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Agenda Packet 02.17.2022
PLANNING & ZONING COMMISSION AGENDA ST. LUCIE COUNTY Regular Meeting Thursday, February 17, 2022 6:00 PM St. Lucie County Commission Chambers 2300 Virginia Avenue 3rd Floor of Roger Poitras Building Fort Pierce, FL 34982 BOARD MEMBERS CHAIRMAN JAMES TAYLOR VICE-CHAIRMAN ROBERT LOWE BOARD MEMBER CRAIG MUNDT BOARD MEMBER VALERIE SLACK BOARD MEMBER CRAIG BRIDGERS BOARD MEMBER ED LOUNDS AT-LARGE BOARD MEMBER LAWRENCE “BEAU” SLAY BOARD MEMBER WILLIAM O’DELL AT-LARGE BOARD MEMBER RYAN BINNER EX-OFFICIO BOARD MEMBER MARTY SANDERS Mission Statement St. Lucie Works to deliver superior service that enhances our quality of life Page 1 of 141 Regular Meeting Thursday, February 17, 2022 6:00 PM 2 | P a g e WELCOME Please turn off all cellular phones and pagers prior to entering the Commission Chambers. Please note that the Planning and Zoning Commission/Local Planning Agency serves in an advisory capacity to the St. Lucie County Board of County Commissioners and has the power to review and make recommendations to the Board, for approval or disapproval, on any applications within their area of responsibility. The Planning and Zoning Commission strongly encourages your input and comment at the public hearing. Please limit comments to three minutes if possible and be respectful of others’ opinions. For public convenience, all meetings are televised and are provided with wireless internet access. NOTICE: All Proceedings before this Board are electronically recorded. Any person who decides to appeal any action taken by the Board at these meetings will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made. Upon the request of any party to the proceedings, individuals testifying during a hearing will be sworn in. Any party to the proceedings will be granted the opportunity to cross-examine any individual testifying during a hearing upon request. Anyone with a disability requiring accommodation to attend this meeting should contact the Human Resources Department at (772) 462-1546, HumanResources@stlucieco.org or TDD (772) 462-1428 at least forty-eight (48) hours prior to the meeting. Page 2 of 141 Regular Meeting Thursday, February 17, 2022 6:00 PM 3 | P a g e 1.CALL TO ORDER 2.PLEDGE OF ALLEGIANCE 3.INVOCATION 4.ROLL CALL 5.ANNOUNCEMENTS 6.DISCLOSURE(S) 7.MINUTES A.St. Lucie County Planning & Zoning Commission minutes for the meeting of January 20, 2022. 8.PUBLIC COMMENT 9.PUBLIC HEARINGS 10.WORKSHOPS A.Public Workshop on Accessory Dwelling Units (ADUs)/Tiny Homes 11.OTHER BUSINESS 12.ADJOURN Page 3 of 141 PLANNING & ZONING COMMISSION ST. LUCIE COUNTY, FLORIDA Regular Meeting January 20, 2022, Convened: 6:00 PM Adjourned: 6:40 PM 1. CALL TO ORDER The meeting was called to order at 6:00 PM by Chair Taylor 2. PLEDGE OF ALLEGIANCE Led by Chair Taylor. 3. INVOCATION Led by Mr. O'Dell. 4. ROLL CALL Board Secretary did the Roll Call. Chair Taylor announced that the Election of Officials would be changed in the agenda to after Roll Call. Present Chair James A. Taylor, Vice-Chair Bob Lowe, Board Member Billy O'Dell, Chair Craig Mundt, Board Member Ed Lounds, Board Member Lawrence "Beau" Slay, Board Member Ryan Binner, Board Member Valerie Slack, Board Member Craig Bridgers Excused Ex-Officio Marty Sanders Page 4 of 141 Planning & Zoning Commission Meeting Thursday, January 20, 2022, 6:00 PM 2 | P a g e 11. ELECTION OF OFFICIALS Mr. Mundt nominated Mr. Taylor for Chair of Planning & Zoning Commission. Mr. Lowe Seconded. Approved unanimously. Mr. Mundt nominated Mr. Lowe for Vice-Chair of Planning & Zoning Commission. Mr. O'Dell Seconded. Approved unanimously. Mr. Mundt nominated Staff for Secretary of the Planning & Zoning Commission. Mr. O’Dell Seconded. Approved unanimously. 5. ANNOUNCEMENTS None. 6. DISCLOSURE(S) None. 7. MINUTE S A. St. Lucie County Planning & Zoning Commission minutes for the meeting of November 18, 2021 RESULT: APPROVE MOVER: Vice-Chair Bob Lowe SECONDER: Board Member Billy O'Dell AYES: James A. Taylor, Bob Lowe, Billy O'Dell, Craig Mundt, Ed Lounds, Lawrence "Beau" Slay, Ryan Binner, Valerie Slack, Craig Bridgers NAYS: None EXCUSED: None 8. PUBLIC COMMENT None. Page 5 of 141 Planning & Zoning Commission Meeting Thursday, January 20, 2022, 6:00 PM 3 | P a g e 9. PUBLIC HEARINGS A. Joshua Long, AICP, Gunster Law Firm, on behalf of Florida Power and Light (FPL), is requesting an Amendment to the Official Zoning Atlas for a change in zoning from the AG-5 (Agricultural, Residential-5 - 1du/5ac) Zoning District to the CPUB (Conservation Public) Zoning District for one (1) parcel consisting of 134.19-acres located approximately 3,737 feet east of Center Street, in Okeechobee, Florida. STAFF PRESENTATION: Jodi Kugler, Senior Planner, SLC Planning Department, made a presentation. The applicant is proposing to construct and operate a 74.5 MW Photovoltaic Solar Center, submitting petitions for a Lot Split and Major Site Plan, concurrent to this rezoning request, where the parent parcel totaling 586.05 acres was split into two (2) separate parcels known, as West Parcel totaling 451.86 acres and East Parcel totaling 134.19 acres. The applicant is seeking approval to rezone the East Parcel from Agricultural-5 (AG-5) to Conservation Public (CPUB), excepting these lands from the proposed development scope. The presentation also covered Public Notice, Aerial, FLU, Zoning, STAFF RECOMMENDATION: This petition conforms to the Standards of Review as set forth in St. Lucie County Land Development Code Section 11.06.03 and is consistent with the St. Lucie County Comprehensive Plan goals, objectives, and policies. Staff recommends that this petition be forwarded to the Board of County Commissioners with a recommendation of approval. BOARD DISCUSSION: Chair Taylor announced that the Florida Statute changes that Solar Farms are not required for Conditional Use, but simply a Site plan. APPLICANT PRESENTATION: Joshua Long, AICP, Gunster Law Firm on behalf of FPL made a presentation on the project. it highlighted the location of the property that was decided to have a CPub Rezone as it's in a very rural area to ensure no development occurs on the property. BOARD DISCUSSION: Mr. Mundt asked about the number of homes it would cover. Responded 15,000 homes. Vice Chair Lowe inquired if this would cover Okeechobee. Energy goes to the FPL grid and then distributed. PUBLIC HEARING: None. BOARD MOTION: Mr. Lounds motion to approve bridges second Page 6 of 141 Planning & Zoning Commission Meeting Thursday, January 20, 2022, 6:00 PM 4 | P a g e RESULT: APPROVE MOVER: Board Member Ed Lounds SECONDER: Board Member Craig Bridgers AYES: James A. Taylor, Bob Lowe, Billy O'Dell, Craig Mundt, Ed Lounds, Lawrence "Beau" Slay, Ryan Binner, Valerie Slack, Craig Bridgers NAYS: None EXCUSED: None B. Bradley Currie, AICP, Engineering Design & Construction Inc., on behalf of Ronald J & Denise K. Buchmeyer is requesting an Amendment to the Official Zoning Atlas for a change in zoning from the AR-1 (Agricultural, Residential-1 1du/ac) Zoning District to the PNRD (Planned Non-Residential Development) Zoning District and Preliminary Site Plan for one (1) parcel consisting of a 0.999acres located south of Midway Road and west