Accessory Dwelling Units -- want to build one? It is a lot easier than it has been in the past...

At the end of 2019, during an interview with the Sacramento Bee asking my opinion about the local Sacramento real estate market, the reporter asked about my most "out there" forecast or trend: I responded with -- wait for it -- constructing Accessory Dwelling Units, aka - ADU's! 

At that time, I was optimistic that as some state legislation encouraged city/county ADU application streamlining and the "by-right" ability of residential property owners to add ADUs to their properties, we'd see more homeowners building them. There are many parcels in greater Sacramento that could easily accommodate ADUs, whether that means converting existing space like a garage or basement to an ADU, or constructing a freestanding ADU Casita in the backyard. We could have thousands of mini-infill projects all over our region adding more housing at affordable prices.

Well, fast forward to 2025: ADUs have arrived! 

An Accessory Dwelling Unit (ADU) is a secondary residence on the same lot as a primary home. It can be attached, detached, or created by converting existing spaces like a basement. ADUs offer flexible living solutions, increase housing unit supply, and provide more affordable housing options. Examples include detached cottages, garage conversions, or repurposed home areas.

I am noticing ADU construction all over greater Sacramento...I am also noticing more and more that you can purchase existing resale homes with ADUs (which is now a searchable property characteristic in our MLS), and I am noticing new construction builders offering options for detached ADUs or attached "multigen" suites -- separate attached units with private entrances, kitchenettes, living space, and private bedrooms/bathrooms. Super cool, and I can tell you these are in demand.

I am so glad to see that Sacramento County and many of the cities withing Sacramento County have not only made the permit/application process easier for ADUs -- they have also created pre-approved design plans!

ADU info in different jurisdictions -- 

• Sacramento County (basically will be any areas within Sacramento County that are not within the city limits -- areas like Antelope, Orangevale, Carmichael, Fair Oaks, parts of areas called Sacramento that aren't in the city limits, etc) -- https://building.saccounty.gov/pages/adu.aspx 
• City of Sacramento -- https://adu.cityofsacramento.org/Shelf-ready-plans 
• City of Citrus Heights -- https://www.citrusheights.net/1108/Permit-Ready-ADU-Program 
• City of Elk Grove -- https://www.elkgrovecity.org/sites/default/files/city-files/Departments/Building/building-forms-and-handouts/over-the-counter-adu-program.pdf 
• City of Folsom -- https://www.folsom.ca.us/government/community-development/housing-services/accessory-dwelling-units
• City of Galt -- https://www.cityofgalt.org/government/community-development/planning/planning-division-forms-handouts
• City of Rancho Cordova -- https://www.cityofranchocordova.org/home/showpublisheddocument/20034/638644999044430000

If you are interested in constructing an ADU, I can point you to a few different builders who have come to specialize in them...or if you are wanting to purchase a resale or new construction home with an ADU, I am happy to assist you. Don't hesitate to reach out.

Quoted in a Robb Report article today about the new California mandate for new construction homes to have solar panels...

I was quoted in a Robb Report article today about the new California mandate for new construction homes to be built equipped with solar panels. Renewable energy sources and energy efficiency are great things, and California is definitely leading the way and setting a new standard in the US.

All policies have impacts though, and when California generally also leads the nation with the highest median home prices (statewide median home price is over $550,000 and $365,000 in Sacramento as of November 2018), imposing a requirement to install expensive solar panels on every new construction home in the state could lead to higher home prices as builders look to recoup the extra costs of solar arrays.

The market may very well be able to handle a $10,000 - $15,000 increase in a new home's price. However, If the market cannot handle price increases from the additional costs of solar on new homes (e.g. fewer people buy those homes - perhaps buying less expensive resale homes instead, new home prices decrease, etc.) it may drive builders out of the state to build elsewhere. There are other states with fewer of these mandates, and Texas, Arizona, and Idaho for example are all experiencing building booms. We shall see in the coming years if this has an impact on the volume of new housing construction in California. 

