Benjamin Garza is a former Ronald O. Loveridge Summer Fellow. He can be reached via LinkedIn. Additional contributions by Brian Hendershot, Western City managing editor.

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Many cities are turning to accessory dwelling units (ADUs) to quickly increase housing — including Rosemead and Arcata. Rosemead’s streamlined approach has facilitated a rapid increase in housing production that maintains neighborhood character. In Arcata, ADUs allow the city to meet the needs of a large renter and student population.

Both cities offer valuable lessons for other cities, demonstrating the importance of tailoring strategies to local needs. “A city needs to be proactive in the ADU process, by thinking outside of the box,” said Annie Lao, senior planner for Rosemead.

Rosemead’s two-story ADUs preserve communities

Located in the San Gabriel Valley, Rosemead has embraced a rapid approach to ADU development. In line with the state ADU laws, the city removed owner-occupancy requirements, reduced parking space regulations, and streamlined its approval process by expediting reviews and decision-making. To further simplify the process, Rosemead provides an electronic review process. The city turnaround for review is two weeks.

The city also created an informative ADU standard reference sheet, allowing residents and developers to quickly check if their ADU plans meet local zoning requirements.

Winston Navarro, senior designer for Elite Design Development, says ADUs are easier to build and more affordable in general due to fewer regulatory standards. But Rosemead in particular makes the process “pretty straightforward.”

“State ADU code doesn’t have [as] many details, so it depends on the local government and our architect to work together to … see what can work,” said Jerry Lam, the firm’s project manager.

Developers can build different types of ADUs in Rosemead, including junior accessory dwelling units. These smaller units are constructed inside within the walls of a proposed or existing single-family residence or garage, with its own private entrance and a basic kitchen. They may share a bathroom with the main residence.

Builders can construct one detached or attached ADU in addition to one junior accessory dwelling unit on single-family properties. For multifamily properties, they can convert up to 25% of the existing units within the portions of the building into ADUs under certain circumstances and construct up to two detached ADUs, expanding housing capacity while maintaining the building’s original structure.

Rosemead’s ADUs frequently reach two stories. Despite their height, they blend seamlessly into the community. Since 2018, Rosemead developers have completed 548 ADUs, with 143 completed in 2022 alone.

“A lot of lots in the city of Rosemead [are] around 6,000 square feet,” Lao said. “There’s not much land in the rear yard, so allowing an ADU to go up two stories really helps them as they gain more square footage, and it’s a smaller footprint. It’s multigenerational housing, so families can stay together.”

The city’s family-oriented culture is a driving force behind the city’s ADU boom. Many residents are building ADUs for relatives, friends, or other community members, reinforcing the close-knit nature of the community. These units provide homeowners with a flexible way to support extended families, foster stronger community ties, and generate rental income.

Arcata uses ADUs to build for the future  

Farther north in Humboldt County, Arcata has developed an ADU strategy centered on expanding housing options for renters and college students. Like Rosemead, Arcata streamlined its approval process by simplifying the application requirements, standardizing review procedures, adopting clearer guidelines, and automatically approving ADUs that meet certain requirements.

According to Kyle Boughton, the founder of North Star Development, the city also emphasizes educating potential builders and providing consistent, quick, and informative feedback. This is crucial for owner-builders, many of whom have never navigated the permitting process.

“We do this all the time,” Kyle said. “We have relationships. We know what needs to be done, but trying to simplify the process for the community, I think, is the biggest thing [a city can do].

David Loya, the city’s community development director, says Arcata went from approving ADUs in three to six months to a matter of weeks, leading to a substantial rise in both applications and approvals. It’s a trend Boughton has noticed, who noted the city is “always on the ball” and has been “really supportive.”

However, not every homeowner can build an ADU. Most banks are reluctant to provide loans for ADUs. Without substantial cash on hand or home equity, many would-be developers find themselves unable to participate in the ADU boom.

Arcata is in the early stages of developing a loan program aimed at easing the financial burden. Like most smaller cities, it works hard and smart. City officials plan to borrow good ideas from other communities. In this case, Loya hopes to build off a program from the neighboring city of Eureka.

The city’s commitment to sustainable growth is further reflected in its Gateway Area Plan, which rezones industrial land for residential and mixed-use purposes. This initiative aligns with the city’s broader goal of creating 3,500 new residential units by 2045, driven by an anticipated annual population growth of 1.5%.

But even with these ambitious plans, keeping up with housing demand is no easy task. “The way I look at it, we’re sort of 50 to 70 years behind the curve,” Loya said.

Even if the city meets its housing goal, it might still struggle to fully address the housing shortage. The city also needs to contend with an influx of new workers to support new offshore wind farms. But like many cities on California’s coast, it’s hemmed in by mountains and forests.

“It’s crucial that we do these infill projects to help keep up with housing,” Boughton said. “We definitely need it. There is a shortage.”

Diverse challenges and approaches — same results  

Rosemead and Arcata provide good examples of potential paths California cities can take to address the state’s housing crisis through ADU development. But both still have their share of challenges. The state-mandated removal of parking near “major transit” has frustrated residents. And the torrent of new ADU housing laws initially created confusion in both cities.

Still, in both cities, ADUs have proven to be an effective way to build moderate-income housing and promote generational wealth in areas with limited space for new development. It also helps that ADUs don’t dramatically change the look and feel of a neighborhood. ADUs also help developers and cities get around other common problems, like lengthy utility hookup times.

The two cities are committed to making the state’s housing laws work for residents and developers alike. “We’re constantly tweaking things and talking about it internally,” Loya said. “This person’s experience was this way. Are there things we can do to improve it?”