with specialized work but did most of the project himself. Dallas and Mike’s brother have pitched in, too. While self-managing the project has extended the timeline, it has also saved money, and the new ADU is starting to take shape. Once completed, their DIY ADU will serve as a place for Mike and Dallas to call home for years to come. Dallas says, “We’ve always been close, but working on this project has brought us even closer together.” BR BA BRLR/KIT 17 “ We’ve always been close, but working on this project has brought us even closer together.” 18 TYPE Detached, above garage STATUS Complete SIZE 528 sq. ft. BEDROOMS Studio BUDGET $225,000 BUILDER White Crane Construction CASE STUDY A Dream to Downsize The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Cate and Jason loved their neighborhood near Minnehaha Creek in Minneapolis but yearned to downsize when their kids left for college. They initially planned to sell their home and move, but then they came up with a better solution: building a new unit in the backyard that they could live in while renting out their main house. After looking into various options, including prefabricated modular designs, Cate and Jason decided to pursue a traditional site-built ADU above a two-car garage. Cate and Jason hired a design-build firm that took them through the process from initial design to city permitting and construction. They learned that they would have to tear down their existing garage and build a new structure with frost footings in order to meet the building code. Still, they were able to cut costs by reusing their old garage door and performing some work themselves, such as ordering the appliances and painting the interior. The completed ADU, sitting in a shaded backyard, features an open layout with new appliances and an in-unit washer and dryer. Cate and Jason plan to rent it for a few years until they are ready to move in and fulfill their dream of downsizing. 19 Curious about the difference between prefabricated and traditional construction? See page 32. BA STUDIO PHOTO CREDIT Jill Greer photography (all photos on this spread) 20 TYPE Attached STATUS Complete SIZE 540 sq. ft. BEDROOMS 1 BUDGET $40,000 part of total development cost CASE STUDY ADU in the Family The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Fue Lee’s family had always envisioned multigenerational living when they were on the hunt for their first house. Working with the City of Lakes Community Land Trust (CLCLT), the Lee family had the opportunity to buy one of the very first homes in Minneapolis developed with an attached ADU. The brand new home they purchased in the Lind- Bohanon neighborhood has the perfect layout for their close-knit family. Fue and two of his adult siblings live in the main house. His parents have their own private space in the first-floor ADU. The house is designed for flexibility. While the Lees have no plans to move, any family that buys the house in the future could choose to rent out the attached unit for extra income. Responding to demand from its members, the nonprofit CLCLT has recently built two more multigenerational homes with ADUs. Thanks to the community land trust model, all of these homes will remain affordable for future generations of new homebuyers. 21 Thanks to the community land trust model, all of these homes will remain affordable for future generations of new homebuyers. SECOND FLOOR PLAN FIRST FLOOR PLAN 1 LIVING 2 KITCHEN 3 DINING 4 HALL 5 BEDROOM 6 ACCESSORY DWELLING UNIT 7 PORCH 8 LAUNDRY/ MUDROOM 5 4 5 5 7 1 4 2 3 8 5 6 7 CREDIT Marnie Peichel Architecture and Design, LLC 22 TYPE Detached, above garage STATUS Complete SIZE 624 sq. ft. BEDROOMS 1 BUDGET $125,000 CASE STUDY Flexible for the Future The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. When Eric & Chrissi purchased their home near a Green Line station in the Hamline-Midway neighborhood of St. Paul, they knew from the start that the house’s detached garage didn’t meet their needs. As they made plans to replace it, they heard from a friend about a new ordinance that gave them the option to build an ADU. Eric and Chrissi started to envision all the ways an ADU could benefit them in the future and met with a designer to develop a plan for a one- bedroom unit above a new two-car garage. Eric and Chrissi liked the idea of having a flexible space to support more community-oriented living while still maintaining the privacy of their main home. Their ADU could be a place to host friends and family, and it could potentially generate rental revenue that would make it possible for one of them to stay home with a future child. With experience in home remodeling, Eric decided to become the general contractor for the project. He worked full-time for six to seven months to complete the construction of the ADU, hiring subcontractors for electrical and plumbing work. Chrissi led the interior design work, and friends and family members also helped. Eric is pleased with the solution they arrived at for connecting water and sewer lines from the ADU to the main lines in the street. Instead of the traditional method of digging an open trench, the lines were installed through an underground, lateral drilling process that preserved more of their existing landscaping and was about one-third less expensive than trenching. Eric and Chrissi also designed the ADU for energy efficiency and for compatibility with photovoltaic panels, so that it can run mostly on solar energy. Now that the ADU is complete, Eric and Chrissi’s friends and family tell them it does not look at all like what they imagined as a “garage apartment”—the unit is spacious and feels like a home. Eric and Chrissi rent their bright, modern ADU at an affordable price to a student at a nearby university. BA BR DECK LR/KIT 23 Eric and Chrissi’s friends and family tell them it does not look at all like what they imagined as a “garage apartment”—the unit is spacious and feels like a home. 24 GET EDUCATED: How to Build an ADU 25 In this section you will… • Learn the basics of ADU development, from start to finish.Inspired? The following pages will walk you through the basics of getting started and what to expect as you explore an ADU project. 