of Christensen Road in Fort Pierce. STAFF PRESENTATION: Jodi Kugler, Senior Planner, SLC Planning Department, made a presentation. The request seeks to amend the Official Zoning Atlas to reclassify the zoning from the AR-1 (Agricultural, Residential – 1du/ac) to the PNRD (Planned Non-Residential Development) Zoning District. Presentation covered Public Notices, project location, current and proposed zoning, Preliminary site plan, proposed uses and mail in response. STAFF RECOMMENTDATION: The proposed PNRD Rezone & Preliminary Site Plan conform to the Standards of Review as set forth in St. Lucie County Land Development Code Sections 11.06.03 & 11.02.07 and have been found to be consistent with the Goals, Objectives, and Policies of the St. Lucie County Comprehensive. Staff recommends the Planning and Zoning Commission forwards a recommendation of approval to the Board of County Commissioners, subject to the following Conditions of Approval: Prior to approval of the Final/Minor Site Plan, the applicant shall demonstrate compliance with Land Development Code, Section 7.10.24 Community Architectural Standards. Traffic will be evaluated at the time of Site Plan submittal. Uses that generate enough trips to warrant a right turn lane for ingress will not be supported. Per LDC 7.09.04.E, provide the depiction of a masonry wall or opaque wood fence at least eight ft. (8’) in height that forms a continuous screen adjacent to residential use within all side and rear yard perimeter buffer areas. This requirement for the perimeter masonry wall or opaque wood fence may be reduced in height from eight ft. (8’) to six ft. (6’) or waived in its entirety by the Environmental Resources Director if a signed and notarized administrative wall waiver is obtained from each adjacent property owner, and landscaping shall then comply with the standards outlined in LDC 7.09.04.B. The final (Minor) Site Plan Page 7 of 141 Planning & Zoning Commission Meeting Thursday, January 20, 2022, 6:00 PM 5 | P a g e shall, in addition to the perimeter and interior vehicular use area landscaping requirements, demonstrate: A minimum of ten ft. (10’) planting space between parking spaces and building and a minimum of five ft. (5’) planting space between driveways, sidewalks, and buildings shall be provided per LDC 7.10.24.H; Littoral and upland buffer plantings are required for wet retention ponds per LDC 6.04.02.F and CP 6.1.2.5. Ground/monument signs shall have a landscaped area around its base which extends a minimum distance of three ft. (3’) in all directions. BOARD DISCUSSION: Mr. O'Dell inquired about the water retention for the site. Brad Currie, EDC. responded that it will have dry retention a foot above the water table. Mr. Mundt inquired about the properties surrounding it. Mr. Currie responded that it's the Florida Center for Recovery and to the south is the Muslim Cemetery. Mundt asked about the absence of support for the right turn lane from Public Works. Ms. Kugler responded that tit is based on the use. Mundt inquired about citizens who were not in favor. Mr. Currie responded that he was upset about changes in the neighborhood. We restricted uses to make him feel better. Vice-Chair Lowe inquired about the number of notices. Jodi responded thirty notices. PUBLIC HEARING: None. BOARD MOTION: RESULT: APPROVE MOVER: Board Member Ed Lounds SECONDER: Board Member Craig Mundt AYES: James A. Taylor, Bob Lowe, Billy O'Dell, Craig Mundt, Ed Lounds, Lawrence "Beau" Slay, Ryan Binner, Valerie Slack, Craig Bridgers NAYS: None EXCUSED: None C. A County initiated Text Amendment to the Land Development Code to allow an alternative method for the subdivision of property in AG zoning Page 8 of 141 Planning & Zoning Commission Meeting Thursday, January 20, 2022, 6:00 PM 6 | P a g e STAFF PRESENTATION: Ms. Olson, Planning and Development Services Director, made a statement regarding feedback from the community regarding a text amendment to move the Urban Services Boundary to include others in the western area. Ms. Olson requested to table the item to re-advertise for a future date to comply with request from commissioners. BOARD DISCUSSION: Mr. Lounds inquired about where the line was moving. Ms. Olson responded by moving to the location of Header Canal Rd. To incorporate all PSL has been annexed. PSL is not limited to annexation, it is largely driven by utilities. BOARD MOTION: RESULT: TABLE MOVER: Board Member Ed Lounds SECONDER: Vice-Chair Bob Lowe AYES: James A. Taylor, Bob Lowe, Billy O'Dell, Craig Mundt, Ed Lounds, Lawrence "Beau" Slay, Ryan Binner, Valerie Slack, Craig Bridgers NAYS: None EXCUSED: None 10. WORKSHOPS None. 12. OTHER BUSINESS Ms. Olson announced her resignation to work with Kara Wood for a planning firm in the private sector. Her final day is February 4th. Mayte Santamaria will be returning as Director. Vice Chair Lowe, Mr. Mundt and Chair Taylor all expressed their appreciation for Ms. Olson. 13. ADJOURN The meeting adjourned at 6:40pm. Page 9 of 141 ITEM NO.(ID # 2022-54705) DATE:2/17/2022 AGENDA REQUEST TO:Planning and Zoning Commission PRESENTED BY:Benjamin Balcer, Planning & Development Services Assistant Director SUBMITTED BY:Planning & Development Services SUBJECT:Public Workshop on Accessory Dwelling Units (ADUs)/Tiny Homes BACKGROUND: St. Lucie County’s Planning and Development Services staff invites the public to attend a workshop about Accessory Dwelling Units (ADUs) to be held during the Planning and Zoning Commission meeting on Thursday, Feb. 17 at 6 p.m. in Commission Chambers on the third floor of the Roger Poitras Building at 2300 Virginia Avenue, Fort Pierce. Accessory Dwelling Units, also known as granny flats or tiny houses, are used in communities to provide flexibility for families to accommodate aging parents or transitioning children into adulthood. ADUs can also provide homeowners with another means of income when faced with rising homeownership costs, by renting out these backyard units to those who need a small space and affordable rent. ADUs can be an efficient way to address the need for affordable housing for young people entering the workforce, retirees, and others, overseen by the homeowner and integrated into established neighborhoods. Among the issues to consider are how to address the need for additional parking, whether there are areas that are not appropriate for Accessory Dwelling Units, and any other adverse impacts from this potential new use. PREVIOUS ACTION: N/A FINANCIAL IMPACT: N/A RECOMMENDATION: No vote is necessary. The Planning & Development Services Department is looking for the public to provide input on the option of allowing ADUs within certain areas of unincorporated St. Lucie County. This action would eventually require a text amendment to the County's Land Development Code. COMMISSION ACTION: RESULT: Page 10 of 141 MOVER: SECONDER:None AYES:None NAYS:None EXCUSED:None Coordination/Signatures Date: February 11, 2022 Benjamin Balcer, Planning & Development Services Assistant Director Date: February 11, 2022 Caroline Valentin, Assistant County Attorney Date: February 11, 2022 Mark Satterlee, Deputy County Administrator Page 11 of 141 Planning and Development Services Department Planning Division M E M O R A N D U M