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Housing 101: ADU Lessons Learned

July 16, 2025

What Homeowners Should Know Before Building

ADUs Are Hard, But Prefabs May Offer a Solution

When we launched the Tahoe Housing Hub’s ADU Accelerator Pilot Program in late 2024, we were ambitious. We set out to support the construction of 20 accessory dwelling units (ADUs) in two years and build momentum from there.

The response was strong – over 100 people joined our interest list prior to launching the program, and more than 60 homeowners have since completed applications. Its clear residents want to be part of the solution but building ADUs in the Tahoe-Truckee region is anything but easy.

A year in, we’ve learned the same challenges that make construction difficult in the Tahoe-Truckee region—high costs, short building seasons, and a complicated permitting process—also apply to ADUs. Building a small unit doesn’t necessarily mean small challenges.

In response, we’ve had to get creative – exploring new approaches to construction, design, financing, and permitting in hopes of making ADUs more feasible for homeowners.

Traditional Construction vs. Prefab

The cost of traditional ‘stick-built’ construction cost is simply too high for most people to build an ADU. To address this, we’ve researched financing options, local housing incentive programs, and explored prefab and modular construction companies to find a low-cost solution to our high snow load environment.

Prefab and modular units are built off-site in a controlled environment, then transported and installed on your property. The quality is excellent, energy efficient, and often incorporates sustainable design and construction materials.  They can also reduce construction time and minimize weather delays. You can get anything from a 450 to a 1200 square foot ADU built this way, and the costs are significantly less than traditional construction.

If you’re considering prefab, it’s essential to do your homework. Some companies don’t have experience building in our region, and many models aren’t designed to meet our snow load or energy efficiency requirements. Ask if they’ve installed ADUs in the Tahoe region, whether their models are engineered to meet local codes, and if they can provide references from similar mountain climates. Also, be sure to compare the total cost of the project—not just the base price of the unit. Site work, foundation, utility hookups, and permits can significantly increase the final price.

The Town of Truckee has more detailed information on the different types of prefab ADUs, links to snow load requirements and local building and design criteria. Their site also provides links to several prefab companies. It’s important to note that the town’s prefab company list is informational only, and some of those companies may not be able to provide a product that meets the required snow loads in our area.

How the ADU Accelerator Can Help

If you are interested in a prefab ADU, please reach out to us. We are currently developing a list of prefab ADU companies with products that meet our region’s snow load requirements that we hope will help homeowners as they explore prefab ADU options.

Every ADU that is built in conjunction with our ADU Accelerator Pilot Program provides a home for a local worker. As we continue to learn what works—and what doesn’t—we’re focused on helping homeowners navigate the complexities of building in this region. Program participants receive free technical assistance as they navigate the permitting and construction process. We also cover all or some of the cost of additional pre-construction services like site surveys, land use planning, engineering and design.

Homeowners who participate in the program agree to rent their ADU to a local worker and can choose two different options: rent at market rate for 5 years or rent at a lower rate set by HUD for 3 years. The ADU Accelerator program is made possible by a grant from the Martis Fund and the North Tahoe Community Alliance’s TBID/TOT Dollars at Work Program. For more information visit www.tahoehousinghub.org.

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Housing 101: 700 on the Waitlist – Tahoe’s Affordable Housing Reality

June 18, 2025

The complexities surrounding affordable housing often lead to confusion. Terms like workforce, achievable, and affordable housing are used interchangeably, yet each describes a critical part of the region’s housing challenges. At its core, affordable housing simply means having enough homes at prices accessible to all community members, regardless of income.

Mountain Housing Council, a program of the Tahoe Truckee Community Foundation, has been working since 2017 to identify and define who in our community needs housing, if and what the barriers are to affordability, and how our region can address the problem. Their research consistently reveals significant unmet housing needs. The latest report from 2023 identifies a startling gap—approximately 8,200 housing units are urgently required across various income levels, family sizes, and housing types. These comprehensive reports provided the first real data on the range of unmet housing needs in our region and spurred urgent discussion and action within our communities. The work we do at the Tahoe Housing Hub is a direct result of the groundwork laid by the Mountain Housing Council.

