Redwood City, California startup Abodu has a potential solution for one of the most expensive housing markets in the country: accessory dwelling units.Now, that solution is one step closer to reality the company just raised $3.5 million in VC funding led by Initialized Capital, Adobu announced Tuesday.ADUs like the ones offered by Abodu are permanent structures often added to the property of already-existing single-family homes. They’re also sometimes called “granny units” or “in-law apartments,” though they can also be a solution for adult children moving back to their parents, for example. Abodu says it has installed “dozens” of units in the last year.Read more: California’s housing crisis is so dire, a startup just raised $3.5 million in VC funding to drop tiny houses in people’s backyardsZillow ranked San Jose the hottest housing market in the country for the past two years, and it has prices to match. Last year, the median home price in the city was $1.2 million. Meanwhile, San Jose’s homeless population has continued to grow, increasing more than 40% between 2017 and 2019. The coronavirus pandemic has also led to record numbers of young adults moving back home.California Governor Gavin Newsom and San Jose Mayor Sam Liccardo are working together to experiment with possible affordable housing solutions, CityLab reported, and Newsom has committed to adding 3.5 million homes to the state by the end of his term. Abodu’s ADUs have a big leg up here because the prefab units are preapproved in San Jose, meaning that the paperwork turnaround in the city for buyers can be as little as a day.Here’s a look inside.