TO:Planning and Zoning Commission THROUGH:Benjamin Balcer, AICP, Assistant Director FROM:Leslie Olson, AICP, Director DATE:February 1, 2022 SUBJECT:Public Workshop to consider a Text Amendment to the Land Development Code Accessory Dwelling Units Accessory Dwelling Units (ADUs), also known as granny flats, backyard cottages or tiny houses, are often used in communities to provide flexibility to families to accommodate aging parents or transition children into adulthood. ADUs are independent dwellings, located on the same parcel as the primary home. Unlike mother-in-law suites, these units are equipped with a full kitchen and an independent entrance, with intent to be fully independent of the primary structure. ADUs are a historical residential type. Carriage house apartments, or garage apartments are often found in older, high-end communities, as the units were often intended for in-residence staff. Most communities, including ours, have outlawed ADUs over time with the adoption of single-family zoning. Due to the extreme shortage of quality affordable housing, communities are now considering and adopting regulations to allow for this flexible housing type in single-family zoning districts. In addition to providing affordable housing alternatives, ADUs can also provide homeowners another means of income when faced with rising homeownership costs. ADUs can also be an efficient way to supply affordable housing for youth entering the workforce, retirees, and others with oversight by the homeowner and integration into established neighborhoods. Both the Florida Housing Coalition and the AARP (American Association of Retired Persons) recommend that local jurisdictions explore the possibility of bringing back this historical use to provide options for families to “age in place” and small-scale, homeowner-overseen affordable housing. Attached to this agenda item are model ordinances and educational materials from these organizations that informed this analysis. This workshop is intended to discuss what Accessory Dwelling Units are, associated benefits and concerns of this potential use, and the decision points St. Lucie County will need to make if drafting regulations to enable the use. Definition: Accessory Dwelling Unit - an additional, ancillary dwelling unit located on the same lot or parcel as a principal, single family dwelling unit. Purpose and Intent: It is the purpose of this Ordinance to: (i) Increase the supply of affordable housing types not requiring government subsidies; (ii) Help older homeowners, single parents, young home buyers, and renters seeking a wider Page 12 of 141 Project Name: LDC Text Amendment Workshop Accessory Dwelling Units 2 range of homes, prices, rents and locations; (iii) Increase housing diversity and supply, providing opportunities to reduce the segregation of people by race, ethnicity and income that resulted from decades of exclusionary zoning policies; (iv) Provide homeowners with extra income to help meet rising homeownership costs; (v) Create a convenient living arrangement that allows family members or other persons to provide care and support for someone in a semi-independent living situation without the latter leaving his or her community; (vi) Provide an opportunity for increased security, home care and companionship for older and other homeowners; (vii) Reduce burdens on taxpayers while enhancing the local property tax base by providing a cost-effective means of accommodating development without the cost of building, operating and maintaining new infrastructure; (viii) Promote more a compact urban and suburban growth pattern that reduces the loss of agricultural and environmentally significant lands, and limits new pollution; and (ix) Enhance job opportunities for individuals by providing housing closer to employment centers and public transportation. (x) Allow the accessory dwelling unit to be attached or detached; with its use as secondary to the principal use of the property. Decision Points: 1. Where should these uses be allowed? The attached model ordinances explore the use in all zoning districts where single family homes are allowed, on lots with an owner-occupied structure, or where one is being built. Staff has no objection to this model and seeks feedback on benefits and concerns. 2. What approval process should be required? Should it be a permitted use (administrative approval) or Conditional Use (requiring public notice and hearings before the Planning and Zoning Commission and Board of County Commissioners)? The attached model ordinances recommend these as permitted uses. Staff has no objection to either permitted or conditional use approval processes and seeks feedback on benefits and concerns with each process. 3. How many units per lot? Staff recommends that no more than one ADU per lot is permitted (accessory to the principal, owner- occupied dwelling). 4. How large can an ADU be? Staff recommends that an ADU is subordinate to the principal structure in size, height, and lot coverage, with a maximum size of 1,200 s.f.. Further, staff recommends that any drafted regulations limit ADUs to the current dimensional limitations of any lot, including setbacks, total lot coverage, and height. This will further limit the size of ADUs, particularly on smaller lots. 5. Can an ADU be an RV or a “tiny home on wheels”? Page 13 of 141 Project Name: LDC Text Amendment Workshop Accessory Dwelling Units 3 Staff recommends that only structures receiving a Building Permit from the County, built to the standards of the Florida Building Code may be permitted as an Accessory Dwelling Unit. Wheeled units would not be permitted as ADUs. 6. How much parking should be provided for an ADU? Most recommendations from related research recommend one paved parking space for an ADU, if on- street parking is not available. 7. Can an ADU be sold separately from the primary dwelling? Staff recommends that subdivision regulations in the St. Lucie County Land Development Code (LDC) be followed. If a parcel is eligible for subdivision, and both lots and their improvements meet the requirements of the LDC, it is not relevant whether an ADU exists on the existing or new lot. 8. Does maximum density apply to an ADU? If it is desired to encourage the use of ADUs in existing neighborhoods, maximum density allowances should not apply to these accessory uses. The benefits of allowing ADUs must be balanced with concerns related to potential impacts on public infrastructure if ADUs are built at a large scale in areas already built out at or near maximum density. 9. Should Impact Fees be assessed in full or in part for ADUs? If ADUs are rented at an affordable rate (meeting the definition of Affordable Housing in Florida Statute 420.9071 (2),) Impact Fees may be waived in their entirety, in line with Florida Statute 163.31801 (11) which allows communities to waive Impact Fees for affordable housing. This is a local decision. If the community wishes to encourage ADUs to increase affordable housing, Impact Fees could be waived should the owner commit to providing the unit at a rate in line with the definition of “affordable”. This decision must be balanced with the fact that each additional unit does cause an impact on infrastructure, which will ultimately need to be paid by all residents. Another option includes the possibility of developing reduced Impact Fee rates for these ancillary uses, in line with their likely reduced impact on public infrastructure. 