Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
04. Housing Seminar
Staff Report Date of Meeting: August 25, 2026 For: EDA President Kronmiller and Board members From: Kyle Morell, City Administrator Subject: Housing Seminar At our last meeting, we discussed ways to educate our residents about life-cycle housing options available to them and programs available that will help them upgrade or sell their homes. Board member Smith shared with us Accessory Dwelling Unit brochures produced by the City of Saint Paul and the Family Housing Fund. I have attached those documents for your review. I believe the plan was to put together something similar for the residents of Scandia. I will have a draft of that document at our meeting on Tuesday. There was also a discussion about making residents aware of various programs available to them if they wish to upgrade or sell their homes. Board member Chavis provided me with a list of programs focusing on rehab and renovation loans, ADUs, barndominiums, and modular and manufactured homes. Jackie’s research is attached. Attachments: St Paul ADU Toolkit Family Housing Fund ADU Guidebook Chavis Housing Research New Dwelling Toolkit: Adding a Housing Unit to Your Saint Paul Property New Dwelling Toolkit: Adding a Housing Unit to Your Saint Paul Property October 2025 This guide is a resource to help Saint Paul property owners through the process of planning for, designing, and building another housing unit on your property in the H1 and H2 residential zoning districts. Most property owners have the option of adding either another principal dwelling unit, similar to the existing home on your property, or an accessory dwelling unit (ADU), which is considered a secondary unit with different standards. Table of Contents Introduction Uses & Buildings 101 3 Dwelling Units 101 4 Choosing between an ADU and a Principal Unit 6 Process for Adding a Unit 1. Getting Started 12 2. Learning the Rules 16 3. Budgeting and Financing 41 4. Designing Your Unit 47 5. Permitting and Approvals 54 6. Construction 57 7. Move-In and Renting 61 Department of Planning and Economic Development (PED) Planning Division Phone: 651-266-6700 Reserve a timeslot for a virtual meeting Department of Safety and Inspections (DSI) Phone: 651-266-8989 DSI Building Plan Review Desk DSI-BuildingPlanReview@ci.stpaul.mn.us 375 Jackson Street, Suite 220 Saint Paul, MN 55101 Phone: 651-266-9007 Cover images credit: Quartersawn Design + Build 2 - Introduction Introduction In November 2023, Saint Paul's Zoning Code was updated to expand housing opportunities in the city. It is now much easier to add housing units to your property by converting or adding to an existing residential building, adding one or more new residential buildings to the lot, or subdividing the lot and developing on one or more of the lots, if the lot is large enough. The majority of Saint Paul's lots are zoned H1 or H2 residential and contain an single-family home. Now, under the zoning code, these properties are likely permitted to add a housing unit in the form of a principal unit or accessory dwelling unit (ADU). This guide will help you decide which type of housing unit works best for your property and provide a step-by-step approach to your project, from planning to move-in, with links to helpful resources and tools along the way. This guide is intended as general circumstances and is not a substitute for the Zoning Code, Building Code, and other local, State, and federal laws that may also apply to your project. Consult professionals and City staff prior to starting a project. Why should you add another housing unit to your property? Additional housing comes with a myriad of benefits for individuals, families, renters, and homeowners, including: • Adding another unit to your property can use space and resources more efficiently by making better use of a large home or lot. • The new unit you add to your property could offer a lower cost housing option in the community. • Generating earn extra income from renting out one of the units to help offset housing costs and increase the value of their property. • The new unit could provide housing multi-generations, including seniors who may want to downsize or age in place, adult children, and other relatives and guests. Multiple units allow for multiple separate living spaces while keeping everyone close by on the same property. Uses & Buildings 101 Principal All lots in Saint Paul have at least one principal or main use. By Zoning Code definition, the principal use is the main use to which the premises (the lot and the buildings on it) are devoted. In simpler terms, the principal use is the main purpose or primary function of the lot. The lot's principal use is located within a principal building. On a typical residential lot with a single-family home and a detached garage, the principal use and the principal building is the single-family home, which the Zoning Code calls a one-family dwelling. Accessory Lots can also have an accessory use, building, or structure. “Accessory” refers to a building, structure, or use which is subordinate, secondary, or incidental to and located on the same zoning lot as, the principal use to which it is related. In the case of a lot with a single-family home and detached garage, the one-family dwelling is the principal building and principal use, the detached garage is an accessory building, and off-street parking spaces, enclosed in the garage is an accessory use. The garage is accessory to the one- family dwelling in that is associated with it by providing parking for the residents living in the home on the same lot. Other typical accessory uses on residential lots include domestic storage in a barn, shed, tool room, or similar accessory building, and a swimming pool. 2 - Introduction 3 - Introduction Main (principal) building. A building in which is conducted the principal use of the zoning lot upon which it is situated. Main (principal) use. The principal use to which the premises are devoted. One-family dwelling. A building designed exclusively for an occupied exclusively by one household in one dwelling unit Accessory use or accessory. A building, structure or use which is clearly incidental to, customarily found in connection with, and (except as provided in section 63.300) located on the same zoning lot as, the principal use to which it is related. Principal Building = One-family dwelling Principal Use = One-family dwelling Accessory Building = Garage Accessory Use = Off-street parking Dwelling Units 101 There are two types of dwelling units, principal and accessory. Both types are self-contained homes for exclusive and unhindered use of one household and must provide complete living facilities, including a kitchen and bathroom, but it is important to know the differences too. Principal (Dwelling) Units A principal dwelling unit, or principal unit, is a typical housing unit that is occupied by one independent household and is not secondary to another unit. It's likely that you live in a principal unit, whether that be in a one-family dwelling (single-family dwelling) or a building with multiple principal units like a two-family dwelling (duplex) or a multiple- family dwelling with three or more units. Principal units can be the sole building and use of the property or be added to a lot with other housing types. The zoning standards for principal units and principal buildings are determined by the zoning district. How many principal units are permitted on a lot? In the H1 and H2 residential zoning districts, the maximum number of principal units permitted on a lot is determined by the zoning district's maximum number of principal units per lot and minimum lot area per principal unit. Principal units on a lot can be in the form of any variety of permitted housing types: multiple one-family dwelling(s), two-family dwelling(s), and multiple-family dwelling(s). Dwelling unit. A building or part thereof that provides complete living facilities, including bathroom and kitchen facilities, for the exclusive and unhindered use of one (1) household. One-family dwelling. A building designed exclusively for and occupied exclusively by one (1) household in one (1) dwelling unit. Two-family dwelling. A building designed exclusively for and occupied exclusively by no more than two (2) households living independently of each other in two (2) separate dwelling units. Multiple-family dwelling. A building, or portion thereof, designed exclusively for occupancy by three (3) or more households living independently of each other in individual dwelling units. 1 unit1 unit 1 principal unit in a one- family dwelling 1 unit1 unit 1 unit1 unit 2 principal units in a two-family dwelling 1 unit1 unit 1 unit1 unit 1 unit1 unit1 unit1 unit 4 - Introduction 4 principal units in a multiple-family dwelling Accessory Dwelling Units Alternatively, an accessory dwelling unit (ADU) is only allowed on a lot with a one-family dwelling, and is secondary to the one-family dwelling. On a property with a one-family dwelling and an ADU, the one-family dwelling is the principal dwelling and principal unit and the ADU is accessory to the principal unit. ADUs and principal units are both dwelling units that are self-contained home for exclusive and unhindered use of one household. Both dwelling types must provide complete living facilities, including a kitchen and bathroom. Types of ADUs Attached Attached ADUs are physically connected to the associated one-family dwelling, either as an addition to a new or existing home or as an internal unit that is in converted portion of an existing home, typically in an attic, basement, or in/above an attached garage. Attached ADUs tend to be less expensive to construct than detached ADUs, and utilities can often be connected to existing connections for the one-family dwelling. Detached Detached ADUs are physically separated from the associated one-family dwelling. A detached ADU could be in its own freestanding building alone or the building could include other accessory uses such as another ADU or a garage. A detached ADU is a separate building and may requires separate utility connections from the existing one-family home, which can add additional costs. 4 - Introduction 5 - Introduction Accessory dwelling unit (ADU). A dwelling unit that is secondary to a principal one-family dwelling, within or attached to the one- family dwelling or in a detached accessory building on the same lot. Other informal ADU names • In-law suite • Granny flat • Casita • Carriage house • Laneway house • Backyard cottage • Secondary unit • Accessory apartment What is not an ADU Recreational vehicles (RVs), tiny homes on wheels, and storage structures tend to not be considered ADUs because they are not built on a permanent foundation or to the requirements of the Minnesota Residential Code and Minnesota Building Code. 6 - Introduction How many ADUs are permitted on a lot? In the H1 and H2 residential zoning districts, a maximum of two ADUs is permitted for each one-family dwelling on a lot. ADUs are accessory units and not principal units, so the zoning districts' maximum number of principal units per lot and minimum lot area per principal unit do not apply and ADUs are not included in these calculations. One-family dwelling Maximum of 2 ADUs Principal Unit ADU ADU Choosing between an ADU and a Principal Unit Because two principal units are permitted on lots at least 3,000 sq. ft. in H1 and at least 2,000 sq. ft. in H2, a new housing unit that you are considering adding to your property could be considered either a principal unit or an ADU. The table on the next page compares the zoning standards for principal unit and ADUs. A major difference between a property with two principal units and one with one principal unit and one ADU is how unit occupancy is regulated. For the property with two principal units, the maximum number of people living in each unit is six adults and minor children in their care, also known as a household. For the property with one principal unit and one associated ADU, the maximum of number of people living in both units is six adults and minor children in their care. Compared to principal units, ADUs have more restrictions in terms of unit size, height, occupancy, and ownership. However, some standards for ADUs are considered more flexible, like the reduced setbacks from interior lot lines and alleys. Additionally, ADUs are not subject to the H1/H2’s minimum lot area per principal unit or maximum number of principal units. There are two ADUs permitted for each one-family dwelling on a lot. Credit: Mark Thieroff Household. Six (6) or fewer adults, and minor children in their care, living together in a dwelling unit. Setback. The distance required to obtain front, side or rear yard open space provisions of this code, measured from the lot line to the above-grade faces of the building. 6 - Introduction 7 - Introduction Comparison of ADU and Principal Unit Zoning Standards Principal Unit ADU attached/internal to a one-family dwelling Detached ADU Unit occupancy Each individual principal unit cannot exceed the number of occupants as specified in the definition of household (6 adults together with minors in their care). The combined occupancy of the principal dwelling unit (associated one-family dwelling) and ADU cannot exceed the number of occupants as specified in the definition of household (6 adults together with minors in their care). Maximum unit size No limit (except 2,500 sq. ft. limit for new one-family homes in H2). 800 sq. ft. or 75% of the floor area of the associated principal dwelling unit, whichever is greater. Ownership Individual principal units can be sold or be on a separate tax parcel. ADUs cannot be sold separately from the associated principal dwelling unit and may not be a separate tax parcel. Lot area minimum (per principal unit) Minimum of 1,500 sq. ft. of lot area per unit in H1; minimum of 1,000 sq. ft. of lot area per unit in H2. Zoning district (RL-H2) standard does not apply; ADUs are not principal units. Maximum number per lot Maximum of 4 principal units (or 6 with a density bonus) in H1; maximum of 5 principal units (or 6 with a density bonus) in H2. Maximum of 2 ADUs are permitted for each one-family dwelling on the lot. Building height maximum 35’ for all roof types in H1, 36’ for flat or shed roofs or 39’ for other roof types in H2. 25’. Minimum yard setbacks Front: 10 ft. (See Front Setback Note in Section 2. Learning the Rules: Principal Unit Zoning Standards) Side: 5 ft. Rear: 10 ft. Same as principal unit standards, with some exceptions that allow reduced setbacks. See Section 2. Learning the Rules: ADU Zoning Standards. Maximum lot coverage Subject to maximum lot coverage of 45% in H1 or 50% in H2 for all buildings. 8 - Introduction Should your new unit be an ADU or a Principal Unit ? START HERE! Does your property contain an existing single-family dwelling that you will retain or do you plan on constructing one? NO Principal unit. ADUs are only permitted with an associated single-family home on the property YES Option of a principal unit or an ADU Do you plan on selling the new unit or the single-family home separately from one another or splitting up your lot so that the dwellings are on separate lots? YES Principal unit. ADUs cannot be sold separately from the principal dwelling and may not be a separate tax parcel NO Option of a principal unit or an ADU How many total adults would be living in your new housing unit and the existing single-family home - No more than six or greater than six? GREATERTHAN 6 Principal unit. Combined occupancy for an ADU and associated single-family home is limited to six adults NO MORE THAN 6 8 - Introduction 9 - Introduction Option of a principal unit or an ADU What size in square feet are you considering for your new housing unit - No more than 800 square feet or 75% of the associated single- family home or greater than this? GREATER THAN Principal unit. ADUs are limited to 800 square feet or 75% the size of the single- family home on the property, whichever is greater NO MORE THAN Option of a principal unit or an ADU If you are considering a housing unit in a new detached building, do you intend on this building being taller than 25'? NO Principal unit. Detached ADUs are limited to 25' in height YES Option of a principal unit or an ADU 10 - Introduction Process for Adding a Unit This section is a general overview of what you can expect as you plan for and build your new housing unit. Adding another unit to your property is an investment of time and money. Typically, projects take one to two years to complete, with conversions of a portion of an existing home to create an attached unit being the fastest. Many property owners find that their project does not follow a straight line as shown here, so don’t be surprised if steps happen in a different order. This is normal! Process At-A-Glance Planning 1-3 months 1. Getting Started • Think about unit types based on your goals and concerns • Look for inspiration • Make a sketch • Estimate costs 2. Learning the Rules • Learn about your property, zoning regulations for ADUs and principal units, and other applicable rules 3. Budgeting and Finance • Adjust your project budget as needed and explore ways to finance your project Designing 1-6 months 4. Designing your Unit • Hire your professional team • Create your initial design and discuss it with City staff • Finalize your design and plans for permitting Permitting 1-6 months 5. Permitting & Approvals • Learn about the Building Plan Review, Site Plan Review, and application processes • Prepare your permit application and arrange a pre- application meeting with City staff • Submit your application Construction 6-12 months 6. Construction • Hire your contractor • Monitor the construction process, by checking in with contractors, making decisions, and ensuring inspections are moving along Move-in < 1 month 10 - Introduction 11 - Introduction 7. Move-In & Renting • Once your project has passed final inspection, it’s ready for move-in • Learn about rental laws and managing your rental 12 - Section 1. Getting Started 1. Getting Started Think about what you want What are you wishing to accomplish by building another housing unit? Think about your short- and long-term goals. A benefit of adding another unit is that how you use it can change with your needs over time. Look for inspiration online Learning about other projects that others have built, like backyard accessory dwelling units and small one-family homes, additions to homes, and conversions of extra space in existing homes, can help you visualize how you might use one, decide what type of unit would be best, determine which features and design elements matter to you, and get a feel for smaller living spaces. There are many resources online with images, site plans, floor plans of ADUs and small homes to give you ideas. Consider these initial questions: • What do you plan to use the unit for? • Who do you anticipate living in the unit? How many people? • Will you rent it out to another household or someone in your family? • Will the unit include a garage? Credit: Quartersawn Design + BuildCredit: Mark ThieroffCredit: White Crane Construction 12 - Section 1. Getting Started 13 - Section 1. Getting Started Make a sketch This is a good time to make an informal rough sketch of your property, including existing structures, trees, patios, driveways, and other elements like creeks or steep slopes. Draw out how you’d like your unit to be incorporated into your property. At this point in the process, everything is conceptual. No need to muddy yourself in the details of the zoning or building codes yet, so feel free to let your imaginative tendencies flourish. You can continue to revisit this sketch and update it as you learn about your property and zoning regulations. Estimate costs A very rough placeholder for you to start with is $250-$400 per square foot, including "hard costs", like construction, and soft costs, like design and permit fees. The real number can vary widely and depends on many different factors, like type of housing unit, site conditions, utilities, and grading work needed. Consider these questions for your sketch • Where on your property could you add another housing unit? What type of ADU or principal unit would be possible? • Do you have space in your existing home that could be converted to a new housing unit? • Could you add a new housing unit to your property as an addition to your existing home? • Do you have space on your lot for a free-standing, detached housing unit? • Will parking, storage, or other uses be incorporated into the unit? 14 - Section 1. Getting Started Other early considerations Neighbors Telling your neighbors about building a new unit on your property is not required, but it can be a good idea to talk with them early on about changes you are considering for your property. Maybe learning about the process for adding another housing unit through your experience would help them decide to build another unit too! Shared space Consider what it will be like to be a landlord or share your property with someone. Your tenant might share a backyard, garage, wall, and utilities with you. You might consider soundproofing, costs for utilities, and sharing maintenance tasks. Historic district rules Check if your property is located in a local, state, or national historic district online. Approval from the Heritage Preservation Commission (HPC), staffed by the Department of Planning and Economic Development (PED), may be required before permits are issued for properties that have local historic designation. Project concepts receive pre-application comments from the HPC at one meeting, followed by a formal design review action (approval or denial) at a future HPC meeting. For property with local heritage preservation site or district designation, compliance with applicable historic guidelines is sufficient to meet the Zoning Code Sec. 63.110, summarized in Section 2. Learning the Rules: Other Applicable Regulations - Building Design Standards. If your property is in a state or national historic district, your project might be subject to a special environmental review. Connect with Heritage Preservation Staff for help through these processes. Credit: Mark Thieroff HPC and Historic District Information Historic Districts and Sites webpage Heritage Preservation Commission webpage • askHPC@ci.stpaul.mn.us • Reserve a timeslot for a virtual meeting with the HPC team 14 - Section 1. Getting Started 15 - Section 1. Getting Started Parking The City of Saint Paul does not require off-street parking for any use, including housing, so if a garage or carport is demolished or converted as part of your project, those parking spaces do not need to be replaced. However, you might still want to have dedicated parking for vehicles on your property. If you are going to maintain or add new parking spaces on your property, consider requirements related to: • Standards for garages with dwelling units • Maximum lot coverage for parking of surface parking spaces and driveways • Driveway widths • Required distances from lot lines and alleys • Parking access See Section 2. Learning the Rules: Other Applicable Regulations for a summary of key parking regulations. Utilities Ensuring that your new housing unit can connect to utilities, including water, sanitary sewer, and gas line connections, is crucial. See Section 2. Learning the Rules: Other Applicable Regulations - Utility Connections for more information on utility requirements. Things to consider about your property when looking into utility connections: • Where utilities are located on and near your property. If your property is a corner lot, it’s possible that utilities are located in both the primary street and side street, which can be a good thing for development on your property, as it provides more options for connecting to utilities. • The type of housing unit you are considering. Typically a new detached ADU or principal unit in a building separate from the existing principal unit would require its own independent water and sewer lines connecting from the new units to the public mains in the street, which can add additional utility costs. Contacts for Utility Information Gopher State One Call • www.gopherstateonecall.org/ homeowners/ • 811 or 651-545-0002 Saint Paul Public Works Sewer Utility