Many markets are trying to fight the affordability issue - but maybe none as prominently as San Francisco. One approach they are considering is throwing more money at it. Or at home owners. They are putting a new loan out that would not only allow them to turn their property into a rental property, therefore bringing them income, but also possibly offering a lower cost option for the renter.

Housing advocates and public policy experts are working with banks to create loans specifically crafted to help homeowners build rental units on their property in a bid to help solve California's housing crunch.

Last September, Gov. Jerry Brown signed into law new regulations aimed at how property owners create and regulate potential rental properties built on the land they already own in an attempt to boost California's strained housing stock in a region with sky-high property prices.

The new financing options would be designed to help California homeowners who may be "home rich and cash poor" actually convert some of these spaces.

"[The] law, authored by California Sen. Bob Wieckowski, enables homeowners to build rental units on their property, whether through garage conversions, as a home attachment, or as a new, standalone structure. These types of residences are formally known as Accessory Dwelling Units (ADUs) and colloquially as 'granny flats,'" Business Insider reports.

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