Guam lawmaker pushes for ADU's as a solution to rising housing costs

Families in Guam looking for affordable housing could get more assistance if new legislation, introduced by Sen. Christopher M. Dueñas, is passed. 

Bill 26-38 (COR), introduced on Jan. 14, aims to authorize the construction of accessory dwelling units in residential zones.

“It’s an additional dwelling unit legislation, which, for all intents and purposes, allows an individual in an R2, an R1, or an agricultural zone to build either a stand-alone or attached structure,” Dueñas said during an interview on Wave 105, a sister-station to the Journal. “In the States, they normally call this the mom-and-pop home or the senior home. In Hawaii, they call it the ohana unit.”

Also known as ADUs, these smaller living areas can be an extension to an existing home, or a stand-alone house in the backyard. An ADU can be used to house a family member or allow a family to rent out the space for additional income. This also provides other opportunities for individuals or families looking for an affordable home or apartment. The cost of homes and apartments in Guam has increased, leading to what some have referred to as a housing crisis.

Siska S. Hutapea, founder and president of Cornerstone Valuation Guam Inc., said at the Society of American Military Engineers Guam Post forum on Nov. 15, 2024, the cost of a single-family home in Guam has doubled in price in 10 years. What used to be about $213,600 now costs about $420,000. “It’s very unaffordable for locals to buy a house,” she said. See story on https://www.mbjguam.com/housing-focus-same-and-upcoming-ghura-summit. A 800-square-feet apartments run about $1,500, according to the Guam Chamber of Commerce. See  https://www.guamchamber.com.gu/cost-of-living.

“This is one way for families to be able to still build on their property something small but separate,” he said.

The bill addresses issues faced by families seeking to refinance or leverage home equity when their properties include non-compliant structures, such as converted garages or small detached units. “The bank will not refinance because they need the land agency to say this is basically legal, non-compliant,” the senator explained. “This situation basically fixes that.”

The bill, which has nine co-sponsors, includes specific requirements to ensure compliance with existing building codes, including minimum lot sizes, unit dimensions, and utility hookups. For example, lots of 3,500 square feet can accommodate a 400-square-foot unit, while lots of 5,500 square feet or larger can support up to 900 square feet.

“Truth be told, a lot of people have done these kinds of things already,” Dueñas said. “There's nothing nefarious...The difference is that it changes the quality of their property. Most of them are just doing it for survival.”

The proposal also aims to establish clear guidelines for compliance. “Everything… is prescribed in law that it has to be up to code, that it has to be done through the process,” he said, emphasizing the importance of public safety and regulatory standards.

Dueñas is also exploring additional measures, such as tax credits and increased funding for first-time homebuyer programs, to provide further relief. “We’ve got to do something to bring that final mortgage price down in these interest rate environments.”

The senator said the bill has garnered widespread support from the community. “Of all the bills that I’ve introduced, this is the one where people come up to me at the store or church and say, ‘Please pass that bill,’” Dueñas said.

Dueñas emphasized the urgency of keeping Guam residents on the island. “We can’t lose our people moving off-island... We’ve got to turn that tide.” mbj