SEATTLE DADUs - TOP TRENDS FOR 2020

2019 brought sweeping new code changes to Seattle's Backyard Cottage/DADUs. Here's what we are expecting to see more of in 2020.

1. Family Sized 

Seattle’s newly adopted land-use code now allows cottages to be taller and larger – up to 1,000 sq. ft. in size. With this extra space many new cottages are being designed and built with 2 or even 3 bedrooms. Up until now, most cottages were designed for aging parents or as rentals to accommodate an individual or couple. These new larger cottages are often being designed for families with children — such as a 900 sq. ft. cottage we are designing in Ballard for a family of five and a 1,000 sq. ft. cottage for a family of four. In both cases the owners will move into the new cottages with their families and rent out the existing primary residence.

2. Extra Units

The new code now allows a DADU and an ADU.  (previously only

one or the other was allowed). Many people who have existing ADUs are exploring the option of adding DADU to their properties.  There are limitations with the new rules to keep in mind. Adding a 2nd ADU to an existing single family residence will likely trigger extensive building code driven upgrades, including adding sprinklers to the entire structure.  If the new second unit is a DADU the DADU will need to meet green building standards or made affordable to and reserved solely for "income-eligible" households for a period of 50 years.

3. Maximizing the value of your property

With housing prices and rents in Seattle still at all-time highs, many people including building developers are seeking to unleash the potential of their back yards.  For example, one developer is planning to add DADUs to their entire portfolio of existing rental properties. This is possible now that owner occupancy is no longer required. 

Builders of new residences are also adding DADUs and AADUs.  We are currently working on one project where the existing residence is being remodeled and an ADU added. The existing lot is then being divided and a new residence, with an AADU and DADU, is being built on the newly created lot.  This development is taking advantage of an over sized lot to create density in a desirable neighborhood while preserving and updating the existing historic home.

4. Going Condo

The use of condominium agreements to sell the primary residence and the DADU separately is probably the biggest trend of 2019 and will only continue.  While creating a DADU adds value to a property as a whole,  an even higher value can be obtained by selling the primary residence and the DADU separately.

5. Building Value

Building a DADU is a significant long term investment. Designing to achieve the maximum potential for the individual lot in light of zoning restrictions and the unique goals of their owners is and will continue to be the best way to achieve the highest value for this investment. Assisting to prioritize goals and achieve potential is in light of code restrictions and construction cost trade-offs is a challenge we enjoy and that we look forward to continuing in 2020. 

LAURELHURST DADU - SERENITY ACHIEVED AFTER HEAVY LIFTING

This 575 sq ft backyard cottage features a green roof, open web trusses, a compact kitchen, and a bedroom below.  

Our overarching goal in designing cottages is to create spaces that are inviting to live in. Here that goal was achieved in no small part by the use of natural light and complementary finishes. The plan itself in many ways is a quite simple 14ft x 28ft box. Modifications of that box to take advantage of its surroundings make it live large.  

The serene exterior of this DADU illustrates one of our favorite design principles. Difficult sites often have the greatest potential. This cottage is located on a steeply sloping environmentally critical area (ECA) site. The fist challenge was that the buildable area is located below and behind the main house and the only access was via a narrow concrete stairway. However, the little used yard nestled in among mature trees was the best and only possible location for the cottage.  

Protecting the view for the primary residence was another challenge. To achieve this we flipped the plan with the main living space on the ground floor and placed the bedroom below and accessed via a ships ladder. The bedroom itself features a sliding glass door and abundant natural light. To increase the sense of openness and add warmth we utilized exposed joists for the ceiling. We also used this technique upstairs which features open web trusses. The cottage itself is quite small but feels larger in part because of the aforementioned trusses but also the abundant use of windows which allowed us to "bring the outside in". Here we benefited from the mature trees and integrated landscaping. The site design and retaining walls were shaped by the need to keep as much of the excavated earth on site as possible. Soil removal had to be done by hand, often in buckets, up a narrow stair and carried to the street.

This 575 sq ft backyard cottage features a green roof, open web trusses, a compact kitchen, and a ship’s ladder to the bedroom below (also accessible via stairs from outside). The primary view of the cottage from the main house was from above. We used a green roof for environmental reasons and to provide an attractive vista.

The use of open web trusses allowed us to create a light and airy space while providing the required support the weight of the green roof.

The sloping site allowed us to locate a daylight bedroom in the basement. The lower level basement is accessed via a ships ladder.

The daylight basement room is cozy and light filled.

The limited access meant that large equipment could not access the site. As a result, all excavation had to be done by hand and excess soil was removed in buckets.

