Los Angeles has launched a new program that will be of interest to anyone involved in the construction industry. In it, Accessory Dwelling Units (ADUs), which many people are referring to as “granny flats,” are going to be easier to build. What does this mean for the construction industry? That remains to be seen but let us take a look at what we know now.

The ADU Standard Plan Program

The new program, titled the ADU Standard Plan Program, is designed to simplify the process for homeowners and builders alike. How? By offering 20 designs that are preapproved. The entity that wants to build will not have to deal with the costly and time-consuming process of having their plan approved or designed even when they can choose from one of the 20 pre-approved options.

Why is this Program Being Introduced?

According to the Mayor of Los Angeles, Eric Garcetti, these types of small units are necessary to help deal with the need for new housing in the city. Without the program, it can take a long time to get a permit in some parts of the city and county. In fact, Garcetti says that a permit that takes just weeks or even months is good news because some can take up to a year.

Can This Program Solve the Problem of Homelessness?

Not on its own, but advocates say they hope it can make a big dent. There is no question that the city is in a housing crisis – Harvard researchers found that the housing market in L.A. is the most “cost-burdened” of all cities in the country. Even though the city and state have taken many steps to try and solve the issue, homelessness increased 13% from 2019 to 2020. We do not yet know how much it increased during the pandemic.

Of course, one way to solve the issue of not enough affordable housing is to build more affordable housing. The city is hoping to find ways to incentivize residents to build these houses and rent them out. This brings in income for the homeowner and also provides more housing. Research shows that ADUs generally rent below market value, so this could be a big help.

We Can Help with Fund Control and Much More

At Fund Control, we cannot build new homes, but we do help those that do – and those that lend money for homes. We can make it easier for banks to lend money, mortgage companies to disburse funds, and much more. Contact us at 800-625-5972 to request a free demo.