ADU Guide

Mighty Buildings

ADU Guide

Mighty Buildings

Mighty Buildings is a modular prefab construction company providing turn-key installation services. By utilizing 3D printing technology and our Light Stone Materials, we assemble modular houses faster than traditional construction. Our units are fully compliant with all aspects of the California Building Code, including Title 24 Energy and other standards.

We provide a turn-key solution for Accessory Dwelling Units (ADUs), which means we assemble the permit packages, get permits approved, pour the foundation, connect the utilities, and install the unit ourselves. Think of our turn-key solution as a one-stop shop

Land Use Entitlements
Building Permits
Delivery & Installation
Utilities Connections
Foundation
Financing

Earn up to $10,000 for every referral.

If you have any questions, request a call back and we’ll be happy to chat.

ADUs

ADU is an accessory dwelling unit, a detached or an attached building that goes into a backyard or a side yard of an existing residence. ADUs are usually built as a guest house or extra living space on the property for rental purposes or as a long term investment.

ADUs are an extension of your property so it does increase your property value. However, the property tax goes up insignificantly by the amount of construction costs added to the base of your assessment value.

Is There An Existing House?

ADU

Yes

Primary Residence

Timeline

ADU

60 days

Primary Residence

Varies Heavily Between AHJ

Permits

ADU

4-8 months

Primary Residence

Depends on the jurisdiction

ADU

Primary Residence

Do you have an existing house?

Yes

Timeline

60 days

4-8 months

Permits

Varies Heavily Between AHJ

Depends On The Jurisdiction

New ADU State Laws

On October 9th 2019, Governor Gavin Newsom signed a series of bills opening up ADU’s statewide. These bills went into effect on January 1st 2020 and dramatically loosened the restrictions for building ADUs throughout the state. The main purpose of these bills is to standardise the regulations for ADUs.

Remove minimum lot size requirements

Mandate setbacks to a maximum of 4 ft from side and rear property lines

Eliminate impact fees for units less than 750 sq. ft.

Place a 5 year moratorium on owner occupancy requirements

Allow up to 2 ADU’s in multi-family zones

Eliminate lot coverage requirements for units under 800 sq. ft.

While these new laws have done a great deal of work in standardizing the accessory dwelling unit requirements statewide, local jurisdictions still have a lot of ability to control the types of ADUs in their area. For instance, design requirements may still be a factor in specific locations. Feel free to reach out to your Mighty Buildings representative to check specific properties for their local requirements.

Pre-approved plans/
Factory Built Housing

Factory Built Housing is exactly what it sounds like. It is a program put in place by California’s Department of Housing Community Development to allow the assembly and construction of portions, or the entirety of a construction project be built offsite as a method to reduce cost and weather delays. Once onsite and installed, there is essentially no difference between a Factory Built House and a traditional built house. These units are inspected at the factory, but installations are inspected by the local jurisdiction.

All our designs are reviewed at the State level and come with a pre-approval at the authoritative housing jurisdiction level. This means that when the permit package is submitted to the local jurisdiction, they only review site specific details, such as the foundation, utility connections, and installation plan for the unit, creating less confusion and much quicker straight forward plan review.

For more information on the Factory Built Housing Program refer to this HCD Manual.

Why Build an ADU?

The best time to build is now. ADU’s are an investment for your property and provide financial security in a slow housing market or economic downturn. In fact, an ADU can be one of the safest investments you can make. It is a direct investment into your current property and during a downturn, it can increase the value of your property. In addition to the sizable increase to your property, you can gain the potential rental income, which gives you a steady flow of income during unprecedented times.

Assumptions:

+ Purchase Price: $1,250,000
+ Down Payment: 10%
+ 30-year fixed
+ 3.50% interest rate

Rates are historically low

Recession proof your new mortgage

Increase your property value by 30%

Higher ROI than a traditional remodel

Multiple models to accommodate virtually any size yard

Benefits of ADUs?

Price vs cost

All our ADU's come complete with state of the art 3D printed technology, high end appliances, Anderson windows and doors, stone countertops, tankless water heater, central heating and air, and even solar panels. Mighty Buildings’ industry leading 10-year warranty shows our dedication to the quality of construction and craftsmanship. In comparison to other ADU units in the market without turn-key solutions, we truly believe you get the quality you pay for and in the end, you will save on the overall cost of your new ADU.