Division • Water Utility Division webpage • PW-SewerCounter@ci.stpaul. mn.us • 651-266-6234 Saint Paul Regional Water Services (SPRWS) Engineering • SPRWS Contractor Resources webpage • 651-266-6270 Credit: Mark Thieroff 16 - Section 2. Learning the Rules 2. Learning the Rules Understanding how to determine what can be built on your property based on its size, the zoning district your property is located in, and the zoning regulations that apply can be helpful early in the process. Consulting with your design team and city staff late will ensure your project follows the applicable regulations. Find your Parcel Identification Number (Parcel ID/PIN) All properties are assigned a unique 13-digit Parcel ID or PIN. It is listed on your property tax bill and can also be found using online mapping resources, Ramsey County's Map Ramsey and Saint Paul's Zoning Map. Enter your address in the search bar and click your property on the map. In the pop-up box, you will find your Parcel ID and links to more permit and tax information. Determine Your Lot Area (Size) If you intend on constructing a new building, a detached ADU or principal unit, you will need to get the property surveyed by a Professional Surveyor to determine exact dimensions. However, estimating the lot area can be helpful early on. • If your lot is located on a public alley, one-half of the width of the alley adjoining the lot is considered part of the lot for the purpose of applying lot area, lot coverage, and density requirements. • Lot area can be estimated using Map Ramsey: • Search your address • View "GIS Layers" by clicking at the top right and check “Lot Info” • Use the measurements shown on the map and/or use the Measure tool to determine the width and depth of your lot and the width of the adjoining alley, if applicable.248'Alley Alley widthLot Area Calculation Example Lot Width x Lot Depth = Lot Area • 40' x 114' = 4,560 square feet = Lot Area 1/2 x Alley Width x Lot Width = Area of one- half of the width of the alley • 1/2 x 16.8' x 40' = 336 square feet 4,560 square feet + 336 square feet = 4,896 square feet of total lot area for the purpose of applying lot area, lot coverage, and density requirements 16 - Section 2. Learning the Rules 17 - Section 2. Learning the Rules Determine Your Property's Zoning District All properties are assigned a zoning district that define allowable land uses and contain rules that regulate the size and locations of buildings and structures. If your property already contains a one-family dwelling, it’s likely that the property is zoned H1 residential or H2 residential. ADUs with one-family dwellings and multiple principal dwelling units on a lot are permitted in these zoning districts: • RL-H2, RM1-RM2 residential districts (Sec. 66.221) • T1-T3 traditional neighborhood districts (Sec. 66.321) • BC community business (converted) district (Sec. 66.421) • F1 Ford district (Sec. 66.921) Your property's zoning district can be found by searching your address in Saint Paul's Zoning Map, selecting your property on the map, and then clicking the right arrow at the bottom of the box that pops up. Learn the Applicable Regulations Zoning regulations may be different based on the type of unit you are considering - a principal unit or an ADU, and if the ADU is attached to a one- family dwelling or in a stand-alone, detached accessory building. Refer back to Choosing between a principal unit and an accessory dwelling unit in the Introduction Section and select which type of unit is best for your property. If you’d like to get more into the specifics of the rules that apply to each unit type, you can review more details on the applicable zoning regulations that apply to ADUs and Principal Units in this section. This section focuses on ADU and Principal Unit standards in H1 and H2 residential districts, which are the most prevalent zoning districts. Zoning district. A district shown on the zoning map of the city which is incorporated into the zoning code. Intent, H1 residential district. The H1 residential district provides for a variety of housing options along with civic and institutional uses, public services and utilities that serve residents in the district. The district allows for reuse and/ or conversion of existing homes and infill development in existing neighborhoods, lots, and backyards, without having to demolish existing viable housing. Intent, H2 residential district. The H2 residential district provides for a variety of housing options along with civic and institutional uses, public services and utilities that serve residents in the district. The district allows for reuse and/ or conversion of existing homes and infill development in existing neighborhoods, lots, and backyards, without having to demolish existing viable housing. It is intended for use in Neighborhood Nodes and near transit routes along fixed rail and bus rapid transit corridors and high- frequency bus routes. Credit: Mark Thieroff Accessory Dwelling Unit (ADU) Zoning Standards Some standards vary depending on if the ADU is attached to the principal one-family dwelling or detached in an accessory building. There is no minimum lot size to have an ADU on your property, but the lot coverage of all the buildings on the property must not exceed the maximum lot coverage, which is defined by the zoning district. Number of ADUs Permitted on a Lot (Sec. 65.913 (a)) ADUs are only permitted when there is an associated one-family dwelling on the same lot. For each one-family dwelling on the lot, a maximum of two ADUs are permitted. There can also be other housing types, such as a duplex, on the same lot as the one-family dwelling(s) and ADU(s). Remember that because ADUs are accessory units and not principal units, they do not count toward the zoning district’s lot area minimum (per principal unit) or maximum number of principal units per lot. Attached v. Detached Attached ADU(s)Interior Attached ADU(s) Detached ADU(s) 18 - Section 2. Learning the Rules Attached Examples • One-family dwelling with one ADU internal to the dwelling or attached to the home via an addition • Two ADUs attached or internal to the one-family dwelling is only permitted if at least 50% of the floor area of the existing building is retained Detached Examples • One-family dwelling with one ADU in an accessory building detached from the home • One-family dwelling with two ADUs in one detached accessory building or each in their own detached accessory building • One-family dwelling with one attached ADU and one ADU in a detached accessory building - ADU Zoning Standards Compliance (Sec. 65.913 (b)) ADUs must comply with city, local, regional, state, and federal regulations. Understanding the myriad of regulations and applicable codes is tricky - leave this to the professionals! An architect and/or engineer can ensure that your ADU will meet all these requirements. These are some examples of codes that may need to be complied with: • Minnesota Building Code • Minnesota Residential Code • Minnesota Fire Code • Minnesota Conservation Code Combined Occupancy (Sec. 65.913 (c)) The combined occupancy of the one-family dwelling unit and the associated ADU(s) cannot exceed the number of occupants as specified in the definition of household. The occupancy limit for any ADUs and the principal one-family dwelling are combined, meaning that the number of occupants in the units are counted together. A household is six or fewer adults, together with the minors in their care. Examples: • If four adults occupy the principal one-family dwelling, a total of two adults may occupy the ADUs associated with the one-family dwelling, rather that be in one or two ADUs • If two adults occupy the principal one-family dwelling, a total of four adults may occupy the ADUs associated with the one-family dwelling, rather that be in one or two ADUs Ownership (Sec. 65.913 (f)) ADUs must be located on the same lot/tax parcel as the associated one-family dwelling and must be owned by the same owner. If the property is sold, all units must be sold with it. The property owner is not required to live on the property. This means that you as the property owner could rent out all the units and live somewhere else if you choose. Household. Six (6) or fewer adults, and minor children in their care, living together in a dwelling unit. Property with a one-family dwelling and one ADU Maximum combined occupancy = 6 adults and any number of children Principal Unit ADU Accessory dwelling unit One-family dwelling 4 Adults Any number of children 2 Adults Any number of children 18 - Section 2. Learning the Rules 19 - Section 2. Learning the Rules - ADU Zoning Standards 20 - Section 2. Learning the Rules Access and Entrances Requirements (Sec. 65.913. (e)) A walkway must be provided from an abutting public street to the primary entrance of the ADU and must be able to be cleared of snow. An alley is not considered a public street. ADUs located on upper floors within the principal one-family dwelling must have interior stairway access to the primary entrance of the ADU. Secondary stairways required for fire safety may be located on the exterior of the side or rear of the building, but are not allowed on the front of the building. Exterior stairways must be built of durable materials that match the finish of the principal structure or accessory building to which they are attached. Raw or unfinished lumber is not permitted. House numbers that are easily and clearly seen from the street (and/or alley, if the lot is served by an alley) are required for all homes, included ADUs. House numbers are obtained from the Department of Public Works during the plan review process. Maximum Unit Size (Sec. 65.913. (d)) The maximum size of an ADU is measured by total floor area. The maximum floor area for an ADU is 800 square feet or 75% of the floor area of the associated principal dwelling unit (the one-family dwelling), whichever is greater. Floor area does not include basements, unfinished attics, attached garages, or porches. This maximum size is per ADU. If there are multiple ADUs on a lot, the maximum unit size of each ADU is calculated separately. Alley. A dedicated public way not more than 30 feet wide affording a secondary means of access to abutting property and not intended for general traffic circulation. Floor area. The sum of the horizontal areas of each floor of a building, measured from the interior faces of the exterior walls or from the centerline of walls separating 2 buildings. The floor area measurement is exclusive of areas of basements, unfinished attics, attached garages, or space used for off-street parking or loading, breezeways, and enclosed and unenclosed porches, elevator or stair bulkheads and accessory structures. Basement. A portion of a building that is partly below grade and so located that the vertical distance from the average grade to the floor is less than the vertical distance from the average grade to the ceiling (that is, more than half way above ground). This portion of a building is not a completed structure and serves as a substructure or foundation for a building. Maximum Unit Size Examples • Any ADU on a lot with a 2,000 square foot one- family dwelling could be a maximum of 1,500 square feet. 0.75x2,000=1,500 • Any ADU on a lot with a 900 square foot one-family dwelling could be a maximum of 800 square feet. 800 is the maximum because it is greater than 75% of 900 (0.75x900 = 675). - ADU Zoning Standards 20 - Section 2. Learning the Rules 21 - Section 2. Learning the Rules Maximum Building Height Height limits for ADUs are different based on whether the ADU is attached to or detached from the principal one-family dwelling. In general, ADUs can be at least up to two stories tall. Building heights are measured differently based on the roof type and if there is sloping terrain, per the definition of building height. For ADUs that are attached to the principal one-family dwelling, the maximum building height is specified by the zoning district where the property is located. For detached ADUs, the maximum building height is 25’. Properties within designated heritage preservation sites and districts are exempted from this maximum, where appropriate building heights for accessory structures are determined through the design review process to ensure that heights are acceptable and in keeping with the scale and style of development on the property. Maximum height for attached H1 residential district H2 residential district 39’; 35’ ADUs (Sec. 66.231)36’ for flat or shed roofs 25’Maximum height for detached ADUs (Sec. 63.501(d)) 25' 18-23' 18-23' 29-36' 28-33' - ADU Zoning Standards Building height. The vertical distance measured from the established grade to the highest point of the roof surface for flat and shed roofs; to the break line of mansard roofs; and to the average height between eaves and ridge for gable, gambrel, and hip roofs. Where a building is located on sloping terrain, the height may be measured from the average ground level of the grade at the building wall. The existing grade of the property shall not be raised around a new building or foundation in order to comply with the height requirements of this code. When there is a dormer built into the roof, the height is measured to the midpoint of the dormer roof if the dormer(s) roof width exceeds fifty (50) percent or more of the building roof width on the side where the dormer(s) is located. 22 - Section 2. Learning the Rules Minimum Yard Setbacks Minimum yard setbacks establish the minimum distance a building can be from property lines and the minimum front, side, and rear yard depth of a lot. The minimum yard setbacks are different based on whether the ADU is attached to the principal one- family dwelling or detached in an accessory building. SIDE PROPERTY LINE SIDE PROPERTY LINE REAR PROPERTY LINEFRONT PROPERTY LINEMINIMUM SIDE YARD SETBACK MINIMUM SIDE YARD SETBACK MINIMUM REAR YARD SETBACKMINIMUM FRONTYARD SETBACK Principal Building Setback. The distance required to obtain front, side or rear yard open space provisions of this code, measured from the lot line to the above-grade faces of the building. Yards. The open spaces on the same lot with a main building, unoccupied and unobstructed from the ground upward, except as otherwise provided in this Code, and as defined herein: Front yard: An open space extending the full width of the front lot line, the depth of which is the minimum horizontal distance between the front lot line and the nearest above-grade point of the nearest main building. For a corner lot that is not a reversed frontage corner lot, the front yard must adjoin a front yard in an adjoining lot. Rear yard: An open space extending the full width of the lot the depth of which is the minimum horizontal distance between the rear lot line and the nearest above-grade point of the nearest main building. In the case of a corner lot, the rear yard may be opposite either street frontage. Side yard: An open space between a side lot line and the nearest main building, extending from the front yard to the rear yard, the width of which is the horizontal distance from the nearest point of the side lot line to the nearest above-grade point of the nearest main building. Yards, required. The portions of the yard that extend along a lot line and to a depth or width specified in the yard setback requirements for the zoning district. Required front yard: The portion of the yard extending the full width of the front lot line, the depth of which is the minimum front yard setback. Required rear yard: The portion of the yard extending the full width of the rear lot line, the depth of which is the minimum rear yard setback. Required side yard: The portion of the yard extending along a side lot line between the front yard setback line and the rear yard setback line, the depth of which is the minimum side yard setback. - ADU Zoning Standards 22 - Section 2. Learning the Rules 23 - Section 2. Learning the Rules Abut. Having a common boundary or relationship at a common property line, street or alley. Adjoin. Having a common boundary or relationship at a common property line. Corner lot. A lot where the interior angle of two adjacent sides at the intersection of two streets is less than 135 degrees. A lot abutting upon a curved street or streets shall be considered a corner lot for the purposes of this code if the arc is of less radius than 150 feet and the tangents to the curve, at the two points where the lot lines meet the curve or the straight street line, extended, form an interior angle of less than 135 degrees. Interior lot. Any lot other than a corner lot. Lot lines. The lines bounding a lot as defined herein: Front lot line: For an interior lot, the line separating said lot from the street. For a corner lot, the line separating said lot from either street. For a through lot, the line separating said lot from both streets. Rear lot line: The lot line opposite the front lot line. In the case of a lot pointed at the rear, the rear lot line shall be an imaginary line parallel to the front lot line, not less than ten (10) feet long, lying farthest from the front lot line and wholly within the lot. Side lot line: Any lot line other than the front lot line or rear lot line. A side lot line separating a lot from the street is a side street lot line. A side lot line separating a lot from another lot or lots is an interior side lot line. - ADU Zoning Standards Attached ADUs (Sec. 66.231) and detached ADUs that are less than six feet from a principal building are considered part of the principal building for setback purposes and are subject to the setback standards for principal buildings defined by the zoning district. See Minimum Yard Setbacks in the Principal Unit Zoning Standards Section. Detached ADUs (Sec. 63.501(b)) that are at least six feet from a principal building are considered accessory buildings, which are subject to the setback standards for principal buildings defined by the zoning district, with some special exceptions, listed on the following pages. 24 - Section 2. Learning the Rules Minimum Setbacks for Detached ADUs (Sec. 63.501(b)) Like principal buildings in H1 and H2 residential districts, detached ADUs cannot be constructed in a required front yard or required side yard in most cases. This means that detached ADUs must be constructed outside of the minimum front and side yard setbacks, except for certain instances such as adjoining an alley right-of-way or a rear yard. Detached ADUs can be constructed in a required rear yard, as long as they meet the other standards. See table to right and examples on the following page. Minimum setbacks based on where ADU is located and lot features Front ADU in front or side yard: See zoning district's minimum front setback standard ADU with garage in non-required front yard must be set back from the front lot line at least as far as the principal structure Side ADU located in a non-required front or side yard must be set back at least: • 5’ from side street lot lines for a corner lot • 5' from side lot lines that adjoin a side yard or front yard • 3’ from the side lot lines that adjoin a rear yard • 1’ from any alley right-of-way ADU located in rear yard must be set back at least: • 5’ from side street lot lines • 3’ from interior lot lines • 1’ from alley right-of-way Rear ADU must be set back at least: • 3’ from interior lot lines • 1’ from alley right-of-way - ADU Zoning Standards 24 - Section 2. Learning the Rules 25 - Section 2. Learning the Rules Corner Lot Example Interior Lot Example - ADU Zoning Standards Maximum Lot Coverage for All Buildings (Percent of the Lot) (Sec. 66.231) The maximum lot coverage for all buildings establishes the maximum percent of the lot area that all buildings, including principal and accessory buildings, are permitted to cover. The maximum lot coverage for all buildings is specified by the zoning district where the property is located. This number is calculated using all buildings’ footprints divided by the lot area (see above), multiplied by 100. Go back to Section 2. Learning the Rules - Determine your lot area to review how to determine your lot area for the purpose of applying lot coverage. Porches, decks, and other projections may be subject to maximum lot coverage and are regulated by Sec. 63.105 and 63.106. Lot coverage. The part or percent of the lot occupied by the above- grade portion of buildings. Zoning District Maximum lot coverage for all buildings H1 45% H2 50% Lot Coverage Calculation Example Lot area + Area of one-half of the width of the alley = Lot area for purpose of applying lot coverage • 5,200 sq. ft. + 300 sq. ft. = 5,500 sq. ft. [(Principal building footprint + Garage or accessory building footprint) / (lot area for purpose of applying lot coverage)] x 100 = Lot coverage for all buildings • [(810 sq. ft. + 441 sq. ft.) / (5,500 sq. ft.)] x 100 = 22.7% 26 - Section 2. Learning the Rules 810 sq. ft. building footprint 441 sq. ft. building footprint 130' lot depth40' lot width15' alley width - ADU Zoning Standards 26 - Section 2. Learning the Rules 27 - Section 2. Learning the Rules Principal Unit Zoning Standards H1 and H2 Residential Zoning Districts Zoning standards for principal units are slightly different depending on if your property is zoned H1 or H2. Lot Area (Size) (Sec. 66.231) Constructing a new building on your property or a substantial renovation to an existing building will require a signed registered land survey, but estimating the size of your lot is important for ensuring that it meets the size requirements for the total number of principal units that you want to have on your lot. Go back to Section 2. Learning the Rules: Determine your lot area (size) to learn how to estimate the size of your lot. Lot Area Minimum (per Principal Unit) (Sec. 66.231) This standard establishes the lot area required for a certain number of principal units. • H1 Example: 1,500 sq. ft. per unit x 3 principal units = 4,500 sq. ft. lot required for 3 units. It also establishes the number of principal units that are permitted on a lot of a certain size, up to the maximum number of principal units per lot standard. Round down to the nearest whole number. • H1 Example: 6,400 sq. ft. lot / 1,500 sq. ft. per unit = 4 principal units. Maximum Number of Principal Units Per Lot (Sec. 66.231) Establishes the maximum number of principal dwelling units that are permitted on one lot. Principal units on a lot can be in the form of any variety of permitted housing types: one-family dwelling(s), two-family dwelling(s), multiple-family dwelling(s). Zoning District Lot Area Minimum (per principal unit) H1 1,500 sq. ft. H2 1,000 sq. ft. Zoning District Maximum Number of Principal Units Per Lot H1 4 H2 5 - Principal Unit Zoning Standards 28 - Section 2. Learning the Rules Building Height Maximum (Sec. 66.231) Establishes the maximum height for all buildings, except accessory buildings like ADUs and garages. Building heights are measured differently based on the roof type and if there is sloping terrain, per the definition of building height in Sec. 60.203. Heights of accessory buildings with or without a dwelling unit are regulated by Sec. 63.501(d). 