Creating Cost-Effective Accessory Dwelling Units to solve housing shortages
Clean Energy Solutions, the fastest-growing providers of energy efficient home improvements in the U.S., introduced a new program for the construction of energy efficient accessory dwelling units (ADUs). Also known as garage conversions, it aims to help the City of Los Angeles solve the current housing shortage. Together, Clean Energy Solutions and the City of Los Angeles are projected to combat the growing housing issue in LA, which is driving rent costs and spiking property costs state-wide.
The current scenario
Report says, an average of 80,000 homes a year built in California from 2007-2017, however, the state of California is still 100,000 units below what’s needed to keep up with the population growth through 2025. The current average monthly rent cost in the city is $2,685 which is a five percent increase compared to 2018. ADUs in the market typically rent between $1,200 and $1,800. The costs allow homeowners to earn substantial passive income each month.
ADUs solution for rentals
An ADU cannot be individually sold as property, it can dramatically increase a home’s property value by as much as $150,000 to $200,000. However, through this new program, both detached and attached garages will be re-permitted and renovated to become rental units or guest houses.
Additionally, Clean Energy Solution’s contributions to the ADU program are focused specifically to provide up to 1,000 new cost effective ADU units per year. The initiative to create cost-effective accessory dwelling units, Clean Energy Solutions will help alleviate L.A.’s housing crisis and extends its mission to provide property owners with reliable low-cost solar power and energy efficient home improvements.
David Gomez, founder and CEO of Clean Energy Solutions, said, “Our partnership with the City of Los Angeles allows us to help alleviate California’s housing crisis. In fact, Los Angeles will lead the state in the construction of ADUs.” “With this new integration, we’re excited to help residents citywide find affordable ways to live, including cutting down utility energy to a fraction of the average cost for energy generated from the burning of fossil fuels,” he added.