For years, discussions of zoning and affordable housing in Charlottesville have invariably thrown around the acronym “ADU.” Part of the abbreviation, “dwelling unit,” is generally agreed upon. There is decidedly less consensus about what the “A” stands for: additional, accessory, or affordable.
ADU generally refers to an additional or accessory unit built on a property that already has at least one dwelling. Charlottesville’s latest zoning code allows for many residentially zoned lots to add more units than previously allowed. Those units can then be rented for additional income, or used by the property owners as an additional space.
The reality of building additional or accessory units on an already occupied lot is more expensive than many homeowners expect, says Chris LeBlanc, owner of NOLA Builds. “When you’re talking about building something outside of footprint, you’re practically just building a house. Except you’re going to do it in somebody’s backyard, usually while they live there,” he says. “We have to be pricing it not like a new construction, but more like a remodel.”
Homeowners looking to add another unit onto their property often endure sticker shock, according to LeBlanc and NOLA Builds COO Andrew Baxter. In the last 12-18 months, the company has had 10 project leads on additional dwelling units. Three of those leads have resulted in contracts, ranging in cost from $280,000 to $400,000.
Allowing for more density is a key part of the city’s effort to increase affordable housing supply. While building new dwellings adds to the supply of homes, it is not itself affordable, says Baxter.
“Charlottesville is 10.4 square miles, [you’re] not getting any more land in the city, so it’s either going to go up or get more dense, or both,” says Baxter. “You can make the argument that maybe those ADUs are part of the missing middle, and I think that’s a valid argument to pursue. It is more housing … But is it super affordable? No.”
Beyond the cost of construction and logistical challenges, LeBlanc and Baxter say the permitting and inspection process in Charlottesville can be a roadblock when building additional dwelling units.
On its end, the city has reportedly been working to streamline the process for smaller residential projects, according to Development Planning Manager Matthew Alfele.
Alfele primarily deals with larger development projects that require more meetings with city officials, but estimates there are approximately seven applications for residential construction of additional units every month.
“If you’re building a unit in your backyard, you don’t have to go through development review. For up to two units, you can go straight to building permit, but we do our zoning check at building permit,” he says.
After an application for a building permit is submitted, it is reviewed by the city planner, then goes for a technical review. There are more permits and inspections required down the line, but Alfele says that roughly six months from initial application to certificate of occupancy is the norm.
Both the city and NOLA Builds report steady, but modest, interest in ADUs of all forms. Looking forward, LeBlanc and Baxter see opportunities to further simplify the process, and in turn reduce costs and timelines for construction, by creating preapproved plans in the city, or by taking a more modular approach to the building process.
“Just in the last 18 months, we’ve learned a lot from the projects that we’ve done, and so we’re getting better at helping people navigate that [ADU] space,” says Baxter. “I’m sure the localities will get better at it … but none of the elements of what we’ve seen in terms of planning and development in our area in the last few years is a magic bullet, and the same thing is true of ADUs.”