1. Research ..........................................................p28 2. Design ideas ....................................................p32 3. Team selection ................................................p34 4. Finances ..........................................................p36 5. Permits ............................................................p38 6. Construction ...................................................p40 7. Move-in ...........................................................p42 How to Build an ADU 26 TEAM SELECTION •Learn about types of development teams. •Find out what information to prepare when contacting a company. •Review suggested considerations for hiring a company and signing a contract. FINANCES •Learn about resources to help you make an informed decision. •Learn about potential financing options. DESIGN IDEAS •Consider your goals and design options together. •Work on your own or with a designer to sketch out your ADU. RESEARCH •Clarify your goals. •Determine if an ADU is allowed on your property. PERMITS •Review the steps involved in a typical permitting process. •Learn why it’s important to permit an existing ADU. CONSTRUCTION •Learn what to expect during construction. •Understand your responsibilities. MOVE IN! •Find resources on how to be a landlord. 1 2 3 4 5 6 7 Process Overview From Point A to Point ADU Print out the included worksheets along the way, and start putting pencil to paper. PHOTO CREDIT iStock by Getty Images There are printable worksheets for this step. There are printable worksheets for this step. 27 TEAM SELECTION •Learn about types of development teams. •Find out what information to prepare when contacting a company. •Review suggested considerations for hiring a company and signing a contract. FINANCES •Learn about resources to help you make an informed decision. •Learn about potential financing options. DESIGN IDEAS •Consider your goals and design options together. •Work on your own or with a designer to sketch out your ADU. RESEARCH •Clarify your goals. •Determine if an ADU is allowed on your property. PERMITS •Review the steps involved in a typical permitting process. •Learn why it’s important to permit an existing ADU. CONSTRUCTION •Learn what to expect during construction. •Understand your responsibilities. MOVE IN! •Find resources on how to be a landlord. 12 3 4 5 6 7 28 RESEARCH An ADU will become part of the story you tell about your life. But what role will it play? Will it help bring your family closer together? Provide a financial cushion? Both? Determine if an ADU is allowed on your property One of the first things you’ll need to do is determine whether the ADU you envision is allowed on your property. There are three ways you can do this: In this step you will… • Clarify your goals. • Determine if an ADU is allowed on your property. What story will your ADU tell? DISCLAIMER Laws and processes are subject to change, and vary between cities, so be sure to consult with your local planners or other knowledgeable professionals as you move forward. 1. Enlist your designer If you already have a designer or contractor in mind, enlist their help. 2. Check online Many cities and counties have web links to city codes, zoning maps and property information on their websites. 3. Ask a city planner This is the most direct way to get up-to-date information about what will be allowed on your property. You can get help from most cities by calling or visiting the planning department. If your city does not have a planning department, ask a representative to connect you to a staff member who is knowledgeable about land use, zoning or building permits. Tell the staff member that you are interested in building an ADU and want to know if it is allowed on your property. Also ask about the types of ADUs allowed and how big and tall they can be. The answers will affect your ADU design decisions. STEP ONE 29 TIP Note that information you receive from your city at this stage is preliminary. Some properties have unique circumstances that can affect the outcome of decisions, but these may not be revealed without the thorough process that a formal application provides. The city staffer assigned to your application will work with you to provide solutions to issues that arise. TIP You can find a list of cities in the region that allow ADUs, along with their contact information, at the end of this guidebook. Print this page and use this worksheet to write down your ideas, short- and long-term goals, and questions. Don’t worry if you are unsure of some information about your property. You’ll be able to fill it in throughout. 30 In this step you will… • Clarify your goals. • Determine if an ADU is allowed on your property. My Property Information ADDRESS: PROPERTY IDENTIFICATION (PID) NUMBER: ZONING: BUILDING TYPE: single-family, duplex, other YEAR BUILT: LOT SIZE: LOT COVERAGE: GROSS FLOOR AREA: UNIQUE CHARACTERISTICS, IF ANY, OF YOUR LOT: LOT COVERAGE CALCULATION RESEARCHSTEP ONE 5,000 sq. ft. x 45% = 2,250 sq. ft. - 1,500 sq. ft. = 750 sq. ft. POTENTIAL FOOTPRINT FOR ADU (if not elsewise restricted) LOT SIZE MAX. ALLOWED LOT COVERAGE % MAX. BUILDING FOOTPRINT ALLOWED EXISTING BUILDING FOOTPRINT 31 TIP Take photos of the exterior of the house and of the site where you want to locate your ADU. Suggested Questions Is an ADU permitted on my property? What types of ADUs are allowed? (attached, detached, internal) Where can it be located? (required setbacks) A setback, or required yard, is an amount of space required between two structures, or between a structure and a property line or utility line. ADU design constraints: How big can it be? How small can it be? How tall can it be? What is the required ceiling height? Where can the entrance be located? If an internal ADU, are the existing stairs and windows adequate? Is owner-occupancy required? If so, how is it defined and enforced? Owner-occupancy: Many cities in the region require you to live in either the main house or the ADU and will require filing a covenant with the county recorder. Some, but not all, cities further define owner-occupancy to say how many days out of the year the owner must reside there. If you think you might live somewhere else temporarily, be sure to ask about these requirements and any associated fees. What will be the address of the ADU? Some cities require the ADU to have a separate address while others forbid it. Be sure to understand your city’s rules. What are the parking requirements? What are the requirements for water and sewer hook-ups? What fees should I expect? How much work am I permitted to do and what is required to be done by a licensed subcontractor? How does the permitting process for ADUs work? (see also Permitting on page 38) Print these pages and use the worksheets to determine what’s allowed on your property. 