18-23'18-23' 29-36'28-33' H1 residential district H2 residential district Maximum building height 35’39’; 36’ for flat or shed roofs Building height. The vertical distance measured from the established grade to the highest point of the roof surface for flat and shed roofs; to the break line of mansard roofs; and to the average height between eaves and ridge for gable, gambrel, and hip roofs. Where a building is located on sloping terrain, the height may be measured from the average ground level of the grade at the building wall. The existing grade of the property shall not be raised around a new building or foundation in order to comply with the height requirements of this code. When there is a dormer built into the roof, the height is measured to the midpoint of the dormer roof if the dormer(s) roof width exceeds fifty (50) percent or more of the building roof width on the side where the dormer(s) is located. - Principal Unit Zoning Standards 28 - Section 2. Learning the Rules 29 - Section 2. Learning the Rules Yard Setbacks Minimum (Sec. 66.231) Establishes the minimum distance principal buildings can be from property lines and the minimum front, side, and rear yard depth of a lot. Porches, decks, and other projections may be subject to setbacks and are regulated by Sec. 63.105 and Sec. 63.106. Zoning Front Side Rear District 10’H1/H2 See Sec. 66.231 (d), 5’ Front Setback Note on next page Setback. The distance required to obtain front, side or rear yard open space provisions of this code, measured from the lot line to the above-grade faces of the building. Yards. The open spaces on the same lot with a main building, unoccupied and unobstructed from the ground upward, except as otherwise provided in this Code, and as defined herein: Front yard: An open space extending the full width of the front lot line, the depth of which is the minimum horizontal distance between the front lot line and the nearest above-grade point of the nearest main building. For a corner lot that is not a reversed frontage corner lot, the front yard must adjoin a front yard in an adjoining lot. Rear yard: An open space extending the full width of the lot the depth of which is the minimum horizontal distance between the rear lot line and the nearest above-grade point of the nearest main building. In the case of a corner lot, the rear yard may be opposite either street frontage. Side yard: An open space between a side lot line and the nearest main building, extending from the front yard to the rear yard, the width of which is the horizontal distance from the nearest point of the side lot line to the nearest above-grade point of the nearest main building. Yards, required. The portions of the yard that extend along a lot line and to a depth or width specified in the yard setback requirements for the zoning district. Required front yard: The portion of the yard extending the full width of the front lot line, the depth of which is the minimum front yard setback. Required rear yard: The portion of the yard extending the full width of the rear lot line, the depth of which is the minimum rear yard setback. Required side yard: The portion of the yard extending along a side lot line between the front yard setback line and the rear yard setback line, the depth of which is the minimum side yard setback. - Principal Unit Zoning Standards 30 - Section 2. Learning the Rules Front Setback Note (Sec. 66.231(d)) The minimum front yard setback is the district standard (see Example 1 on the following page). Exception: Blocks where at least 50% is built up with principal buildings and at least one of the front yard setbacks of the existing principal buildings with front yards that adjoin the front yard of the lot is greater than 15’, then these standards apply: • Where there are existing front yards that adjoin the front yard, the minimum front setback is the midpoint between the district standard setback requirement and the larger of the two adjoining front setbacks. See Example 2 on the following page. • Formula: (District standard minimum front setback + larger of the two adjoining front setbacks) / 2 = Minimum front yard setback • Where only one existing front yard adjoins the front yard of the lot, the minimum front yard setback is the midpoint between the district standard setback requirement and the adjoining front yard setback. • Formula: (District standard minimum front setback + adjoining front setback) / 2 = Minimum front yard setback Zoning District Front Side Rear H1/H2 10’ except when at least one of the front yard setbacks of the existing principal buildings with front yards that adjoins the front yard of the lot is greater than 15’ and the block is at least 50% built up with principal buildings: the midpoint between 10’ and the larger of the two adjoining front setbacks when there are two existing front yards that adjoin the front yard of the lot; the midpoint between 10’ and the adjoining front setback when only one existing front yard adjoins the front yard of the lot. 5’10’ Adjoin. Having a common boundary or relationship at a common property line. - Principal Unit Zoning Standards 30 - Section 2. Learning the Rules 31 - Section 2. Learning the Rules Example 1 Setback is the zoning district standard If adjoining front setbacks are both 15' or less, then the minimum front setback for the new building or addition is 10', the zoning district standard. Example 2 Setback is the midpoint between the district standard and the larger adjoining front setback - Principal Unit Zoning Standards With the larger adjoining setback being 30', the minimum front setback for the new building or addition is 20'. (10' + 30') / 2 = 20'. 32 - Section 2. Learning the Rules Maximum Lot Coverage for All Buildings (Percent of the Lot) (Sec. 66.231) The maximum lot coverage for all buildings establishes the maximum percent of the lot area that all buildings, including principal and accessory buildings, are permitted to cover. The maximum lot coverage for all buildings is specified by the zoning district when the property is located. This number is calculated using all buildings’ footprints divided by the lot area (see above), multiplied by 100. Go back to Section 2. Learning the Rules - Determine your lot area to review how to determine your lot area for the purpose of applying lot coverage. Porches, decks, and other projections may be subject to maximum lot coverage and are regulated by Sec. 63.105 and 63.106. Zoning District Maximum lot coverage for all buildings H1 45% H2 50% Lot coverage. The part or percent of the lot occupied by the above- grade portion of buildings. Lot Coverage Calculation Example Lot area + Area of one-half of the width of the alley = Lot area for purpose of applying lot coverage • 5,200 sq. ft. + 300 sq. ft. = 5,500 sq. ft. [(Principal building footprint + Garage or accessory building footprint) / (lot area for purpose of applying lot coverage)] x 100 = Lot coverage for all buildings • [(810 sq. ft. + 441 sq. ft.) / (5,500 sq. ft.)] x 100 = 22.7% 810 sq. ft. building footprint 441 sq. ft. building footprint 130' lot depth40' lot width15' alley width - Principal Unit Zoning Standards 32 - Section 2. Learning the Rules 33 - Section 2. Learning the Rules Other Applicable Regulations The regulations in this section apply to properties in the H1 and H2 Residential Zoning Districts, in addition to the zoning regulations for ADUs and principal units discussed in the previous sections. Building Design Standards (Sec. 63.110) Entrances (Sec. 63.110(a), (b)) • A primary entrance of principal structures must be located within the front third of the structure; be delineated with elements such as porches, roof overhangs, pent roofs, hooded front doors, recessed entries, landscaping, or similar design features; and have a direct pedestrian connection to the street. • A primary entrance must either: 1) face an improved abutting street; or 2) be located off of a front porch, foyer, courtyard, or similar architectural feature, and set back at least eight (8) feet from the side lot line. Compatibility (Sec. 63.110(b), (e)) • Remodeling, additions or other alterations to the front façade of existing buildings must be done in a manner that is compatible with the original scale, massing, detailing and materials of the original building. Building materials and architectural treatments used on sides of buildings facing an abutting public street should be similar to those used on principal facades. • Windows (Sec. 63.110(c)) • For principal residential buildings, above grade window and door openings must comprise at least 15% of the total area of exterior walls facing a public street or sidewalk and at least 10% of the total area of all exterior walls. • For principal residential building additions of more than 120 sq. ft. in floor area, above grade window and door openings must comprise at least 10% of the wall area, or above grade window and door openings must comprise at least 10% of the total area of all exterior walls of the building. • While garage doors themselves do not count as openings, windows in garage doors do. • Windows must be clear or translucent. Credit: Mark Thieroff 34 - Section 2. Learning the Rules Landscaping (Sec. 63.110(b)) Front yard areas located between the principal building and the street must be landscaped. Stormwater Management (Chapter 52) A proposed land disturbance of greater than ¼ acre (10,890 sq. ft.) that triggers a Site Plan Review (SPR) is required to meet volume control and water quality requirements and the property owner to submit a Stormwater Management Plan (SWMP) to the city for approval. These requirements are not likely to be triggered for adding another unit to a typical residential lot with one unit. See Section 5. Permitting and Approvals - Site Plan Review for more information. However, Minnesota State Plumbing Code 4714.1101 states that "In the case of one- and two- family dwellings, stormwater shall be permitted to be discharged on flat areas, such as lawns, so long as the stormwater shall flow away from the building and away from adjoining property and shall not create a nuisance." Retaining pervious surfaces (material that permits absorption of stormwater into the ground, including grass or planted areas, permeable pavers, or porous asphalt) can cause stormwater to bypass the sewer system entirely, filtering pollutants out of the water naturally as it follows the course of the local ecosystem. Landscaping. Includes plants such as trees, grass and shrubs. Stormwater Management Plan (SWMP). A plan, prepared by the Applicant by or under the direction of a licensed professional engineer, for Stormwater discharge that includes Erosion and Sediment Control measures that, when implemented, will decrease soil erosion on a parcel of land and decrease Off- Site pollution. Land Disturbance. Any activity on property that results in a change or alteration in the existing ground cover (both vegetative and non-vegetative). Land disturbing activities include, but are not limited to: development, redevelopment, demolition, construction, reconstruction, clearing, grading, filling, stockpiling, excavation, and borrow pits. Saint Paul Stormwater Management Design Standards Document 34 - Section 2. Learning the Rules 35 - Section 2. Learning the Rules Parking (Sec. 63.300 and 63.501) You might be considering making changes to how parking on your property is accommodated. This section provides an overview of several key regulations. In general, parking should be accessed from the alley if there is one and for properties without alleys, curb cuts must be minimized. Paving Material and Maximum Lot Coverage for Surface Parking and Driveways (Sec. 63.316) All parking spaces, driveways and off-street parking facilities must be paved with standard or pervious asphalt or concrete, or with brick, concrete or stone pavers, or material comparable to the adjacent street surfacing. The total amount of paving for surface parking spaces and driveways for lots with up to 6 principal dwelling units is limited to: Lots adjoining a public 10% of the lot area alley and corner lots All other lots 15% of the lot area Driveway Standards for Lots With Up to 4 Principal Dwelling Units (Sec. 63.308) Driveways must be minimum of 8 feet in width or driveway pavement may be limited to wheel tracks at least 2 feet wide. Driveways that access a public street in a front yard are limited to a width of 12’, except that driveways may be up to 4' wider than the garage door within 30' of the garage door and a driveway up to 20’ in width is permitted to meet fire access requirements. Parking. The placement of automobiles, trucks, trailers, semitrailers, intermodal cargo containers, or other vehicles for five or fewer days. Parking facility, off-street. All areas, spaces and structures designed, used, required or intended to be used for the parking of more than three motor vehicles. This definition is intended to include adequate driveways, accessways, parking bays, garages, of a combination thereof, but does not include public roads, streets, highways and alleys. Parking space. An area of definite length and width designed for parking of motor vehicles; said area shall be exclusive of drives, aisles or entrances giving access thereto. Parking, structured. Off-street parking that is placed within a ramp, deck, underground, enclosed building, or tuck-under garage. Setbacks and Required Distances from Lot Lines and Alleys (Sec. 63.312) Surface off-street parking spaces are not permitted within a required front or side yard. Surface off-street parking spaces must be a minimum of 4 feet from all lot lines, except that parking spaces using an alley for maneuvering shall be a minimum of 10 feet from the centerline of the alley. 36 - Section 2. Learning the Rules Access to Parking (Sec. 63.501 and 63.308) Access to off-street parking must be from an abutting improved alley when available, except where it is determined in the review of a site plan application by the zoning administrator that there are circumstances unique to the property that make this impractical, unreasonable, or harmful to the public safety; or where maintenance of alley surfaces, erosion control, or protection of water quality may be impaired. For parking facilities of 7 or fewer parking spaces, the spaces may be directly off of the alley and the maneuvering lane may include the alley. On corner lots, access to parking may be from the side street. While off-street parking spaces are not permitted to be located within the front yard, passenger vehicles may be parked on an approved driveway in front or side yards provided the driveway leads to a legal parking space, such as parking in a garage. Entrances and Exits (Sec. 63.310) Adequate entrances and exits to and from a parking facility must be provided by means of clearly defined and limited drives. The number of curb cuts must be minimized, and shared curb cuts for adjacent parking areas on adjacent lots are encouraged, except where it is determined in the review of a site plan that consolidating curb cuts would create or aggravate an unsafe condition. Entrances and exits to and from a parking facility must be at least 30 feet from the point of intersection of curb lines of 2 or more intersecting streets and at least 5 feet from existing or planned boulevard trees. Alley. A dedicated public way not more than 30 feet wide affording a secondary means of access to abutting property and not intended for general traffic circulation. Front yard. An open space extending the full width of the front lot line, the depth of which is the minimum horizontal distance between the front lot line and the nearest above-grade point of the nearest main building. For a corner lot that is not a reversed frontage corner lot, the front yard must adjoin a front yard in an adjoining lot. Required yards. The portions of the yard that extend along a lot line and to a depth or width specified in the yard setback requirements for the zoning district. 36 - Section 2. Learning the Rules 37 - Section 2. Learning the Rules Fire Safety Fire safety and access requirements are regulated by the Minnesota State Fire Code. This section summarize the main points of a few key regulations, but be sure to consult your professional team to ensure your project meets all the applicable requirements. Fire Engineering staff in DSI reviews building plans in conjunction with Building Plan Review staff for life-safety issues like exiting and separation and performs other reviews if the project meets certain thresholds. Fire Access Drive Some property types require an unobstructed space for emergency responders to quickly access buildings with their equipment, known as a fire apparatus access drive or fire access drive. Properties with two or fewer R-3 occupancy buildings, including buildings with one or two units like a single-family dwelling or duplex, do not need a specific fire access drive. The code requires that properties with buildings that contain three or more units or more than two buildings that contain one or two units have a fire access drive to the street. The drive must be 20'-wide, extend from the street to within 150 feet of all sides of the buildings, and be unobstructed by things like parked cars, gates, and doors. However, if all portions of these buildings are within 150’ feet of the public street, then the street counts as the 20’-wide fire access drive. An alley does not count as a fire access drive. Fire-Rated Walls Some property types require special fire-rated walls to control fire spread. For properties with multiple buildings with dwelling unit(s) that are closer than 10' from each other, fire-rated exterior walls are required. For duplexes, triplexes, and townhouse developments, fire-rated interior walls are required between dwelling units and common areas. Automatic Sprinklers Some property types require automatic sprinklers for fire safety. For single-family dwellings, two- family dwellings, two-unit townhouses, automatic sprinklers are not required. For triplexes and fourplexes, automatic sprinklers are sometimes required, depending on design and layout of the building and are required if the building is greater than 4,500 square feet. Automatic sprinklers are required for townhouse developments with three or more units. Minnesota State Fire Code Minnesota State Fire Code webpagewebpage Department of Safety and Inspections Fire Engineering • dsiweb@ci.stpaul.mn.us • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • 651-266-8989 DSI Fire Engineering webpage 38 - Section 2. Learning the Rules Utility Connections It's important to have a general understanding about requirements for connecting your new unit to utilities, like water, sewer, gas, electricity. Depending on your site conditions, locations of utilities, and proposed project, meeting these standards can add up to significant costs. Sewer and Water Sewer and water connection requirements are regulated by the Minnesota Plumbing Code. Specifically, Section 311.1 states that “every building shall have its own independent water and sewer connection except that a group of buildings may be connected to one or more sewer manholes on the premises that are constructed to standards set by the Authority Having Jurisdiction.” Therefore, a new detached ADU or principal unit in a building separate from the existing principal unit on the property would require its own independent water and sewer lines connecting from the new units to the public mains in the street. Generally, a 20' wide "utility corridor" from public mains to the new building is required. Sometimes site conditions, like being landlocked, an inability to trench to the city sanitary, or terrain, result in being unable to connect to city sanitary and water mains. To be permitted to connect utilities through the existing principal unit, the property owner must request an alternate to the Plumbing Code that includes an explanation as to why utilities cannot be installed to the public right-of-way. The request must be from the by the Master Plumber of the business that will be performing the work or a Minnesota-licensed Engineer; approvals are on a case-by-case basis by the DSI Plumbing Section. New attached or internal ADUs and principal units added to the existing building via an addition or conversion, can typically connect to the existing building's sewer and water lines, subject to capacity and size of lines. Installation of submetering for each unit may be required. Minnesota Plumbing Code Minnesota Plumbing Code webpagewebpage Department of Safety and Inspections Plumbing/Gas Section • dsicomplaints@ci.stpaul. mn.us • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • 651-266-8989 DSI Plumbing/Gas webpage 38 - Section 2. Learning the Rules 39 - Section 2. Learning the Rules Electrical and Natural Gas Units attached or internal to the existing building as well as units constructed in new buildings on the lot can typically connect to electrical service through the existing building's service line. New buildings typically require submetering. Depending on the amp service provided to the existing building, it may need to be increased to add new panels and meet the electric service demand, if for example, all services (such as heating and air conditioning, water heating, and electric car charging) are electric. For lots on alleys or with rear electrical line easements, all buildings with dwellings need to be at least 10’ away from the electrical lines/pole locations, which can be more difficult to meet for taller, two-story buildings. Units attached or internal to the existing building can typically connect to natural gas service through the existing building's service line. If the existing line's capacity is sufficient to service a dwelling in a new building, gas service could be extended from the existing building on the lot. Separate submeters may be installed to track usage. If the capacity is insufficient, installing a new gas line or using all electric utilities may be options. Short Term Rentals (Chapter 379) At some point, you might consider establishing your new unit as a short-term rental (STR). An STR is a dwelling unit or portion of a dwelling unit that is rented for less than 30 days and cannot be used for any commercial or social events. All STRs are required to obtain a host license and annual renewal of the license. Demonstrating the Current Fire Certificate of Occupancy is required for non-owner occupied buildings. See Section 7. Move-In and Renting for more information on Fire Certificate of Occupancy requirements. The number of short term rental units permitted depends on the property type. Number of Short Term Dwelling Units Permitted* November 2017 Single family home 1 short term rental dwelling unit permitted Duplex: Non-owner occupied 1 short term rental dwelling unit permitted Duplex: Owner occupied – and owner present 2 short term rental dwelling units permitted Triplex: Non-owner occupied 1 short term rental dwelling unit permitted Triplex: Owner occupied – and owner present 3 short term rental dwelling units permitted Fourplex: Non-owner occupied 2 short term rental dwelling units permitted (1 if located in a RL-RT1 District) Fourplex: Owner occupied – and owner present 4 short term rental dwelling units permitted Six-unit building 3 short term rental dwelling units permitted Eight-unit building 4 short term rental dwelling units permitted Larger apartment/condo building 4 short term rental dwelling units permitted * The number of short term rental dwelling units may exceed 4 if a building owner obtains a conditional use permit for a greater number of units. Number of Short Term Dwelling Units Permitted* November 2017 Single family home 1 short term rental dwelling unit permitted Duplex: Non-owner occupied 1 short term rental dwelling unit permitted Duplex: Owner occupied – and owner present 2 short term rental dwelling units permitted Triplex: Non-owner occupied 1 short term rental dwelling unit permitted Triplex: Owner occupied – and owner present 3 short term rental dwelling units permitted Fourplex: Non-owner occupied 2 short term rental dwelling units permitted (1 if located in a RL-RT1 District) Fourplex: Owner occupied – and owner present 4 short term rental dwelling units permitted Six-unit building 3 short term rental dwelling units permitted Eight-unit building 4 short term rental dwelling units permitted Larger apartment/condo building 4 short term rental dwelling units permitted * The number of short term rental dwelling units may exceed 4 if a building owner obtains a conditional use permit for a greater number of units. Short-term rental. A dwelling unit, or a portion of a dwelling unit, rented for a period of less than 30 days. No more than one rental of a short term rental dwelling unit or portion thereof shall be permitted per day. Use of a short term rental dwelling unit for any commercial or social events is prohibited. Department of Safety and Inspections Short Term Rentals webpage 40 - Section 2. Learning the Rules Modification from the Code - Zoning Variances (Sec. 61.601) Sometimes strict enforcement of the Zoning Code can cause practical difficulties because of circumstances unique to your individual property. If this results in your project being unable to meet a zoning regulation, you may apply for a variance. Zoning variances are exceptions to zoning regulations that are made for a specific case. A major variance is related to a modification allowing the construction of a new one-family dwelling or addition of a second dwelling unit. The Board of Zoning Appeals (BZA) staffed by the Department of Safety and Inspections (DSI) has the authority to grant zoning variances. The Planning Commission, staffed by the Department of Planning and Economic Development (PED), can also grant zoning variances when they are related to another Planning Commission approval, such as a conditional use permit or nonconforming use permit application. The variance process includes notification of property owners within 350 feet of your property and the District Council and a public hearing. The BZA or Planning Commission makes the final decision on whether the variance is granted, based on the required findings. Decisions can be appealed to the City Council. The following required findings must be made for a variance to be granted. As the property owner, your application must demonstrate how the project meets these findings: 1. The variance is in harmony with the general purposes and intent of the zoning code. 2. The variance is consistent with the comprehensive plan. 3. The applicant has established that there are practical difficulties in complying with the provision, that the property owner proposes to use the property in a reasonable manner not permitted by the provision. Economic considerations alone do not constitute practical difficulties. 