Master Code of Ethics & Professional Standards — New England

This Master Code of Ethics establishes The ADU Exchange LLC (TheADUExchange.com) as the leading authority in ethical Accessory Dwelling Unit development across New England. It is the regulatory backbone of a marketplace built on trust, transparency, and technical excellence — serving professionals and homeowners in Massachusetts, Rhode Island, Connecticut, New Hampshire, Vermont, and Maine.

The Five Pillars of Ethical ADU Development

These principles are non-negotiable. They form the ethical bedrock upon which every interaction, transaction, and relationship within The ADU Exchange ecosystem is built. Violation of any foundational principle constitutes grounds for immediate review and potential expulsion.

Section 1.01 — Integrity

Members shall conduct all business affairs with unwavering honesty. Integrity is defined as the refusal to sacrifice long-term marketplace credibility for short-term financial gain. This applies to all communications — written, verbal, and digital — with homeowners, trade partners, municipal authorities, and lending institutions.

Integrity in practice means:

• Providing accurate timelines even when a shorter estimate would win the project
• Disclosing known complications during feasibility rather than after contract signing
• Reporting license or insurance lapses within 24 hours — no exceptions
• Representing qualifications truthfully; never claiming expertise outside your scope

Section 1.02 — Transparency

All fees, project timelines, material costs, and referral relationships must be disclosed in writing. The ADU Exchange prohibits hidden referral fees, undisclosed markups, and "under-the-table" kickbacks that are not disclosed to the end consumer.

Section 1.03 — Code Compliance

Every project initiated through the platform must adhere to applicable residential building codes, state energy codes (e.g., MA Stretch Energy Code, CT Energy Code, IECC adoption in NH/VT/ME/RI), and specific municipal ADU ordinances across all six New England states. Circumvention of safety codes is grounds for immediate expulsion.

Section 1.04 — Marketplace Positioning

The ADU Exchange LLC is a credibility-building platform. We do not "sell leads." We provide a framework for trusted positioning, ensuring that homeowners engage only with vetted professionals. Members may not represent the platform as a lead generation service in any marketing materials.

Section 1.05 — Collaboration Over Competition

Members agree to uphold the "Ecosystem Principle," recognizing that the success of the ADU industry depends on the collective reputation of all trade partners within the platform. Disparagement of fellow members, competing through misinformation, or undermining collaborative relationships violates this principle.

This Code is a binding governance document applicable to all entities interacting with The ADU Exchange LLC ecosystem. Membership in any capacity constitutes acceptance of these standards.

New England Regulatory Landscape

ADU regulations are evolving rapidly across New England. The following provides general context — agents and professionals should never interpret zoning codes or advise clients on regulatory compliance. Always direct clients to municipal planning departments, land use attorneys, or qualified architects.

General contractors form the operational backbone of the ADU Exchange ecosystem. As the primary point of contact for homeowners during construction, GCs carry an outsized responsibility for maintaining the platform's reputation. These standards are comprehensive and non-negotiable.

Section 3.1 — Licensing Standards

All General Contractors must maintain "Active" status with their respective state licensing authority — such as the Massachusetts DCBR, Connecticut DCP, Rhode Island CRB, or equivalent boards in New Hampshire, Vermont, and Maine. Any suspension, lapse, or disciplinary action must be reported to The ADU Exchange within 24 hours.

Section 3.2 — Insurance Requirements

Insurance is not optional — it is the financial firewall protecting homeowners, subcontractors, and the ecosystem at large.

Section 3.3 — Change Order Protocols

Change orders are one of the most common sources of homeowner disputes in construction. The ADU Exchange establishes clear protocols that eliminate ambiguity.

• All changes to scope of work must be documented in writing before work commences
• The homeowner must sign and date the change order; digital signatures are acceptable
• Verbal change orders are strictly prohibited — no exceptions, regardless of project size
• Each change order must include: description of work, cost impact, timeline impact, and materials
• A running change order log must be maintained and available for homeowner review at any time

Section 3.4 — Site Safety & OSHA Compliance

GCs are responsible for maintaining a clean, OSHA-compliant job site. ADU projects often occur on occupied residential properties, which requires heightened safety awareness.

Architects and designers shape the vision that homeowners invest in. Their ethical obligations extend beyond aesthetics — they must ensure that every design is feasible, compliant, and honestly represented. A beautiful rendering that can't be built is a broken promise.

Section 4.1 — Feasibility Truth Standards

Designers shall not provide "optimistic" renderings that violate local setbacks, height restrictions, or Floor Area Ratio (FAR) limits. Every design presented to a homeowner must be grounded in regulatory reality.

Section 4.2 — Energy & Code Compliance

All designs must prioritize energy code compliance and sustainable building practices. In Massachusetts, this includes the Stretch Energy Code and Specialized Opt-in Code; in Connecticut, the CT Energy Code; and in all New England states, applicable IECC-based requirements must be met or exceeded. Designs that require costly compliance modifications after permitting reflect poorly on the architect and the ecosystem.

