6/9/2023 0 Comments Iunit denverThrow in a global pandemic increasing the prices of material, and contingency funds can quickly evaporate.īenson said in a three-month span, she spent almost $40,000 out of pocket for overage costs. But with ADU construction, some costs can be unexpected because, again, the zoning code isn’t uniform. Construction bids aren’t always concrete, so contingency funds are always set aside. However, the loan required her to pay any overages that occurred monthly upfront. Benson said the lender made sure contractors were meeting deadlines and would ultimately withhold funds if milestones weren’t met. The outside of Kassidy Benson's accessory dwelling unit in the Skyland neighborhood.īenson said she got her construction loan through First Bank, which acted as a third party between her and the contractors. In the end, she paid more than $400,000, and some of that was out-of-pocket costs. That increased to about $360,000 once she spoke with architects and contractors. In 2019, she estimated that her ADU would cost around $300,000. Those renovations allowed her to use the equity in her house to help pay for the ADU. Benson’s ADU is a detached 1,000-square-foot unit (the largest square footage allowed per zoning rules) with two floors, two bedrooms and two bathrooms.Īfter purchasing her home for $315,000, Benson invested about $80,000 in renovations. Community Planning and Development created a community advisory committee and project team that will focus on how ADUs “are designed, how they fit in with different types of neighborhoods and block patterns, and how updates to the zoning code may reduce barriers to creating ADUs.”Īnother issue Benson would like the committee to address is cost. The city is aware of the issues and working on them as Blueprint Denver recommends. Did you know that? My neighbor thought there was some conspiracy that only white people knew about the zoning code. “I sent mailers to everyone in this neighborhood saying you’re zoned for an ADU. “People who are vulnerable for displacement need to know that they have an opportunity to build an ADU but it’s so hard to figure out,” Benson said. And that all depends on the homeowner’s lot size and the neighborhood itself. And there may be more to come as city councilmembers look to rezone whole neighborhoods.īut besides whether or not an ADU can be built at all, the codes also dictate what type of ADU can be built, meaning size and placement. According to city officials, about 30% of Denver is currently zoned to allow for an ADU. ( You can do that here.)īenson was able to skip that process because her home had an ADU amendment, but for others, requesting an ADU rezoning can tack on an additional year to the process. If a homeowner is interested in constructing an ADU, they first have to check whether their lot is zoned for an ADU. Courtesy of Kassidy Benson and īenson’s first tip for city officials? Simplifying the zoning code. The inside of Kassidy Benson's accessory dwelling unit in the Skyland neighborhood. But as of right now, the process is too complicated and expensive. They provide additional space for families looking to house relatives, or homeowners can rent out the space for additional income both long and short term.īenson believes that can be the case. According to Blueprint Denver, ADUs can help with growth, gentrification and displacement throughout the city. When city officials talk about the housing crisis, lack of actual housing and affordable options, one of the first “solutions” mentioned are ADUs. I have good knowledge of lending, building and zoning… and for me, it was extremely stressful.”ĪDUs have become an essential part of the Denver housing conversation. “I started this process five years ago and just completed it. “Even real estate agents can’t figure this out,” Benson said. In fact, the ADU process was so tedious and strenuous, Benson wants to educate others and is looking to give the city some advice as well. The outside of Kassidy Benson's accessory dwelling unit in the Skyland neighborhood.
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