4. The plight of the landowner is due to circumstances unique to the property not created by the landowner. 5. The variance will not permit any use that is not allowed in the zoning district where the affected land is located. 6. The variance will not alter the essential character of the surrounding area. Variance: A modification of the literal provisions of the zoning code granted when strict enforcement of the zoning code would cause practical difficulties owing to circumstances unique to the individual property on which the variance is granted. Major variance. A modification of a provision regulating any development not specifically included in the definition of minor variance. Major variance includes any modification allowing the construction or moving of a one- family detached dwelling or allowing the addition of a second dwelling unit. Contact Information Zoning Variances webpage DSI Zoning, 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • DSI-ZoningReview@ci.stpaul. mn.us PED Zoning, 1400 City Hall Annex, 25 W 4th St, Saint Paul, MN 55102 • Reserve a timeslot for a virtual meeting Credit: Mark Thieroff 40 - Section 2. Learning the Rules 41 - Section 3. Budgeting and Financing 3. Budgeting and Financing Budgeting and financing are likely one of the most important parts of your project. You will need to balance the design of the new unit with what you can afford, while also considering potential income from renting out the unit. A larger or higher-end unit will likely go for a higher rent, but may result in a larger loan. However, if you would like to rent out the unit at an affordable price, you may need to make some compromises on size or design. Guidance in this section is not comprehensive, nor intended to be financial advice. There may be other financial tools or resources available. The best funding sources will depend on the unique characteristics of each project and indivudual. You are highly encouraged to consult with a trusted financial professional. Number of bedrooms Approximate unit size needed Studio/1 300-750 square feet 2 790-1,100 square feet 42 - Section 3. Budgeting and Financing Estimate project costs You can start with a rough estimation using $250-$400 per square foot, including the cost of construction, which is known as “hard costs” and other costs like design and permit fees, which are known as “soft costs”. The actual number can vary widely and is dependent on many factors like utilities and grading work needed. Hard costs, or the cost of construction of the unit, are typically 85% of your total project budget. Additional costs for the project will be incurred from any relevant permit and/or application fees. Initial estimates are likely to change, and you can’t know the specifics until you talk to your professional project team, which includes professionals like a designer, architect, engineer, and contractor. Higher home equity Lower home equity Higher income Lower income • • • • Cash savings Cash-out refinancing Home equity loan Home equity line of credit (Home equity line of credit (HELOC)) • Cash-out refinance • Home equity loan • HELOC • Minnesota Housing Finance Agency Fix Up Home Improvement Loan Program • • Cash savings Renovation loan • Traditional financing is likely unavailable • Loans from friends or family • Minnesota Housing Finance Agency Fix Up Home Improvement Loan Program Financing Options As with any sort of substantial construction project, financing will most likely play a role in your project. Many homeowners use a combination of sources to finance their new unit, including savings, funds from family, and/or loans. It is strongly recommended that your financing is in place before construction starts, and if you are applying for a loan, secure your financing before you apply for permits. In some cases, the potential rental income you gain from renting the unit out can be factored in since it will help you repay loans. 42 - Section 3. Budgeting and Financing 43 - Section 3. Budgeting and Financing Loans From a Lender If you think you may want to borrow money from a lender, you’ll need to figure out how large a loan you qualify for and feel comfortable with. Lenders usually require equity from your home and enough income to make payments. This section summarize several options for obtaining a loan, but it could be helpful to contact a mortgage broker or a bank early in the process, explain that you are considering adding a housing unit to your property, and ask about loan options. Brokers and lenders are used to getting questions like this and there is no obligation and no cost for an initial conversation. Finding a Broker or Bank If you are going to get a loan, you will be working with a mortgage broker or bank. Like many other aspects of adding a new housing unit to your property, one size does not fit all. It is important to contact different brokers and lenders to figure out what works best for you, depending on your income, home equity, and credit score. Mortgage brokers shop around to find you the best options and are not affiliated with a specific bank or lender. Benefits of choosing a broker to help find a loan is that they work with a variety of lenders and loan providers and are required by law to offer you mortgage products that are in your best interest. They can save borrowers time and effort by finding a variety of potential lenders, some of which you might otherwise not have access to or know about. Minnesota Housing offers a statewide lender directory of lenders that it works with to provide homeownership and home improvement loans. Banks and credit unions provide a variety of loans to finance your ADU by using your home equity. A benefit of choosing a bank to help find a loan, especially if you have an existing relationship with one, is that they may be able to offer you a rate or products that cannot be other by a broker or other banks. To find out more about what banks can provide, start by talking with your current mortgage company or bank. It can also be helpful to contact other banks about what they can offer. Consider local banks and credit unions that may be more familiar with financing options for small homes, ADUs, and small-scale multi-family properties. 44 - Section 3. Budgeting and Financing Loan Types Home Equity The equity in your home is the portion of your home’s value that you own outright. It is calculated by subtracting your current mortgage balance from the value of your home if your home is currently mortgaged, or if your home is paid off, it is the estimated value of your home. Homeowners with sufficient equity in their homes (at least 15-20%) may take out a second loan, known as a home equity loan, home equity installment loan, or HELOAN, or a line of credit, known as a home equity line of credit or HELOC. Lenders are likely to consider the amount of equity you have in your home, your credit score and history, your debt-to-income (DTI) ratio, and your income history. A home equity loan is a one-time installment loan that lets you use the equity you have in your home as collateral. Sometimes called a “second mortgage”, a home equity loan is for a specific amount of your home’s equity. Once you receive the money, you’re expected to start paying it off in a standard loan fashion in monthly installments, based on a set schedule. Typically, you can borrow 80% of the equity in your home and the term could be up to 30 years. Benefits of a home equity loan include a fixed interest rate that may be lower than other types of loans, and a regular monthly payment. A home equity line of credit (HELOC) acts as more of a “credit card” of your home’s equity – you “spend” your home’s equity as you need it during the draw period, which is the timeframe between opening it up until your repayment begins. As you make payments to the outstanding principal balance, your available credit increases. Benefits of a HELOC include a fixed-rate option to lock in a rate for up to 20 years, flexibility to borrow funds as needed over time, a lower rate than personal loans or credit cards, no application fees or closing costs, and that interest may be tax deductible. A home equity loan will be more appropriate if you are aware of and feel confident in the estimated cost of the construction and have the financial flexibility to take more risk in case of overruns. A HELOC will be more appropriate if you are uncertain of cost overrun or your ability to take on additional finances in the case of a specific loan amount being exhausted. Another financing option is a cash-out refinance, which is a type of mortgage refinance that allows you to convert your home equity into cash. You would apply for a new, larger mortgage that pays you the difference between the new and old mortgage amount at closing. Benefits of a cash-out-refinance include that it may be a reasonable option if you would like to change mortgage providers or get a lower interest rate, consolidate the project expenses into an existing home loan, and get cash in hand. Personal Loan Not everyone has lived in their home long enough to tap into equity. If that’s the case for you, consider taking out a personal loan for home improvements that doesn’t require your home or car as collateral. Some lenders will allow to apply for up to $50,000 to $100,000, depending on your credit score and other credit qualifiers. Renovation Loans from a Lender If you are planning to purchase a home and construct a new unit on the property, there are some federal renovation loan programs to finance both the purchase of a home along with renovations through a single mortgage, based on the increased property value after renovation. These programs are also available for those looking to refinance an existing mortgage and make improvements, renovations, or repairs to a property. The Fannie Mae HomeStyle Renovation Loan and the Freddie Mac CHOICERenovation loan allows lenders to sell the loans to Fannie Mae and Freddie Mac, government-sponsored enterprises and called the FHA 203(k) loan is backed by the Federal Housing Administration (FHA). You can’t borrow from the entities directly, but you can find a lender who offers their loan products. Start by calling local banks, credit unions, and mortgage lenders to ask what products they offer, and if they don’t offer what you’re looking for, ask if they can recommend a lender that does. The Fannie Mae HomeStyle Renovation Program offers a conventional mortgage that can be used to purchase a single-family home and construct one “Accessory Dwelling Unit or ADU” or purchasing a duplex, triplex, or fourplex. Fannie Mae defines ADUs a little differently from how the Saint Paul Zoning Code defines them. According to Fannie Mae, the ADU can be added to, created within, or detached from the primary dwelling and must be subordinate in size to the primary dwelling and have separate living facilities and means of access. Whether your new unit is an ADU or principal dwelling unit by Saint Paul's definitions, it could meet Fannie Mae’s ADU standards if it is smaller in size than the principal one-family dwelling and you only intend on constructing one additional unit on the property. Additionally, the loan allows the property owner to add a unit through the conversion of a single-family home into a duplex. Benefits of the HomeStyle loan include that it allows borrowing of up to 75% of the as-completed appraised value of the property, interest rates that may be lower than a home equity line of credit or personal loan. A drawback is that you must qualify for the mortgage without considering any rental income from the ADU. 44 - Section 3. Budgeting and Financing 45 - Section 3. Budgeting and Financing The Freddie Mac CHOICERenovation Mortgage Program offers a conventional mortgage that can be used to purchase a 1-, 2-, or 3-unit property and construct one “Accessory Dwelling Unit or ADU” that is part of the main home or in a detached structure on the property. In Saint Paul, ADUs are only permitted with a single-family home, but a new principal unit could be constructed on 2-, or 3-unit property with this loan if the principal unit meets Freddie Mac’s ADU standards for being subordinate in size to the principal units. Additionally, the loan allows the property owner to add a unit through the conversion of a single-family home into a duplex. Benefits of the ChoiceRenovation loan include that it allows borrowing of up to 75% of the as-completed appraised value of the property, interest rates that may be lower than a home equity line of credit or personal loan, and rental income from the ADU that is paired with a single- family home property can be considered as qualifying income for the mortgage. The FHA 203(k) Rehabilitation Loan Program offers a renovation mortgage insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD) that can be used to purchase and finance renovations on an eligible one- to four-unit property and construct one attached ADU or add a unit to the property by converting the existing dwelling into a multi- unit dwelling. A key requirement is the involvement of an FHA 203k consultant who oversees the entire process, from reviewing the contractor’s estimates to ensuring that the work is completed to FHA standards. While this added oversight provides security and assurance, it also adds complexity and time to the process. Benefits of the 203(k) loan that there is no maximum amount of renovation costs, it may offer more lenient qualifications, such as a lower credit score requirement, than other renovation loans, rates may be lower than an unsecured personal loans or credits cards, up to 75% of rental income from the additional unit can be considered as qualifying income for the mortgage. Minnesota Housing Finance Agency (Minnesota Housing) offers the Fix Up Home Improvement Loan Program through a participating lender. The loan can be used to finance improvements to single-family, duplexes, triplexes, and fourplexes and construction of an ADU. Allowing borrowers earning an income up to $185,700 in 2025 to borrow up to $75,000, the loan requires no down payments and little to no equity in your home required. Fixed interest rates and extended repayment terms of up to 20 years means monthly payments that may fit your budget. Credit: Mark Thieroff 46 - Section 3. Budgeting and Financing 4. Designing Your Unit The design phase usually takes 1-6 months. Most projects take a total of 12-18 months, including construction, but some could extend to 24 months or more, depending on the design features of the unit, site conditions, and meeting other requirements. Before You Start Designing In Section 1. Getting Started, you were asked to think about your goals for building a unit and basic details related to the type of unit (principal unit or ADU, attached or detached), how many bedrooms, and if parking or storage will be incorporated into the unit. It can be helpful to have a clear sense of what you want early in the process, so try to nail down these decisions and have some kind of rough sketch and maybe even inspiration images to make the first meetings with your design team run smoothly. Additionally, make sure you and your design team have reviewed the standards and regulations that apply. See Section 2. Learning the Rules for more details. It can save both time and frustration in design and permitting to have met with City staff first to discuss your property and understand the applicable regulations. Purchasing a Pre-Existing Plan Set Instead of hiring professionals to design a customized housing unit from scratch, another option to consider is purchasing a stock set of pre-existing construction plans. There are many websites that offer professionally-designed plan sets submitted by architects, designers, and builders for purchase. After paying a fee to purchase a license to use the construction plans, you would take them to a local professional such as a contractor or architect who would adjust the plans to suit your property and Saint Paul’s climate and ensure it meets local zoning and building code regulations. Purchasing stock plans and paying a fee for a designer to customize it can provide substantial cost savings compared to fully customized plans from scratch, but tend to work only for stand-alone, detached housing units.Credit: Houseplans.com 46 - Section 3. Budgeting and Financing 47 - Section 4. Designing Your Unit 48 - Section 4. Designing Your Unit Construction Methods There are two methods of construction for constructing your project. Both have pros and cons, so to help you decide, it’s helpful to have ideas about what you want, like the level of customization you want and how the housing unit will work on your property, in addition to basic unit characteristics. Site-Built Site-built buildings are traditionally constructed from scratch on your property. Also called “stick-built”, this construction process starts with constructing a foundation for the new building or addition followed by constructing the building piece-by-piece on top of the foundation. The foundation options are typically a full basement, crawlspace, or slab-on-grade. Site-built construction allows for maximum customization of the unit to accommodate specific design preferences and for minor changes to be made to the design throughout the construction process. Prefabricated/Modular/Manufactured Prefabrication involves constructing building components off-site in a factory, transporting them to your property, and then assembling them on-site. Components could include a fully manufactured home, prefabricated walls, or other pre-engineered, modular building systems. Buildings need to be built to the requirements of the Minnesota Residential Code and Minnesota Building Code for permanent occupation, which includes being affixed to an approved foundation system. Choosing this construction method will allow less unit customization, but it can result in a significantly reduced construction time and lower costs compared to stick-build construction. There are companies that specialize in offering different models of prefabricated homes. Some will provide a “turnkey” service and partner with a builder, who can help with permitting and utility hookups, prepare the site for building, and construct the foundation and unit. Otherwise, you’ll need to hire additional professionals to help. Credit: Mark Thieroff Credit: Second Suite Hiring Professionals Planning for, designing, and building a new housing unit on your property is a complicated feat. Although you can technically construct a new unit on your property as an owner builder, at a minimum, most homeowners hire a licensed architect or designer and a licensed contractor, or a design/build team. Additional professionals, like a land surveyor and engineers may be required based on the characteristics of your property and the type of housing unit you're constructing. These experts can be the key to getting your project approved quickly, managed efficiently, and built cost-effectively. Generally, the cost for design services will be about 10-20% of the total construction budget. Design costs vary with every project depending on the scope of work and the type of services provided, and design professionals use a variety of methods of structuring fees. One method is charging a fixed fee that is determined based on project needs, and if the project takes more less time to complete, the prices do not change. Alternatively, design professionals could change an hourly rate and bill you for their hours and may or may not include a “not to exceed” amount, which is the agreed upon maximum cost for each phase of the project. The contract should identify the total contract amount, start and stop dates, and a payment schedule with details on completed work in exact dollar amounts. You may want to have a lawyer review it to make sure all your concerns are covered before you sign. Architects and Designers These professionals will assess your property’s layout, zoning regulations, and utility connections to create a plan that maximizes space while meeting local requirements. An architect is a design professional licensed by the state that plans, designs, and oversees the construction of buildings. Architects take legal responsibility for their work and provide a range of services, including full-service support from start to finish. Depending on the design, architects are not necessarily required for a new single-family home or ADU, addition, or a two-unit building, but their expertise can be invaluable and can often save you money and stress in the end. A designer tends to have some sort of architectural education, training and/or experience or may be self-taught. Designers are not licensed like architects, and anyone can call themselves a designer. Services provided vary, so be sure to ask about their experience with residential and ADUs. The professional membership association for architecture professionals, the American Institute of Architects (AIA) Minnesota Chapter, maintains a searchable directory of Minnesota architectural firms that you can filter by location, discipline, building type, and more. The National Association of the Remodeling Industry of Minnesota also maintains a business directory of their members, including architects and designers. 