TRUCKEE, Calif. – There is a severe shortage of housing options in Truckee and while Accessory Dwelling Units might not be the only way to solve the crisis, it is a solution that could make a dent in the problem.

Accessory Dwelling Units (ADUs) stand as compact, independent dwellings situated on the same property as the primary residence. They offer essential living amenities like a kitchen, bathroom, and sleeping area. These units present a practical solution to the pressing demand for affordable, diverse, and accessible housing in our region, potentially playing a pivotal role in expanding long-term workforce rental options and providing an additional housing choice. ADUs come in various forms, including detached, attached, or repurposed existing spaces like master bedrooms, attached garages, storage areas, or similar spaces.

In terms of affordability and environmental sustainability, ADUs provide a cost-effective alternative to traditional housing, promoting infill development in existing neighborhoods. According to the California Department of Housing and Community Development (HCD), ADUs are notably more cost-effective to construct than new detached single-family homes, addressing common development challenges and avoiding concerns related to environmental quality. Since ADUs must be located on lots with existing or planned housing, they eliminate the need for acquiring new land or investing in costly infrastructure associated with building new single-family homes.

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The 2023 Mountain Housing Council Housing Needs Assessment reveals that 83% of the housing stock in the North Lake Tahoe Truckee region comprises single-family homes, with approximately 64% being second homes and vacation rentals. With a substantial portion of the housing stock suitable for ADU creation, the region has a significant opportunity to bolster its available housing supply.

Recent changes in California laws have eased restrictions on ADU construction, with UC Berkeley’s Terner Center and Center for Community Innovation Report indicating the potential to build close to 1.5 million new housing units under existing state ADU legislation. For further details, refer to the full report at https://ternercenter.berkeley.edu/wp-content/uploads/pdfs/Reaching_Californias_ADU_Potential_2020.pdf.

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Beyond being a local investment opportunity, ADUs empower business and property owners to accommodate employees directly. Homeowners can generate rental income by renting out the ADU or relocating to it, offsetting expenses. ADUs offer versatile living arrangements, serving as caretaker homes or spaces for parents and grandparents, thus supporting age-in-place living and addressing multi-generational housing needs within a single property. Unlike large external developers, ADUs are initiated by local individuals, fostering community engagement and addressing housing needs on a more personal level.

According to a recent Sierra Sun poll, 30.1% of respondents expressed definite interest in constructing an ADU on their property, while 16.1% indicated a potential consideration pending further information. 

Overcoming Barriers to Accessory Dwelling Unit (ADU) Development:

Despite the benefits of ADUs, several barriers hinder their widespread adoption. These include high construction costs, the prohibitive need for additional septic systems, and a challenging permitting process. To unlock more ADUs, recent state policies have addressed these barriers by limiting development impact fees and relaxing zoning requirements. Legislative changes, such as allowing 2-story ADUs and prohibiting homeowner associations from restricting accessory homes, have further facilitated the ADU development process.

Barriers to ADUs in the Lake Tahoe Basin include coverage limitations, development rights constraints, and high initial costs. The Tahoe Regional Planning Agency (TRPA) regulates land coverage as one way to ensure that onsite runoff is treated, however this can make it difficult to fit an ADU on a parcel. Building costs can be daunting, and TRPA mandates a “development right” for any housing unit, be it a large single-family home or a small ADU. County and TRPA staff work together through TRPA’s Tahoe Living Strategic Priority as well as other processes to address these hurdles, exploring more flexible coverage requirements and potential adjustments to the development rights system based on size rather than per housing unit, aligning costs proportionately.

In 2019, the Mountain Housing Council published a whitepaper specifically focused on Accessory Dwelling Units (ADUs). The objectives of this study were multi-faceted, aiming to enhance understanding of ADUs and their role in creating housing opportunities for residents. View the full study at https://www.mountainhousingcouncil.org/wp-content/uploads/2019/12/MHC_ADU-White-Paper_FINAL-1.pdf. The paper also highlighted recommendations to increase the production and supply of ADUs units in the region and ways to incentivize homeowners who want to rent an ADU to those who live and work in the region. Since then, partners have made meaningful progress to increase the inventory and affordability of units for the community.