New Listing - 2616 Cleat Lane, Sacramento, CA 95818

Popular, sold-out floorplan in The Mill at Broadway is available! 2 bedrooms + den, 2.5 bathrooms, 1,451sf detached home in cool newer Land Park community! You will love the kitchen with quartz counters, stainless appliances, built-in wine fridge and bar area, high-end laminate flooring, stylish light fixtures, downstairs den or possible 3rd bedroom, upstairs loft, both bedrooms have ensuite bathrooms. Energy saving features include 1.5kW owned photovoltaic solar system, tankless water heater, ductless HVAC. 2-car attached garage, big patio and large upper balcony. HOA dues $90/month. Newer construction from 2016 within close proximity to Land Park, Broadway District, Bike Dog Brewing, Selland's, transportation and more! Offered at $469,900. For more photos and information visit 2616 Cleat Lane, Sacramento, CA 95818. Don't wait!

California Home Buyer Tax Credit (AB 183) - The Scoop...

I have gotten at least a dozen emails with questions from buyers over the last week about the new State of California Home Buyer Tax Credit.

So yes, you probably saw on the news that Governor Schwarzenegger signed AB 183, allocating approximately $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers of existing (resale, previously occupied) homes, and $100 million for purchasers of new construction (previously unoccupied) homes. Again, the definition of a first time buyer is one that has not owned a home in the last 3 years.

The State of California tax credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. In english - if you purchased a $165,000 home, you would be eligible for a tax credit of $8,250 ($165,000 x 5% = $8,250, which is less than $10,000). If you purchase a $265,000 home, you would be eligible for a tax credit of $10,000 ($265,000 x 5% = $13,250, however the tax credit is capped at $10,000).

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credits. Of course - these time periods assume that the state allocated funds will not be depleted...AND, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (aka, you would have to repay it to the state). AND, you must submit an application for the tax credit...the state of California does take reservations...so don't wait for tax season. No joke!

So....hopefully that clears up most of the questions folks have. As always - please get tax advice from a qualified professional like a CPA. Shoot me an email if you need a referral to a good one.

California Introduces Legislation to Extend the First Time Buyer / New Construction Tax Credit

California elected officials introduced two pieces of legislation today...the first increases the cap for the state first time buyer new construction purchase tax-credit program by a proposed $200 million (currently capped at $100 million), and the second would extend the length of the program by at least a year (current cut off date is February 8, 2010). Funds are almost all allocated under the current plan for the tax credit.

My thoughts? While this sounds great and all, I would prefer to see a balanced budget passed first. Keep in mind that the Federal $8,000 first time buyer tax credit is still available through December 1, 2009!

Fast Forward - Future Development in Lincoln in the works...

Looks like there will be some future development in Placer County - specifically in the City of Lincoln. The Lewis Group of Companies has purchased a 500+ acre tract of land near its Lincoln Crossing community. Their plan is long-term, with construction starting no sooner than 2012. The Lewis Group is predicting that job growth in the greater Roseville area will fuel the need for homes in Lincoln. Read today's article in the Sacramento Bee.

SMUD to Partner with Developer to Build Solar-Powered Homes...

I received this news release from SMUD (Sacramento Municipal Utilities District for any out-of-town readers)...they have partnered with Woodside Homes and plan to build almost 1500 solar-powered homes near the Rancho Cordova area. It is anticipated that these homes will be complete around the year 2012. This apparently is the largest agreement between any utility company and homebuilder to date in the United States. To read their press release, click here.

More on private transfer taxes...

For any of you who read my post a few weeks ago regarding "private transfer taxes" (http://sacramentorealestateblog.blogspot.com/2007/10/private-transfer-taxes-be-aware.html), you may be interested to know there are a couple of new laws in CA that will govern and disclose these fees...as far as I know though, these fees are still legal to record on property deeds.

New Disclosure for Private Transfer Fees: Effective January 1, 2008, a seller who must provide a Transfer Disclosure Statement must also provide, at the same time, a disclosure statement of private transfer fees if applicable. A transfer fee is defined as any fee that must be paid upon transfer of real property as imposed by deed, CC&Rs, or other documents, with certain exceptions (such as, but not limited to, transfer fees imposed by probate, trust, court order, or a governmental agency). The new disclosure statement must contain, among other things, a notice that payment is required, the amount of the fee, and the entity to which payment must be made. (Source: Assembly Bill 980.)