48 - Section 4. Designing Your Unit 49 - Section 4. Designing Your Unit 50 - Section 4. Designing Your Unit Contractors Contractors are professionals licensed by the state who specialize in construction. They will work with your architect or designer to finalize plans, budgets, and permits, and then manage the construction once it begins and keep everything on schedule. They also procure project materials when necessary and handle administrative matters like permit applications, scheduling, and inspections. It’s the contractor’s responsibility to obtain bids from the many subcontractors, including plumbers, electricians, roofers, masons, carpenters, and choose the best ones for your project. A license ensures that the company has met the requirements of having a principal of the company pass an exam and having liability and property damage insurance. Homeowners working on their own home are exempted from the contractor license requirement. Typically, a contractor will be hired following the completion of the final construction plans, but your designer may recommend bringing a contractor into the design process as early as possible to save time and money. While it’s your job to select and hire the contractor, your architect/designer can often offer a list of contractors they’ve worked with and would recommend. The Minnesota Department of Labor and Industry also provides a Consumer’s Guide to Hiring a Residential Building Contractor with a lot of helpful information as well as a list of licensed residential contractors. See Section 6. Construction for more information about hiring a contractor. Design-Build Firm A design-build firm is a company that will design your new housing unit, manage the process, and build it. The term is not regulated, but they are often run by a licensed contractor who has architects or designers and builders on staff. You can search for a design-build firm through the AIA Minnesota and National Association of the Remodeling Industry of Minnesota directories. Prefab/Modular Company A prefab/modular company offers preset designs of prefabricated housing units. Some or most of the housing unit is built off-site, then shipped to your property and installed by a contractor on a permanent foundation. A Prefab/modular housing unit can be less expensive than a custom-designed and built unit. Some will provide a “turnkey” service and partner with a builder, who can help with permitting and utility hookups, and can prepare the site for building and construct the foundation and unit. Otherwise, you’ll need to hire additional professionals to help. 50 - Section 4. Designing Your Unit 51 - Section 4. Designing Your Unit Professional Land Surveyor A land surveyor is licensed by the state to evaluate the legal description of your property and related records and performs land surveys which describe, map, and locate land ownership boundaries and corners, features, and improvements of a property. A survey is necessary if you plan to construct a new detached unit or the proposed addition to your home is near the property line. The cost of a property survey depends on many things, but an estimate and time schedule will typically be provided in writing by the land surveyor. To find a professional land surveyor, contact local realtors, lenders, title insurance companies, and attorneys. The Minnesota Society of Professional Surveyors maintains a list of firms that are members of their organization. You can also search “professional land surveyor” online and make sure that they have residential experience. Engineers Engineers are licensed professionals with specialized training in a technical expertise. A civil, structural, mechanical, and/or electrical engineer might be included in the professional project team to ensure compliance with codes and regulations. Civil engineers address issues related to soil stability, drainage, and other environmental factors, while structural engineers are responsible for ensuring the building can safely support loads. Mechanical and electrical engineers focus on the systems within the building, such as electrical, heating, ventilation, and air conditioning. Your architect/designer and contractor or design-build firm will help you determine when engineers should be involved and may be able to provide recommendations. The American Council of Engineering Companies of Minnesota provides a list of companies that provide residential structural engineering services. Plumbing Professionals Depending on the type of housing unit you are considering, you may need to hire a plumbing professional to figure out how the unit will connection to the existing sanitary and water system. Remember that the Minnesota State Plumbing Code require that every building has its own independent water and sewer connection. To be permitted to connect utilities through the principal unit, approval of an alternate to the Plumbing Code is required, which requires help from a Master Plumber of the shop that will be performing the work or a Minnesota-licensed Engineer. 52 - Section 4. Designing Your Unit Creating the Initial Design In Section 1. Getting Started, you considered what you wanted in your new housing unit and maybe even created an informal sketch of the plan for your property. Now’s the time to share what you have in mind, and you will work with your design team to consider size, use, layout, specific project needs (like storage, a garage, porch, etc.), architectural style, and privacy. Design Considerations Although you are designing your new housing unit to work for your current needs, the needs of you and your family will most likely change over time. It may eventually house a parent, grandparent, you in your retirement, or a friend or tenant that has additional needs. It’s a good idea to consider designs now that incorporate universal design, accessibility, and visitability standards that anticipate residents’ and guests’ changing housing needs and are inclusive of all physical and cognitive abilities. Consider features like accessible bathrooms, wider doorways and hallways, no-step entrances, and open floor plans that will help you in the future. Talk with your design team about how to future-proof your new housing unit. Conceptual Drawings In this initial phase, your designer will take measurements of your property and develop a schematic design or concept drawings, of the housing unit, floor plan, and its relationship to the main house and yard, in a site plan. Concept drawings are usually quick and inexpensive and can help you figure out what you want. Things like construction costs and meeting zoning regulations should be discussed at every stage, so if your designer doesn’t bring them up, you should. Consulting with City Staff Once you have an initial design and a site plan, it’s a good idea to discuss it with City staff. Bring your architect or designer and initial design and use this time to ask all your questions. Staff will be able to identify potential issues, additional regulations that need to be met, and necessary zoning applications like variances. A good place to start is through a consultation with Planning staff in the Planning and Economic Development Department (PED) by reserving a timeslot for a virtual meeting. Credit: Mark Thieroff Contact Information 1-6 Unit Housing Development webpage Department of Planning and Economic Development Planning Division • Phone: (651) 266-6700 • Reserve a timeslot for a virtual meeting 52 - Section 4. Designing Your Unit 53 - Section 4. Designing Your Unit The meeting will focus on identifying Zoning Code issues rather than State of Minnesota Building Code issues. Planning and Zoning Staff will help connect you with Department of Safety and Inspections (DSI) Building Plan Review staff who manage the permitting process and review building plans for conformance with state and federal building codes and local ordinances governing construction. Depending on your project, a meeting with Building Plan Review staff prior to submitting any permit applications may be recommended or required. See Section 5. Permitting and Approvals Section for more information. Refining Phase The basic plan for your project will sharpen as your designer refines the design and develops detailed drawings that show accurate room shapes, sizes, and measurements. While these details are being ironed out, it’s important to review to be sure that the spaces will fit your needs. Changes or redesign in later stages of the process may be difficult to make and can be costly, so speak up if you see adjustments that are needed. In addition to fine-tuning dimensions, you’ll start thinking about the materials and room finish materials during this phase. The range of options is virtually unlimited, but your designer will guide you through the selection process, encouraging you to choose materials that not only look good but also durable, budget-friendly, and easy to care for. Final Plans Now that you’ve resolved any lingering issues about your project and approved its design, your designer will prepare construction documents, or final drawings and specifications detailing the requirements for the construction of the project. Not only do the construction documents define the scope of the job, they also give the owner and architect legal control over the construction process. The drawings also become part of the building contract. In most cases, the final scale drawings include a site plan, foundation and footing plans, floor plans, building sections, elevations, larger-scale details of certain aspects of the building, and framing, electrical, and roofing plans. Each drawing is annotated to indicate things like materials and door and window specifications. The construction documents will become the primary means of communication between you and a third party, including the contractor who will supervise the construction of your project. Contact Information DSI Building Information & Applications webpage DSI Building Plan Review Desk • DSI-BuildingPlanReview@ ci.stpaul.mn.us • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • 651-266-9007 54 - Section 5. Permitting and Approvals 5. Permitting and Approvals Once designs are finalized, submitting your permit application and receiving approvals is the next step. A general building permit is required to construct, enlarge, alter, repair, move, demolish, or change the occupancy of residences, garages, carports, decks, and similar structures and gives you legal permission to start construction. That means that a building permit is required for adding a new unit to your property, whether that involve constructing a new building with a unit or adding an addition to or remodeling an existing structure to add a unit. If your property is located in a Heritage Preservation District or Site, approval is required from the Heritage Preservation Commission (HPC) for exterior work or repairs that require a building permit. See Section 1. Getting Started: Other Early Considerations - Historic district rules for more information. Building Plan Review The Department of Safety and Inspections (DSI) Building Plan Review staff coordinates the building permit approval processes and issuance. For projects involving buildings with one or two housing units, you are welcome, but not required, to arrange a meeting with Building Plan Review staff to discuss building permit application requirements. For projects involving new multi-family dwellings with three or more housing units or for a change in use to a multi-family dwelling with three or more units or use that uses the 2020 Minnesota State Building Code, a pre-application meeting with Building Plan Review staff is required. Building Plan Review. Team in the Department of Safety and Inspections (DSI) responsible for coordinating the approval processes for building permit review and issuance and providing these services: • Coordinate the overall approval of plans with appropriate code disciplines (Electrical, HVAC, Zoning, etc.) • Review building plans for conformance with state and federal building codes and local ordinances governing construction • Answer questions about a design relating to code Contact Information • DSI Building Information & Applications webpage DSI Building Plan Review Desk • DSI-BuildingPlanReview@ci.stpaul. mn.us • 651-266-9007 • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • 8 a.m.-4 p.m. Monday through Friday • 9 a.m.-4 p.m. the first Tuesday of every month 54 - Section 5. Permitting and Approvals 55 - Section 5. Permitting and Approvals Permit Process PAULIE is the City's online system for permits, licenses, inspections, and complaints. As a Saint Paul property owner, you can apply for permits and licenses, track applications and inspections, upload documents, make secure payments, and receive timely messages to stay updated on your project status, all in PAULIE. After creating an account, you or your contractor can apply for the applicable building permit, such as: • Residential Accessory Dwelling Unit - Homeowner • Residential Building Accessory Dwelling Unit by Licensed Contractor • DSI Residential Addition - Homeowner • Residential Building Addition by Licensed Contractor • Residential Building New Construction by Licensed Contractor • Residential new construction by homeowner PAULIE will walk you through permit application process step by step and list the required supporting documents. Building permit applications require a project valuation, information about the number of dwelling units and windows, structural dimensions, and setbacks, as well as a site plan, a full set of construction plans, and other documents like statements of work and proof of insurance. When you submit your application, be prepared to pay the processing fee, which varies based on the permit type. PAULIE also allows you to track your pending application, and schedule an inspection, which is most often the contractor's responsibility. In addition to obtaining a general building permit for construction, work on other building systems also require trade permits, available through PAULIE. • Electrical - Electrical Permits and Inspections webpage • Mechanical - Mechanical Permits and Inspections webpage • Plumbing - Plumbing Application, Inspection, and Fees webpage The information in this section is intended as general circumstances and it is advised to contact DSI in specific cases to determine if a permit is required. Contact Information • DSI Building and Construction webpage • PAULIE webpage • dsi-informationandcomplaints@ ci.stpaul.mn.us DSI Call Center • 651-266-8989 • 7:30 a.m.-4:30 p.m. Monday through Friday • Closed 8-9 a.m. the first Tuesday of every month DSI Customer Lobby • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 • 8 a.m.-4 p.m. Monday through Friday • 9 a.m.-4 p.m. the first Tuesday of every month 56 - Section 5. Permitting and Approvals Site Plan Review (Sec. 61.400) Site Plan Review (SPR) is required prior to any permits being issued for projects involving more than three dwelling units, one- and two-family dwelling development on lots of a certain size (larger than 1-2 acres), projects on a slope greater than 12%, and cluster developments, so it's not very likely that adding a unit to your property will trigger the SPR process. The Department of Safety and Inspections (DSI) Site Plan Review staff manages the SPR process and their webpage contains an overview of the process, from preliminary meeting to final approval, and other helpful resources. Once your design team is ready to apply, SPR staff is available for one preliminary, pre-application virtual meeting. Expect to discuss the requirements for submitting a complete SPR application. EMAIL NOTIFICATIONS ACTIONS DETAILS PRELIMINARY REVIEW MEETING • Applicant discusses concept plans with key Site Plan Review Committee members • Potential issues and concerns are identified • Application submitted to DSI • Applicant receives Project Welcome Email SUBMIT SITE PLAN REVIEW APPLICATION • • Staff reviews application and opens an electronic file Applicant can pay application fee in person or online at stpaul.gov/pay-my-bill • Applicant receives Upload Plans Task • Applicant receives Pay My Bill Email SUBMIT PLANS • Applicant uploads full site plan set and required documents online in ProjectDox (civils, landscape, • Applicant notified of any missing items with a architectural elevations, floor plans, survey, etc.) Prescreen Corrections Task • Applicant notified when plans have been accepted for department review REVIEWERS ASSIGNED • Reviewer Coordinator routes plans to Reviewers (City and external agencies) electronically • Applicant notified of Site Plan Review staff assigned SITE PLAN REVIEW MEETING • Discussion with development team and Site Plan Review Committee CONDITIONAL APPROVAL GRANTED • Plans returned to the applicant with Reviewer comments and plan markups • Applicant notified if Conditional Approval is granted • Applicant receives Corrections Task SITE PLANS UPDATED • Applicant responds to Reviewer comments in ProjectDox • Applicant uploads updated plans and required documents REPEAT IF NECESSARY UPDATED PLANS REVIEWED • Reviewers provide updated comments and/or sign off on plans FINAL APPROVAL GRANTED • • Final Site Plan stamped for Building Permits Subject to Appeal • Applicant receives invoice for any outstanding fees OUTSTANDING FEES PAID • Fees can be paid in person at DSI or online at stpaul.gov/pay-my-bill • Applicant receives link to stamped plans for download after fees are paid STAMPED PLANS AVAIL. FOR DOWNLOAD 04/07/2020 Site Plan Review process Contact Information Site Plan Review webpage • SitePlanReview@ci.stpaul.mn.us • 651-266-9008 • DSI Zoning, 375 Jackson Street, Suite 220, Saint Paul, MN 55101 56 - Section 5. Permitting and Approvals 57 - Section 6. Construction 6. Construction The design phase usually takes 1-6 months. Most projects take a total of 12-18 months, including construction, but some could extend to 24 months of more, depending on the design features of the unit and site conditions. Hiring a Contractor If you are not being your own contractor or using a design/build firm, you will need to hire a contractor for the construction phase of your project. They will not only complete skilled construction work, but also manage the construction process, like hiring subcontractors, coordinating construction and inspections, and troubleshooting delays and changes. Start with getting bids for your construction drawings. Ask your architect/ designer and community for contractor recommendations and make a list of candidates. It’s great if they have experience with ADUs or additions that add a housing unit, but it’s not necessary. Be specific about what is and is not included in the bid, and ask for their license, insurance information, references, work examples, and a proposed schedule. You can verify their license by contacting the Minnesota Department of Labor and Industry or searching in their license management system. You can verify insurance by requesting a certification of insurance or by calling their insurance agent. Make sure workers’ compensation, property damage, and liability are included. It’s recommended that you get at least three bids for a comparison. Don’t be shy in asking clarifying questions to understand all the details of the bid. Your designer/architect may also be able to help you compare bids and select your contractor. Minnesota Department of Labor and Industry License and Registration Lookup 58 - Section 6. Construction Generally, there is a trade-off between experience and cost; less expensive contractors may have less experience, while those with more experience tend to charge more. Check their references and ask to see photographs of their past projects. Consider their communication style, if you think you’ll work well together, and whether they understand your goals. The Contract Your contractor should present you with a contract to formalize your agreement. Review the agreement carefully to make sure understand it and agree with all the terms. In additions to outlining basics like costs and schedule, contract should be specific and detailed and include lists of materials, subcontractors, suppliers, permits to be obtained, and state law also requires licensed contractors to include performance standards and information about the state’s statutory warranty (Minnesota Statutes Chapter 327A) in their written contracts. Additionally, make sure that it is clear how added work will be handled and what additional budget you might have to respond to needed changes. If you are unsure about any terms, you can always contact an attorney to review it before you sign. The Minnesota Department of Labor and Industry also provides a Consumer’s Guide to Hiring a Residential Building Contractor with a lot of helpful information as well as a list of licensed residential contractors. The payment schedule should be a dated plan that shows when you will make payments based on construction completion milestones. For example, you might pay 20% after the building enclosure is complete and 25% once the exterior finish carpentry is complete, and it’s a good practice to withhold 10% of the total project cost until all work and inspections are completed. In Minnesota, there’s no set legal limit for contractors to ask for up front, but a modest deposit of 10% to 15% is common, and contractors should never ask for more than 50% up front. Things to include in Contractor's Contract • Contractor’s license number, name, and address • Total project cost and schedule of payments • Start date, timeline, and completion dates • List of work to be accomplished • Materials to be used, including brands, colors, styles, and model numbers when possible, and material suppliers • Building permits • Work to be subcontracted to other professionals (such as plumbing or electrical) • Change order clause stating that the contract cannot be modified without written consent of both parties • Holdback clause that allows witholding payment until sometime after the job is completed, allowing time for the homeowner to inspect the job • Plan for cleanup and removal of material and debris and protecting property and landscaping Source: A consumer's guide to Hiring a Residential Building Contractor, Minnesota Department of Labor and Industry 58 - Section 6. Construction 59 - Section 6. Construction Monitoring Construction Once your contract is signed, your contractor will start work according to the schedule you agreed upon. While your contractor will lead the construction process, as the property owner and client, you also have responsibilities: • Communication – Keep in touch with your contractor and schedule regular check-ins on a weekly basis • Monitoring – Regularly walk through the construction area to monitor the quality of the work and make sure the work is progressing the way you expect. • Decision making – Be prepared to make decision about the details like light fixtures, appliances, and other materials and finishes, in a timely manner so your contractor can stay on schedule. • Adjustments – When unforeseen circumstances arise (like impacts related to the availability of materials, regulatory changes, or design modifications), a change order or amendment to the existing contract that modifies the original terms, would be required. It can be initiated by any part involved in the construction project, including the owner, general contractor, design team, or subcontractors, and all project stakeholders must approve the proposed changes. • Inspections – Although you contractor will usually arrange the required inspections, it is your responsibility as the property owner to make sure that the inspections are conducted as required at each stage of the construction process. Traditional construction will take 6-12 months, though this varies heavily depending on your project design, property, and other issues like utilities. Any changes to the original agreement should be reflected in a change order form that is signed both you and the contractor that describes the specific change and any corresponding adjustment to the price or timeline. Be aware that some changes, such as changes to the size or height of the structure, may require City review. For an additional fee, your designer may stay on board to consult on last-minute substitutions that might arise. Your contractor may have questions and can also suggest construction cost savings related to the design. Construction Stages Site preparation: 1-2 months Foundation: 1 month Walls, roof, doors: 1-2 months Plumbing and electrical: 1-2 months Insulation and drywall: ½-1 month Fixtures and finishes: 1-2 months Final touches: ½-2 months 60 - Section 6. Construction Inspection Process During construction, your housing unit and systems will be inspected several times to ensure it is being built according to requirements. For example, the Building Inspector might inspect the construction of your unit when the footings are placed and when the building is framed. The Department of Safety and Inspections (DSI) inspectors are assigned to different parts of Saint Paul. The permits issued by the City include inspector information, including how to set up inspections. Additionally, this interactive map allows you to search for your property and find the assigned Building, Electrical, Residential Fire Safety, Mechanical, Plumbing, and Warm Air Inspectors. Once all work and inspections are complete and approved, the City Building Official will issue a Certificate of Occupancy (C of O or CO), which indicates that the structure that meets all requirements and is habitable. A C of O cannot be issued for structures with open permits. Certificate of occupancy. A document issued by the city building official under the authority of both state and city building codes indicating a newly constructed or substantially rehabilitated structure is, at the time of inspection, code compliant, habitable and otherwise meets all requirements for its intended use. DSI Inspection Information PAULIE webpage DSI Construction Inspectors Interactive Map • dsicomplaints@ci.stpaul.mn.us • DSI Main Office/Permit Desk: 651-266-8989 • Building Inspectors' Office: 651- 266-9002 • Fax: 651-266-9099 • 375 Jackson Street, Suite 220, Saint Paul, MN 55101 7. Move-In and Renting