SANTA ROSA, Calif.— Redwood Credit Union here has partnered with three other Sonoma County businesses—hybridCore Homes and Friedman’s Home Improvement––in aiming to help local homeowners add affordable cottages/“granny” units to their property as accessory dwelling units (ADUs) for a family member, caregiver, rental income, or other reasons.
The move follows passage earlier this year by the California General Assembly of two laws, AB2299 and SB1069, which eased restrictions and requirements for ADUs on private property. After the state laws passed, several local cities—including Santa Rosa, Petaluma, and Sonoma—reviewed and amended their policies to align with the new law to make it easier and affordable for local homeowners to add a second unit to their property as one way to help ease local housing challenges, such as lack of affordable housing, low housing inventory, and skyrocketing home and rental prices, according to Redwood CU.
RCU reported that with eight floorplans and two elevations to choose from, the cottages range from 459 square feet to 1,190 square feet, and come with the core unit—including kitchen and bathroom—finished and delivered to the property. hybridCore oversees delivery and placement of the cottage. All remaining materials needed to finish the exterior, including siding, roofing, gutters, paint, and nails, are available in partnership with Friedman’s.
For an additional cost, hybridCore offers full turnkey service to complete the entire project.
Kiosks are now available in Friedman’s Santa Rosa, Petaluma, and Sonoma locations to provide an experience for local homeowners to learn about the cottages, view videos, place an order, and apply for financing.
Redwood Credit Union is providing the financing piece, and homeowners can obtain a home equity line of credit (HELOC) to access up to 85% of their existing home’s equity to pay for the cottage.
Redwood Credit Union said will provide affordable home equity line or loan financing for the cottages, up to $500,000, although hybridCore Homes and Friedman’s have estimated the average cottage will range between $150,000-$300,000, depending on the size and finishes chosen by the consumer.
“We’re honored to partner with these two local businesses, because it serves a critical need in our community, and fits with our focus on helping people succeed,” said Brett Martinez, RCU’s president and CEO. “The cottages provide opportunities for multigenerational families to live affordably on the same property, for seniors to live comfortably and/or have on-site caregivers while maintaining independence, or to provide homeowners with rental income. RCU is pleased to provide affordable financing and contribute to housing solutions for our community.”