DADU NEW CODE WORKSHOP - THURSDAY NOV. 21ST.

Can you build a DADU? The rules for backyard cottages have been radically changed. Join Bruce Parker from Microhouse and Stefan Hansmire from Hansmire Builders to learn what is possible under the new code and how to establish a realistic budget for your cottage.

Please Join us on November 21st at the PNA. Space is limited, RSVP here.

Thursday November 21st,  7:00 pm.  

Phinney Ridge Neighborhood Association

6532 Phinney Ave N, Seattle, WA 98103

what is a DADU worth? more than you might think

Choosing to build a backyard cottage is an important long term decision. A good first question to ask when making that decision is how will I establish a budget for the cottage? While it may be hard to put a value on how a well designed home makes you feel or the value of having a family member living nearby, some qualities are easier to asses. If that family member is an aging parent who would otherwise be living in an assisted living facility, it is relatively easy to look at the costs of local facilities. For others building a new cottage may be less expensive than remodeling their existing house to more closely meet their needs. For example, new cottages can incorporate universal design components to assist those with mobility impairments.

Many people plan to use their cottages to generate rental income. In this case, a careful consideration of the rents in your area and anticipated costs can help you establish a budget range. And increasingly people are using condominium agreements to sell DADUs separately from the primary residence. These are five recent condominium sales of DADUs in Seattle.
https://www.redfin.com/WA/Seattle/11040-1st-Ave-NW-98177/unit-B/home/168914668
https://www.redfin.com/WA/Seattle/4536-Eastern-Ave-N-98103/unit-B/home/160472609
https://www.redfin.com/WA/Seattle/8511-2nd-Ave-NE-98115/unit-B/home/168660388
https://www.redfin.com/WA/Seattle/3202-NW-70th-St-98117/unit-2/home/168674693 (The primary residence sold as well)
https://www.redfin.com/WA/Seattle/538-B-NE-92nd-St-98115/home/169451063

In the past real estate appraisers have struggled with how to value backyard cottages and other ADU's primarily because there were simply not enough comparable sales to serve as a guide. With the sales of DADUs as condominiums and the sale of houses with houses becoming more common that task is getting easier.

DADU OPEN HOUSE FRIDAY NOVEMBER 1ST, 4-6 PM

join us this Friday for a unique opportunity to view one of our most popular cottages

Austin and Patti created this wonderful house together, stripped down to the essence of what they value most. Their new dream house just happens to be located in the back yard of Austin's long time residence. This cottage lives large, providing an open floor plan with a second floor master suite and office plus a gracious kitchen for Austin, a former restaurateur. A rooftop deck looks out over the treetops giving a sense of connection to the outdoors where they are often to be found biking, skiing, or kayaking.

See more photos

dadu permit times and pre-approved plans

Thank you to everyone who joined us at the Seattle Adu Fair last Saturday. It was great to meet so many of you in person.

We've fielded a lot of questions about Seattle Department of Construction and Inspections (SDCI)'s permitting times and how pre-approved plans for DADUs may affect them. To answer these questions, we have been crunching the numbers. The good news - there's been significant improvement since DADUs were given a high priority this fall, reducing the amount of review and processing time to get a construction permit by 50% from this time last year.

What about pre-approved plans?

The Office of Planning and Community Development (OPCD)'s Pre-Approved Plans for Accessory Dwelling Units fact sheet states that pre-approved plans can receive a building permit in 2-6 weeks (pre-approved or standard plans have already been reviewed for ordinance, structural (O/S) and energy). The city's hope is that by having these reviews completed beforehand, permit review times will go down - which seems logical but unfortunately doesn't align with our experience which indicates the O/S and Energy reviews are not driving overall permit approval times.

To analyze this, we reviewed permit histories from similar DADUs both recently permitted (indicated in gray) and those from this time last year (indicated in yellow) to see what was driving permit timelines. In the nine projects we examined, the O/S and Energy reviews only increased permitting time twice. And in those instances the delay was minor averaging only 3 days.

Removing the delays caused by O/S and energy reviews, the average review and processing time for a DADU permit is 46 days (excluding time from submittal to intake). The review and and processing time including O/S and energy reviews is 49 days. Unfortunately, means that pre-approved plans do not significantly affect the time-frame. A realistic time-frame for pre approved plans being 7-10 weeks, significantly longer than the 2-6 weeks stated by OPCD.