32 In this step you will… • Consider your goals and design options together. • Work on your own or with a designer to sketch out your ADU. Considerations While you may already have a vision of what your ADU will look like, it is important to spend some time thinking about function. How will the design of the ADU meet your short-term and long-term objectives? DESIGN IDEASSTEP TWO Bedrooms The number of bedrooms should reflect who you think will spend time there. Studios are attractive for their open and flexible space, but designated bedrooms offer more privacy. Units with designated bedrooms usually rent at a higher price, but they could be more expensive to build. Traditional or prefabricated construction In addition to the many design choices you have for your ADU, you also can choose whether to build your ADU using traditional “stick-built,” on-site construction or some form of prefabricated assembly. Factory-built, modular, panelized and other newer construction technologies are increasingly available, and in some situations can reduce your costs or the time it takes to build. You might also be surprised by the high quality. If you are interested in a prefabricated method, consider how the building will be delivered to your lot, the delivery costs and what site-preparation work will be required. Access Think about how ADU residents will get to their front door. At a minimum, you’ll need to provide them a stable, well-lit path. Your city may have regulations that specify where you can place the ADU entrance. Environmental You can reduce environmental impacts and save on energy costs through the layout and materials that you choose for your ADU. For instance, you can use recycled materials, insulate well and place windows in locations that will take advantage of the sun’s location throughout the year. You can also incorporate solar panels so that the ADU can generate its own energy. Work with your development team to understand what’s possible. Universal design & accessibility A home built with universal design means that anyone, regardless of age or ability, can live there comfortably. In addition to ensuring that there is easy access to the unit without stairs, universal design features include pull-out lower drawers, level-entry showers, lower countertops and raised electrical outlets. Building to universal design standards is a smart way to ensure the ADU will meet your needs over time. Finished materials While you don’t need to make decisions yet, keep in mind that the materials you use will affect your budget. A designer can provide cost estimates. You might also be able to save money by reusing some materials. Be aware that some selections, like doors and appliances, might affect the design of the ADU. 33 Print this page and sketch your ADU floor and site plans. TIP Chances are you’ve already come across many inspiring designs either online or perhaps in your own neighborhood. Use an old-fashioned scrapbook or an online service to help organize these inspirations so you can refer to them later or use them to convey to your designer what resonates with you. 34 In this step you will… • Learn about types of development teams. • Find out what information to prepare when contacting a company. • Review suggested considerations for hiring a company and signing a contract. Types of Companies and Their Roles There are a number of ways homeowners can get the help they need to design and build their ADU. Most homeowners choose one of three types of development teams: ARCHITECT + CONTRACTOR/BUILDER: The homeowner hires an architect to complete the design of the ADU and then hires a contractor/builder to construct it. DESIGN-BUILD FIRM: The homeowner hires a design-build firm that will, as the name implies, design and build the ADU. DIY: The homeowner acts as the general contractor, coordinating the overall project and hiring subcontractors for specialized work. Remember, while being your own designer and/ or general contractor can save money, it is an involved process and will likely add to your overall timeline, especially if you cannot devote yourself to it full time. Consider, too, that professionals often bring problem-solving skills that save time and money. A homeowner may also specifically look for designers and builders who specialize in modular or prefabricated-construction methods. A homeowner typically works with an architect to revise an existing ADU design template and the builder arranges for shipment of the building components, prepares the site for delivery and completes finishing touches. TEAM SELECTIONSTEP THREE Building a team ADU it yourself? This section is primarily aimed at homeowners with little or no experience in construction or construction management. Homeowners who feel comfortable managing the development of their ADU may still find some helpful tips to keep in mind when hiring subcontractors. 35 What to Prepare There are a few basics you’ll want to prepare before contacting designers and builders. GOALS: First, go back to Step 1 to review your goals. Understanding your goals will help your architect create a design that’s right for you. BUDGET: Next, you’ll want an initial budget. The cost of ADU construction can vary dramatically (for example, from $10,000 to $350,000) depending on ADU type, site and finishes. Your builder or architect can help narrow the price range. The financing available to you will also help determine what you can afford (See Step 4). SUPPORTING INFORMATION: Bring along your property information, a survey and any sketches you made in Step 2 to share with potential architects or builders. Hiring a Team An ADU is a long-term personal investment for most homeowners, so it is important to have a development team that understands your vision and with whom you can communicate well. Below are key questions to help you choose a design and development team. Be sure to get bids from multiple designers and builders. COST AND SERVICES: What will the firm charge and what services are included? CREDENTIALS: Has the firm built other ADUs, or completed remodels or new