Skip to main content

If I add an ADU, what will happen to my property's classification by the Assessor?

Adding an ADU will likely result in two things:

  1. a higher fair cash valuation for your property resulting from the physical improvements to construct the ADU; and
  2. a reclassification of the land use classification code assigned by the Assessor to the property - as adding an ADU is considered adding a dwelling unit and would be considered a rentable unit. For example, with an ADU added:
  • A single family would be reclassified to a two family (Land Use Code 101 to 104
  • A two family would be reclassified to a three family (Land Use Code 104 to 105
  • A three family would be reclassified to multi-family - with 4+ units (Land Use Code 105 to 111). Note: If the Land Use Code becomes 111, the Income and Expense Form 38D will be sent out to the property owner to complete annually to better understand the income generated by the property.