Regional Programs and Partnerships for Change:

1. Tahoe Housing Hub & Accelerator Pilot Program: The Tahoe Housing Hub is a social enterprise supported by Tahoe Truckee Community Foundation, Martis Fund, and the North Tahoe Community Alliance, aiming to increase ADU development. After extensive discussions among Mountain Housing Council (MHC) partners, The Tahoe Housing Hub is set to officially launch in 2024. This initiative aims to bolster attainable housing objectives by fostering strategic partnerships with property owners, housing developers, and government agencies in the North Lake Tahoe/Truckee region. The Tahoe Housing Hub will initiate two key programs: one aimed at supporting the expansion of Accessory Dwelling Unit (ADU) development and another involving collaboration with public agencies to decrease or compensate for development and impact fees for eligible workforce housing projects. 
2. ADU Accelerator Pilot Program through Tahoe Housing Hub: An initial offering of the Hub will be the ADU Accelerator Pilot Program. According to Erin Casey, CEO and President of the Tahoe Housing Hub, ” The ADU Accelerator Pilot Program is strategically designed to make ADU development more accessible and efficient for homeowners by offering comprehensive support that includes expert advice, financial planning assistance, and clear guidance through the regulatory landscape. This approach not only addresses the barriers head-on but also leverages expertise within land use agencies, ensuring a collaborative effort towards expanding affordable housing options in the North Lake Tahoe-Truckee region.” 
3. Town of Truckee’s Revamped Accessory Dwelling Unit (ADU) Program: The primary objective of Truckee’s ADU Program is to promote the expansion of affordable, long-term housing within established neighborhoods through the legalization of currently unpermitted ADUs and the creation of new ADUs. According to Lynn Baumgartner, Program Analyst II in the Housing Division for the Town of Truckee, creating or permitting an Accessory Dwelling Unit (ADU) can be complex and costly due to construction expenses, high interest rates, a prolonged permitting process, and contractor availability issues. The Town’s ADU Program aims to simplify this process by offering staff support, technical assistance, educational resources, and incentives. They provide informative materials, a dedicated Senior Planner (Jaime LaChance), pre-approved master plans, significant financial incentives for ADUs rented to local, income-qualified workers, and are developing resources for modular and prefabricated ADUs suitable for Truckee’s environment. “No one program or policy will resolve our region’s housing challenges – however, ADUs can be an important means of expanding affordable, long-term housing within existing neighborhoods,” Baumgartner said. The Town of Truckee occasionally conducts site inspections for complex ADU conversion proposals. Check out the Town of Truckee’s ADU resource page at http://www.townoftruckee.com/ADU
4. Placer County’s Pre-Reviewed Plans: In collaboration with the Tahoe Regional Planning Agency, Placer County is working to make ADU development more accessible by providing pre-reviewed plans and technical assistance, saving homeowners $20,000 in government fees plus $6,000 to $10,000 in design fees. “The region needs more vocal workforce housing supporters. Every incremental change, such as removing barriers in our code, can substantially decrease costs and timelines, which can facilitate more housing. There is no one-size-fits-all solution so we must approach it from several angles and change takes time,”  Emily Setzer, Placer County Principal Planner, said. 

Supporting the Cause:

Actively contribute to addressing the housing crisis by becoming vocal advocates for workforce housing. Participating in public hearings and meetings can help remove barriers and costs associated with building workforce housing and can promote the creation of more ADUs in the Lake Tahoe Basin. 

To contribute to accelerating housing solutions, also consider giving to the Housing Solutions Fund at https://ttcf.fcsuite.com/erp/donate/create/fund?funit_id=2419. For more information, interested individuals can contact any of the partnering organizations mentioned in the article.

Truckee property owners, be on the lookout for an upcoming survey arriving in your email, text messages, or mailbox. This survey, forming part of a doctoral study at Northeastern University, is seeking your perspectives on Accessory Dwelling Units (ADUs) and their potential to address housing challenges in our community. Your active participation is crucial as it contributes to academic research and influences policy decisions that can shape the future of Truckee.

The survey is being conducted by a doctoral candidate at Northeastern University. His research focuses on addressing the pressing issue of housing shortages for the middle-income workforce in rural resort communities, with a specific emphasis on Truckee. And lastly, if you’d like to provide input in the most recent poll around housing needs, go to https://sierrasun.secondstreetapp.com/TTCF-Housing-Needs-Survey/