Frequently Asked Questions

• Can I use an ADU as a separate rental property?

  Absolutely. This is one of the best and most encouraged uses of ADUs. One of ADU's goals is to build units quickly and inexpensively enough so that they can be rented at or below market rate, thus helping to curb spiking rental rates.

• Do you build ADUs outside of the City of Austin?

  Not yet. ADU does plan to expand outside of Austin as soon as feasible.

• How long does it take to build?

  We're still gathering data points on how quickly we can build adus, but on average 6-9 months.

• I currently have rooftop solar. Will I be able to put solar on the roof of the ADU too?

  Yes! We are still looking for a local company to partner with, but we can contract with the original installer of the existing system to add solar to the ADU.

• I understand the code has changed in Austin regarding how big ADUs can be – can you summarize the current regulations?

  The previous land development code - which one can still develop under - limited ADUs to 0.15 FAR (FAR = floor-to-area ratio - floor area of your structure as compared to the size of your lot) or 1100 square feet, whichever is smaller. For instance, if you had a 6000sf lot, your ADU would be limited to 900 square feet.

  With the addition of the HOME Amendment Phase 1, landowners have a lot more options regarding secondary and now tertiary structures. In practical terms, the new limit for a single structure is .4 FAR or 2300sf, whichever is larger.

• Can I sell my ADU?

  Sure can! ADU has a robust team of partners who can assist you in the process of setting up a site condo regime which will allow you to sell your ADU and retain your main residence.

• Does your ADU service include design/build or construction management services?

  Because ADU is a design-build company we can offer services from concept to keys. Wherever you are in the process - whether it be in the design phase or whether your project is permitted and ready for construction - ADU can help you reach your goals with your ADU build.

• How many stories can my ADU be?

  If you are developing under the previous code the height limit is 32’ while the HOME Amendment allows for up to 35’. The number of stories depends on the design and configuration of the home, but three stories are allowed.

• How far away from my house does the ADU have to be?

  The prescriptive requirement of 10’ separation difference between the main house and adu has been removed from the code and now the prevailing Building and Fire Codes dictate structure spacing. While you can build structures closer together than 10’, it should be noted that openings will be limited, and fire-rated materials will be required on the facades that face each other. If you have room to set your structures at least 10’ apart, that would be considered best practice.

• Does an ADU require driveway access?

  No, Austin has removed all its requirements for off-street parking.

• How close to my property line can the ADU be?

  In Austin, the typical side yard setback is 5'-0" and 10'-0" at the rear.

• Do I need a permit?

  Yes, you will need a building permit as well as trade permits for mechanical, electrical, plumbing, and right-of-way if you are working in the street (driveway apron, adding parking, etc).

• Can a modern ADU go in a historic district?

  Yep! One must bring the project before the Historic Landmark Commission and obtain a Certificate of Appropriateness. There will likely be (suggested) restrictions on design, materials, and even color, but ADUs are great for Historic districts as they add improvement value without affecting the historic significance of the property and the existing structure.

• Can I build two or three units instead of one?

  In Austin, you can build up to three dwellings on properties zoned SF-1, SF-2, or SF-3 and over 5,750sf of land area.

• Can I convert my garage instead of building new, and is it cheaper?

  The answer is maybe. It entirely depends on the condition and bearing capacity of the foundation, the condition of the load-bearing walls, and relative ease with which one can add a story on top of the ground floor. In many cases it's better to demolish and rebuild with modern methods and regulations. It is not always cheaper to save an existing garage or carport, so we can assess your existing structure and give you our informed opinion about about the feasibility of reusing versus rebuilding.

• Can it be built for a parent who needs step-free access?

  Definitely. This is one our favorite uses of ADUs - aging in place!

• Do construction loans cover design and permit fees?

  They can. It depends on the type of loan you obtain, but some offerings include reimbursement for soft costs.

• Do I still have to keep a parking space?

  The answer is now entirely up to the client or end user. Austin removed all required parking regulations and has deferred to the market to determine how vehicles are accommodated.

• Do porches, decks and the garage count against my square footage?

  Open porches and patios as well as carports (open is defined as not having walls on three sides) do not count against the maximum FAR in Austin. Garages, however, do count against the maximum Floor-to-Area ratio.

• Do you offer financing?

  Yes! We have teamed up with Chris Alsobrook at CRA-CAP Consulting, LLC to help guide you through the financing process. If you are willing to provide some basic information at the link below, Chris and his team can help verify your budget, walk you through your options, and can explain which packages cover what work (some offerings, for instance, can reimburse soft costs as part of the loan).
  
  https://form.jotform.com/262494826853066

  (ADU does not collect any information from that link - any info shared is between you and CRA-CAP Consulting, LLC)

• How much of my lot can I cover with building and paving?

  It is dependent on your zoning. For the most typical residential zoning categories and those for which up to three units are allowed, here is a quick summary of the limits:

  Building coverage — SF-1 35%, SF-2 and SF-3 40%.

  Impervious cover — SF-1 40%, SF-2 and SF-3 45%.

• If the City returns comments, who answers them and is it included?

  Since we are full service, part of our scope is to shepherd your project through to completion, including obtaining all required permits and jurisdictional approvals before starting construction. When there are comments from City review staff and additional information is requested in order to obtain a permit, we will handle all the requirements and responses the City needs to complete their review.

• Is per-square-foot a fair way to compare two bids?

  Not really. While per-square-foot units are common, they're only useful for estimating a project's budget and setting a range. For example, compare two 1BR|1BA units:
  https://adu.build/units/the-clarkson/

  https://adu.build/units/the-breathed/

  If you calculate out the price per square foot, the Clarkson comes in at $341/sf and The Breathed comes in right at $300/sf. Simply put, smaller units cost more on a square-foot basis.

• What's included in your price, and what's an allowance?

  The pricing shown on this site — and any pricing given before fully realized documents, permits, and bids are obtained — is an estimate. That estimate covers every service required to complete the project: design, engineering, permitting, bidding, and construction. Our service is turnkey, and our goal is to make the process as work-free for the client as possible.

  And allowance is sum set aside to purchase specific items such as light or plumbing fixtures. The main difference between an allowance and a bid item is that if all of the allowance is not used, the remainder is returned to the budget. Also, allowances help set quality standards that an owner can override and request an upgrade, usually through a change order.

• Can I use a home equity loan to build an ADU?

  Yes! Provided you have enough equity to cover at least 80% of the total cost.

• I see your units are named after people. What is that about?

  ADU is proud to be a Texas-born company and as such celebrates the people who had a positive impact on the arts, science, and culture of Texas. The pre-designed plans featured on the site are named after someone who made such an impact on the state. Did we miss someone? ADU is constantly adding new designs so if you have a suggestion for someone who should be considered, please feel free to reach out and let us know!

General information, not legal or code advice. Austin’s rules change, and what applies to your lot depends on the property. Ask us or the City for specifics.