Hartford Business Journal

HARTFORDBUSINESS.COM | APRIL 7, 2025 13 As more towns embrace ADUs, and more accessory dwelling units are constructed, residents are realizing their worst fears — such as increased crime, noise and a change in the character of their neighborhood — did not materialize. "There isn't anybody I've met that has an ADU that regrets it," Harrison said. "They like it. It's great for family members. It's great for income." There is debate about whether ADUs increase property values in neighborhoods that have them. A recent study by the home improve- ment website Porch.com found that accessory dwelling units can increase a home's value by 35%, especially in large cities. The same study found that ADUs are growing at a rate of 9%, or 100,000 per year, nationally. However, a 2023 study on the spill- over effects of ADUs by the University of California in Irvine found that a small increase in ADU density led to a 3.6% decrease in nearby property prices, possibly due to increased population density and congestion. Other studies say there is no conclusive evidence of ADUs affecting neighborhood property values, either positively or negatively. Attorney Kenneth R. Slater Jr., managing partner at Hart- ford-based law firm Halloran Sage, who advises municipalities on land-use matters, said he believes towns are becoming more receptive to ADUs as a means to help alleviate the housing crisis. "I think generally speaking, they're starting to follow legislative direc- tions looking at affordable housing options, and I think there is a trend towards being more receptive to that alternative," Slater said. State law sets a goal for munic- ipalities to have at least 10% of their housing stock be affordable, and ADUs could count toward that threshold, Slater said. Construction costs Neri said he and his team are well- versed in local zoning laws and create accessory dwelling unit designs that fulfill their clients' needs and meet local standards. They will also attend zoning meetings, if necessary, to obtain approvals on behalf of their client. Contemporary Tiny Homes' wrap- around approach includes helping customers design a project that fits their budget, with options to reduce costs on materials and appliances. Staff members also help clients obtain financing, such as a home equity loan. A two-bedroom ADU that costs $189,000 could be financed, with no down payment over a 30-year term, for about $1,400 a month — much less than the cost of renting a two-bedroom apartment, Neri said. Harrison, of DesegregateCT, said residents have significant interest in ADUs, but high construction costs remain a barrier. "The gap of interest and execution has been the cost of the construc- tion of ADUs," Harrison said. "They are really expensive still, and partly because Connecticut contractors don't have that muscle memory — we haven't been building a lot of them because they haven't been legal." But he believes Contemporary Tiny Homes is at the forefront of a new industry in Connecticut, which could lead to lower prices as the sector grows. "We are really encouraged to see companies like this," Harrison said. "And we hope that there'll be more competi- tion, more innovation, and those costs will continue to come down." Renderings of accessory dwelling units designed by Norwalk-based Contemporary Tiny Homes. CONTRIBUTED IMAGES Kenneth R. Slater 25_000548_Hartford_Business_Journal_APR Mod: January 29, 2025 11:51 AM Print: 02/18/25 page 1 v2.5 π BREAKROOM SUPPLIES IN STOCK – READY TO SHIP CUPS AND STIRRERS NAPKINS AND DISPENSERS PLATES AND UTENSILS ORDER BY 6 PM FOR SAME DAY SHIPPING COMPLETE CATALOG 1-800-295-5510 uline.com

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