While it might sound like a modern architectural trend, the concept of Accessory Dwelling Units (ADUs) has been around for decades. ADUs, also known as ‘granny flats,’ ‘in-law suites,’ or ‘secondary dwellings,’ are additional living spaces on properties that have a separate house. With the changing demographics, housing affordability issues, and the rise of multi-generational living, ADUs are gaining prominence, especially in places like New Hampshire (NH). This blog post explores the potential benefits of adding an ADU to your property in NH.

1. Understanding Accessory Dwelling Units (ADUs)

In essence, an ADU is a secondary house or apartment that shares the building lot of a larger, primary house. They come in several forms — it can be a basement apartment, a converted garage, an apartment over the garage, a tiny house in a backyard, or even a part of the house sectioned off as a separate living area. What makes ADUs unique is that they are entirely independent units with their own kitchen, bathroom, and sleeping area.

2. Legalities of ADUs in New Hampshire

NH has been progressive with its ADU policies. The state passed Senate Bill 146 in 2017, allowing homeowners to have one attached residential ADU on their property as a matter of right. Each municipality in NH is allowed to set specific regulations for ADUs concerning aspects like size, parking, and owner occupancy. Therefore, it’s crucial for homeowners to check the local zoning ordinances in their town before proceeding with an ADU addition. There is also an amazing new tool called the Zoning Atlas made available by St Anselm College that can be found here (https://experience.arcgis.com/experience/d73b0989434c46528cddeff9865ba4f7/page/Page/?org=ANSELM) that will help guide you. It is important to still reach out to the local zoning board to verify however.

3. Potential Benefits of Adding an ADU

A. Additional Income Stream

An ADU can be an excellent source of passive income. With a shortage of affordable rental options in many parts of NH, there is high demand for smaller, less expensive dwellings. ADUs can be rented out to generate a steady monthly income, helping homeowners pay off their mortgages quicker or supplement their retirement funds.

B. Accommodating Changing Family Needs

ADUs offer flexibility to accommodate evolving family dynamics. They are excellent options for housing aging parents, adult children, or long-term guests. This allows families to stay close while maintaining necessary privacy.

C. Increasing Property Value

Quality ADUs can potentially increase your property’s value. Prospective buyers appreciate properties with ADUs for their versatility and potential for rental income. This can make your property stand out in a competitive market.

D. Promoting Sustainable Living

Building an ADU is a form of ‘gentle density,’ increasing the housing stock without significantly impacting neighborhood character or requiring large-scale infrastructure development. By optimizing existing land use and housing, ADUs can help reduce urban sprawl and promote sustainable living.

4. Considerations When Adding an ADU

Before diving into an ADU project, consider the following:

A. Costs and Financing

Building an ADU requires a considerable investment. Costs can range from $50,000 to $200,000 or more, depending on the size, design, and finishes. Fortunately, many banks and credit unions offer home equity loans or lines of credit for ADU construction. Some homeowners even choose to refinance their home to fund the project.

B. Design and Construction

Careful design is essential to ensure your ADU integrates well with your primary residence and neighborhood. Consider hiring a professional architect or builder experienced with ADUs. They can help navigate design, zoning, and building code requirements.

C. Property Taxes

Adding an ADU may increase your property taxes, as it likely increases the value of your property. Check with your local tax assessor’s office to understand how an ADU might affect your tax obligation.

5. Conclusion

Adding an ADU to your property in NH can reap significant benefits, from generating an additional income stream to accommodating family needs and increasing property value. With supportive state legislation, adding an ADU is a viable option for many NH homeowners. However, the project should be undertaken with careful consideration of the investment, design, and potential impacts on property taxes. With thoughtful planning and execution, an ADU can be a powerful tool to meet your family’s needs and invest in your property’s future value.