Noticing a growing number of tiny houses built on residences across Eugene lately? They are known as Accessory Dwelling Units, or ADUs, and there is a reason they are so popular. Red Umbrella Home and Garage Contractors has worked with numerous clients in recent years, to design and build their ADU. But what exactly are they, and why might you want to consider one?
Why an ADU?
Homeowners might want to build an Accessory Dwelling Unit (ADU) for several compelling reasons. First, ADUs provide a flexible solution for housing family members, such as aging parents or adult children, enabling multigenerational living while maintaining privacy and independence. This setup can enhance family support and care without the need for costly assisted living facilities.

Secondly, ADUs can generate additional rental income, helping homeowners offset mortgage payments and other expenses. With Eugene's significant housing demand, renting out an ADU can be a lucrative investment. This additional income stream can be especially beneficial in a market with rising housing costs.
Moreover, ADUs contribute to increasing housing diversity and density without altering the neighborhood character. They utilize existing infrastructure and reduce urban sprawl, aligning with sustainable development goals.
Plus, building an ADU can enhance the property's value, making it more attractive to potential buyers. The flexibility and added utility of an ADU can set a property apart in a competitive real estate market. With over 50 years’ experience in the construction business, Red Umbrella Home and Garage Contractors understands that meeting clients’ expectations includes increasing value in their investment.
Overall, ADUs offer practical and financial benefits, making them an attractive option for homeowners looking to maximize their property's potential.

What You Need to Know
Once you’ve determined that an ADU is the right choice for you and your family, the next step is to choose a general contractor that has expertise and understands the guidelines that the City of Eugene requires.
Building an Accessory Dwelling Unit (ADU) in Eugene, Oregon, offers a valuable solution to the city's housing challenges. The process involves several steps and specific requirements to ensure compliance with local regulations. The city has implemented several measures to streamline the construction process and encourage the development of ADUs to address housing shortages.
General Requirements
1. Size and Location:
- ADUs can be a maximum of 800 square feet or 10% of the lot area, whichever is smaller.
- They are allowed in all neighborhoods, including alley access lots and flag lots.
- There are no minimum lot size or dimension requirements for ADUs.
2. Design Standards:
- ADUs must meet specific design standards but are not subject to broader residential design standards.
- Pre-approved ADU plans are available to expedite the building permit process.
3. Parking and Occupancy:
- No additional off-street parking is required for ADUs.
- There is no requirement for the owner to occupy either the primary residence or ADU.
4. System Development Charges (SDCs):
- Budget approximately $7,000 for SDCs, which can be financed through the city for up to 10 years. These charges are subject to annual inflation adjustments.
Steps to Build an ADU
1. Select a Design:
- The City of Eugene offers a Pre-Approved ADU Program, featuring multiple architectural plans that have already been reviewed and approved. This program helps reduce pre-development costs and expedites the permitting process. Red Umbrella Home and Garage Contractors has established relationships with the City and thoroughly understands the process.
- You can choose from a variety of designs, some of which are available for free or at reduced rates.
- Or you can select your own plan, working with a contractor like Red Umbrella Home and Garage Contractors, who will follow the guidelines set by the City.
2. Due Diligence:
- Use the ADU Due Diligence Checklist provided by the city to guide you through the research and cost analysis required for constructing an ADU.
3. Submit Plans and Permits:
- Once you have selected a design, prepare the necessary documents and submit your building permit application. Be sure to identify your plan as part of the pre-approved ADU program if applicable.
4. Construction:
- After obtaining the required permits, you can proceed with construction. Ensure compliance with all local building codes and regulations during this phase.
Contact Information
For assistance with the permitting process, land use, and other requirements, you can contact the following city departments:
General Permit Information: 541-682-5505, [email protected]
Land Use/Zoning: 541-682-8336, [email protected]
Public Works: 541-682-8400, [email protected]
Residential Building Code: 541-682-5611, [email protected].
By following these guidelines and utilizing the resources provided by the City of Eugene, you can successfully navigate the process of building an ADU and contribute to addressing the local housing shortage. For more detailed information, you can visit the City of Eugene's ADU webpage (https://www.eugene-or.gov/4708/Build-an-ADU).
Want to know if an ADU is the right fit for your family? Call Red Umbrella Home and Garage Contractors to schedule a visit and conversation.
Thinking about a project?
Bari will look at your lot and give you an honest estimate — free, no pressure.
Begin Your Project →