There is good work being done to tighten permit timelines

The OPCD's Pre-Approved Plans for Accessory Dwelling Units fact sheet states that the typical DADU permit takes 4-8 months. This includes the 4 months required to secure a permit intake date. To improve this, SDCI recently announced the intake express which promises all intakes will take place within 2-3 weeks. Using the intake express time-frame, and the data on permit processing time shows us that there is no significant difference in review and processing time for pre-approved or custom designs. A realistic time-frame for review and processing of custom designs being 7-10 weeks - significantly less than the stated 4-8 months.

NEW DADU CODE WORKSHOP - NOVEMBER 21ST

Curious if you can build a DADU in your back yard? The rules for backyard cottages have been radically changed. Join Bruce Parker from Microhouse and Stefan Hansmire from Hansmire Builders to learn what is possible under the new code and how to establish a realistic budget for your cottage.

Please Join us on November 21st at the PNA. Space is limited, RSVP here.

Thursday November 21st,  7:00 pm.  

Phinney Ridge Neighborhood Association

6532 Phinney Ave N, Seattle, WA 98103

NEW DADU CODE WORKSHOPS

Curious if you can build a DADU in your back yard? The rules for backyard cottages have been radically changed. Join Bruce Parker from Microhouse and Stefan Hansmire from Hansmire Builders to learn what is possible under the new code and how to establish a realistic budget for your cottage.

Thursday September 12, 7:00 pm.
West Seattle Coworking, LLC
6040/A California Ave SW, Seattle, WA 98136

Consider joining us on November 21st at the PNA.

Thursday November 21st,  7:00 pm.  
Phinney Ridge Neighborhood Association
6532 Phinney Ave N, Seattle, WA 98103

Space is limited - please RSVP

HOW MUCH IS A DADU WORTH?

HOMEOWNERS AND APPRAISERS STRUGGLE TO DETERMINE A VALUATION FOR BACKYARD COTTAGES

A well designed cottage sells for $529,000 for sale in Broadview

Real estate appraisers have struggled with how to value backyard cottages and other ADU's primarily because there simply not enough comparable sales to serve as a guide. This is changing. Margo Hanson, of Market Appraisals Inc., noted that she recently appraised a house plus DADU in Greenwood and was able to find 30 comparable sales. While not as common here as in Vancouver B.C., there has also been an increasing number of DADUs being built and sold condominium units. These sales will increase the data available for valuing backyard cottages. Ms. Hanson noted that at this time she is not allowed to use condominiums sales as comps for single family residences. Perhaps, as this type of ownership becomes more common here that will change.

This cottage will be open for viewing 

Friday 9/6 from 4-6 pm.
Saturday 9/7 from 11-1 pm.
Sunday 9/8 from 2:30 -4 pm.

DADU open house August 8th

11040 1st Ave NW - Thursday August 8th 5-7pm.

The new DADU code changes go into effect on August 8th. To celebrate, join us for a tour of one of our recently completed backyard cottages. This 2 bedroom, 2 bath cottage is nearing completion and it is for rent. Entrance to the cottage is from the alley between 1st Ave NW and Palatine Ave N.

mayor signs ADU code changes

Seattle Mayor Jenny Durkan signed the code changes approved by city council last week that are intended to increase the number of backyard cottages being built in Seattle. The Mayor also signed an executive order to address other issues that restrain construction including reducing construction cost, permitting time and complexity and exploring financing options for ADUs. The code changes will go into effect on August 8th. Limits to new house size (FAR restrictions) will go into effect six months from now.

backyard cottage rules eased

The Seattle City Council has voted on a host of rules predicted to increase the number of ADUs and DADUs

* Increases the allowed size of backyard cottages (DADUs) from 800 square feet to 1,000 square feet.

* Adds an additional 1-2 feet in height, allowing for more usable space in the units' interiors.

* Allows up to two attached accessory dwelling units (AADUs) or one AADU plus one DADU on a property.

* Limits the floor area ratio of new homes, while excluding the area of ADUs. Thereby encouraging homeowners to build an ADU when building a new home or remodeling.

* Eliminates the owner occupancy requirement.

* Removes the off-street parking requirement.

DADU proposed code change amendments

city council is debating which of the proposed code changes will go into effect and offering their own amendments

a DADU used as a short term rental prior to grandfather's retirement

As city council prepares to vote on the proposed code changes to Seattle's single family zones, even amendments have been proposed.  These include owner occupancy restrictions for short term rentals and allowance for bike parking. 

Here is what we think is important.

• The proposed code changes would remove the owner occupancy requirement. An amendment would add a 1 year requirement for the 2nd ADU. We believe that owner occupancy should be required for all properties with ADUS for a period of time (3 years).