10. What if the parcel is on septic? Will connection to central water and sewer be required? At minimum, the parcel should be required to connect to central sewer if located within 1/4 mile, as would be required for construction of a new home (right?). If not, the septic must be certified by the Health Department for the additional impact/flow and enlarged if necessary. Additionally, for those parcels with septics within 300’ of the IRL or tributaries that flow to the IRL, staff does not recommend ADUs be permitted with septic systems due to water quality concerns. This workshop seeks input on these questions from both the public and the Planning and Zoning Commission. The following Goals, Objectives and Policies of St. Lucie County’s adopted Comprehensive Plan are related to the consideration of this proposal: Objective 3.1.1: The County shall ensure the creation and/or preservation of affordable housing for all current and anticipated future residents of the jurisdiction, and households with special housing needs including rural and farmworker housing, workforce housing as well as adequate sites and distribution of housing for very-low- income, low-income and moderate-income households. Page 14 of 141 Project Name: LDC Text Amendment Workshop Accessory Dwelling Units 4 Policy 3.1.1.1 - To provide sufficient land to meet the future housing needs, the Future Land Use Map shall provide future land use designations that allow a variety of housing types, affordability and densities. Policy 3.1.1.2 - The County shall continue to permit high density residential development in Planned Mixed Use Development projects. Objective 3.2.1: The County shall, as needed, review the housing needs within the Unincorporated County of all income groups and shall amend the Comprehensive Plan and the Land Development Code as necessary. Policy 3.2.1.1 - The County shall review housing affordability based upon property values to ensure efficiency of the workforce and affordable housing delivery system. Policy 3.2.1.2 - Consider developing guidelines for an inclusionary housing program that provides incentives for private development to include a portion of residential units. Objective 3.2.2: The County shall continue to maintain a housing data which includes updated information from the US Census and other sources about the type, tenure, cost and condition of housing stock in St. Lucie County. Policy 3.2.2.1 - The data shall be updated annually to assure that reliable and current data are available. Policy 3.2.2.2 - Using the housing database, the County will provide information, technical assistance, and incentives to the private sector and nonprofit organizations to maintain a housing production capacity sufficient to meet the required demand. Policy 3.2.2.3 - The Land Development Code shall not restrict the location of publicly assisted or low and moderate income-based housing within single-family neighborhoods. STAFF RECOMMENDATION: Staff seeks feedback on all included decision points from the Planning and Zoning Commission and the public to formulate a recommendation on this potential policy change to the Board of County Commissioners. Page 15 of 141 Accessory Dwelling Unit GUIDEBOOK PRODUCED BY: SPONSORED BY: p^fZd^ahnlbg`Z__hk]Z[e^ Page 16 of 141 Page 17 of 141 Accessory Dwelling Unit Guidebook | Page 1 Table of Contents Introduction .................................................................................................................................................. 3 I. What Are Accessory Dwelling Units? ............................................................................................................... 7 II. The Value of Accessory Dwelling Units ............................................................................................................ 11 III. Regulatory Barriers and Practical Solutions ....................................................................................................... 17 IV. Funding and Incentivizing ADU Development ................................................................................................. 27 V. Concerns over ADUs as Short-Term Vacation Rentals & Student Housing ............................................................. 31 VI. How to Combat Potential Neighborhood Opposition...................................................................................... 33 VII. ADUs and Tiny Homes ............................................................................................................................... 37 VIII. Best Practices ............................................................................................................................................. 39 IX. Model Ordinance ........................................................................................................................................ 41 X. Examples of ADU Policies in Florida ............................................................................................................... 45 XI. Other Resources for ADU Models ............................................................................................................... 49 Appendix: Local Government Template for ADU Manual for Homeowners ............................................................. 51 Page 18 of 141 Page 2 | Florida Housing Coalition | FLhousing.org Virtually every community in Florida is suffering from an affordable housing shortage. Of Florida’s three million low-income households, over 1.94 million, or 26% of all Florida households, are cost-burdened; they spend more than 30% of their income on housing. Another 1.1 million households, or 15% of all Florida households, are severely cost burdened, spending more than 50% of their income on housing. Low-income renters are hit the hardest by the lack of affordable housing. A staggering three-quarters of these households are cost-burdened.1 When households spend this much of their income on housing, they have little left for life’s other necessities. They are typically unable to withstand a rent increase and may be one missed paycheck away from homelessness. 