Once construction and final inspections area complete, now it’s time for someone to move in. This could be you, a family member, a friend, or a tenant. There are many benefits to having someone else on the property, like added security and eyes on your property, additional income, sharing tasks and maintenance, but there are also many responsibilities. Learning about housing laws, finding and managing a tenant, and properly maintaining the new housing unit and property helps to ensure a successful experience. Understanding Rental Laws You will need to understand the laws related to being a landlord. For an overview of Minnesota laws, the Office of the Minnesota Attorney General offers a comprehensive Landlords and Tenants Handbook on housing law and codes, rental lease agreements and much more. First-time landlords are encouraged to participate in the Landlords 101 class offered by the City's Department of Safety and Inspections. Landlords 101 is designed to provide a strong foundation for property management skills in addition to being a great refresher course in tenant-landlord relationships and responsibilities for seasoned landlords. Fire Certificate of Occupancy Program A Fire Certificate of Occupancy (Fire C of O or CO) is a document issued by the City's Department of Safety and Inspections - Fire Safety Inspection Division that indicates that a building complies with all state and local safety codes and is habitable and suitable for how it is being used. The City of Saint Paul requires that all buildings, with the exception of owner-occupied single-family homes and owner-occupied duplexes, to have and maintain a Fire C of O before occupants move in. That means if you are renting out a single-family home, ADU, or duplex and do not live in the building, you are required to register in the program. First- time applicants must complete the Landlord 101 class or a similar course. Fire certificate of occupancy. A document or emblem issued by the department of safety and inspections indicating the existing structure complies with all state and local safety codes allowing its use as a commercial building or for residential occupancy. Buildings and dwellings cannot be occupied or used without a fire certificate of occupancy. Contact Information Residential Fire C of O webpage Landlord 101 webpage DSI Fire Safety Inspection Division • 75 Jackson Street, Suite 220, Saint Paul, MN 55101 • DSI Code Enforcement Help Desk: dsicomplaints@ci.stpaul.mn.us, 651-266- 8989 • DSI Landlord 101, DSI-Landlord101@ ci.stpaul.mn.us, 651-266-8988 60 - Section 6. Construction 61 - Section 7. Move-In and Renting 62 - Section 7. Move-In and Renting Obtaining a C of O involves an application, fees, and inspections. After each inspection, your property is assigned a letter grade (A-D) that corresponds to the number of years (1-6) before the next inspection is required. It's recommended that you conduct a pre-inspection of your property for common maintenance issues and review the Guide to Residential Property Maintenance with preventative maintenance solutions. It's important to know that you can improve your grade on your next scheduled inspection if there are fewer or no violations found. A better score means fewer inspections and fewer fees. Setting the Rent Maximizing the rent you receive as a landlord is often not the only consideration, as setting a fair rent a bit under market rate will help you attract and keep good tenants. Consider pricing your unit's rent so it is affordable for the local workforce and families who may not be able to afford high rents. Housing is considered affordable if a household is paying less than one third of their income on their rent. If you financed your construction with a loan, consider the loan length, interest rate, and reserve funds you might need to cover repairs or upgrades in the future. The Rent Stabilization Ordinance aims to address a shortage of affordable rental housing in Saint Paul and ensure all residents have access to affordable housing. The Ordinance limits residential rent increases to no more than 3% in a 12-month period. However, this limitation on rent increases does not apply to newly constructed residential rental properties that were issued their first building certificate of occupancy after December 31, 2004. Leasing your Unit Typical methods for advertising rentals include posting a description of your unit to a rental listing website like Craigslist, Zillow, or Apartments.com. Many people also post to social media platforms like Facebook or Nextdoor, where local community members may have created a group page for people looking for housing in your area. Along with word of mouth or posting your rental online, you can also contact nearby schools, faith communities, or other similar locations to see if any teachers, staff, or community members are looking for housing. Top 10 Residential Code Violations • Carbon Monoxide alarm or smoke alarm missing or in an incorrect location • Egress windows blocked by furniture • Sleeping in the basement without an egress window • Storage too close to water heater or furnace • Improperly vented dryer • Address missing on garage • Peeling paint in the bathroom • Improper handrail • Use of multi-plug adapters • Improper use of extension cords Source: DSI Owners Guide for Improving Residential Fire Inspection Grades 62 - Section 7. Move-In and Renting 63 - Section 7. Move-In and Renting According to Minnesota law, when the owner of a home agrees to give to someone else the temporary use of that place in exchange for money or services then the two have entered into a legally binding rental contract called a “lease.” You will need to create a lease that clearly identifies the rules and expectations for you and the future tenant. Even if you are renting to a friend or family member, creating a lease or rental agreement can help to avoid possible confusion or conflict. Sample agreements can be found online. Many landlords will “screen” prospective tenants that apply for rental unit and charge a fee to do so. Once you select a tenant, you should collect the first month’s rent and the security deposit when the lease is signed. The City of Saint Paul requires that a security deposit not exceed a single month’s rent. Minnesota Statutes section 504B.178 provides requirements related to processing, retention, and returning of security deposits. The Office of the Minnesota Attorney General's Landlords and Tenants handbook provides an overview of the laws related to tenant screening, rental applications, and security deposits, and describes some terms that are in typical leases. In 2026, the City of Saint Paul will implement additional requirements. Managing Your Rental Minnesota law requires landlords keep units fit to live in, in good repair, and free of health and safety hazards. Regardless, it is best practice to keep your unit well-maintained and keep your tenant happy. Except in case of an emergency, you will need to give tenants 24 hours’ notice before you or any maintenance workers can enter. Think about a long-term plan for the care and upkeep of your unit, how to split shared responsibilities like snow removal and lawn care, and how to address any issues that might occur with your tenant. Generally, if your tenant has signed a lease, you cannot increase the rent during the lease term. When the lease expires, you can change the rent as you see fit. While Saint Paul's limitation on rent increases does not apply to newly constructed residential rental properties after 2004, consider maintaining a rent that helps to attract and keep good tenants. Hopefully you and tenants will not have problems, but if problems do arise that cannot be resolved, you will need to consider eviction. State law mandates a judicial eviction process, which is best handled by an attorney. Minnesota Attorney General Landlords and Tenants Rights and Responsibilities Handbook Department of Safety and Inspections Renting Property webpage Office of Financial Empowerment Fair Housing webpage City of Saint Paul Rent Stabilization Ordinance webpage Home + home Twin Cities ADU Guidebook ADU: ACCESSORY DWELLING UNIT FOR HOMEOWNERS PHOTO CREDIT Jill Greer photography 1 Contents INTRODUCTION ..........................................................................2 How to Use this Guidebook ..................................................................4 What is an Accessory Dwelling Unit (ADU)? ...........................................4 Frequently Asked Questions .................................................................9 GET INSPIRED: WHY BUILD AN ADU? ...................................10 ADU Stories .....................................................................................12 Case Studies .....................................................................................14 GET EDUCATED: HOW TO BUILD AN ADU .........................24 1. Research .......................................................................................28 2. Design Ideas ..................................................................................32 3. Team Selection ..............................................................................34 4. Finances .......................................................................................36 5. Permits .........................................................................................38 6. Construction .................................................................................40 7. Move-In ........................................................................................42 REFERENCES .................................................................................44 Additional Resources .........................................................................44 Twin Cities Planning Departments Contact Information ........................45 Acknowledgements ...........................................................................46 2 Introduction 3 Introduction In this section you will… • Learn how to use this guidebook. • Learn what an ADU is. • Discover the different types of ADUs. • Find answers to common questions. Home + home: Are you interested in building an Accessory Dwelling Unit (ADU) and creating another home in your little corner of the world? ADUs have existed historically throughout the Twin Cities, providing important space to rent out for extra income or to meet other household needs. As the metropolitan region grows and changes, homeowners and city planners alike are rediscovering the benefits of ADUs and the role they play in meeting our housing needs. Still, a homeowner thinking about building an ADU can be uncertain about where to start. This guidebook can help make your ADU dreams a reality. 4 How to Use this Guidebook This guidebook is organized in two sections: A. GET INSPIRED. Learn about the benefits of ADUs and see the ADU experiences of real Twin Cities families. B. HOW TO BUILD AN ADU. Learn the basics of ADU development, from start to finish. This guidebook is a resource to help you get started, but it cannot replace the knowledge and experience of local designers, builders and planners. The size and shape of your property, the rules of the city you live in, your budget and your own design needs and preferences will make your ADU-building experience unique. What is an Accessory Dwelling Unit? An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. ADUs are known by many names: carriage or coach houses, accessory apartments, garden apartments, mother-in-law suites, granny flats, backyard cottages and secondary dwelling units. Whatever it is called, an ADU is smaller than the primary or main house on the same lot. An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. PHOTO CREDIT Jill Greer photography 5 Carriage Houses Backyard Cottages Accessory Apartments Granny Flats Garden Apartments Secondary Dwelling Units Mother-in-law suites An ADU is a self-contained residential unit with its own living room, kitchen and bathroom. ADUs ARE ALSO KNOWN AS: PHOTO CREDIT Jill Greer photography 6 A historic form of housing Although there is a recent resurgence of interest in ADUs, they are actually a historic form of housing that was common in the Twin Cities before World War II. For example, in the Frogtown neighborhood of St. Paul, new immigrants would commonly build an alley house in the back of their lot while saving to build a larger home in the front (McClure 2018). Many carriage houses (living quarters located above garages) were built alongside larger homes and are still used for housing today. Some modest single-family homes included attic or basement apartments that helped to house larger city populations in the early- and mid-20th century. How are ADUs different from duplexes? While they share some similarities, ADUs are generally differentiated from duplexes (two-family houses) in their size, construction timing and use. City building and zoning laws often treat the two housing forms differently. • An ADU is smaller than the main home. Units in duplexes are usually about the same size. • Duplexes are usually in the same building, but ADUs can be located within, attached to or detached from the main home. • Duplexes are usually built as one construction process; ADUs are often built after the main home is completed. • ADUs are designed as flexible housing and can generate rental income, house multigenerational families or serve other uses. Could a tiny house be an ADU? Most tiny houses on the market are set on trailers and have wheels. These are categorized as Recreational Vehicles (RVs) and are usually not allowed as a permanent living space. However, if a tiny house meets residential building standards, is placed on a permanent foundation and is connected to utilities, it could be considered an ADU. Ask your city’s building department to learn more. 1 Jane McClure, “Alley House,” Saint Paul Historical, accessed August 9, 2018 Coach house at Minnesota Governor’s Residence. PHOTO CREDIT Minnesota Department of Administration 7 Is the usable space above my garage, in my basement, or in my attic an ADU? If the space has a living area, a kitchen, a bathroom and its own entrance, it may be an ADU. ADUs must also meet certain residential building code requirements, so check with your local planning office. See also Legalizing an Existing ADU on page 38. Is a granny pod an ADU? In 2016, the Minnesota Legislature approved a definition of “Temporary Family Health Care Dwellings,” the backyard dwellings sometimes called “granny pods.” The statute defines them as mobile residential dwellings or providing care for a mentally or physically impaired family member. Most Minnesota cities do not allow these temporary care dwellings, and they are treated differently from ADUs in local code (Bekker 2016). Types of ADUs There are three basic types of ADUs: Internal Attached Detached ADUs are located within the structure of the main house, for example, a converted basement or attic. These are generally the least expensive to build. ADUs share one or more walls with the primary house. These ADUs are commonly constructed as additions or conversions of attached garages. ADUs are the most visible type of ADU. They are typically the most expensive to build and include freestanding backyard structures, detached garage conversions, same-level additions to a detached garage or above-garage units. 8 What type of ADU works best for you? As you go through this guidebook, return to this question and consider which type of ADU best fits your goals and budget. Local regulations may limit which type you can build. 9 FREQUENTLY ASKED QUESTIONS Am I allowed to build an ADU? How do I legalize an existing ADU? How do I pay for it? How long does it take? How do I get started? How do I find an architect and contractor? How do I become a landlord? Where can I learn more? 28 38 36 26 28 34 42 44 10 GET INSPIRED: ADU Stories PHOTO CREDIT Jill Greer photography (both pages) 11 In this section you will… • Learn about the benefits of ADUs. • Read the stories of other local homeowners who have built them. Benefits of ADUs Building an ADU offers many benefits for you and your neighborhood. ADUs are flexible and can serve many purposes over time. While every home’s story is unique, here a few examples. ADU Stories ADU Benefits EXPANDING HOUSING OPTIONS An ADU can have a positive effect on your community. ADUs provide more housing options in neighborhoods that are already built out, which can help relieve the growing demand for housing in a way that does not alter the character of existing neighborhoods. HOUSING FRIENDS, FAMILY AND CAREGIVERS ADUs can provide important independent living space for friends, family members and caregivers. Many homeowners are motivated to build their ADU to provide a combination of in-home care and independent living for a family member. The cost of ADU construction and maintenance may be comparable or less expensive than some assisted- living or skilled-nursing facilities, with the added benefit of keeping a loved one close by. AGING IN PLACE AND DOWNSIZING Some people move into the ADU while their adult children move into the main house, or they rent out the main house for extra revenue in retirement. EARNINGINCOME Depending on the circumstances, rental income may make it possible to cover the cost of monthly loan payments and, over a number of years, pay back the initial cost of the ADU’s construction. Even when financial returns are not a primary motivation, earning rental income might make it possible to work part-time, stay home with a child or save for a major expense. REDUCING ENVIRONMENTAL IMPACTS ADUs tend to be environmentally-friendly simply because they are smaller and use less energy for heating, cooling and light (Stephan and Crawford 2016). Energy-saving designs can be incorporated into an ADU, further lowering its environmental impact. ADUs may help reduce transportation-related environmental impacts when they are located near employment centers and established public transit routes. A 2014 study found that ADU residents in Portland were less likely than other residents to own cars (Brown and Palmeri 2014). 12 ADU Benefits EXPANDING HOUSING OPTIONS An ADU can have a positive effect on your community. ADUs provide more housing options in neighborhoods that are already built out, which can help relieve the growing demand for housing in a way that does not alter the character of existing neighborhoods. HOUSING FRIENDS, FAMILY AND CAREGIVERS ADUs can provide important independent living space for friends, family members and caregivers. Many homeowners are motivated to build their ADU to provide a combination of in-home care and independent living for a family member. The cost of ADU construction and maintenance may be comparable or less expensive than some assisted- living or skilled-nursing facilities, with the added benefit of keeping a loved one close by. AGING IN PLACE AND DOWNSIZING Some people move into the ADU while their adult children move into the main house, or they rent out the main house for extra revenue in retirement. EARNINGINCOME Depending on the circumstances, rental income may make it possible to cover the cost of monthly loan payments and, over a number of years, pay back the initial cost of the ADU’s construction. Even when financial returns are not a primary motivation, earning rental income might make it possible to work part-time, stay home with a child or save for a major expense. REDUCING ENVIRONMENTAL IMPACTS ADUs tend to be environmentally-friendly simply because they are smaller and use less energy for heating, cooling and light (Stephan and Crawford 2016). Energy-saving designs can be incorporated into an ADU, further lowering its environmental impact. ADUs may help reduce transportation-related environmental impacts when they are located near employment centers and established public transit routes. A 2014 study found that ADU residents in Portland were less likely than other residents to own cars (Brown and Palmeri 2014). 13 14 The old garage in Megan and Rob’s backyard had seen better days. With no need for enclosed parking, they were hoping to put it to better use. Inspired by the tiny-house movement, Megan and Rob started looking into the possibility of building a detached backyard ADU on their roughly 5,000-square-foot lot. Not only could an ADU replace their old garage, but it could add a needed home in the popular Kingfield neighborhood. An ADU could generate rental income or give the homeowners the option to downsize. Megan and Rob had many questions at the beginning, including what information they would need to get started. After doing some research online and sketching out a few layout ideas for the ADU, Megan and Rob scheduled a pre-application meeting with Minneapolis city planning staff. This free service allows city residents to ask planning staff questions and learn about applicable regulations and the permitting process. After going over the general permitting process, planning staff members answered some of Megan and Rob’s questions about their specific property, helping them think through how height limits and parking requirements would apply to their project. With this initial information in hand, Megan and Rob are starting to save for their project and preparing to take the next steps toward their ADU. TYPE Detached STATUS Early planning SIZE TBD BEDROOMS TBD BUDGET TBD CASE STUDY ADU Under Consideration Getting Started The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. 15 20' 40' 11' 11'14'DECK HOUSE STREET DRIVEWAY1,456 sq ft 138'8'8" 4' ADU Not only could an ADU replace their old garage, but it could add a needed home in the popular Kingfield neighborhood. An ADU could generate rental income or give the homeowners the option to downsize. 16 TYPE Interior, basement STATUS Under construction SIZE 702 sq. ft. BEDROOMS 2 BUDGET $80,000 CASE STUDY DIY ADU The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Mike started his ADU journey when his father, Dallas, decided to downsize and sell his home in St. Paul. Mike researched multigenerational living options and decided to build an internal ADU by converting the basement in his south Minneapolis home into an apartment for Dallas. Mike took on the work of being the designer and general contractor for the ADU. He used software to model the design and then drafted plans to submit for the city permit application. Mike’s design features a spacious two-bedroom unit with lots of natural light. This arrangement will allow Mike and Dallas to stay close while maintaining their own personal space. After a few rounds of revisions, Mike’s plans were approved and, with building permit in hand, he quickly got started on construction. Mike hired subcontractors to help with specialized work but did most of the project himself. Dallas and Mike’s brother have pitched in, too. While self-managing the project has extended the timeline, it has also saved money, and the new ADU is starting to take shape. Once completed, their DIY ADU will serve as a place for Mike and Dallas to call home for years to come. Dallas says, “We’ve always been close, but working on this project has brought us even closer together.” BR BA BRLR/KIT 17 “ We’ve always been close, but working on this project has brought us even closer together.” 18 TYPE Detached, above garage STATUS Complete SIZE 528 sq. ft. BEDROOMS Studio BUDGET $225,000 BUILDER White Crane Construction CASE STUDY A Dream to Downsize The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Cate and Jason loved their neighborhood near Minnehaha Creek in Minneapolis but yearned to downsize when their kids left for college. They initially planned to sell their home and move, but then they came up with a better solution: building a new unit in the backyard that they could live in while renting out their main house. After looking into various options, including prefabricated modular designs, Cate and Jason decided to pursue a traditional site-built ADU above a two-car garage. Cate and Jason hired a design-build firm that took them through the process from initial design to city permitting and construction. They learned that they would have to tear down their existing garage and build a new structure with frost footings in order to meet the building code. Still, they were able to cut costs by reusing their old garage door and performing some work themselves, such as ordering the appliances and painting the interior. The completed ADU, sitting in a shaded backyard, features an open layout with new appliances and an in-unit washer and dryer. Cate and Jason plan to rent it for a few years until they are ready to move in and fulfill their dream of downsizing. 