Neil Shekhter -NMS -The Roots of California’s Housing Shortage

LOS ANGELES, CA / ACCESSWIRE / May 27, 2018 / In the year 2016, the California Legislature came up with a bill allowing homeowners to build accessory dwelling units. Else, referred to as the granny flats. Three-quarter of the state’s voters are homeowners. Homeowners do not want to see more housing as compared to the renters. Approximately 50 percent of homeowners supported the construction of the new accommodations in the community as compared to the 70 percent of renters in the Public Policy Institute of California Survey. On a more precise question in support of the changing environmental regulation and local permitting process to make housing more affordable, half the number of the homeowners were in favor while more than 70 percent of the renters did support the bill. Therefore, to manage to add more housing in expensive cities is through policies that favor the interest of the homeowners.

In the year 2016, California Legislature bought a law requiring the homeowners to build ADUs or granny flats, garage apartments, and guest houses in their residential areas. The structures should meet some particular requirements like height limits. The arrangements can be advantageous in such manner by providing space for caregivers or relatives, rental income, or a place the aging homeowners can live while renting the bigger house. The constructions can increase the value of your home, or it can provide a livelihood after retirement. A research conducted on the ADUs settlement shows that most rentals rented below the market-price are because some relatives rented or the tenants were friends to the homeowners, explains Neil Shekhter, Chief Executive Officer of NMS Properties.

The market for the structures shoots above average for the last short period with the building permits for ADUs in California going up to more than 4,352 according to the Irvine-based real estate data company. Therefore, many homeowners are seeing the necessity to build ADUs as a way to attract some more rental income by giving out their primary dwelling. The demand for the constructions goes even higher by time in the small and large cities with Los Angeles recording more than 1,684 in 2017; two times more than the last two years combined. San Francisco pioneered in issuing of the ADUs permits throughout the city in the year 2016. However, the cities cannot control on how homeowners should make use of the extensions. The whole idea for the ADUs is to increase the flexibility as life evolves.

Apart from restricting how the ADUs get constructed, the cities should also find a way to limit the use of the structures. Homeowners respect the ability to use the constructions flexibly. For instance, an ADU can get rented to a stranger today, houses an aging person tomorrow, and it houses a visitor out of town for a night the next day. Allowing homeowners convert a garage into apartments helps to increase the housing supply in a city that requires more housing units. If every homeowner would have an ADU, it increases the number of housing facilities twice. Although the ADUs are still facing other restrictions, letting millions of homeowners to build the constructions make them potential developers creating a region of the new housing, according to Neil Shekhter.

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NMS has offered quality rentals in the Los Angeles area for nearly three decades. Since 1988, NMS has developed and managed a large portfolio of premier apartment buildings and commercial properties in Santa Monica, West Los Angeles, Brentwood and the San Fernando Valley

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SOURCE: NMS Properties, Inc.

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