construction at a similar scale? Does it have experience with your municipality’s permitting process? Always verify professional licenses and business addresses: • for contractors • for architects, designers and engineers COMMUNICATION AND PROCESS: Do you feel that you are being heard and are you receiving responses in a timely manner? Signing a Contract When you’ve decided which firm(s) you want to hire, a final contract should detail the work they will do and all costs. The contract is a legal promise by both you and the company to complete the tasks outlined within it. The contract is a foundation for good communication between you and your team. Make sure everything that you discussed is included in the contract. For example, if you are building an above-garage ADU and want to reuse your old garage door, make sure that’s noted. You have the right to add or modify elements of the contract, even after it is signed, by using a change order. TIP The following is a helpful list of what your contract should include: • contractor’s license number, name and address • total project cost and payment schedule • start date and timeline • list of work to be accomplished and materials to be used • work (if any) to be subcontracted • specific terms about what constitutes substantial “completion of work” • the terms of warranties • a provision requiring the contractor to obtain lien releases from all subcontractors and suppliers (to protect the homeowner if a subcontractor claims they were not paid) • a cancellation penalty (if any) • plan for cleanup and removal of material and debris • any special requests (such as saving scrap lumber or bricks) • requirements for protecting property and landscaping • areas where materials may or may not be stored • any instructions regarding children or pets CREDIT: San Mateo County 2018 36 In this step you will… • Learn about resources to help you make an informed decision. • Learn about potential financing options. Obtaining financing is often the greatest challenge homeowners face in trying to build an ADU. That’s because the upfront cost can be large and there are not many financial options specifically tailored to this type of development yet. Typically, homeowners use their own savings, a loan or some combination of those sources to finance their ADU. Here is an overview of some basic considerations and available resources to help you manage or lower your costs. Making an informed decision Before making big financial decisions, it’s a good idea to seek advice from an independent homeownership expert. One option in Minnesota is to contact a member of the non-profit Homeownership Advisors Network. Advisory services are available to households of all income levels. Remember that you don’t have to get a loan from the first lender you meet. Be prepared to seek quotes from several different lenders to see which can offer you the best rate and/or terms. Building an ADU may raise your property taxes because it will add value to your home, and rental income may affect your income taxes. The specific impacts will be unique to your home and circumstances. Be sure to consult with a qualified professional tax advisor. FINANCESSTEP FOUR Financing Considerations 37 Financing Sources & Resources SPECIALIZED PROGRAMS The Minnesota Homeownership Center offers a Rehab and Repair Program Matrix that outlines renovation loan programs available by region in the state, some of which may be targeted to specific household income levels: www.hocmn.org/resources-for-homeowners/ Minnesota Housing, a state agency, offers home-improvement loans that could be used for ADU projects, in partnership with lenders throughout the state: www.mnhousing.gov TIP If you are applying for a loan, secure your financing about one month before you’re ready to apply for permits. RENTING Renting out your ADU may earn back some of your construction costs over time. Be aware that lender guidelines may not allow consideration of your future rental income when determining your eligibility for a loan. SWEAT EQUITY Find opportunities to do some of the work yourself, depending on your skills. Some ideas include installing cabinets, ordering appliances, painting and landscaping. 38 In this step you will… • Review the steps involved in a typical permitting process. • Learn why it’s important to permit an existing ADU. Prepare and Submit Your Application Once all your application materials are ready, submit them to the appropriate department (usually the planning department) and, if applicable, pay the application fee. After receiving the application and payment, city staff will conduct an initial review to make sure your application is complete before sending it forward for review. Revisions One or more of the city departments reviewing your application will likely request revisions. Revisions are a normal and expected part of the permitting process. There may be several rounds of revisions before your application is approved. Permitting an Existing ADU The easiest way to add an ADU to your property is to get a permit for the one you already have! If you’re lucky enough to already have an ADU in your home, or a space that could be converted to an ADU (for example, a basement suite with a mini-bar), find out if you’re legally required to have a permit for it. In some jurisdictions, an unpermitted ADU is illegal. Expect that you may need to upgrade some safety measures, such as smoke detectors, or make other improvements to bring your ADU up to code. Check with your city staff to determine what you need to do. PERMITSSTEP FIVE Permitting Process Overview PRE-APPMEETING HOMEOWNER CITY SUBMITAPPLICATION SUBMITNEEDEDMATERIALS REVISIONSNOYES RECORDOWNER-OCCUPANCYCOVENANT CONSTRUCTION INSPECTIONS BEGINREVIEW PERMITSISSUED MOVE IN!RETURNED TOAPPLICANT• Determine if an ADU is permitted and what the regulations are. • Review application requirements. • Work with your designer and contractor to prepare drawings of the ADU. • Pay application fee. • The City has 15 days to review if your application is complete. • If it is complete, the official review will begin. If it is incomplete, the City will tell you what is missing. • If your application is not complete, you’ll have 30 days to complete it. • The City will likely ask for some revisions to the project to ensure compliance with zoning ordinance and building code. This is