For many residents, these numbers seem abstract. However, a recent Tahoe Daily Tribune article vividly illustrates the depth of this crisis through real-world implications. It reports that nearly 700 people are currently on waitlists for the limited number of available affordable housing units—homes specifically priced for those earning 80% or less of the area median income (AMI). The article further notes infrequent turnover, highlighting how rarely new opportunities become available.

It’s natural to question, “Do we really need more affordable units in Tahoe?” Yet, the waitlist data provides a clear and direct indication that the demand is very real. Addressing this critical housing shortage is fundamental for maintaining the strength and stability of our community.

The Tahoe Housing Hub continues working actively to address these housing needs, advocating for solutions while helping to increase the number of affordable units available to residents through the ADU Accelerator program. This important work is part of a broader collaborative effort across the region involving partners such as Placer County, Town of Truckee, Truckee Tahoe Workforce Housing Agency (TTWHA), and the Mountain Housing Council (MHC), among others. Together, these groups demonstrate a regional commitment to resolving our housing challenges.

*Housing Chart Source: Tahoe Daily Tribune. The City of South Lake Tahoe requires property managers to keep track of turnover and wait lists. The data is not available for many of the properties located in Truckee.

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Housing 101: Deed Restrictions Explained

May 21, 2025

Housing 101: Deed Restrictions Explained

If you’ve been part of a housing conversation lately—at a public meeting or chatting with neighbors, chances are the term “deed restriction” has come up. It may sound like legal jargon, but it’s a tool that has been used for decades to help guide how housing is used and who it serves.

What Is a Deed Restriction?

A deed restriction is a legally binding agreement that limits certain aspects of how a property can be used. It “runs with the land,” meaning it stays in place when the property is sold or transferred. The two most common types are:

  1. Income-Based Restrictions limit who can rent or buy based on income – typically for those making less than the average income within a community. This model is used mostly for rental housing, where rents are limited to ensure households spend no more than 30% of their net income on housing.
  2. Local Employment or Residency- Based Restrictions (aka “Local-Worker Restriction) prioritize full-time workers or residents of a community. These may include higher income caps and support the “missing middle”—those who earn too much for traditional affordable housing but still can’t afford market-rate prices.

Why They Work – and Where They’re Used

In North Lake Tahoe-Truckee, deed restrictions have been part of the housing strategy for more than 20 years. Projects like Frishman Hollow, Sierra Village Apartments and Kings Beach Housing provide deed restricted for sale and rental housing for a range of local workers: teachers, first responders, ski lift operators, restaurant workers and more.

Other communities, like Vail Colorado, have expanded these efforts. Vail’s InDEED program offers up to $200,000 to homeowners in exchange for a local worker deed restriction – without resale limits or income caps. This model has preserved over 165 homes and demonstrates that flexible programs can work. More examples are featured in the 2023 Workforce Housing Report.

Not One-Size-Fits-All—Especially for ADUs

Deed restrictions aren’t one-size-fits-all, and in some cases, applying them too rigidly can backfire. That’s especially true for homeowners building ADUs. Large scale housing developers might be willing to take on 55-year deed restrictions, but expecting an individual homeowner to do the same can actually discourage participation.  

That’s why local programs are beginning to explore more flexible deed restriction models: shorter terms, rent caps, or incentive payments that still support local housing without placing too much burden on homeowners.

Resale Value for Deed Restricted Homes

For many homebuyers considering a deed-restricted property, it’s natural to wonder how a restriction might affect future resale value. Many deed restriction programs are designed to preserve affordability while also allowing homeowners to build modest, meaningful equity over time. For example, in some cases, resale prices for deed restricted homes are tied to changes in the area’s median income. In other cases, homeowners can sell their property at market value, if the buyer is a local worker.

A Proven Tool—When Applied Thoughtfully

Deed restrictions have been a proven part of housing strategies in communities across the country but like any tool, they aren’t one-size-fits-all. The most successful programs are those that apply deed restrictions where they work best—and are willing to modify or adapt them in situations where they may not. For a deeper look at how deed-restricted homeownership works and the different ways communities apply it, check out some of these resources.