19 Curious about the difference between prefabricated and traditional construction? See page 32. BA STUDIO PHOTO CREDIT Jill Greer photography (all photos on this spread) 20 TYPE Attached STATUS Complete SIZE 540 sq. ft. BEDROOMS 1 BUDGET $40,000 part of total development cost CASE STUDY ADU in the Family The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. Fue Lee’s family had always envisioned multigenerational living when they were on the hunt for their first house. Working with the City of Lakes Community Land Trust (CLCLT), the Lee family had the opportunity to buy one of the very first homes in Minneapolis developed with an attached ADU. The brand new home they purchased in the Lind- Bohanon neighborhood has the perfect layout for their close-knit family. Fue and two of his adult siblings live in the main house. His parents have their own private space in the first-floor ADU. The house is designed for flexibility. While the Lees have no plans to move, any family that buys the house in the future could choose to rent out the attached unit for extra income. Responding to demand from its members, the nonprofit CLCLT has recently built two more multigenerational homes with ADUs. Thanks to the community land trust model, all of these homes will remain affordable for future generations of new homebuyers. 21 Thanks to the community land trust model, all of these homes will remain affordable for future generations of new homebuyers. SECOND FLOOR PLAN FIRST FLOOR PLAN 1 LIVING 2 KITCHEN 3 DINING 4 HALL 5 BEDROOM 6 ACCESSORY DWELLING UNIT 7 PORCH 8 LAUNDRY/ MUDROOM 5 4 5 5 7 1 4 2 3 8 5 6 7 CREDIT Marnie Peichel Architecture and Design, LLC 22 TYPE Detached, above garage STATUS Complete SIZE 624 sq. ft. BEDROOMS 1 BUDGET $125,000 CASE STUDY Flexible for the Future The case studies that follow profile real Twin Cities residents at different points along their ADU journeys—from initial planning and visioning, to construction, to completion. When Eric & Chrissi purchased their home near a Green Line station in the Hamline-Midway neighborhood of St. Paul, they knew from the start that the house’s detached garage didn’t meet their needs. As they made plans to replace it, they heard from a friend about a new ordinance that gave them the option to build an ADU. Eric and Chrissi started to envision all the ways an ADU could benefit them in the future and met with a designer to develop a plan for a one- bedroom unit above a new two-car garage. Eric and Chrissi liked the idea of having a flexible space to support more community-oriented living while still maintaining the privacy of their main home. Their ADU could be a place to host friends and family, and it could potentially generate rental revenue that would make it possible for one of them to stay home with a future child. With experience in home remodeling, Eric decided to become the general contractor for the project. He worked full-time for six to seven months to complete the construction of the ADU, hiring subcontractors for electrical and plumbing work. Chrissi led the interior design work, and friends and family members also helped. Eric is pleased with the solution they arrived at for connecting water and sewer lines from the ADU to the main lines in the street. Instead of the traditional method of digging an open trench, the lines were installed through an underground, lateral drilling process that preserved more of their existing landscaping and was about one-third less expensive than trenching. Eric and Chrissi also designed the ADU for energy efficiency and for compatibility with photovoltaic panels, so that it can run mostly on solar energy. Now that the ADU is complete, Eric and Chrissi’s friends and family tell them it does not look at all like what they imagined as a “garage apartment”—the unit is spacious and feels like a home. Eric and Chrissi rent their bright, modern ADU at an affordable price to a student at a nearby university. BA BR DECK LR/KIT 23 Eric and Chrissi’s friends and family tell them it does not look at all like what they imagined as a “garage apartment”—the unit is spacious and feels like a home. 24 GET EDUCATED: How to Build an ADU 25 In this section you will… • Learn the basics of ADU development, from start to finish.Inspired? The following pages will walk you through the basics of getting started and what to expect as you explore an ADU project. 1. Research ..........................................................p28 2. Design ideas ....................................................p32 3. Team selection ................................................p34 4. Finances ..........................................................p36 5. Permits ............................................................p38 6. Construction ...................................................p40 7. Move-in ...........................................................p42 How to Build an ADU 26 TEAM SELECTION •Learn about types of development teams. •Find out what information to prepare when contacting a company. •Review suggested considerations for hiring a company and signing a contract. FINANCES •Learn about resources to help you make an informed decision. •Learn about potential financing options. DESIGN IDEAS •Consider your goals and design options together. •Work on your own or with a designer to sketch out your ADU. RESEARCH •Clarify your goals. •Determine if an ADU is allowed on your property. PERMITS •Review the steps involved in a typical permitting process. •Learn why it’s important to permit an existing ADU. CONSTRUCTION •Learn what to expect during construction. •Understand your responsibilities. MOVE IN! •Find resources on how to be a landlord. 1 2 3 4 5 6 7 Process Overview From Point A to Point ADU Print out the included worksheets along the way, and start putting pencil to paper. PHOTO CREDIT iStock by Getty Images There are printable worksheets for this step. There are printable worksheets for this step. 27 TEAM SELECTION •Learn about types of development teams. •Find out what information to prepare when contacting a company. •Review suggested considerations for hiring a company and signing a contract. FINANCES •Learn about resources to help you make an informed decision. •Learn about potential financing options. DESIGN IDEAS •Consider your goals and design options together. •Work on your own or with a designer to sketch out your ADU. RESEARCH •Clarify your goals. •Determine if an ADU is allowed on your property. PERMITS •Review the steps involved in a typical permitting process. •Learn why it’s important to permit an existing ADU. CONSTRUCTION •Learn what to expect during construction. •Understand your responsibilities. MOVE IN! •Find resources on how to be a landlord. 12 3 4 5 6 7 28 RESEARCH An ADU will become part of the story you tell about your life. But what role will it play? Will it help bring your family closer together? Provide a financial cushion? Both? Determine if an ADU is allowed on your property One of the first things you’ll need to do is determine whether the ADU you envision is allowed on your property. There are three ways you can do this: In this step you will… • Clarify your goals. • Determine if an ADU is allowed on your property. What story will your ADU tell? DISCLAIMER Laws and processes are subject to change, and vary between cities, so be sure to consult with your local planners or other knowledgeable professionals as you move forward. 1. Enlist your designer If you already have a designer or contractor in mind, enlist their help. 2. Check online Many cities and counties have web links to city codes, zoning maps and property information on their websites. 3. Ask a city planner This is the most direct way to get up-to-date information about what will be allowed on your property. You can get help from most cities by calling or visiting the planning department. If your city does not have a planning department, ask a representative to connect you to a staff member who is knowledgeable about land use, zoning or building permits. Tell the staff member that you are interested in building an ADU and want to know if it is allowed on your property. Also ask about the types of ADUs allowed and how big and tall they can be. The answers will affect your ADU design decisions. STEP ONE 29 TIP Note that information you receive from your city at this stage is preliminary. Some properties have unique circumstances that can affect the outcome of decisions, but these may not be revealed without the thorough process that a formal application provides. The city staffer assigned to your application will work with you to provide solutions to issues that arise. TIP You can find a list of cities in the region that allow ADUs, along with their contact information, at the end of this guidebook. Print this page and use this worksheet to write down your ideas, short- and long-term goals, and questions. Don’t worry if you are unsure of some information about your property. You’ll be able to fill it in throughout. 30 In this step you will… • Clarify your goals. • Determine if an ADU is allowed on your property. My Property Information ADDRESS: PROPERTY IDENTIFICATION (PID) NUMBER: ZONING: BUILDING TYPE: single-family, duplex, other YEAR BUILT: LOT SIZE: LOT COVERAGE: GROSS FLOOR AREA: UNIQUE CHARACTERISTICS, IF ANY, OF YOUR LOT: LOT COVERAGE CALCULATION RESEARCHSTEP ONE 5,000 sq. ft. x 45% = 2,250 sq. ft. - 1,500 sq. ft. = 750 sq. ft. POTENTIAL FOOTPRINT FOR ADU (if not elsewise restricted) LOT SIZE MAX. ALLOWED LOT COVERAGE % MAX. BUILDING FOOTPRINT ALLOWED EXISTING BUILDING FOOTPRINT 31 TIP Take photos of the exterior of the house and of the site where you want to locate your ADU. Suggested Questions Is an ADU permitted on my property? What types of ADUs are allowed? (attached, detached, internal) Where can it be located? (required setbacks) A setback, or required yard, is an amount of space required between two structures, or between a structure and a property line or utility line. ADU design constraints: How big can it be? How small can it be? How tall can it be? What is the required ceiling height? Where can the entrance be located? If an internal ADU, are the existing stairs and windows adequate? Is owner-occupancy required? If so, how is it defined and enforced? Owner-occupancy: Many cities in the region require you to live in either the main house or the ADU and will require filing a covenant with the county recorder. Some, but not all, cities further define owner-occupancy to say how many days out of the year the owner must reside there. If you think you might live somewhere else temporarily, be sure to ask about these requirements and any associated fees. What will be the address of the ADU? Some cities require the ADU to have a separate address while others forbid it. Be sure to understand your city’s rules. What are the parking requirements? What are the requirements for water and sewer hook-ups? What fees should I expect? How much work am I permitted to do and what is required to be done by a licensed subcontractor? How does the permitting process for ADUs work? (see also Permitting on page 38) Print these pages and use the worksheets to determine what’s allowed on your property. 32 In this step you will… • Consider your goals and design options together. • Work on your own or with a designer to sketch out your ADU. Considerations While you may already have a vision of what your ADU will look like, it is important to spend some time thinking about function. How will the design of the ADU meet your short-term and long-term objectives? DESIGN IDEASSTEP TWO Bedrooms The number of bedrooms should reflect who you think will spend time there. Studios are attractive for their open and flexible space, but designated bedrooms offer more privacy. Units with designated bedrooms usually rent at a higher price, but they could be more expensive to build. Traditional or prefabricated construction In addition to the many design choices you have for your ADU, you also can choose whether to build your ADU using traditional “stick-built,” on-site construction or some form of prefabricated assembly. Factory-built, modular, panelized and other newer construction technologies are increasingly available, and in some situations can reduce your costs or the time it takes to build. You might also be surprised by the high quality. If you are interested in a prefabricated method, consider how the building will be delivered to your lot, the delivery costs and what site-preparation work will be required. Access Think about how ADU residents will get to their front door. At a minimum, you’ll need to provide them a stable, well-lit path. Your city may have regulations that specify where you can place the ADU entrance. Environmental You can reduce environmental impacts and save on energy costs through the layout and materials that you choose for your ADU. For instance, you can use recycled materials, insulate well and place windows in locations that will take advantage of the sun’s location throughout the year. You can also incorporate solar panels so that the ADU can generate its own energy. Work with your development team to understand what’s possible. Universal design & accessibility A home built with universal design means that anyone, regardless of age or ability, can live there comfortably. In addition to ensuring that there is easy access to the unit without stairs, universal design features include pull-out lower drawers, level-entry showers, lower countertops and raised electrical outlets. Building to universal design standards is a smart way to ensure the ADU will meet your needs over time. Finished materials While you don’t need to make decisions yet, keep in mind that the materials you use will affect your budget. A designer can provide cost estimates. You might also be able to save money by reusing some materials. Be aware that some selections, like doors and appliances, might affect the design of the ADU. 33 Print this page and sketch your ADU floor and site plans. TIP Chances are you’ve already come across many inspiring designs either online or perhaps in your own neighborhood. Use an old-fashioned scrapbook or an online service to help organize these inspirations so you can refer to them later or use them to convey to your designer what resonates with you. 34 In this step you will… • Learn about types of development teams. • Find out what information to prepare when contacting a company. • Review suggested considerations for hiring a company and signing a contract. Types of Companies and Their Roles There are a number of ways homeowners can get the help they need to design and build their ADU. Most homeowners choose one of three types of development teams: ARCHITECT + CONTRACTOR/BUILDER: The homeowner hires an architect to complete the design of the ADU and then hires a contractor/builder to construct it. DESIGN-BUILD FIRM: The homeowner hires a design-build firm that will, as the name implies, design and build the ADU. DIY: The homeowner acts as the general contractor, coordinating the overall project and hiring subcontractors for specialized work. Remember, while being your own designer and/ or general contractor can save money, it is an involved process and will likely add to your overall timeline, especially if you cannot devote yourself to it full time. Consider, too, that professionals often bring problem-solving skills that save time and money. A homeowner may also specifically look for designers and builders who specialize in modular or prefabricated-construction methods. A homeowner typically works with an architect to revise an existing ADU design template and the builder arranges for shipment of the building components, prepares the site for delivery and completes finishing touches. TEAM SELECTIONSTEP THREE Building a team ADU it yourself? This section is primarily aimed at homeowners with little or no experience in construction or construction management. Homeowners who feel comfortable managing the development of their ADU may still find some helpful tips to keep in mind when hiring subcontractors. 35 What to Prepare There are a few basics you’ll want to prepare before contacting designers and builders. GOALS: First, go back to Step 1 to review your goals. Understanding your goals will help your architect create a design that’s right for you. BUDGET: Next, you’ll want an initial budget. The cost of ADU construction can vary dramatically (for example, from $10,000 to $350,000) depending on ADU type, site and finishes. Your builder or architect can help narrow the price range. The financing available to you will also help determine what you can afford (See Step 4). SUPPORTING INFORMATION: Bring along your property information, a survey and any sketches you made in Step 2 to share with potential architects or builders. Hiring a Team An ADU is a long-term personal investment for most homeowners, so it is important to have a development team that understands your vision and with whom you can communicate well. Below are key questions to help you choose a design and development team. Be sure to get bids from multiple designers and builders. COST AND SERVICES: What will the firm charge and what services are included? CREDENTIALS: Has the firm built other ADUs, or completed remodels or new construction at a similar scale? Does it have experience with your municipality’s permitting process? Always verify professional licenses and business addresses: • for contractors • for architects, designers and engineers COMMUNICATION AND PROCESS: Do you feel that you are being heard and are you receiving responses in a timely manner? Signing a Contract When you’ve decided which firm(s) you want to hire, a final contract should detail the work they will do and all costs. The contract is a legal promise by both you and the company to complete the tasks outlined within it. The contract is a foundation for good communication between you and your team. Make sure everything that you discussed is included in the contract. For example, if you are building an above-garage ADU and want to reuse your old garage door, make sure that’s noted. You have the right to add or modify elements of the contract, even after it is signed, by using a change order. TIP The following is a helpful list of what your contract should include: • contractor’s license number, name and address • total project cost and payment schedule • start date and timeline • list of work to be accomplished and materials to be used • work (if any) to be subcontracted • specific terms about what constitutes substantial “completion of work” • the terms of warranties • a provision requiring the contractor to obtain lien releases from all subcontractors and suppliers (to protect the homeowner if a subcontractor claims they were not paid) • a cancellation penalty (if any) • plan for cleanup and removal of material and debris • any special requests (such as saving scrap lumber or bricks) • requirements for protecting property and landscaping • areas where materials may or may not be stored • any instructions regarding children or pets CREDIT: San Mateo County 2018 36 In this step you will… • Learn about resources to help you make an informed decision. • Learn about potential financing options. Obtaining financing is often the greatest challenge homeowners face in trying to build an ADU. That’s because the upfront cost can be large and there are not many financial options specifically tailored to this type of development yet. Typically, homeowners use their own savings, a loan or some combination of those sources to finance their ADU. Here is an overview of some basic considerations and available resources to help you manage or lower your costs. Making an informed decision Before making big financial decisions, it’s a good idea to seek advice from an independent homeownership expert. One option in Minnesota is to contact a member of the non-profit Homeownership Advisors Network. Advisory services are available to households of all income levels. Remember that you don’t have to get a loan from the first lender you meet. Be prepared to seek quotes from several different lenders to see which can offer you the best rate and/or terms. Building an ADU may raise your property taxes because it will add value to your home, and rental income may affect your income taxes. The specific impacts will be unique to your home and circumstances. Be sure to consult with a qualified professional tax advisor. FINANCESSTEP FOUR Financing Considerations 37 Financing Sources & Resources SPECIALIZED PROGRAMS The Minnesota Homeownership Center offers a Rehab and Repair Program Matrix that outlines renovation loan programs available by region in the state, some of which may be targeted to specific household income levels: www.hocmn.org/resources-for-homeowners/ Minnesota Housing, a state agency, offers home-improvement loans that could be used for ADU projects, in partnership with lenders throughout the state: www.mnhousing.gov TIP If you are applying for a loan, secure your financing about one month before you’re ready to apply for permits. RENTING Renting out your ADU may earn back some of your construction costs over time. Be aware that lender guidelines may not allow consideration of your future rental income when determining your eligibility for a loan. SWEAT EQUITY Find opportunities to do some of the work yourself, depending on your skills. Some ideas include installing cabinets, ordering appliances, painting and landscaping. 38 In this step you will… • Review the steps involved in a typical permitting process. • Learn why it’s important to permit an existing ADU. Prepare and Submit Your Application Once all your application materials are ready, submit them to the appropriate department (usually the planning department) and, if applicable, pay the application fee. After receiving the application and payment, city staff will conduct an initial review to make sure your application is complete before sending it forward for review. Revisions One or more of the city departments reviewing your application will likely request revisions. Revisions are a normal and expected part of the permitting process. There may be several rounds of revisions before your application is approved. Permitting an Existing ADU The easiest way to add an ADU to your property is to get a permit for the one you already have! If you’re lucky enough to already have an ADU in your home, or a space that could be converted to an ADU (for example, a basement suite with a mini-bar), find out if you’re legally required to have a permit for it. In some jurisdictions, an unpermitted ADU is illegal. Expect that you may need to upgrade some safety measures, such as smoke detectors, or make other improvements to bring your ADU up to code. Check with your city staff to determine what you need to do. PERMITSSTEP FIVE Permitting Process Overview PRE-APPMEETING HOMEOWNER CITY SUBMITAPPLICATION SUBMITNEEDEDMATERIALS REVISIONSNOYES RECORDOWNER-OCCUPANCYCOVENANT CONSTRUCTION INSPECTIONS BEGINREVIEW PERMITSISSUED MOVE IN!RETURNED TOAPPLICANT• Determine if an ADU is permitted and what the regulations are. • Review application requirements. • Work with your designer and contractor to prepare drawings of the ADU. • Pay application fee. • The City has 15 days to review if your application is complete. • If it is complete, the official review will begin. If it is incomplete, the City will tell you what is missing. • If your application is not complete, you’ll have 30 days to complete it. • The City will likely ask for some revisions to the project to ensure compliance with zoning ordinance and building code. This is an iterative process. Staff will provide feedback to help the applicant resolve any issues. • Once constructions and inspections are complete, a certificate of occupancy will be issued. • Congratulations! You can now move in to your ADU! • Some cities will require you to file a covenant on your property that states the owner must occupy either the main home or the ADU. • If you are approved, you can apply for any remaining needed permits. Once you have a building permit you can begin construction. • During construction, periodic inspections will occur to ensure the work is meeting standards. APPCOMPLETE? READYTO APPROVE?CERTIFICATEOF OCCUPANCY 39 This diagram illustrates a typical permitting process in Minneapolis, where permits are approved by staff in the planning department. Some municipalities require the permit to be approved by a body such as a planning commission or city council. Use this diagram as an example when visiting the planning counter to gain a better understanding of how your city’s permitting process works and how long each step usually takes. Be sure to clarify with your development team which steps in the process they will lead on your behalf. PRE-APPMEETING HOMEOWNER CITY SUBMITAPPLICATION SUBMITNEEDEDMATERIALS REVISIONSNOYES RECORDOWNER-OCCUPANCYCOVENANT CONSTRUCTION INSPECTIONS BEGINREVIEW PERMITSISSUED MOVE IN!RETURNED TOAPPLICANT• Determine if an ADU is permitted and what the regulations are. • Review application requirements. • Work with your designer and contractor to prepare drawings of the ADU. • Pay application fee. • The City has 15 days to review if your application is complete. • If it is complete, the official review will begin. If it is incomplete, the City will tell you what is missing. • If your application is not complete, you’ll have 30 days to complete it. • The City will likely ask for some revisions to the project to ensure compliance with zoning ordinance and building code. This is an iterative process. Staff will provide feedback to help the applicant resolve any issues. • Once constructions and inspections are complete, a certificate of occupancy will be issued. • Congratulations! You can now move in to your ADU! • Some cities will require you to file a covenant on your property that states the owner must occupy either the main home or the ADU. • If you are approved, you can apply for any remaining needed permits. Once you have a building permit you can begin construction. • During construction, periodic inspections will occur to ensure the work is meeting standards. APPCOMPLETE? READYTO APPROVE?CERTIFICATEOF OCCUPANCY TIP After meeting with the relevant city staff, create a checklist of requirements and due dates for each permit to stay on track. 