an iterative process. Staff will provide feedback to help the applicant resolve any issues. • Once constructions and inspections are complete, a certificate of occupancy will be issued. • Congratulations! You can now move in to your ADU! • Some cities will require you to file a covenant on your property that states the owner must occupy either the main home or the ADU. • If you are approved, you can apply for any remaining needed permits. Once you have a building permit you can begin construction. • During construction, periodic inspections will occur to ensure the work is meeting standards. APPCOMPLETE? READYTO APPROVE?CERTIFICATEOF OCCUPANCY 39 This diagram illustrates a typical permitting process in Minneapolis, where permits are approved by staff in the planning department. Some municipalities require the permit to be approved by a body such as a planning commission or city council. Use this diagram as an example when visiting the planning counter to gain a better understanding of how your city’s permitting process works and how long each step usually takes. Be sure to clarify with your development team which steps in the process they will lead on your behalf. PRE-APPMEETING HOMEOWNER CITY SUBMITAPPLICATION SUBMITNEEDEDMATERIALS REVISIONSNOYES RECORDOWNER-OCCUPANCYCOVENANT CONSTRUCTION INSPECTIONS BEGINREVIEW PERMITSISSUED MOVE IN!RETURNED TOAPPLICANT• Determine if an ADU is permitted and what the regulations are. • Review application requirements. • Work with your designer and contractor to prepare drawings of the ADU. • Pay application fee. • The City has 15 days to review if your application is complete. • If it is complete, the official review will begin. If it is incomplete, the City will tell you what is missing. • If your application is not complete, you’ll have 30 days to complete it. • The City will likely ask for some revisions to the project to ensure compliance with zoning ordinance and building code. This is an iterative process. Staff will provide feedback to help the applicant resolve any issues. • Once constructions and inspections are complete, a certificate of occupancy will be issued. • Congratulations! You can now move in to your ADU! • Some cities will require you to file a covenant on your property that states the owner must occupy either the main home or the ADU. • If you are approved, you can apply for any remaining needed permits. Once you have a building permit you can begin construction. • During construction, periodic inspections will occur to ensure the work is meeting standards. APPCOMPLETE? READYTO APPROVE?CERTIFICATEOF OCCUPANCY TIP After meeting with the relevant city staff, create a checklist of requirements and due dates for each permit to stay on track. 40 In this step you will… • Learn what to expect during construction. • Understand your responsibilities. Preparing for disruption Part of the process of building an ADU is preparing yourself mentally for the disruption that occurs during any construction project. Construction typically lasts from a few months to a full year, during which time workers will have access to your property. There will likely be instances where the construction will reach into places that you use on a normal basis, such as a driveway, yard or basement. Talk about these details with your builder to understand what to expect. Your responsibilities While it may feel as though you’re in the backseat during construction while working with a contractor, there are many important responsibilities that you need to fulfill. You’ll need to: • Monitor the work to make certain it’s progressing according to schedule and that the work quality is high. • Make decisions in a timely manner when questions arise. • Ensure that required inspections are occurring. NOTE: Inspections are usually coordinated by the builder, but it is still your responsibility to confirm that they are performed. CONSTRUCTIONSTEP SIX Permit in hand you’re ready to build! 41 PHOTO CREDIT iStock by Getty Images TIP Refer back to p.35 for more information about working with contractors. TIP Remember to update your property insurance to include the completed ADU. 42 In this step you will… • Learn what you must do before renting out your ADU. • Find resources on how to be a landlord. • Consider hiring property management assistance. After construction is complete and the final inspections are done, your ADU will be ready for you or someone else to call home. This section will provide a handful of resources for renting out your ADU, should you choose to do so. License and Registration Before you can rent out your ADU you’ll need to know whether your city requires you to apply for a rental license or to register your unit. Typically, a short application and fee are required. These applications are managed by different departments depending on the city. Call the city’s general line and asked to be directed to the right department, or ask city staff members for more information during the permitting process. Becoming a Landlord If you decide to rent out your ADU, you should brush up on important landlord-tenant and fair housing laws to know your legal obligations and how to resolve any issues that might arise. Having this information can help you and your tenant maintain a positive relationship. A few resources are highlighted on the next page. If becoming a landlord isn’t for you, look into hiring a property management company to take care of the details. MOVE-INSTEP SEVEN NOTE This section presumes that the ADU is being rented out, but everything discussed also applies if you want to move into your ADU and rent out your main home. Move in! Construction is complete! 43 Landlord Resources The Office of the Minnesota Attorney General provides a handbook that contains a thorough overview of landlord-tenant laws. Landlords and Tenants: Rights and Responsibilities HousingLink is a nonprofit organization with a mission of expanding housing and neighborhood choices for renters. HousingLink offers landlords the chance to advertise their rental-housing openings for free. List a Property The Minnesota Multihousing Association promotes high standards in the development, management and maintenance of rental and owner-occupied multi housing and offers educational programming for landlords. MHA Industry Education HOME Line is a Minnesota tenant advocacy organization that offers publications and trainings to help landlords and tenants understand the laws that govern their relationship The Landlord’s Guide to Minnesota Law Trainings Many cities offer support and training for new landlords. Check with city staff to learn what your city offers. 