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What is Permanent Supportive Housing and Why Does it Matter in Tahoe-Truckee?

April 16, 2025

The Tahoe Housing Hub is guided by a set of core beliefs. At the top of that list is the belief that housing should be available to all in our community. What that means to us is stable, dignified housing for our friends and neighbors, local workers, families, retirees and the unhoused. Despite our cold and snowy winters, too many of our neighbors are unhoused, often living in cars, tents, or unstable temporary arrangements.

What is Permanent Supportive Housing?

Permanent Supportive Housing (PSH) is a proven, effective solution that helps people exit chronic homelessness by providing affordable housing paired with individualized support services. It is not a homeless shelter, a group home, or a halfway house. It is long-term, stable housing—often apartments—with leases, just like any other housing. What makes it “supportive” is that residents also have access to services like:

  • Mental and physical health care
  • Employment and job training
  • Childcare and food assistance
  • Substance use recovery support

These services are voluntary and tailored to each resident’s goals. The PSH model is built on the understanding that stable housing is the foundation from which people can rebuild their lives.

Tenants in PSH sign leases and pay rent—often around 30% of their income, which may include disability or Social Security benefits. An on-site manager or service coordinator helps connect residents to services and ensures the property is well-maintained and supportive. PSH housing looks different depending on the community. In urban areas, it’s often part of apartment-style developments that include a mix of affordable and supportive housing. But in the Tahoe region, we’ve adapted the model to fit the local housing stock and community context.

Does PSH Work?

Yes—and the research backs it up. Studies show that PSH:

  1. Reduces homelessness by 80% (Terner Center)
  2. Improves housing retention and health outcomes (California Policy Lab)
  3. Lowers the use of emergency services, including hospitals and jails, saving taxpayer dollars (SAMHSA – Permanent Supportive Housing: The Evidence (PDF))
  4. Does not increase crime or reduce property values (RAND Evaluation, Furman Center Study)

Local Progress: PSH in North Tahoe and Truckee

A 14-unit PSH facility opened in the Kings Beach area in 2024 and is now home to individuals who were already living in our community – some in tents, cars, or unstable situations. The location was intentionally chosen – close to services, groceries, and public transit. Residents now have a foundation for health, stability, and growth. You can watch a video about the project and meet some of its residents here

Looking ahead, a new PSH project in Truckee will get underway in the summer of 2025 at the former CHP site near the intersection of Hwy 80 and State Route 89. The project is a 55-unit affordable housing apartment complex and will include 10 units of PSH with on-site management and support services.

Why This Matters Now

Each year, about 117 households in the Tahoe-Truckee region access homeless services. But only one-third are placed in stable housing. That means many of our neighbors remain unhoused, cycling between temporary shelters, camps, and emergency care.

The recently released draft Tahoe Truckee Regional Homeless Action Plan outlines a five-year plan to address this issue with PSH as a cornerstone strategy. The action plan recommends solutions like PSH’s as a key tool for success. You can read the full plan here.

PSH is not just about housing. It’s about belonging, recovery, and hope. It’s a path forward for individuals and families who have faced extraordinary challenges—and an opportunity for our community to come together with compassion and care. At the Tahoe Housing Hub, we’re proud to support solutions that work—and to help create a future where everyone has a place to call home.

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Housing 101: About ADUs

March 18, 2025

The term ADU is being tossed around more and more often, but do you know what ADU really means? It’s short for accessory dwelling unit, or basically a fancy word for what most of us think of as guest houses, mother-in-law units or garage apartments.

If you’ve ever looked out at your yard, or inside your crawlspace or rec room and thought: I wonder if I could do something more with this space? The answer might be to turn it into an ADU.

ADUs might seem like a new-ish trend, but the concept of standalone living quarters isn’t. The term itself has been floating around since the 1980s, and recently, ADUs gained serious traction as part of the solution to the housing crunch. In simple terms, an ADU is a fully independent unit complete with the basics: its own kitchen, bathroom, and sleeping area that can only exist secondary to your main house.

