With costs rising across New England, many homeowners are looking to get more out of their property instead of buying new. One solution to this that has got a lot of people talking lately is the recent changes to laws around Accessory Dwelling Units (ADUs), which could open up big opportunities for anyone who owns a house. Haven’t heard about it yet? Here’s what to expect.

What You Need to Know About the Affordable Homes Act

Little known to many homeowners, Governor Maura Healey recently introduced a law in August 2024 that has flown under the radar. The great news is that it now allows anyone with land in Massachusetts to build accessory dwelling units (ADUs) without needing special permission, helping address the state’s housing shortage. The goal with this new piece of legislation is to increase the supply of homes and make housing more affordable for those who need it most.

Another notable feature of the law is that it doesn’t restrict homeowners from using ADUs for rental income, either. This is according to the Secretary of Housing and Livable Communities, who has come out and said, “ADUs can provide supplemental rental income to homeowners.”

As you can imagine, this change has been widely welcomed across the state, as it removes the need to go through the previous complicated permit processes. Going forward, once you own land in your name, you're allowed to build an ADU on your property without extra hurdles.

Important Aspects of the Affordable Homes Act

Before you start moving forward with a plan, here’s what you need to know about the Affordable Homes Act.

• Allowed without extra permits: All homeowners in Massachusetts are authorized to construct an ADU without having to go through the old special permitting process.
• Owners don’t have to live on the property: There are no rules in place that state the owner must be living in the ADU.
• Short stay rental rules: Short-term rentals can be restricted, but other rental types are allowed without limits.
• Restrictions on size: The law states that the maximum size an ADU can be is 900 square feet, or half the size of the main building's total floor area.

Why an ADU Could Be a Smart Move

They Can Provide You With Additional Income
If you don’t need anyone to use the ADU yourself and are just looking for ways to supplement your income, it could be a good investment. You can rent it out to a tenant for an extended period, which will help you generate some additional money.

Extra Space for Family Members
Families with kids who need time to save before moving out will find an ADU especially useful. They provide you with an extra comfortable, private place for your child or other family member without them having to waste money by renting from someone else.

It Increases the Value of Your Property
Planning to sell your home in the future? Building an ADU can boost your property’s value, giving you a higher return on investment when you decide to sell.

Start Building Your ADU Today

Now that the legislation is in place, you're free to get started building an ADU right away. Before taking the first step, it's best to contact your local government for more information and advice on what to do next, as they'll be able to point you in the right direction. After you’ve finalized your plans, reach out to Oak Realty so we can guide you through ADUs and help you locate the perfect property for your next project.