44 References Bekker, Jessie. 2016. “Despite new law, ‘granny flats’ are a no-go in east metro.” Pioneer Press, Dec. 2, 2016. www.twincities.com/2016 /12/02/despite-new-law- granny-flats-are-a-no-go-in-east-metro/. McClure, Jane. 2018. “Alley House,” Saint Paul Historical, accessed August 9, 2018, saintpaulhistorical.com/items/ show/273. Brown, M. and Palmeri, J. 2014. “Accessory Dwelling Units in Portland, Oregon: Evaluation and Interpretation of a Survey of ADU Owners.” Oregon Department of Environmental Quality. www.oregon.gov/deq/ FilterDocs/ADU-surveyinterpret.pdf. San Mateo County. 2018. “Second Unit Workbook.” secondunitcentersmc.org/wp-content/uploads/ Second-Unit-Workbook-FINAL-ONLINE.pdf. Stephan, A. and R.H. Crawford. 2016. “The relationship between house size and life cycle energy demand: implications for energy efficiency regulations for buildings.” Energy 116 (Part 1), 1158–1171. dx.doi.org/10.1016/j.energy.2016.10.038. Additional Resources BOOK Peterson, Kol. 2018. Backdoor Revolution: The Definitive Guide to ADU Development. Accessory Dwelling Strategies, LLC. WEBSITES Accessory Dwellings: “A one-stop source about accessory dwelling units, multigenerational homes, laneway houses, ADUs, granny flats, in-law units…” www.accessorydwellings.org Building an ADU: “THE site for those interested in planning, designing, and building accessory dwelling units (aka ADUs).” www.buildinganadu.com American Planning Association KnowledgeBase - Accessory Dwelling Units: “This collection catalogs resources that provide background, policy guidance, and examples of local plan recommendations and zoning standards for accessory dwelling units from across the country.” www.planning.org/ knowledgebase/ accessorydwellings Terner Center for Housing Innovation ternercenter.berkeley.edu Second Unit Center San Mateo www.secondunitcentersmc.org OTHER GUIDEBOOKS Los Angeles, California | Building an ADU: Guidebook to Accessory Dwelling Units in the City of Los Angeles citylab.ucla.edu/adu-guidebook/ Honolulu County, Hawaii | Accessory Dwelling Unit Homeowners’ Handbook: A Guide for Homeowners on Oahu Interested in Building an Accessory Dwelling Unit hawaiiadu.org/wp-content/ uploads/2016/07/ADU-Manual- ver.-1-FINAL-Web.pdf San Mateo County, California | Second Unit Inspiration secondunitcentersmc.org/ wp-content/uploads/ADU-Idea- Book-FINAL-ONLINE-VERSION.pdf San Mateo County, California | Second Unit Workbook secondunitcentersmc.org/ wp-content/uploads/Second-Unit- Workbook-FINAL-ONLINE.pdf Santa Cruz, California | Accessory Dwelling Unit Manual: Growing Santa Cruz’s Neighborhoods from the Inside www.cityofsantacruz.com/home/ showdocument?id=8875 Santa Cruz County, California | ADU Basics www.sccoplanning.com/Portals/2/ County/adu/ADU%20Basics. pdf?ver=2018-06-07- 110146-073 Santa Cruz County, California | ADU Financing Guide www.sccoplanning.com/Portals/2/ County/adu/ADU%20 Financing%20Guide. pdf?ver=2018-06-07-110307-117 San Francisco, California | sf-ADU sfplanning.org/plans-and- programs/planning-for-the-city/ accessory-dwelling-units/2015_ ADU_Handbook_web.pdf Seattle, Washington | A Guide to Building a Backyard Cottage www.seattle.gov/Documents/ Departments/ SeattlePlanningCommission/ BackyardCottages/ BackyardCottagesGuide-final.pdf 45 Twin Cities Planning Departments Contact Information Contact information for cities that permit Accessory Dwelling Units (ADUs) as of 2018. CITY OF APPLE VALLEY Community Development/Planning 7100 147th St. W. Apple Valley, MN 55124 952-953-2575 commdev@ci.apple-valley.mn.us www.ci.apple-valley.mn.us/index. aspx?nid=83 CITY OF BLOOMINGTON Planning Division 1800 West Old Shakopee Road Bloomington, MN 55431-3027 952-563-8920 planning@BloomingtonMN.gov www.bloomingtonmn.gov/plan/planning- division CITY OF BURNSVILLE Planning Department 100 Civic Center Parkway Burnsville, MN 55337 952-895-4455 www.ci.burnsville.mn.us/index. aspx?nid=139 CITY OF CHASKA Planning Department One City Hall Plaza Chaska, MN 55318 952-448-9200 www.chaskamn.com/148/Planning- Department CITY OF CRYSTAL Planning and Zoning 4141 Douglas Dr. N. Crystal, MN 55422 763-531-1142 www.crystalmn.gov/resident/community_ development/planning_and_zoning/ CITY OF EAGAN Planning Division 3830 Pilot Knob Road Eagan, MN 55122 651-675-5685 planning@cityofeagan.com www.cityofeagan.com/accessory- dwelling-unit-registration CITY OF INVER GROVE HEIGHTS Community Development Department 8150 Barbara Ave. Inver Grove Heights, MN 55077 651-450-2545 www.ci.inver-grove-heights.mn.us/55/ Community-Development CITY OF LAKEVILLE Planning Department 20195 Holyoke Avenue Lakeville, MN 55044 952-985-4420 planninginfo@lakevillemn.gov lakevillemn.gov/342/Planning-Department CITY OF LONG LAKE City Clerk 450 Virginia Ave. Long Lake, MN 55356 952-473-6961 x1 www.longlakemn.gov/index.asp?Type=B_ BASIC&SEC={885FA881-1825-4CE7-9338- B6EBB7AB1836} CITY OF MINNEAPOLIS Community Planning & Economic Development Public Service Center 250 South Fourth Street (Room 300) Minneapolis, MN 55415 612-673-5095 www.ci.minneapolis.mn.us/cped/ projects/ADU CITY OF MINNETONKA Planning Division 14600 Minnetonka Blvd. Minnetonka, MN 55345 952-939-8290 eminnetonka.com/planning CITY OF PLYMOUTH Planning Division 3400 Plymouth Blvd. Plymouth, MN 55447-1482 763-509-5450 planning@plymouthmn.gov www.plymouthmn.gov/departments/ community-development/planning CITY OF RICHFIELD Planning and Zoning Richfield Municipal Center 6700 Portland Avenue Richfield, MN 55423 612-861-9760 com_dev@richfieldmn.gov www.richfieldmn.gov/departments/ community-development CITY OF ROSEVILLE Planning and Zoning 2660 Civic Center Dr. Roseville, MN 55113 651-792-7005 www.cityofroseville.com/307/Planning- and-Zoning CITY OF SHOREVIEW Planning and Zoning 4600 Victoria Street North Shoreview, MN 55126 651-490-4680 www.shoreviewmn.gov/government/ departments/community-development/ planning-and-zoning CITY OF SAINT PAUL Safety & Inspections 375 Jackson Street Suite 220 Saint Paul, MN 55101 651-266-9008 www.stpaul.gov/departments/safety- inspections/accessory-dwelling-units CITY OF STILLWATER Planning and Zoning 216 North Fourth Street