Section 4.3 — Design Integrity Protocols

• Renderings must accurately represent achievable outcomes — no aspirational imagery presented as "the plan"
• Material specifications must reflect actual budget parameters, not idealized selections
• Timeline estimates for permitting must account for realistic municipal review periods
• If a design change is driven by cost constraints, the architect must disclose this transparently
• Portfolio images used in marketing must represent the architect's actual completed work

Lending institutions play a critical role in making ADU development accessible. With that access comes enormous responsibility. The ADU Exchange holds lenders to the highest standards of transparency and consumer protection.

Section 5.1 — Truth in Lending

Members must provide full APR disclosure and avoid predatory ADU construction loans with hidden balloon payments, usurious interest rates, or misleading qualification criteria.

Section 5.2 — ROI & Projection Ethics

Lenders shall not guarantee specific rental income or property appreciation values. The ADU market is evolving, and projections carry inherent uncertainty.

Section 5.3 — Anti-Predatory Lending Standards

The ADU Exchange maintains a zero-tolerance policy for predatory lending. The following characteristics trigger an immediate ethics review:

• Interest rates exceeding 5 percentage points above current prime without documented risk justification
• Origination fees exceeding 3% of loan amount without clear value-add services
• Prepayment penalties exceeding 2% of outstanding balance
• Mandatory arbitration clauses that waive the borrower's right to legal recourse
• Loans structured to refinance existing favorable mortgage terms unnecessarily
• Any loan product where total interest cost is not prominently disclosed

Real estate professionals within The ADU Exchange — the "ADU Agent Arsenal" — serve as the frontline connection between homeowners and the broader ecosystem. Your ethical conduct directly shapes public perception of ADU development.

Section 6.1 — Legal Representation Standards

Agents must verify the legality of existing accessory dwelling units, "granny flats," or unpermitted conversions before listing a property. Representing unpermitted space as legal ADU square footage exposes buyers to significant risk.

Section 6.2 — Disclosure Requirements

Agents must disclose material facts that affect ADU feasibility. Omitting known limitations to close a transaction faster is a Tier 1 ethics violation.

Section 6.3 — Listing Ethics for ADU Properties

The homeowner is the reason this ecosystem exists. Every standard in this Code ultimately serves one purpose: ensuring that homeowners who engage with ADU Exchange professionals have a better, safer, more transparent experience than they would find anywhere else.

Section 7.1 — The "Right to Know" Policy

Members must provide homeowners with a comprehensive "Project Roadmap" that outlines the three phases of ADU development. No homeowner should be surprised by what comes next.

Section 7.2 — Dispute Resolution

All contracts signed via the ecosystem should contain a clause for Mandatory Mediation before litigation. The platform's Ethics Review Panel serves as an initial sounding board.

1. Informal Resolution — Direct communication between parties with 14-day response window
2. Ethics Panel Review — ADU Exchange Ethics Review Panel evaluates the dispute and issues recommendations
3. Mandatory Mediation — Professional mediation facilitated by a neutral third party
4. Binding Arbitration — If mediation fails, arbitration per contract terms
5. Legal Action — Only after all preceding steps have been exhausted

Section 7.3 — Payment Draw Ethics

Contractors shall not request "front-loaded" payment schedules. Payment structures must align with work completed.

Financial misconduct is the fastest path to ecosystem destruction. The ADU Exchange maintains rigorous financial conduct standards that go beyond legal minimums to establish genuine trust.

Section 8.1 — Anti-Kickback Provision

No member shall offer or accept a referral fee from another member unless such fee is disclosed in writing to the client. Disclosed fees must be labeled as a "Platform Coordination Fee" or "Professional Referral Fee."

Section 8.2 — Bait-and-Switch Protections

Section 8.3 — Fee Disclosure Matrix

Conflicts of interest are not inherently unethical — undisclosed conflicts of interest are. The ADU Exchange requires full transparency so homeowners can make informed decisions.

Section 9.1 — Disclosure of Financial Interest

If a professional has a financial interest in a specific product, manufacturer, or service they are recommending, this must be disclosed to the client in writing before the recommendation is made.

Standards without enforcement are suggestions. The ADU Exchange maintains a structured, fair, and rigorous disciplinary process that protects the ecosystem while giving members due process.

Section 10.1 — The Escalation Model

Section 10.2 — Violation Tier Classification

Section 11.1 — Right to Audit

The ADU Exchange LLC reserves the right to request copies of contracts, permits, insurance certificates, and project documentation for any project initiated through the platform. Members agree to respond to audit requests within 10 business days.

Section 11.2 — Annual Re-Acknowledgment

Members must digitally sign this Code of Ethics annually to maintain "Certified Partner" status.

Certification Levels