So, what’s all the buzz about them? ADUs are more than just a cool backyard project, they’re a game-changer. Maybe you’re thinking about downsizing but love where you live. Maybe your parents need to be closer, but not too close. Or maybe your adult kids are back home trying to save up for their own place (because let’s be honest, housing prices aren’t getting any cheaper). Beyond personal benefits, ADUs are also backed by state law as a tool to tackle the housing shortage. That means they’re intended for long-term housing, not short-term vacation rentals – so if you were dreaming of an Airbnb side hustle, this isn’t the route. The goal here is stable, sustainable housing that fits different income levels, life stages, and household needs.

Real estate prices in the Tahoe-Truckee region keep climbing and finding an affordable investment property or helping a family member buy a home can feel nearly impossible, but adding an ADU is way more doable. Yes, it still is a significant investment, but compared to buying another property, it’s a smart long-term move. It can add value to your home, create a reliable rental income, and contribute to the local housing market. All without drastically changing the character of the community.

For homeowners who love the area but don’t live here full-time, an ADU can be a great way to stay connected to the community. Renting it out to a local worker or hiring a caretaker ensures the property is well maintained and contributes to a vibrant neighborhood.  

Concerns about density and parking often arise, but ADUs are a thoughtful, gentler housing development option that blend into neighborhoods without overwhelming them. If you’re curious about building an ADU, the Tahoe Housing Hub’s ADU Accelerator Program offers free step-by-step support to walk you through the entire process. With the right guidance, turning an underutilized space into a livable unit becomes much more achievable.

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Amy’s Story

March 13, 2025

A tiny solution for a big housing problem in Tahoe

NORTH LAKE TAHOE, Calif. – To most people, having a mother-in-law unit or guest house on their property would be considered a luxury, something not very common in the Tahoe region. But what if there were more guest houses built here, where local workers could live and thrive and contribute to our community?

It’s something that Amy Meierotto, a third-grade teacher at Kings Beach Elementary wants to see happen. Meierotto, a mom with a young son, currently lives in a small rental unit. Her son sleeps in the bedroom, and she sleeps in the kitchen area. “I have taught third grade at Kings Beach Elementary for 20 years. I love this community. I am a part of this community, and I want to stay here. But as my son grows, we have no real future here without secure housing,” says Meierotto.

Meierotto has tried the many housing programs available to her, but even with downpayment assistance and other incentives, she still cannot afford to purchase a home or find a larger long-term rental in the community she serves. That’s why she’s so interested in ADU’s – or accessory dwelling units. She has been talking to her neighbors about the benefits of building an ADU on their property. It wouldn’t just be a solution for her, she says. And ADU would add value to the homeowner’s property and provide housing for local families like hers. “If one of my neighbors was able to add an ADU to their property, I might have the opportunity to live and raise my son in a small home right here in our community,” she says.

It’s no secret that California, and particularly the Tahoe Truckee region, is in a housing crisis. Thousands of rentals and for sale units are needed for local workers and families to keep our communities thriving. Building large-scale developments is challenging, costly and time consuming. That’s where small-scale ADUs can provide a tiny solution to the big housing problem by sprinkling additional units into already existing neighborhoods.

Until very recently, it was difficult to build ADUs in the Tahoe area. But thanks to a slew of new California laws, all that has changed to encourage more ADU construction. It isn’t an easy process to convert space in an existing home or build a detached ADU in Tahoe, but it’s becoming easier.

The Tahoe Housing Hub has a new program called the ADU Accelerator Pilot Program that provides free technical and project management support from concept to completion. And if you’re curious about building an ADU, now is the time to reach out. “Winter is the perfect time to connect with us to explore your options and get the ball rolling. We can help with design, permitting, choosing a contractor, and securing financing so that the project is ready to start construction in the spring,” says Karolina Scarcia, Housing Development Project Manager at The Tahoe Housing Hub

“Each unit built creates a chance for an individual or family, like Amy Meierotto and her son, to live and work locally. We recognize that ADUs alone won’t solve our affordability challenges or the lack of diverse housing options that people want to live in, but they a meaningful step forward, offering real opportunities to house local teachers, utility workers, snowplow drivers, hospitality workers, and others who have no other choice but to relocate and commute,” says Scarcia.