Recording Private Transfer Fees: Also effective January 1, 2008, any person or entity imposing a private transfer fee must, as a condition of payment of the fee, record the instrument creating the transfer fee and a separate notice of "Payment of Transfer Fee Required." These two documents must be recorded concurrently in the county recorder's office for which a property is located. The notice of "Payment of Transfer Fee Required" must include the following information:
- Names of the current property owners;
- Assessor's parcel number and legal description;
- Amount of the fee (or percentage of sales price);
- Actual dollar-cost examples of the fee for residential property priced at $250,000, $500,000, and $750,000;
- When the fee expires if applicable;
- Purpose of the funds;
- Name of entity to be paid and that entity's contact information for sending the funds; and
- Signature of that entity's authorized representative.
The title of the notice of "Payment of Transfer Fee Required" must be in at least 14-point bold type. For transfer fees imposed before January 1, 2008, the receiver of the fee must, as a condition of payment of any fee after December 31, 2008, record a notice of "Payment of Transfer Fee Required" by December 31, 2008 (or record a substantial equivalent as specified). (Source: Assembly Bill 980.)


http://www.ErinAttardi.com • http://Erin.Golyon.com

Home Front: In some spots, house sales just ZIP along

Great article in the Sacramento Bee today. Look people, despite all the mass media doom and gloom regarding the Real Estate market, many areas in Sacramento (and surrounding counties too) are still doing really well!!! The areas that are suffering the most are those where new home construction is still rampant - Elk Grove, Natomas, Lincoln, etc...

Luckily for me I do little or no business in those areas. If you look at my current active listings, you will see the majority right now are in the Land Park area (you can see my listings here: http://erin.golyon.com/listings.html). The bulk of my real estate transactions are in Downtown / Midtown Sacramento, East Sacramento, Land Park, Curtis Park, Tahoe Park, Arden, Carmichael, Rosemont / College Greens, Fair Oaks, Orangevale, Citrus Heights, and Antelope. If you want to learn more about these areas, visit http://www.erinattardi.com/communities.php.

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Home Front: In some spots, house sales just ZIP along

Sometimes it seems the for-sale sign has become the official flag of Sacramento-area cities. Everywhere you look, there's another one stuck in the ground. But there are a handful of well-populated ZIP codes in the region where the number of homes on the market is actually shrinking.

Consider 95616 in Davis. It had 67 houses for sale in June, compared with 195 in the same month last year. That's a 66 percent reduction. And so it goes in certain pockets, according to recent June statistics on housing inventory in the four-county region of El Dorado, Placer, Sacramento and Yolo.

The 193 listings in Auburn's 95603 were down 15 percent from last June. Roseville's 285 listings in 95678 were down 9.5 percent. Other ZIP codes where inventory is falling were Roseville's 95661, Mather's 95655, midtown Sacramento's 95816 and Foothill Farms' 95841. The statistics, which come from Sacramento-based TrendGraphix, are good signs, evidence of supply and demand coming into a better balance in some areas.

Downtown still boomtown
Anecdotal evidence continues to pour in that the housing slump doesn't apply in neighborhoods near downtown Sacramento. While cocktail party talk elsewhere in the region revolves around the bulging inventory of thousands of houses for sale, people in east Sacramento, Curtis Park and Land Park like to talk about multiple bids and runaway prices.

In recent months, million-dollar deals and two-bedroom homes listed for $800,000 and $900,000 are not unheard of. "I've got a friend in Land Park who said a couple of houses sold for record prices. They sold within a week," said Jon Nastro, a real estate agent and broker associate who sells in Elk Grove. "Land Park is Land Park. The investors never came in there," he said. "They couldn't afford to." It's the same in east Sacramento, home to the "Fab 40s" of tree-lined streets and stately, sizable homes.

In those neighborhoods, people like to swap stories of that one house that couldn't possibly be worth its asking price, given all the fixup it needs. Then it goes on the market for $700,000 and gets multiple offers the same day. Housing slump? What housing slump?

Like many things in real estate, it's all about location.