Stillwater, MN 55082 651-430-8818 www.ci.stillwater.mn.us/ communitydevelopment CITY OF WHITE BEAR LAKE Planning and Zoning 4701 Highway 61 White Bear Lake, MN 55110 651-429-8534 www.whitebearlake.org/ communitydevelopment/page/ planning-zoning About the Family Housing Fund The Family Housing Fund believes it takes all of us working together to build a strong system that supports access to decent, affordable homes for everyone. Established in 1980, we support the Cities of Minneapolis and Saint Paul, the Metropolitan Council, and Minnesota Housing in their efforts to meet the seven-county metropolitan region’s affordable housing needs. We are unique in focusing on all facets of the housing system and working across sectors to ensure real change. ACKNOWLEDGEMENTS Family Housing Fund thanks the following people for making this guidebook possible: Betsy Gabler, Austin Young | Alchemy Architects Jason Rysavy and Cate Christenson Chris Strom | Christopher Strom Architects Andrew Frenz, Shanna Sether | City of Minneapolis Josh Abrams | Community Planning Collaborative/ Second Unit Center San Mateo Laurie and Larry Demos Jeff Washburne, Staci Horwitz | City of Lakes Community Land Trust Eric and Chrissi Larsen Fue Lee Marnie Peichel | Marnie Peichel Architecture and Design, LLC Eric Meyers | Minneapolis Area Association of Realtors Mariia Zimmerman | MZ Strategies Faith Cable Kumon, Chris Wilson | Project for Pride in Living, Inc. Mike Radel and Dallas Radel Megan and Rob Seeds Gary Findell | Smart Home Construction Karen Chapple, David Garcia | Terner Center for Housing Innovation at UC Berkeley Cathy Bennett | Urban Land Institute Minnesota Renee Martinez-Stone | West Denver Renaissance Collaborative Nancy Sparrow | White Crane Design:Build Homeowners, architects, and contractors who responded to a survey on ADU development Planners and other public officials from around the Twin Cities region who helped provide information The Family Housing Fund would also like to acknowledge the many other resources used in creating this guidebook, all of which are listed under Additional Resources. Illuminating solutions. Sparking change. FHFUND.ORG 310 4th Ave South Suite 9000 Minneapolis, MN 55415 MAIN 612.375.9644 FEBRUARY 2019 ©Family Housing Fund CREDITS WRITING: Casey Lauderdale EDITING: Sarah Berke, Julie Jensen GRAPHIC DESIGN: Ladywithafan Design, LLC PHOTOGRAPHY: Min Enterprises Photography, LLC (unless otherwise noted) DRAFT PROCEEDINGS OF THE MOUNDS VIEW PLANNING COMMISSION CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting May 17, 2023 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View, MN 55112 ______________________________________________________________________________ 1. Call to Order The meeting was called to order by Chair Rundle at 6:30 p.m. for May 17, 2023. ______________________________________________________________________________ 2. Roll Call Members Present: Commissioners Curtis, Farmer, Munson, Nelson, Rundle, Stevenson (arrived at 6:33 p.m.) and Urlacher. Absent and Excused: None. Also Present: Community Development Director Jon Sevald and Council Member Gary Meehlhause. ______________________________________________________________________________ Index to Minutes Page Resolution 1159-23, Recommending Approval of Ordinance 1003, 2 Amending Mounds View City Code Chapter 160.198; B-3 Highway Business District, Conditional Uses; and Resolution 1160-23, Recommending Approval of a Conditional Use Permit for Big Dipper Creamery, 2222 Mounds View Boulevard Accessory Dwelling Unit Discussion 3 Approval of Minutes 4 _____________________________________________________________________________ 3. Special Order of Business None. Mounds View Planning Commission May 17, 2023 Regular Meeting Page 2 ________________________________________________________________________ 4. Citizens Requests and Comments on Items Not on the Agenda Tony Preciado, 8217 Long Lake Road, expressed concern with the Pulte Homes development that would be built behind his home. He reported he did not want this type of development in his back yard. Community Development Director Sevald explained Pulte Homes sent a letter to residents in order to inform them of an April 20th neighborhood meeting. He reported Pulte Homes was proposing to construct a community with 75 townhomes and 12 yard homes. He stated the Planning Commission and City Council have reviewed the concept plan. Mr. Preciado questioned why the City would support this type of project. Community Development Director Sevald reported the Planning Commission makes recommendations to the City Council and the final decision for this project would be made by the City Council. He stated this project was in the very preliminary stages, and that no applications have been made. He encouraged Mr. Preciado to attend upcoming public hearings in order to voice his concerns regarding the proposed project. ______________________________________________________________________________ 5. Planning Cases A. Resolution 1159-23, Recommending Approval of Ordinance 1003, Amending Mounds View City Code Chapter 160.198; B-3 Highway Business District, Conditional Uses; and Resolution 1160-23, Recommending Approval of a Conditional Use Permit for Big Dipper Creamery, 2222 Mounds View Boulevard Community Development Director Sevald stated Big Dipper Creamery proposes to relocate their ice cream production facility to 2222 Mounds View Boulevard, requiring; (1) an amendment to the B-3 district to allow processing of food products as a Conditional Use; and (2) a Conditional Use Permit. Big Dipper Creamery currently operates retail stores in Blaine and North Oaks, and an ice cream production facility at their North Oaks store. They have outgrown the space, and intend to lease 2222 Mounds View Boulevard for production and retail sales (no dine-in). 