1 Florida Housing Coalition, Home Matters for Florida Report 9 (2018). Intended Audience As communities and local governments consider meeting the demand for affordable housing by tapping into the vast single-family housing stock to create accessory dwelling units (ADUs), this document will be a reference guide. Elected and appointed officials, government employees and affordable housing advocates will quickly understand the pros and cons of allowing and encouraging ADUs. They will be able to sort through the potential regulatory changes and incentives to be implemented. Local Government Planning Staff AHAC Members SHIP Administrators Local Government Administrators and Elected Officials Developers and Builders Affordable Housing Stakeholders Page 19 of 141 Accessory Dwelling Unit Guidebook | Page 3 Introduction Every county and entitlement community in Florida receives SHIP funds. Most of those communities are required to have an Affordable Housing Advisory Committee (AHAC) to make recommendations for regulatory reform at least once every three years. The Florida Housing Coalition provides training and technical assistance to counties and municipalities to help with the implementation of regulatory reform and land use planning tools to produce and preserve affordable housing. Florida Housing Coalition also developed a guidebook, Affordable Housing Incentive Strategies: A Guidebook for Af- fordable Housing Advisory Committee Members and Local Government Staff, that provides information for each of the 11 affordable housing incentives that AHACs must consider. Permitting accessory residential units in residentially zoned areas has been on the list of statutorily enumerated items found in Section 420.9076 (4)(e), Florida Statutes, since the passage of the William E. Sadowski Act in 1992. And yet we find that, by and large, ADUs are not permitted in most residentially zoned areas. Encouragingly, what we have found, is that local government planners and affordable housing advocates would like to include ADUs in their affordable housing toolkit but could use more information about how to do it. This guidebook, produced by the Florida Housing Coalition, with funding from the Florida Housing Finance Cor- poration’s Catalyst Program, provides local government planners and affordable housing advocates with the “How To”. Historically, ADUs were commonly used to mitigate the shortage of affordable housing, providing smaller rental dwelling units ancillary or secondary to the principal residence. In the 1950s and 1960s with the rise of suburbs catering to nuclear families, ADUs fell out of favor. However, changing demographic trends showing continu- ing increases in smaller households, one-person households, elderly households, and households with disabled members are creating a surging interest in ADUs. ADUs can provide a stable affordable housing option for those in vulnerable housing situations. Persons living in ADUs benefit financially as the lower rents allow them an affordable option for decent, safe housing. Additionally, those renting out the ADUs also benefit financially from the rental income stream which often provides the addi- tional income owners, particularly those on a fixed income, need to make ends meet. This guidebook addresses the challenges and benefits a community might face as it considers allowing the im- plementation of ADUs; it presents a range of alternatives to consider and evaluate. There is a compilation of best practices and a model ordinance. A community considering implementation of regulations allowing ADUs can find suggestions for how to manage public participation. Additionally, there is a template local governments can use to help homeowners who want to create an ADU. Page 20 of 141 Page 4 | Florida Housing Coalition | FLhousing.org Section Overview The remaining sections of the guidebook are described below. What are ADUs? Florida Statutes (Section 163.31771(2)(a)) define ADUs as “an ancillary or secondary living unit that has a separate kitchen, bathroom, and sleeping area existing either within the same structure, or the same lot, as the primary dwelling unit.” ADUs provide an affordable housing alternative by tapping into Florida’s large stock of single-family homes. Changing demographics make ADUs an attractive alternative to the elderly, persons with disabilities, families in transition, and to others needing safe, decent housing. Most regulatory barriers to ADUs deal with local land use regulation. This section explores those barriers and provides practical solutions to get beyond them. Local governments have the tools to fund and incentivize ADU development. Waiving impact fees and providing financial assistance can be the key to establishing ADUs. The increasing number of short-term vacation rentals through Airbnb and similar platforms can increase community concerns about the viability of long-term ADU rentals. While ADUs can be used as short-term rentals, through deed restrictions, local governments can require ADUs to be used as long-term rentals if the unit benefits from impact fee modifications or other financial assistance. II I III IV V Page 21 of 141 Accessory Dwelling Unit Guidebook | Page 5 Proposals to allow ADUs in single-family residential zoning districts may bring out neighborhood opposition. Local governments can ease community concerns through educational campaigns and by addressing legitimate objections. ADUs and Tiny Homes are alternative housing solutions. ADUs are always accessory to the primary unit. Tiny Homes can stand alone. As a result, different regulations apply. This section provides a best practices chart for a successful ADU program. Local land use regulations must be devised to allow ADUs to flourish broadly as a smart growth tool. With the right local ADU ordinance, ADU construction may increase to the community’s benefit. This section provides a Model Ordinance to encourage and facilitate ADU growth. Several local governments in Florida have model ordinances for ADU development. This section highlights several local ordinances with an analysis of each. ADU development is of great interest to local governments, policymakers, and think-tanks across the country. Other works have been written highlighting best practices and describing the benefits of ADUs. Allowing ADUs is only half the equation; this appendix provides a template for local governments to design an ADU Manual for homeowners. With this tool, local governments can help homeowners navigate the development, design, and operation of an ADU rental. VII VI IX VIII X A XI Page 22 of 141 Page 6 | Florida Housing Coalition | FLhousing.org Page 23 of 141 Accessory Dwelling Unit Guidebook | Page 7 I. What are ADUs? 1 Jaimie Ross, Accessory Dwelling Units: A Smart Growth Tool for Providing Affordable Housing, Housing News Network Journal Vol. 32, No. 2 (July 2016). 2 Sarah A. Gottlieb, Florida’s Accessory Dwelling Unit Laws: Mitigating Florida’s Housing Woes Through State-Encouraged Expansion of ADU Permitting, 46 Stetson L. Rev. 627, 630 (2017). 3 Fla. Department of Community Affairs, Accessory Dwelling Units: Report to the Florida Legislature 6 (2007). 4 Fla. Stat. § 163.31771(1) (2018). 