The impact to removing the occupancy requirement is unknown. The environmental impact statement (EIS) prepared as part of the lawsuit doesn't appear to adequately predict the impact from removing this requirement. Detractors note that the EIS does not take into account the increasing trend to sell ADUs and their primary residence separately using a condominium or land-lease agreement. Owner occupancy for a period of time (3 years) is good and should minimize the destruction of naturally occurring affordable housing by speculative developers.  

• Owner occupancy should be required for all properties used as short-term rentals.

A proposed amendment by Lisa Herbold would prohibit short term rental use for new ADUs. It would be far better to maintain the owner occupancy requirement. Allowing owner's flexibility is crucial to long term planning for those contemplating building an ADU.  The higher rate of return for a short term rental (STR) allows more ADU's and DADUs to be built.  A majority of the homeowner's we work with plan to use their cottages as short term rental at some point.  The magnolia cottage pictured above was rented out as a STR for a few years, which paid for construction, prior to the owner's father moving in.

• SDCI should closely monitor ADU construction and report annually to City Council. 

Two proposed amendment would monitor ADU permitting and use this seems like a good idea.

• Garage Space should be included in FAR calculations. 

The current proposal would allow the exclusion of up to 1,000 sq. ft. of garage space for ADUs. This is effectively a parking subsidy. A better solution would be limiting the exempted area to 200 sq. ft. or enough space for one car. One proposed amendment would allow 25 sq. ft. to be excluded for bike parking, seems unnecessary.  

Comments may be submitted to Lisa Herbold lisa.herbold@seattle.gov

Childhood Home Creates Options for the Future in Eastlake

In 2010 Colette and her family purchased her childhood Craftsman home in Seattle’s Eastlake neighborhood.  As Colette and Chris noticed similar houses nearby being replaced by rows of apartment buildings, they considered ways to preserve their own home and history. That meant improving and maintaining the original house, and also creating an income stream to secure their options for the future. A backyard cottage turned out to be just what they were looking for.

How did the idea of building a backyard cottage come about?

Colette: My husband Chris and I moved back to Seattle in 2010 with our two children and were able to buy my childhood home from my family. The home needed extensive work so we did it at a very slow pace. Once the main house was close to being finished we noticed that many houses on our block were being sold to developers. What was once a quiet Craftsman lined street was turning into rows of apartment buildings.

That got us thinking about how to preserve my childhood home and invest and grow with the neighborhood. It was simple: build a backyard cottage and use it as a short-term rental to pay off the new debt, and later have a guest house. We also began to see it as a great investment into our retirement and something we can leave to our kids. We can live in the cottage when the kids are gone, or perhaps we can fly off to Italy and let the cottage and house support us in our next stage of life. The cottage suddenly gave us positive options for the future. 

What did you enjoy most about the process?

Colette: I loved every part of the process. Because our lot was small and there were only a certain number of ways to build our structure, the design part became quite easy. Bruce and Stefan [of microhouse] were great at listening to what we wanted and were always willing to change things to get them right. 

At one point in the build we had some large joists delivered that were used as our entryway ceiling and our loft floor. Garrick, our builder, set them up for me and loaned me his sander so I could work on them before they were installed. I really enjoyed that they allowed me access to work on projects for the cottage.

I was also able to design the inside of the cottage to fit furniture I was buying along the way. Walls were made to fit vanities and all the lighting was installed to my specifications for the fixtures I had bought. 

What challenges did you face during the process?

Colette: My biggest challenge in this process was my neighbor. They didn’t like what we were doing. They objected to noise, dust, and anything that needed to go over their property line. It became quite ugly and it was a sad break to a 30-year friendship.

For me, living through construction was pretty fun. It was great to look out the kitchen window and watch walls go up. Garrick and I became friends and it was easy to have him around. He was missed when the project ended. 

How long did the process take?

Colette: It took about a year to get the plans down just right. The build began just before fall of 2017 and ended in the spring of 2018.

Is there anything you would do differently if you had to do it over?

Colette: If we ever decide to build again I would work with Bruce, Stefan and Garrick again. It was truly a pleasure. 

What’s your favorite thing about your cottage?

Colette: I love the size of our cottage. It looks narrow and small from the outside, but when you enter it seems much, much larger. It feels like a trick of the eye. I love the shiplap wall we built as a focal point. I love that the appliances all fit into the kitchen I assembled. I love that I was very much a part of the build and that my ideas and creativity were used throughout. 

Understanding Seattle's Proposed Land-Use Code Changes

City council has proposed significant changes to the Seattle Land-Use Code with the aim of increasing the construction of backyard cottages (DADUs) and attached accessory dwelling units (ADUs). These changes, in the making for years now, have been delayed by a lawsuit and appeal brought about under SEPA regulations. Seattle City Council held a public hearing to discuss the proposed code changes Tuesday, June 11th at 5:30pm in council chambers. Discussion and possible vote on amendments and the proposed legislation will be held on June 28th at 2:00pm.

