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Thursday, December 2, 2021

California to pay up to $ 25,000 for ADU, critics say it will raise home prices

The California Housing Finance Agency (CALFA) announced Sept. 2 that it would offer low-middle-income homeowners up to $ 25,000 to build an ancillary housing unit (ADU) on their property. Critics are concerned that this will lead to higher housing costs, lower home ownership and more rental units.

Jim Regimer, former mayor of Costa Mesa, said building more ADUs in a community could reduce rental costs but increase home prices, making home ownership unbearable.

“It’s the beginning of the end of the suburbs,” Regimer told The Epoch Times. “You end up with fewer homeowners and more tenants.”

Regimer said building an ADU in the backyard of an average-sized house would be “rental housing”.

“I already know people who are going to buy these,” he said. “They want to buy these for rent. At the moment, they are saying that the person who made it is signing a statement that they will live in it. But once it’s created, how do you apply it?

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The new ADU grant program was announced a day after Governor Gavin News passed the $ 22 billion housing package.

According to CalHFA, California has an estimated 240,000 ADU.

“ADUs are an affordable, effective, and far-sighted option for many homeowners,” Tiana Johnson Hall, executive director of CalHFA, said in a statement. “California must seize every opportunity to create more housing for its residents, and the ADU grant program helps homeowners who want to invest and share their property to solve a huge problem.”

Johnson Hall of KLFA said: “Many homeowners have land in their backyard and we want to make it as easy as possible for them through this grant program.”

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Jack Bradley is a Daily News reporter for The Epoch Times based in Southern California.

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This News Originally From – The Epoch Times

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