Can you only build an ADU at your primary residence?

The question of whether a homeowner must live in the primary residence to build an ADU is a common one, and according to Erik, the answer is "sometimes." This is a highly location-dependent issue, and the rules can vary significantly.

"It's a very open-ended question," Erik explains, similar to the varying size regulations. He points out that some cities and municipalities have strict rules, while others are more relaxed. Another key factor is the source of funding. Some banks may require a borrower to reside on the property to secure a loan for an ADU project, while others do not.

Erik mentions a client's plan to convert a basement into an ADU to rent it out, and then potentially rent out the upper level as well, highlighting how these units create opportunities for homeowners. He also notes a practical detail: an ADU gets its own address. For example, a home at "1234 Main Street" might have an ADU designated as "1234 A" or "1234 B," giving it a separate mailing address for deliveries and mail. Ultimately, Erik advises that the best way to determine the specific requirements is to consult local city regulations.