An end-to-end process

Our end-to-end service includes permitting, site evaluation, construction, delivery and setup, and financing. This saves you time and money as you don't have to get involved in the time consuming process of ensuring your new ADU is built to code. Our project managers and compliance officers guarantee that all the required documentation will be completed and filed in accordance to state and local guidelines.

Property Values

A recent University of Oregon study showed that an ADU can increase the value of your property more than 20% over a traditional full home remodel. In addition, you gain valuable additional living space that a typical remodel would not be able to provide.

Rental Income

One of the most sought after benefits of an ADU is the ability to rent it out and generate a steady monthly income. Unlike adding a guest room to your existing home, renters are separated from your main residence. This allows you to monitor and maintain the ADU without sacrificing your privacy.

Financing

Rates are currently at historic low levels and Mighty Buildings has several loan programs that can assist you in purchasing your new ADU. Even if you were planning to pay in cash, a short discussion with our financing team could provide valuable options.

ADU Laws

On January 1, 2020 a series of laws went into effect that revise and relax the laws governing ADUs. The new laws are intended to help address the housing shortage in California and make ADU development easier. For developers, investors and homeowners these laws will open up a range of investment possibilities.

How To Finance an ADU

Today, we partner with a number of lenders: Quicken Loans, Umpqua Bank, Patelco Credit Union. Our goal is to match our client's specific needs with one of our lending partners as each request is unique. There are a number of different loan options we use to provide funding to our client to finance their accessory dwelling unit.

Home Equity Line of Credit
Cash out Refinance
Construction Loan
Personal Loan

An Overview of MB Products

As previously mentioned, Mighty Buildings is a prefab modular builder. All of our models have been pre-approved at the State level by California’s Department of Housing and Community Development under the Factory Built Housing (FBH) program.

Mighty Duo B-shape

Footprint

700 Sq Ft

Dimensions

25' x 28'

Mighty House Trio

Footprint

865 Sq Ft

Dimensions

24' x 36'

Mighty House Quatro

Footprint

1152 Sq Ft

Dimensions

24' x 48'

Our Turnkey Process

01CustomizationClick and go!

Сustomize your Mighty Unit from the options on the website

Preliminary compliance check and a site assessment
Estimated project budget and delivery timeline

02Entitlement Services1-2 months

Customer signs contract and pays a retainer of $5-15K

Sign the Buyer’s Contract to prepare your Delivery Roadmap
Site specific documentation and reports required for permits such a soils report, a property survey, architectural, structural, and MEP drawings

03Permiting Process2-4 months

Proceed with the remainder of the Agreed Purchase Price (10% immediately and remaining balance within 30 days after issuance of necessary permits)

Permit application submittals and engagement with local jurisdiction
Building permit issuance
The Mighty Unit fabrication

04Delivery & Installation1 month

Sit back and relax while we deliver and install your unit!

Onsite work for the foundation and utility connections
Truck delivery + craning

MB tech advantages vs concrete 3D printing

Mighty Buildings uses 3D printing technology and proprietary Light Stone Material such as reinforced concrete, as an alternative to conventional building materials. Beyond the structural and other physical properties, the material replaces several layers of material as it can work as structural, exterior, and interior material.

Our Light Stone Material eliminates cold joints between layers, which occur when the specific temperature and humidity requirements for proper curing of concrete are not met. We are able to achieve this due to the rapid solidification of our material under UV light, thus avoiding the structural issues when the material is solid and subjected to loads. This rapid curing also allows the LSM to print in horizontal layers without a supporting structure, meaning we can print walls, floors, ceilings and more.

Other important qualities of the material:

Fire resistant
Hydrophobic
Resilience

Mobile homes vs Modular

Mighty Buildings is considered a modular home builder which differs from traditional “mobile homes”. Mobile homes could serve a means of temporary housing solution whilst our 3D printing technology and unique composite materials are able to bring energy efficient buildings of a high quality and modern design to the market at a cheaper price point than traditional construction.

Modular construction is permanent real property and an appreciating asset. It serves as a long-term investment while mobile and manufactured homes will depreciate in value since they are not affixed to a permanent foundation.

Additionally, financing for modular construction works the same as traditional home or construction loan financing. Mobile homes are financed similar to other depreciating assets like RVs or boats.