Chair Sanchez round 2: ADU rollout numbers and scaling challenges

Okay, so the first question I want to ask is just a quick follow-up on the ADU conversation.

So you said between the Plus One program and the basement legalization pilot, there are under 50 conversions or ADU units in the pipeline.

Is that correct?

Yes, it's about 27 plus 17.

Got it.

So just thinking back to City of Yes for housing opportunity and the proposal, the projections were that there would be 82,000 units created over 15 years, which puts us at about

27,000, or excuse me, puts us at about 1,800 units per year.

And so how do we get there?

How does the administration?

Yeah, I think as the program, and I'll let Commissioner Dugani add to this, but I think as, and again, you know, I was working more on this from the state's perspective, but I think the challenges are the same.

It really is the amount of work that has to happen at the front end.

And keep in mind, right, like homeowners are taking this on directly.

So they're not necessarily experienced at construction.

They don't have architect rights.

So there is just a tremendous amount of work to kind of get the right team together to do the analysis.

Is it going to be an extension to the home?

Is it going to be conversion of existing?

Ancillary structures or is it going to be a standalone unit?

One of the things we're exploring

for where those standalone units may work is a manufactured ADU model.

I think we've issued an RFP recently to solicit that.

And the reason for that is that they can be built and delivered much, much faster than a stick-built unit.

So one of the strategies we're looking at is off-site construction ADUs.

But again, those will only work primarily where there's room for a standalone ADU unit.

I think for the rest of, I would say, two-thirds of the ADU population that we're talking to, we're just going to need to keep adding technical assistance and support for that early pre-development work.

I do see the program picking up.

We're not quite where we need to be, but I think we're going to have to sort of keep adding upfront resources so that homeowners can move through the process more quickly.

Yeah.

Well, just picking up on the last element for the manufactured construction piece, DOB's responsibility will be to craft the rules and make sure there's clarity.

Again, like every other step that we've taken, whether it was the state changes in 2024, City of Yes,

the rules are necessary to give the market, the industry, individual homeowners the clarity that you need to move forward, and that can take time.

So we're working on different parts of the ADU program or conversion program.

The amnesty program or the ATR program that will give people a pathway to legalization will also be a major driver to get

giving people predictability and bring folks into the legalization world.

And we expect those rules to be finalized and be available by the end of the year.

So those are two pieces of clarification that should inject more energy into this work and allow us to move forward.

Thank you.

That's helpful.