Peterborough Affordable Housing Committee members and local builders are making strides toward fixing the town’s housing crisis.
On Wednesday, June 14, more than 50 community members gathered at the Peterborough Public Library to learn about all things related to accessory dwelling units (ADUs) including financing, zoning laws, building permits and benefits. The purpose of the seminar was to allow community members to ask questions and air concerns amid the town’s housing crisis.
Under Peterborough’s zoning ordinance, an ADU is “a secondary residential living unit that is created within or is attached to a single-family dwelling or is within a detached structure on the same parcel as the single-family dwelling, is smaller than the principal single family dwelling unit, and that provides independent living facilities for one or more persons, including provisions for sleeping, eating, cooking, and sanitation on the same parcel of land as the principal dwelling unit it accompanies.”
Accessory dwelling units are allowed by right in all districts that permit single-family dwellings and on parcels where only one existing legally-conforming single-family dwelling exists. Under NH RSA 674:72, every town and city in the state can not restrict ADU sizes to less than 750 square feet and they can either be attached or detached from the existing property.
According to Town Planner Danica Malone, ADUs have been in Peterborough since 1991. However, Malone said only about a dozen have been built in Peterborough in the last 32 years.
In an effort to address the town’s housing crisis, the Affordable Housing Committee members applied for a $15,000 Community Challenge Grant from the American Association of Retired Persons (AARP) to kickstart an ADU design competition for local builders, but they did not receive it.
Malone said the committee is actively seeking new grants to host an ADU design competition, which she says will help inspire local developers and community members to start building ADUs.
“We do believe if we had those AARP funds, folks would be more interested,” she said.
Jaime Frederes, director of residential living at Bar Harbor Bank and Trust, said ADUs can help retain younger people in town.
“ADUs give the younger generations a more affordable living experience due to the limited availability of housing and rising rent costs,” said Frederes.
According to Frederes, Northern New England’s current ADU market is continuously expanding despite rising construction costs. He said the estimated cost for an attached ADU in today’s market will range from $50-$175 per square foot, and the estimated cost for a detached structure will range from $175-$225 per square foot.
According to the New Hampshire Housing Finance Authority, both attached and detached ADUs typically range from 800 square feet to 1,400 square feet. Frederes said community members can expect to pay approximately $175,000-$275,000 in ADU construction costs in today’s market.
ADU costs don’t stop with construction. According to Town Planner Danica Malone, homeowners can expect to pay additional inspection fees and building permit fees depending on the size of the ADU, and whether attached or detached.
Frederes said anyone interested in financing an ADU has three options: conventional financing through the Federal Home Loan Mortgage Corporation, bank lending and government financing through Federal Housing Administration loans.
Frederes said potential builders should have a firm understanding of all the fees and costs associated with an ADU before they start.
“There is no right way to finance your project,” said Frederes. “It’s important to take all considerations into play and sit down with a mortgage professional.”
Affordable Housing Committee member Stephanie Hurley said the information on ADUs was well-received by a majority of attendees.
“It’s a very interested audience,” said Hurley. “About 80 percent raised their hand asking questions and are interesting in building.”
“It was very informative, it seems like the town is sticking to the rules and regulations,” said resident Bruce Bergstrom.
The Affordable Housing Committee will be hosting a second ADU seminar at the Peterborough Public Library on Saturday, June 17 at 10 a.m.