Meierotto says she’s seen many of her colleagues at Kings Beach Elementary leave the area to find housing over the hill in Reno or Carson City. They try to make the drive back up to the school for work, but it usually only lasts a year or two. For Meierotto’s part, she says she’s hanging on in Kings Beach – for now. “I go through waves where I really believe I can hang on, but then reality hits and I think the only solution is to move to Reno. I think of it every night before I go to bed and every morning when I wake up.”

If you are interested in learning more about how you can convert an existing space (like a rec room, storage, crawl space, etc.) into an ADU or build one on your property, reach out to the Tahoe Housing Hub’s ADU Accelerator program. Contact tahoehousinghub.org, email info@tahoehousinghub.org, or call (530) 581-8711 to get connected with an ADU expert.

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Putting a Face to the Housing Crisis in Tahoe

March 6, 2025

By Erin Casey

When we talk about housing in North Lake Tahoe, we often rely on statistics — how many units are needed, how many workers are commuting from out of town, how high home prices have climbed. But behind those numbers are real people, neighbors, and essential members of our community struggling to find a place to live.

Take Amy Meierotto, a third-grade teacher at Kings Beach Elementary. Amy has dedicated 20 years to our local students, yet she and her young son live in a small rental where he sleeps in the bedroom and she sleeps in the kitchen. Despite trying every available housing program, she still can’t find a more suitable affordable home in the community she serves. Her story is not unique. We hear from restaurant workers, firefighters, nurses, and small business owners facing the same impossible choice: stay and struggle or leave the place they love.

At Tahoe Housing Hub, we believe that when people share their stories, it puts a face to the housing crisis. These stories remind us that the need for housing isn’t abstract — it’s about the people we see every day, the people who keep our community running. And when we make space for their voices, it leads to better decision-making and more inclusive solutions.

One of the most immediate and impactful solutions we have are accessory dwelling units (ADUs) — small homes built on existing properties that provide much-needed rental housing while allowing homeowners to invest in their property. For someone like Amy, an ADU in her neighborhood could mean a chance to stay in Kings Beach, keep teaching, and raise her son in the community they call home. For other local workers, it could mean stable, long-term rental housing close to work. And for homeowners, it could mean extra income to help cover rising costs.

Unfortunately, ADUs have been an underutilized solution in Tahoe for years. In the past, permitting was confusing, regulations were restrictive, and financing was difficult. That’s changing. New state laws have made ADUs easier to build and local jurisdictions are beginning to recognize their value.

Still, the process can feel overwhelming, which is why Tahoe Housing Hub created the ADU Accelerator Pilot Program. We provide homeowners with free guidance and technical support, helping them navigate design, permitting, financing, and construction. Our goal is to make the process as simple as possible because every new ADU means one more home for someone who needs it.

ADUs won’t solve the housing crisis alone, but they are a meaningful step toward making Tahoe a place where people can live, not just visit. They are a practical, immediate way for homeowners to be part of the solution. And when people can picture who might live in an ADU they build — a teacher, a nurse, a local business owner, a young family — it becomes more than just an investment; it becomes a way to strengthen our community.

That’s why we’re working to bring these stories forward. We want homeowners, decision-makers, and the broader community to understand that behind every housing discussion are real people whose lives are directly impacted by the choices we make. We want to ensure that the voices of those who need housing are heard in the conversations shaping housing policy.

If you’re a homeowner interested in creating an ADU, or if you have a housing story to share, we invite you to connect with us. Visit tahoehousinghub.org to learn more about the ADU Accelerator Pilot Program and how we can work together to create housing solutions that keep our community thriving.

Housing isn’t just about numbers; it’s about our people, friends and neighbors in our community. Let’s make sure their voices are part of the conversation.

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