5 Id. Accessory dwelling units (ADUs) are additional living quarters typically on single-family lots that are independent of the primary dwelling unit. An ADU can be an apartment within a primary residence or it can be an attached or freestanding home on the same lot as the primary residence.1 Accessory dwelling units are commonly referred to as granny or mother-in law flats and are also sometimes re- ferred to as accessory apartments, garage apartments, carriage houses, and backyard cottages. ADUs were a common feature of early 20th century development in America but their use dwindled with the onset of the sin- gle-family suburb. ADUs were rarely included as an eligible use in municipal codes regulating land use, zoning, and general land development standards. Florida is one of only a few states to pass legislation that incentivizes local governments to create ADU permit- ting ordinances.2 In 2004, the Florida Legislature passed Section 163.31771 of the Florida Statutes to “promote the use of accessory dwelling units as a tool to help local communities address deficits in the supply of afford- able rental housing for very-low-, low-, and moderate-income residents.”3 In enacting this statute, the Legislature found that the median price of homes in Florida had increased steadily over the last decade at a greater rate of increase than the median income in many urban areas.4 The Legislature also found that the cost of rental housing had increased steadily to the point that there was a “critical shortage of affordable rentals in many urban areas in the state.”5 While the statute does not require local governments to adopt ADU ordinances, it does promote ADUs as a tool for affordable housing development for very-low, low, and moderate-income persons. HIGHLIGHTS Florida Statutes (Section 163.31771(2) (a)) define ADUs as “an ancillary or secondary living unit that has a separate kitchen, bathroom, and sleeping area existing either within the same structure, or the same lot, as the primary dwelling unit.” In this section, you’ll learn about: • Characteristics of ADUs • ADU Regulations Page 24 of 141 Page 8 | Florida Housing Coalition | FLhousing.org Characteristics ADUs are smaller in size than the primary residence and are generally located toward the rear of the parcel. Typically, the owner lives in the primary residence, but unless restricted by the local government, the owner may choose to live in the smaller unit and rent out the primary residence. The ADU is ancillary and accessory to the primary unit and is often similar in appearance to the primary. An ADU is typically for one or two persons but may house more depending on its size. Under Section 163.31771(2)(a) of the Florida Statutes, ADUs are defined as “an ancillary or secondary living unit that has a separate kitchen, bathroom, and sleep- ing area existing either within the same structure, or on the same lot, as the primary dwelling unit.”6 6 Fla. Stat. § 163.31771(2)(a) (2018). Page 25 of 141 Accessory Dwelling Unit Guidebook | Page 9 ADU Regulations Regulation of ADUs is within the purview of zoning and land use planning. Local governments can allow ADUs while providing helpful regulations to ensure that ADUs enhance rather than detract from the character of a neighborhood. Some examples, described more in depth later, include the following: Occupancy An ADU is more useful to homeowners if occupancy is not restricted to family members or temporary, non-paying guests. Parking Requirements A successful ADU ordinance balances congestion concerns and the concern that parking may be too burdensome for a homeowner due to cost and lot configuration. Size, Setback, Minimum Lot Size, and Other Structural Requirements These regulations can bring desired community aesthetics while also allowing the greatest number of lots to contain lawfully permitted ADUs. Construction Allowing the construction of ADUs concurrently with new primary residences or as part of a subdivision or master planned community maximizes the efficient use of land without needing additional infrastructure. Page 26 of 141 Page 10 | Florida Housing Coalition | FLhousing.org Page 27 of 141 Accessory Dwelling Unit Guidebook | Page 11 II. The Value of Accessory Dwelling Units 7 See Gottlieb, supra note 2, at 628-29; U.S. Census Bureau, Historical Census of Housing Tables (2011), https://www.census.gov/hhes/www/hous- ing/census/historic/units.html. 8 Shimberg Center for Housing Studies, Overview of Housing in Florida 4 (2015), http://www.shimberg.ufl.edu/publications/tab2.pdf. 9 U.S. Census Bureau, America’s Families and Living Arrangements: 2012 (2013), https://www.census.gov/prod/2013pubs/p20-570.pdf. In a nation dominated by single-family units, many people struggle to find suitable living arrangements.7 As of 2015, 64% of occupied units in the state of Florida were single-family homes.8 ADUs capitalize on the promi- nence of the single-family home by allowing more residents to live on single-family lots at an affordable price. Ad- ditionally, the small size of the ADU reflects the changing demographics and needs of those looking for housing. The number of people per household in the United States continues to decrease.9 Between 1970 and 2012, the average number of people per household declined from 3.1 to 2.6. With smaller households, due to a variety of factors, smaller housing options are in higher demand. For those that are not looking for a large single-family home and yet want to live in a residential neighborhood, the ADU is a great option. Accessory dwelling units are also beneficial for elderly and disabled populations that strive for continued indepen- dence. An elderly or disabled individual could remain in their home and use an ADU for their caregiver. ADUs can also provide for family flexibility. With an ADU, a young adult could continue to live with their parents, but in a sep- arate unit, as he or she works towards economic independence. When developed close to employment centers, an ADU can reduce a person’s reliance on transportation, providing additional benefits to society through environ- mental and energy cost savings. ADUs also promote mixed-income communities where lower-income households can find an affordable home in an area that may have greater employment and educational opportunities. Affordability Accessory dwelling units are a valuable affordable housing tool for low- and moderate-income individuals. Because they do not require additional land or major new infrastructure, ADUs are cheaper to build than the traditional sin- gle-family home. Further, the rental income from the ADU can subsidize the cost of the primary unit – making ADUs an affordable housing tool for both the renter and the homeowner. When both households are spending less of their income on housing, quality of life is improved, and more money is invested in the broader local economy. HIGHLIGHTS ADUs provide an affordable housing alternative by tapping into Florida’s large stock of single-family homes. Changing demographics make ADUs an attractive alternative to the elderly, persons with disabilities, families in transition, and to others needing safe, decent housing. In this section, you’ll learn about: • Affordability • Care for the Elderly and Persons with Disabilities • Family Flexibility • Environment/Infill Development • Integration of Income Levels • Workforce Housing Development Page 28 of 141 Page 12 | Florida Housing Coalition | FLhousing.org Care for the Elderly and Persons with Disabilities An ADU can be utilized so that an elderly or disabled individual who wishes to remain in their home can stay in their house and have their caregiver re- side in the ADU, or vice versa. Elderly and disabled individuals often struggle to live comfortably due to the traditional ways in which communities are planned.10 For these folks, ADUs can provide an opportunity to live on the same lots as their parents or other caregivers. ADUs can assist the elderly to “age in place.”11 ADUs are particularly well suited for lower-income elderly persons because in addition to receiving a source of income they may not otherwise receive, the elderly homeowner may obtain