40 In this step you will… • Learn what to expect during construction. • Understand your responsibilities. Preparing for disruption Part of the process of building an ADU is preparing yourself mentally for the disruption that occurs during any construction project. Construction typically lasts from a few months to a full year, during which time workers will have access to your property. There will likely be instances where the construction will reach into places that you use on a normal basis, such as a driveway, yard or basement. Talk about these details with your builder to understand what to expect. Your responsibilities While it may feel as though you’re in the backseat during construction while working with a contractor, there are many important responsibilities that you need to fulfill. You’ll need to: • Monitor the work to make certain it’s progressing according to schedule and that the work quality is high. • Make decisions in a timely manner when questions arise. • Ensure that required inspections are occurring. NOTE: Inspections are usually coordinated by the builder, but it is still your responsibility to confirm that they are performed. CONSTRUCTIONSTEP SIX Permit in hand you’re ready to build! 41 PHOTO CREDIT iStock by Getty Images TIP Refer back to p.35 for more information about working with contractors. TIP Remember to update your property insurance to include the completed ADU. 42 In this step you will… • Learn what you must do before renting out your ADU. • Find resources on how to be a landlord. • Consider hiring property management assistance. After construction is complete and the final inspections are done, your ADU will be ready for you or someone else to call home. This section will provide a handful of resources for renting out your ADU, should you choose to do so. License and Registration Before you can rent out your ADU you’ll need to know whether your city requires you to apply for a rental license or to register your unit. Typically, a short application and fee are required. These applications are managed by different departments depending on the city. Call the city’s general line and asked to be directed to the right department, or ask city staff members for more information during the permitting process. Becoming a Landlord If you decide to rent out your ADU, you should brush up on important landlord-tenant and fair housing laws to know your legal obligations and how to resolve any issues that might arise. Having this information can help you and your tenant maintain a positive relationship. A few resources are highlighted on the next page. If becoming a landlord isn’t for you, look into hiring a property management company to take care of the details. MOVE-INSTEP SEVEN NOTE This section presumes that the ADU is being rented out, but everything discussed also applies if you want to move into your ADU and rent out your main home. Move in! Construction is complete! 43 Landlord Resources The Office of the Minnesota Attorney General provides a handbook that contains a thorough overview of landlord-tenant laws. Landlords and Tenants: Rights and Responsibilities HousingLink is a nonprofit organization with a mission of expanding housing and neighborhood choices for renters. HousingLink offers landlords the chance to advertise their rental-housing openings for free. List a Property The Minnesota Multihousing Association promotes high standards in the development, management and maintenance of rental and owner-occupied multi housing and offers educational programming for landlords. MHA Industry Education HOME Line is a Minnesota tenant advocacy organization that offers publications and trainings to help landlords and tenants understand the laws that govern their relationship The Landlord’s Guide to Minnesota Law Trainings Many cities offer support and training for new landlords. Check with city staff to learn what your city offers. 44 References Bekker, Jessie. 2016. “Despite new law, ‘granny flats’ are a no-go in east metro.” Pioneer Press, Dec. 2, 2016. www.twincities.com/2016 /12/02/despite-new-law- granny-flats-are-a-no-go-in-east-metro/. McClure, Jane. 2018. “Alley House,” Saint Paul Historical, accessed August 9, 2018, saintpaulhistorical.com/items/ show/273. Brown, M. and Palmeri, J. 2014. “Accessory Dwelling Units in Portland, Oregon: Evaluation and Interpretation of a Survey of ADU Owners.” Oregon Department of Environmental Quality. www.oregon.gov/deq/ FilterDocs/ADU-surveyinterpret.pdf. San Mateo County. 2018. “Second Unit Workbook.” secondunitcentersmc.org/wp-content/uploads/ Second-Unit-Workbook-FINAL-ONLINE.pdf. Stephan, A. and R.H. Crawford. 2016. “The relationship between house size and life cycle energy demand: implications for energy efficiency regulations for buildings.” Energy 116 (Part 1), 1158–1171. dx.doi.org/10.1016/j.energy.2016.10.038. Additional Resources BOOK Peterson, Kol. 2018. Backdoor Revolution: The Definitive Guide to ADU Development. Accessory Dwelling Strategies, LLC. WEBSITES Accessory Dwellings: “A one-stop source about accessory dwelling units, multigenerational homes, laneway houses, ADUs, granny flats, in-law units…” www.accessorydwellings.org Building an ADU: “THE site for those interested in planning, designing, and building accessory dwelling units (aka ADUs).” www.buildinganadu.com American Planning Association KnowledgeBase - Accessory Dwelling Units: “This collection catalogs resources that provide background, policy guidance, and examples of local plan recommendations and zoning standards for accessory dwelling units from across the country.” www.planning.org/ knowledgebase/ accessorydwellings Terner Center for Housing Innovation ternercenter.berkeley.edu Second Unit Center San Mateo www.secondunitcentersmc.org OTHER GUIDEBOOKS Los Angeles, California | Building an ADU: Guidebook to Accessory Dwelling Units in the City of Los Angeles citylab.ucla.edu/adu-guidebook/ Honolulu County, Hawaii | Accessory Dwelling Unit Homeowners’ Handbook: A Guide for Homeowners on Oahu Interested in Building an Accessory Dwelling Unit hawaiiadu.org/wp-content/ uploads/2016/07/ADU-Manual- ver.-1-FINAL-Web.pdf San Mateo County, California | Second Unit Inspiration secondunitcentersmc.org/ wp-content/uploads/ADU-Idea- Book-FINAL-ONLINE-VERSION.pdf San Mateo County, California | Second Unit Workbook secondunitcentersmc.org/ wp-content/uploads/Second-Unit- Workbook-FINAL-ONLINE.pdf Santa Cruz, California | Accessory Dwelling Unit Manual: Growing Santa Cruz’s Neighborhoods from the Inside www.cityofsantacruz.com/home/ showdocument?id=8875 Santa Cruz County, California | ADU Basics www.sccoplanning.com/Portals/2/ County/adu/ADU%20Basics. pdf?ver=2018-06-07- 110146-073 Santa Cruz County, California | ADU Financing Guide www.sccoplanning.com/Portals/2/ County/adu/ADU%20 Financing%20Guide. pdf?ver=2018-06-07-110307-117 San Francisco, California | sf-ADU sfplanning.org/plans-and- programs/planning-for-the-city/ accessory-dwelling-units/2015_ ADU_Handbook_web.pdf Seattle, Washington | A Guide to Building a Backyard Cottage www.seattle.gov/Documents/ Departments/ SeattlePlanningCommission/ BackyardCottages/ BackyardCottagesGuide-final.pdf 45 Twin Cities Planning Departments Contact Information Contact information for cities that permit Accessory Dwelling Units (ADUs) as of 2018. CITY OF APPLE VALLEY Community Development/Planning 7100 147th St. W. Apple Valley, MN 55124 952-953-2575 commdev@ci.apple-valley.mn.us www.ci.apple-valley.mn.us/index. aspx?nid=83 CITY OF BLOOMINGTON Planning Division 1800 West Old Shakopee Road Bloomington, MN 55431-3027 952-563-8920 planning@BloomingtonMN.gov www.bloomingtonmn.gov/plan/planning- division CITY OF BURNSVILLE Planning Department 100 Civic Center Parkway Burnsville, MN 55337 952-895-4455 www.ci.burnsville.mn.us/index. aspx?nid=139 CITY OF CHASKA Planning Department One City Hall Plaza Chaska, MN 55318 952-448-9200 www.chaskamn.com/148/Planning- Department CITY OF CRYSTAL Planning and Zoning 4141 Douglas Dr. N. Crystal, MN 55422 763-531-1142 www.crystalmn.gov/resident/community_ development/planning_and_zoning/ CITY OF EAGAN Planning Division 3830 Pilot Knob Road Eagan, MN 55122 651-675-5685 planning@cityofeagan.com www.cityofeagan.com/accessory- dwelling-unit-registration CITY OF INVER GROVE HEIGHTS Community Development Department 8150 Barbara Ave. Inver Grove Heights, MN 55077 651-450-2545 www.ci.inver-grove-heights.mn.us/55/ Community-Development CITY OF LAKEVILLE Planning Department 20195 Holyoke Avenue Lakeville, MN 55044 952-985-4420 planninginfo@lakevillemn.gov lakevillemn.gov/342/Planning-Department CITY OF LONG LAKE City Clerk 450 Virginia Ave. Long Lake, MN 55356 952-473-6961 x1 www.longlakemn.gov/index.asp?Type=B_ BASIC&SEC={885FA881-1825-4CE7-9338- B6EBB7AB1836} CITY OF MINNEAPOLIS Community Planning & Economic Development Public Service Center 250 South Fourth Street (Room 300) Minneapolis, MN 55415 612-673-5095 www.ci.minneapolis.mn.us/cped/ projects/ADU CITY OF MINNETONKA Planning Division 14600 Minnetonka Blvd. Minnetonka, MN 55345 952-939-8290 eminnetonka.com/planning CITY OF PLYMOUTH Planning Division 3400 Plymouth Blvd. Plymouth, MN 55447-1482 763-509-5450 planning@plymouthmn.gov www.plymouthmn.gov/departments/ community-development/planning CITY OF RICHFIELD Planning and Zoning Richfield Municipal Center 6700 Portland Avenue Richfield, MN 55423 612-861-9760 com_dev@richfieldmn.gov www.richfieldmn.gov/departments/ community-development CITY OF ROSEVILLE Planning and Zoning 2660 Civic Center Dr. Roseville, MN 55113 651-792-7005 www.cityofroseville.com/307/Planning- and-Zoning CITY OF SHOREVIEW Planning and Zoning 4600 Victoria Street North Shoreview, MN 55126 651-490-4680 www.shoreviewmn.gov/government/ departments/community-development/ planning-and-zoning CITY OF SAINT PAUL Safety & Inspections 375 Jackson Street Suite 220 Saint Paul, MN 55101 651-266-9008 www.stpaul.gov/departments/safety- inspections/accessory-dwelling-units CITY OF STILLWATER Planning and Zoning 216 North Fourth Street Stillwater, MN 55082 651-430-8818 www.ci.stillwater.mn.us/ communitydevelopment CITY OF WHITE BEAR LAKE Planning and Zoning 4701 Highway 61 White Bear Lake, MN 55110 651-429-8534 www.whitebearlake.org/ communitydevelopment/page/ planning-zoning About the Family Housing Fund The Family Housing Fund believes it takes all of us working together to build a strong system that supports access to decent, affordable homes for everyone. Established in 1980, we support the Cities of Minneapolis and Saint Paul, the Metropolitan Council, and Minnesota Housing in their efforts to meet the seven-county metropolitan region’s affordable housing needs. We are unique in focusing on all facets of the housing system and working across sectors to ensure real change. ACKNOWLEDGEMENTS Family Housing Fund thanks the following people for making this guidebook possible: Betsy Gabler, Austin Young | Alchemy Architects Jason Rysavy and Cate Christenson Chris Strom | Christopher Strom Architects Andrew Frenz, Shanna Sether | City of Minneapolis Josh Abrams | Community Planning Collaborative/ Second Unit Center San Mateo Laurie and Larry Demos Jeff Washburne, Staci Horwitz | City of Lakes Community Land Trust Eric and Chrissi Larsen Fue Lee Marnie Peichel | Marnie Peichel Architecture and Design, LLC Eric Meyers | Minneapolis Area Association of Realtors Mariia Zimmerman | MZ Strategies Faith Cable Kumon, Chris Wilson | Project for Pride in Living, Inc. Mike Radel and Dallas Radel Megan and Rob Seeds Gary Findell | Smart Home Construction Karen Chapple, David Garcia | Terner Center for Housing Innovation at UC Berkeley Cathy Bennett | Urban Land Institute Minnesota Renee Martinez-Stone | West Denver Renaissance Collaborative Nancy Sparrow | White Crane Design:Build Homeowners, architects, and contractors who responded to a survey on ADU development Planners and other public officials from around the Twin Cities region who helped provide information The Family Housing Fund would also like to acknowledge the many other resources used in creating this guidebook, all of which are listed under Additional Resources. Illuminating solutions. Sparking change. FHFUND.ORG 310 4th Ave South Suite 9000 Minneapolis, MN 55415 MAIN 612.375.9644 FEBRUARY 2019 ©Family Housing Fund CREDITS WRITING: Casey Lauderdale EDITING: Sarah Berke, Julie Jensen GRAPHIC DESIGN: Ladywithafan Design, LLC PHOTOGRAPHY: Min Enterprises Photography, LLC (unless otherwise noted) Scandia EDA Lifestyle Housing Seminar Research Compilation — Discovery Phase Prepared July 2026 This document compiles preliminary research on four topic areas for the planned community housing seminar: barndominium builders, renovation/rehab loan programs for first-time buyers, accessory dwelling units (ADUs), and modular/manufactured home alternatives. All information is for internal discovery purposes and should be verified directly with lenders, builders, and program administrators before publication. 1. Barndominium Builders Builders identified with direct barndominium experience serving Minnesota. None are based in Scandia specifically — closest active markets are the Mora/North Branch/St. Croix Valley area and the Twin Cities metro. Sherman Buildings • Mora, MN — family-owned since 1976. Explicitly markets itself as a Minnesota barndominium builder, serving MN and NW Wisconsin. • Web: shermanpolebuildings.com/barndominiums • Phone: 320-679-3438 American Iron & Metal Buildings • Serves Twin Cities metro and greater Minnesota. Custom barndominium and metal building contractor with tiered floor plan sizes. • Web: amiron.pro/barndominium-builder-minnesota Minnesota Barndominium Builder • Statewide contractor offering barndominium kits, plans, and full builds. • Web: minnesotabarndominiumbuilder.com DC Structures • National kit supplier (pre-engineered post-and-beam barndominium kits) with a Minnesota-specific page. Ships materials rather than building locally — worth mentioning as a DIY/kit option. • Web: dcstructures.com/minnesota-barndominiums Other post-frame builders with residential build experience • RAM Buildings Inc. — Winsted, MN. Direct experience building post-frame homes. Phone: 320-485-2844 • Spartan Contracting — Marine on St. Croix, MN (closest geographically to Scandia). Phone: 651-329-6396 • Valley Custom Homes — St. Croix Falls, WI. Custom home builder, strong local reviews. • Custom Pole Buildings LLC — North Branch, MN. Phone: 651-674-8940 Regulatory note for the seminar The Minnesota Department of Labor and Industry confirms that a Minnesota residential building contractor license is required to build a barndominium or “shouse,” because these structures are legally dwellings, not agricultural buildings, even though they may resemble one. Building permits, inspections, and local zoning compliance apply. This is a useful point to include since many prospective buyers assume otherwise. • Source: MN DLI Fact Sheet — Barndominiums/Shouses 2. Rehabilitation / Renovation Loans (First-Time Buyer Focus) FHA 203(k) Rehabilitation Mortgage • Limited 203(k): For less expensive repairs/improvements, now up to $75,000 in rehab costs. No minimum expense requirement. Cannot be used for major structural repairs. Work must be completed within 9 months. • Standard 203(k): For major structural rehabilitation or repairs exceeding the Limited cap. Requires a minimum $5,000 rehab budget and a HUD-approved 203(k) consultant to oversee the project. • Down payment as low as 3.5% with a 580+ credit score; can qualify with a credit score as low as 500 in some cases. Loan is insured by FHA and available through FHA-approved lenders. • HUD Program Overview: hud.gov — 203(k) Program • SFH Policy Handbook 4000.1 (full policy text): hud.gov — Handbook 4000.1 • 203(k) Sample Documents: hud.gov — 203(k) Sample Documents Fannie Mae HomeStyle Renovation Mortgage • Conventional alternative to 203(k). Allows a purchase or limited cash-out refinance combined with renovation funds in a single first mortgage. Available for 1–4 unit primary residences, one-unit second homes, or one-unit investment properties, including condos, co-ops, and PUDs. • Manufactured housing is eligible, capped at the lesser of $50,000 or 50% of the “as-completed” appraised value. • Selling Guide (current): selling-guide.fanniemae.com — HomeStyle Renovation • Fact Sheet (PDF): fanniemae.com — HomeStyle Renovation Fact Sheet Freddie Mac CHOICERenovation Mortgage • Freddie Mac's conventional renovation equivalent. Single-close financing for purchase or refinance plus renovation costs — no separate construction loan needed. Notably, this program explicitly lists building an ADU as an eligible renovation use, which ties directly into the seminar's ADU discussion. • Program Overview: sf.freddiemac.com — CHOICERenovation • Fact Sheet (PDF): sf.freddiemac.com — CHOICERenovation Fact Sheet • FAQ: sf.freddiemac.com — CHOICERenovation FAQ Minnesota Housing Fix Up Loan Program • State program for existing homeowners (not tied to a purchase transaction). Finances up to $75,000 in permanent home improvements statewide, with fixed interest rates. No income limit for energy-efficiency or accessibility-focused loans. Homeowner accesses the program through a participating lender — Minnesota Housing does not originate directly. • Program Info: mnhousing.gov — Fix Up Loan Program (Features Summary, PDF) Minnesota Housing Start Up + Down Payment Assistance • Start Up is Minnesota Housing's first mortgage program for first-time buyers (no ownership interest in a primary residence in the past 3 years), with income limits by county. • First-Generation Homebuyer Loan Program: New program, exclusively for Start Up borrowers. Up to $35,000, half forgiven after 10 years and the remainder after 20 years, can be combined with other MN Housing down payment loans for up to $53,000 total. • Several counties and cities layer additional assistance on top (examples found: Ramsey County FirstHOME up to $20,000; Woodbury up to $30,000; Scott County CDA up to $8,000; Anoka County programs up to $20,000). Washington County-specific programs should be confirmed directly given Scandia's location. 3. Accessory Dwelling Units (ADUs) Since Scandia currently has very limited ADU restrictions, this section may be one of the most locally actionable parts of the seminar. Covers attached ADUs, detached ADUs (DADUs), and general-purpose ADU education materials. ADU builders (Twin Cities metro — no Scandia-local specialists identified yet) • Castle Building & Remodeling / ADU Builder Minneapolis — Minneapolis/St. Paul. Internal, attached, and detached ADUs; five standard models with upfront pricing. Phone: 612-877-8383 • Hanson Design Build — Minneapolis/St. Paul. Full design-build ADU service; notes attached ADUs starting around $150,000 and detached around $400,000 in the metro. • Titus Contracting — Statewide design-build firm (architect + contractor in-house); ADU projects typically start at $150,000. • Grizzly Construction — Twin Cities. Design + build ADU specialist, also does general remodeling. • Minnehaha Remodeling — Minneapolis, St. Paul, St. Louis Park, Richfield, Roseville, Northfield, Minnetonka, Crystal. • Elevated Builders — St. Paul. Notes local zoning specifics as an example of what a city ordinance covers (max size 800 sq ft or 33% of primary home size, 20 ft height limit, no additional parking required in St. Paul's case). General ADU education / marketing materials • The ABCs of ADUs — free 24-page AARP primer explaining what ADUs are and how they expand housing options. Good as seminar handout material. Link • Accessory Dwelling Units: A Step-by-Step Guide to Design and Development — AARP/Blink!LAB Architecture, 113-page design catalog covering zoning, financing, budgeting, and floor plans. Link • One-page ADU handout (“Accessory Dwelling Units — What They Are, What They Can Do”) — ready to print/distribute as-is. Link • ADU Model State Act and Local Ordinance — AARP/American Planning Association, 56-page downloadable guide for local officials evaluating or drafting ADU ordinance language. Potentially useful if the EDA wants to formalize Scandia's currently minimal ADU rules. Link Common ADU use cases to highlight in seminar messaging • Rental income to supplement household finances • Housing for adult children or aging parents (multigenerational living) • Downsizing in place — owner moves into the ADU and rents out the main home • Attached ADUs (basement/above-garage conversions) vs. Detached ADUs (DADUs, backyard cottages) 4. Modular & Manufactured Homes (Affordable Alternatives to Site-Built) Cost comparison (Minnesota averages found) Home Type Avg. Estimated Cost (MN) Notes Site-built (traditional) ~$407,000 Standard new construction baseline Modular ~$262,000 Factory-built to state/local code, assembled on-site Manufactured ~$190,000 Factory-built under federal HUD code • Source: ModularHomes.com — Minnesota Industry context The Manufactured & Modular Home Association of Minnesota (MMHA) reports that factory-built homes account for nearly 15% of all new single-family homes sold in Minnesota, and describes them as the state's largest source of non-subsidized, attainable workforce housing. The industry supports roughly 3,000 jobs across about 1,200 mostly small MN businesses, with 14 authorized factories statewide. • Source: MMHA Testimony, MN Senate Labor Committee (2025) • MMHA directory/resources: mnmanufacturedhome.com Retailers and builders identified • Life Style Homes — St. Cloud, Mankato, Litchfield, Willmar, and statewide; sells Cavco Montevideo (formerly Friendship Homes of MN) modular and manufactured homes. • Woodlund Homes — Minnesota modular and manufactured home sales, positions itself toward first-time buyers. • Avenue of Homes — Albert Lea, MN. Modular and manufactured homes from Northstar Systembuilt, Dutch Housing, and Stratford Homes. • J&B Manufactured Homes — Custom and new manufactured homes, includes delivery/trucking logistics. • DC Structures — Prefab kit homes, MN pricing found at roughly $41–85/sq ft for the kit alone, with turnkey costs running 2–5x the kit price depending on finishes.