What do these changes really mean for Seattle and for ADUs?

The proposed code changes include many items that are minor and could have been completed years ago. These include modest increases in size and height of allowed cottages, details about dormers, and the location of entries. The more significant changes proposed are as follows:

• Allowing two ADUs on one lot

• Removing the off-street parking requirement

• Removing the owner-occupancy requirement

• Increasing the household size limit for a lot with two ADUs

• Establishing a new limit on the maximum size of single-family dwellings equal to one half of the lot size (FAR = 0.5)

This DADU was built for a grandparent in the Bryant neighborhood

Owner Occupancy

Of these we believe the owner-occupancy requirement is most important. Currently the owner is required to live on the property for a minimum of six months of the year.

The impact to removing the occupancy requirement is unknown. The environmental impact statement (EIS) prepared as part of the lawsuit doesn't appear to adequately predict the impact from removing this requirement. Detractors believe that it will lead to the destruction of large numbers of existing homes and their replacement with duplexes and triplexes. They also note an increasing trend to sell ADUs and their primary residence separately using a condominium or land-lease agreement.

Our Recommendations:

• The original proposal to sunset owner occupancy after a period of time (3 years) is good and should minimize the destruction of naturally occurring affordable housing by speculative developers.

• Owner occupancy should be required for all properties used as short-term rentals.  

• SDCI should closely monitor ADU construction and report annually to City Council.

The builder plans to maintain ownership of this DADU and sell the primary residence using a condominium agreement

Floor Area Ratio Limits

The EIS finds that the most significant way to reduce tear-downs (i.e the removal of naturally occurring affordable housing) will occur by introducing a floor area ratio (FAR) limit. Currently the size of new houses is limited by setbacks and height limits. The trend in new construction is for very large houses (with correspondingly large price tags), which are typically beyond the means of median income earners. The FAR limit would reduce the size of what can be built but exclude ADUs and DADUs from the restriction. The goal being to prevent tear-downs and to encourage rather the construction of ADUs and DADUs.

Our Recommendations:

• Approve a FAR limit of 0.5 for new construction.

• Exemption of ADUs and DADUs from the FAR limit.

The City Council held a public hearing to discuss these proposed changes on Tuesday, June 11th at 5:30pm in council chambers. Discussion and potential vote on the amendments and proposed legislation will be held on June 28th at 2:00pm.

We encourage you to voice your opinion with your council members and look forward to moving ahead with sensible legislation.

a chef's kitchen, custom beer taps and abundant light

The owner built this backyard cottage as a rental but fell in love (with the cottage) during the design process and decided to rent out his house instead. Designed to emphasize custom details, this DADU reflects of the owner’s lifestyle.

The overall strategy with this backyard cottage, as it is with most of our designs, is to keep the structure simple allowing a larger percentage of the budget to be spent on finishes. As the height and size of DADUs is limited based on the size of the lot, the maximum allowable footprint for this cottage was 328 sq. ft. 

It features an open floor plan on the ground floor with a kitchen, living and powder rooms.  Upstairs is a master bedroom complete with a kitchenette, and a bath with laundry room. 

Ceramic tile accentuates the entry area. The view from the entry towards the kitchen and patio beyond.

The kitchen is located along one wall making it both compact and simple. A movable kitchen island creates a flexible work space and accordion doors open onto a new patio filling the ground floor with light. 

Exposed wood joists add warmth and texture in contrast with the concrete floors

A door located at the bottom of the stairs allows for the two floors to be used independently.

Where some houses may come with a man cave this DADU features a "man wall" with big screen tv, electric fireplace, weight rack and the ultimate amenity, beer taps. A keg fridge is located behind the wall in the under stair space.

Custom-built beer taps. A keg fridge is located behind the wall in the under stair space.

The city of Seattle limits both the eave and ridge height of cottages allowing greater height for a gable roof which we took advantage of to good effect. The master suite features vaulted ceilings and abundant light. A kitchenette allows this room to be used separately from the first floor.

The master bath features vaulted ceilings and skylight. A laundry room is tucked off to one side under the eaves, a shower under the other with beautiful tile work featured throughout.

Seattle DADU code changes - finally a decision

The Seattle Hearing Examiner has ruled that the final environmental impact statement (FEIS) in regards to the proposed code changes for backyard cottages ( DADUs) and attached accessory dwelling units is adequate. Now the proposed code changes will go to city council for debate.