companionship and needed services from the tenant in the ADU. As the state’s lower-income elderly population continues to increase, ADUs can be a vital tool for meeting the increased need for elderly care. Family members may also live in the ADU or primary unit to provide this care. In 2000, AARP worked with the American Planning Association to develop a model state act and local ordinance as a resource for meeting the affordable needs of elder Americans. Both organizations have endorsed ADUs as a valuable tool for elderly Americans.12 Further, if an ADU is constructed for family members of at least 62 years of age, Section 193.703, Florida Statutes, provides that a county may provide for a reduction in the assessed value of homestead property after the new construction.13 This section of the Florida Statutes implements section 4(f) of Article VII of the Florida Constitution.14 This section was passed to encourage municipalities to provide tax incentives to homeowners who build living spaces for a parent or grandparent.15 Thus, the Florida Statutes encourages ADUs as a housing alternative for the elderly. Family Flexibility ADUs can also provide for family flexibility. If a young adult is not financially able to move out and wants to maintain a semblance of independence, he or she can live in an ADU on the same lot as their parents – coming and going as they please and entertaining their own guests, while remaining tightly bound to their family.16 Once the young adult moves out, the parents can then utilize the ADU as an affordable rental unit for other individuals. An ADU may also be used by older family members as a “granny flat.” In this arrangement, a family can care for their elderly parents or grandparents who are now in close proximity. ADUs allow for family flexibility in that multiple family members can live on the same lot in separate units. A family member living in an ADU also reduces the competition for the scarce inventory of affordable rental apartments in the community. 10 Gottlieb, supra note 2, at 627 (citing Robin Paul Malloy, Land Use Law and Disability: Planning and Zoning for Accessible Communities 3-5 (2015)). 11 AARP Livable Communities, Making Big Sense of Small Homes (Aug. 2015) https://www.aarp.org/livable-communities/network-age-friendly-communities/info-2015/domain-3-accessory-dwell- ing-units-portland-oregon.html. 12 AARP Livable Communities, Creating Room for Accessory Dwelling Units (Nov. 2017), https://www.aarp.org/livable-communities/housing/info-2015/accessory-dwelling-units-model-ordinance.html. 13 Fla. Stat. § 193.703 (2018). 14 Id. 15 Gottlieb, supra note 2, at 646. 16 Jonathan Coppage, Accessory Dwelling Units: A Flexible Free-Market Housing Solution, R Street Policy Study No. 89 (Mar. 2017), http://www.rstreet.org/wp-content/uploads/2017/03/89.pdf. Page 29 of 141 Accessory Dwelling Unit Guidebook | Page 13 Environment/Infill Development For many communities, undeveloped land close to the city center is hard to come by. ADUs are a smart growth tool because they are typically infill units built where there is existing infrastructure, making greater use of the already developed land. When ADUs are built near employment centers, more peo- ple will have the opportunity to live closer to where they work – reducing transportation costs and the associated environmental impacts. Additionally, as ADUs are smaller than single-family or even some multi-family units, their overall impact on the environment is also lessened. It takes less building material to construct an ADU and costs less in utilities for daily operation. Integration of Income Levels As the former Florida Department of Community Affairs, now known as, Department of Economic Opportunity, noted in its 2007 report to the Florida Legislature, ADUs can be integrated into a community resulting in the development of “mixed-income neighborhoods rather than enclaves of affordable housing.”17 Integrating lower-income families within mixed-income areas can create positive benefits in terms of employment, mental health, and educa- tional opportunities.18 With the creation of ADUs as infill development in single-family districts, lower-income households can enjoy a greater quality of life in areas of town which may have previously been closed off to them. Workforce Housing Development With ADUs, the lower paid workforce can live closer to their places of work. Rather than being forced to commute long distances for their jobs, people can live affordably within the community. Because ADUs do not require additional land, they can be incorporated into existing, built-out neighborhoods in parts of the community that are closer to employment centers. Proximity to employment can result in very substantial savings when it is possible for a two-person household to share one car and save the expense of owning a second car. 17 Fla. Department of Community Affairs, supra note 7, at 6. 18 Diane K. Levy et al., Effects from Living in Mixed-Income Communities for Low-Income Families, Urban Inst. (Nov. 2010), https://www.urban.org/sites/default/files/publication/27116/412292-Effects- from-Living-in-Mixed-Income-Communities-for-Low-Income-Families.PDF. Page 30 of 141 Page 14 | Florida Housing Coalition | FLhousing.org Affordability Accessory dwelling units are a valuable af- fordable housing tool for low- and moder- ate-income individuals. Because they do not require additional land or major new infra- structure, ADUs are cheaper to build than the traditional single-family home. Further, the rental income from the ADU can subsidize the cost of the primary unit – making ADUs an affordable housing tool for both the renter and the homeowner. When both households are spending less of their income on housing, quality of life is improved, and more money is invested in the broader local economy. Care for the Elderly & Persons with Disabilities An ADU can be utilized so that an elderly or disabled individual who wishes to remain in their home can stay in their house and have their caregiver reside in the ADU, or vice versa. Elderly and disabled individuals of- ten struggle to live comfortably due to the traditional ways in which communities are planned. For these folks, ADUs can provide an opportunity to live on the same lots as their parents or other caregivers. Family Flexibility ADUs can also provide for family flexibility. If a young adult is not financially able to move out and wants to maintain a semblance of independence, he or she can live in an ADU on the same lot as their parents – coming and going as they please and entertaining their own guests, while remaining tightly bound to their family. The Value of ADUs ADUs provide an affordable housing alternative by tapping into Florida’s large stock of single-family homes. Changing demographics make ADUs an attractive alternative to the elderly, persons with disabilities, families in transition, and to others needing safe, decent housing. Page 31 of 141 Accessory Dwelling Unit Guidebook | Page 15 Environment/Infill Development For many communities, undeveloped land close to the city center is hard to come by. ADUs are a smart growth tool because they are typically infill units built where there is ex- isting infrastructure, making