2222 Mounds View Boulevard is a multi-tenant building (Southpaw Crossfit, Scout Shop, Mounds View Chiropractic, Betterley Tools), and is zoned B-3 Highway Business. Big Dipper will be taking over space currently occupied by Betterley Tools (7,578 sq ft). Prior to Betterley, the unit was Abbey Carpet. Staff recommended the Planning Commission recommend approving Ordinance 1003, and the Conditional Use Permit as requested. Commissioner Farmer questioned how many B-3 properties were in the City. Community Development Director Sevald reviewed the location of the B-3 properties in Mounds View. Further discussion ensued regarding the uses that were allowed within the B-3 zoning district. Mounds View Planning Commission May 17, 2023 Regular Meeting Page 3 ________________________________________________________________________ Commissioner Farmer requested further information on the criteria that must be met in order to grant a Conditional Use Permit. Community Development Director Sevald reviewed the criteria that must be met in order to grant a CUP. It was noted the proposed site would be used for ice cream production with some retail. Commissioner Nelson asked if residents would be able to purchase ice cream by the pint or in bulk off the street. Jerry Guss, Big Dipper Creamery representative, commented on how his business was expanding noting Big Dipper Creamery would have display freezers with pint and quarts of ice cream for sale. He noted the store would not be an ice cream parlor with ice cream cones for sale. Commissioner Nelson asked how many ice cream flavors were made by Big Dipper Creamery. Mr. Guss estimated he made over 200 flavors of ice cream and noted he sells his ice cream to 10 different vendors in the metro area. MOTION/SECOND: Commissioner Stevenson/Commissioner Nelson. To approve Resolution 1059-23, recommending approval of Ordinance 1003, Amending Mounds View City Code Chapter 160.198; B-3 Highway Business District, Conditional Sales. Ayes – 7 Nays – 0 Motion carried. MOTION/SECOND: Commissioner Munson/Commissioner Farmer. To approve Resolution 1060-23, a Resolution Recommending Approval of a Conditional Use Permit for Manufacturing, Compounding, Processing, Packaging or Treatment of Cosmetics, Pharmaceuticals and Food Products and the Rendering or Refining of Fats and Oils for Big Dipper Creamery at 2222 Mounds View Boulevard. Ayes – 7 Nays – 0 Motion carried. 6. Other Planning Activity A. Accessory Dwelling Unit Discussion Community Development Director Sevald informed the Commission that he was contacted by a resident that was interested in constructing an Accessory Dwelling Unit. He questioned how the Commission would like to proceed. Commissioner Nelson commented on the cost for a tiny home and stated the prices were becoming quite high. Commissioner Stevenson stated his concerns with ADU’s was the future use of the space. Mounds View Planning Commission May 17, 2023 Regular Meeting Page 4 ________________________________________________________________________ Commissioner Urlacher reported she would always speak for property owners rights. She indicated she had a shed in her backyard that was quite substantial in size and the only thing that it was missing in order to be considered an ADU, was water and sewer. She explained she has a small home and it would be a fantastic option for her to be able to use the shed for more living space. She discussed how housing trends were changing and more extended families were living together due to the cost of housing. She anticipated if a property were to sell with an ADU, the next homebuyer would appreciate the additional space. She reported the City would have to consider if ADU’s could be used for Airbnb’s or if the space could only be used for family. Commissioner Nelson recommended the lot size be taken into consideration whether or not an ADU would be allowed, because some lots were too small to accommodate an ADU. Commissioner Curtis explained he moved into Mounds View two years ago and his home has a detached garage. He reported the previous owner converted this garage into a one bedroom/one bath apartment. Commissioner Urlacher stated this could be a good selling for new homeowners. Commissioner Farmer indicated he was hesitant to determine what homeowners can and can’t do with their property. He discussed how there was a need for home offices as more and more people begin working from home. Commissioner Curtis questioned if the City had the resources in place if ADU’s were to convert to rentals in the future. Community Development Director Sevald reported the City did have the resources in place. He commented further on how the City manages rental properties. Commissioner Nelson asked if Coon Rapids or Blaine allowed ADU’s. Community Development Director Sevald stated he was uncertain. However, he understood Minneapolis and St. Paul were allowing ADU’s. Commissioner Stevenson reported the City of Mounds View had a lot of larger lots, which would allow for an ADU. Community Development Director Sevald questioned if the Planning Commission supported staff exploring this use further. The Commission offered their support for staff to explore ADU’s further. 7. Approval of Minutes May 3, 2023. MOTION/SECOND: Commissioner Curtis/Commissioner Stevenson. To approve the Minutes of the May 3, 2023 regular Planning Commission meetings as presented. Mounds View Planning Commission May 17, 2023 Regular Meeting Page 5 ________________________________________________________________________ Ayes – 7 Nays – 0 Motion carried. 8. Reports A. Upcoming Planning Cases & Activity Community Development Director Sevald reported he had no upcoming planning cases at this time. B. Staff Updates Community Development Director Sevald provided the Commission with an update from staff. C. Council Updates Council Member Meehlhause provided the Planning Commission with an update from the City Council. He noted Kathie Anderson was recognized at the Citizen of the Year for 2022 at the last City Council meeting. In addition, the Council recognized Adnan Omanovic and Robert Turner as the Coaches of the Year. He reported the Council also held a badge pinning ceremony for newly appointed Police Chief Ben Zender. D. Planning Commissioner Reports None. 9. Next Planning Commission Meeting: A. Wednesday, June 7, 2023 B. Wednesday, June 21, 2023 ______________________________________________________________________________ 10. Adjournment There being no further business before the Planning Commission, Chair Rundle adjourned the meeting at 7:21 p.m. ______________________________________________________________________________ Respectfully submitted, Jon Sevald Community Development Director Mounds View Planning Commission May 17, 2023 Regular Meeting Page 6 ________________________________________________________________________ Transcribed by: Heidi Guenther Minute Maker Secretarial