As he's been saying for months, TrendGraphix owner Michael Lyon says of the region's current market conditions: "We are awash in homes for sale." But every month he adds the caveat: "The only exceptions remain the areas closest to the Capitol."

In a sense these neighborhoods are becoming like Santa Barbara or the regional equivalent of what some analysts have dubbed "superstar cities." For most buyers, that means if you don't already live there, it's likely you never will.

Link:
http://www.sacbee.com/142/story/282179.html

Placer OKs 14,000 homes

All I have to say about this is YIKES!

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Placer County supervisors Monday approved a development the size of a small city just north of the Sacramento County line. The Placer Vineyards project -- in the works for the past 13 years -- is the largest development ever approved for the unincorporated portion of Placer County, and one of the largest ever approved in the region. It will bring 14,132 houses to a rectangular swath of 5,230 acres of farmland west of Roseville. About 32,800 new residents are expected in the development, which will be built over 20 to 30 years.

The unanimous vote on Placer Vineyards was a setback to the voluntary "Blueprint" regional growth plan adopted by the member governments of the Sacramento Area Council of Governments in 2004. The idea behind Blueprint was to pack more people into areas earmarked for growth, making it more efficient to serve them with public transit and reducing the need to build on more farmland over the next half century. In this case, however, the Blueprint concept lost amid community concerns about traffic.

The Placer supervisors opted instead for a plan containing fairly typical suburban densities for single family homes. SACOG had advocated an alternative with 21,631 residential units. "There was just an obvious concern about additional traffic," said Doug Elmets, a spokesman for the 21 different property owners involved in the Placer Vineyards plan.

Supervisor F.C. "Rocky" Rockholm said pursuing the Blueprint alternative would have added further study time and delayed construction. "We can move forward today," Rockholm said. "Thirteen-plus years (of planning) is enough."

Other supervisors said they might have voted for the Blueprint plan, but instead would defer to Rockholm, who represents that area. SACOG Executive Director Mike McKeever was out of town Monday and could not be reached for comment. But he has previously said that he viewed the Placer Vineyards vote as an important one in predicting the success of the voluntary Blueprint plan on the ground. McKeever sent a letter on July 9 emphasizing the benefits that he said the county would realize by adopting the alternative favored by his staff. "Building 7,000 fewer homes in Placer Vineyards means they will be built someplace else," McKeever wrote. "They will not just disappear." He went on to predict that opting for a less-dense option in Placer Vineyards would result in more long-distance commuting.

Situated in the southwest corner of Placer County, the Placer Vineyards area was earmarked for growth in the county's 1994 general plan. The project is bounded by Baseline Road on the north, the Sacramento County border on the south, the Sutter County line on the west and by Walerga Road and Dry Creek on the east. Two town centers are planned -- one at Watt Avenue and Baseline Road and the other at Watt Avenue and the future East Town Center Drive. In addition, the project will include 48 miles of recreational trails, 210 acres of parks and 709 acres of open space. Stretches of Baseline Road and Watt Avenue that fall within the project each will be expanded from their current two lanes to six lanes.

Other amenities include a bus transit system, a transit center, a county corporation yard, an aquatics center, a youth center, a library, 11 church sites, water infrastructure, two fire stations, a sheriff's substation, a high school, two middle schools and six elementary schools.

"It's going to be a very well-planned community," said Kent MacDiarmid, project manager for Placer Vineyards. "The people who will live in this community will be very proud." He said the town center -- with restaurants, theaters and a civic center -- will give residents an opportunity to walk to and shop in their own community, possibly reducing vehicle traffic to outside shopping areas.

The county's approval Monday does not mean that Placer Vineyards will soon start construction. The landowners must still go through the review of their proposed habitat mitigation with federal environmental agencies. The Placer Vineyards property is dotted with vernal pools, the seasonal wetlands that host a variety of endangered species, and other types of wetlands.

Landowners plan to preserve about 3,600 acres of open space off-site and 700 acres on-site, according to documents filed with the county. The developers anticipate filling about 100 acres of wetlands both on-site and off-site where roads and pipelines will be built. They will compensate by preserving twice as many vernal pools elsewhere, said lawyer Jim Moose. The Sierra Club maintains that the mitigation plan is inadequate, and is considering a lawsuit.
Terry Davis, coordinator of the Sierra Club's Motherlode Chapter, said Placer Vineyards should include more detailed plans for preservation of vernal pools and connected grasslands. "Our ballpark figure would be somewhere in the neighborhood of 4,000 to 5,000 acres," he said.
Federal agencies also have raised concerns.

In a May 1 letter to the U.S. Army Corps of Engineers, which must issue permits before any wetlands can be filled, the U.S. Environmental Protection Agency recommended "denial of the project as currently proposed."

Link:
http://www.sacbee.com/230/story/276289.html

Home site with a history

A single-family home is proposed at the site of the former governor's mansion in Carmichael. The house would occupy 0.4 acres on the 11-acre site near Ancil Hoffman Golf Course. Owner Sigmund Zygelman, a Sacramento businessman, said he plans to live in the two-story home with his family and chose the site because of its location.

"It's a very nice, quiet area," Zygelman said. The state bought the site in 1970 to build the official residence of the governor. The site, at the southeast end of California and Oak avenues, eventually became known as "La Casa de los Gobernadores," even though no governor ever lived there. In 1984, the state sold the property to Carmichael developer Matt Franich, who subdivided the property into several lots.

The sprawling former governor's mansion and a single-family home occupy the site. County planning officials also approved two other single-family homes, which have not been built. Zygelman purchased the property in December and submitted his application in March. The project requires the Board of Supervisors' approval. It will go before the Carmichael-Old Foothill Farms Community Council in September or October for recommendations, said Ione DeMorales, a county planner. She said a staff report should be ready by the end of July. Jacob Mesika, Zygelman's builder, said the new house would be about 5,000 square feet. It would be constructed in a French country style, with earth-tone colors and an acrylic stucco exterior to conform to zoning for the area, he said. The project cost is estimated at $1 million. Like many, Zygelman says he is amused by the name and history of the site.

The governor's mansion in Carmichael was built in the mid- 1970s for Gov. Ronald Reagan, who left office during its construction. His successor, Jerry Brown, refused to live there. Some residents say the site isn't convenient, since it is about 10 miles from the Capitol. "For whatever reason, no governor has ever lived there, so I do find that kind of amusing," Zygelman said.

Link:
http://www.sacbee.com/arden/story/255237.html

New Home vs. Resale Home Purchase?

One thing that most buyers do not know is that if you choose to purchase a brand new home, you may still use the services of a real estate professional to represent your interests in the purchase transaction. In fact, whether you utilize my services or the services of another agent, it is in your best interest to have someone other than the builders' representative advocating your interests, facilitating negotiations, coordinating inspections, etc. Have you ever heard horror stories from someone you know who purchased a new home? No one interpreted the purchase agreement for them, they were not informed of certain upgrades available to them, no one was their advocate with regard to making repairs before and after the sale...the list goes on. If you decide to purchase a new home - don't let this happen to you!

In order to have an agent represent you in the purchase of a new home, make sure you and your agent are present the first time you visit that particular community or builder.

Should you purchase a new home, or a resale home? Here are some pro's of each choice:

New home:
-Modern floor plans that could include an open floor plan, a "great room," more closet space, more bedrooms and bathrooms, large garage, etc.
-The opportunity to select you desired lot within the community based on location within the neighborhood, shape, size, view, etc.
-The opportunity to choose upgrades, such as paint selection, customize floor coverings, cabinetry, colors, and more
-More energy-efficient insulation, dual pane windows, solar power, and heating/cooling systems
-Builder incentives, such as assistance with closing costs for using a preferred lender, credits for upgrades, etc.
-The added protection of a warranty from the home builder for plumbing, mechanical, electrical, and structural defects

Resale home:
-Existing features, including window treatments and mature landscaping, swimming pools, etc.
-Location -- existing homes are often closer to metropolitan areas and have larger lots
-Established neighborhoods that provide a sense of community
-The opportunity to use an existing home as a base to remodel and create a unique property
-The ability to purchase a home protection plan

If you would like additional information, please call or email me. I would be happy to help you!

http://www.goarticles.com/cgi-bin/showa.cgi?C=359117