greater use of the already developed land. When ADUs are built near employment centers, more people will have the opportunity to live closer to where they work – reducing transportation costs and the associated environmental impacts. Integration of Income Levels As the former Florida Department of Commu- nity Affairs noted, now the Florida Department of Economic Opportunity, noted in its 2007 report to the Florida Legislature, ADUs can be integrated into a community resulting in the development of “mixed-income neighbor- hoods rather than enclaves of affordable hous- ing.” Integrating lower-income families within mixed-income areas can create positive ben- efits in terms of employment, mental health, and educational opportunities. Workforce Housing Development With ADUs, the lower paid workforce can live closer to their places of work. Rather than being forced to commute long distances for their jobs, people can live affordably within the community. Because ADUs do not re- quire additional land, they can be incorpo- rated into existing, built-out neighborhoods in parts of the community that are closer to employment centers. Page 32 of 141 Page 16 | Florida Housing Coalition | FLhousing.org Page 33 of 141 Accessory Dwelling Unit Guidebook | Page 17 III. ADUs in Florida: Regulatory Barriers and Practical Solutions 19 Kol Peterson, Backdoor Revolution 135 (Accessory Dwelling Strategies, LLC 2018). This section describes some of the barriers to ADU development and offers solutions to overcome these barriers. Most of the barriers relate to local land development regulations. There may be aspects of a local government’s land development regulations that are so restrictive that few permitted ADUs can be built.19 As of this writing, 16 of the 67 Florida counties did not address any accessory dwelling unit – a guest house, accessory apartment, ADU, cottage house, and other similar units -- in their land development codes. For the remainder of counties that did address some type of ADU, most of them had onerous use restrictions. Of the counties that mentioned a type of ADU, at least 25 of them explicitly bar their use for long-term rental purposes or for use by persons that are not an immediate family member or worker. Only 20 counties speak of ADUs as a tool for long-term rental housing. Virtually all counties, except for a few, require the owner to occupy the principal dwelling if the ADU is used. One county requires lot sizes to be above 15,000 square feet before allowing an ADU. Further, at least 12 counties explicitly do not allow ADUs to be built in single-family zoning districts. Several jurisdictions allow ADUs only as a conditional use. These types of barriers have the effect of restricting the ADU as a tool for affordable housing development. Florida cities tend to have more flexible ADU ordinances than counties. Of the 15 most populous cities in Florida, 11 of them explicitly allow ADUs in single-family districts (one of these cities only allows ADUs on a conditional use basis). Although Florida cities allow ADUs more broadly, issues exist regarding minimum lot size, ADU size, parking, owner-occupancy, and other standards. ADU regulations should be as flexible and open as possible to give landowners the freedom to utilize their property as a site for affordable housing development. If restrictions are too burdensome, landowners will be deterred from building ADUs to the community’s detriment. HIGHLIGHTS Most regulatory barriers to ADUs deal with local land regulations. This section explores those barriers and provides practical solutions to get beyond them. This section will discuss and offer recommendations for: • Euclidean Zoning & the Single-Family District • Owner-Occupancy Restrictions • Long-Term Rental Use Restrictions • As-of-Right versus Conditional Use • Size, Density, & Other Structural Requirements • Utility Hookup Requirements Page 34 of 141 Page 18 | Florida Housing Coalition | FLhousing.org Barrier: Excessive minimum lot size requirements Solution: Lower minimum lot size requirements Barrier: Prohibition of non-family members from occupancy Solution: Allow ADUs to be rented on the long-term market to any tenant Regulatory Barriers Barrier: Euclidean Zoning: premise of separation of incompatible uses by zoning restriction Solution: F.S. 163.1777: ADUs are compatible with single family residential uses. Allow ADUs in all single-family districts. Barrier: ADUs not included as an allowable use in land development codes Solution: Incorporate ADUs into land use regulations by adoption of ADU specific ordinance Barrier: ADUs permitted but overly restricted as to become impractical or impossible Solution: Reduce minimum lot size and amend setback and other structural requirements to allow the most possible lots to contain ADUs Barrier: Prohibition of ADU for long-term rental Solution: Allow ADUs to be rented on the long-term market Barrier: Requirement for property owner to occupy the principal residence Solution: Allow property owner to occupy the ADU by right Barrier: ADUs permitted only as conditional use Solution: Allow ADUs as a permitted use Barrier: Residential land uses are based on density (dwelling units/acre). When ADUs are counted as a dwelling unit the parcel might be over density and the ADU may be disallowed. Solution: Exempt ADUs from density calculations Barrier: New construction ADUs are assessed an impact fee comparable to a multi-family dwelling unit. Solution: Waive or modify impact fees for ADUs Barrier: Parking requirements that may render development impractical Solution: Require off-street parking only if on-street parking is not available within a certain number of feet from the parcel. If off-street parking is required, utilize stacked parking (one car in front of the other) or other design solutions to allow parking in areas other than designated driveways. Page 35 of 141 Accessory Dwelling Unit Guidebook | Page 19 Market Type Barriers Barrier: Perception that ADUs decrease property values Solution: Educate residents that ADUs do not decrease property values and may increase these values. Barrier: Vacation Rental concerns Solution: Enter into agreements with homeowners that receive governmental incentives to rent ADUs on the long-term market Page 36 of 141 Page 20 | Florida Housing Coalition | FLhousing.org Euclidean Zoning and the Single Family District Certain zoning and land use regulations can be detrimental obstacles to ADU development. Traditional “Euclidean” zoning separates what are thought of as incompatible land uses from being on nearby or the same lots.20 For example, a local government may not consider a smaller, second housing unit to be compatible with a traditional single-family land use designation. This type of policy is a barrier to ADU development. As evidenced by the Florida Legislature21, ADUs are compatible with single-family homes. Local governments should treat them as such. A neighborhood zoned as Single Family Residential, for example, would generally allow only one single-family dwelling unit per lot. Historically, without explicit allowances for ADUs, if two or more residences are situated on a single lot, they would need to be in a more intensive residential zone, such as one that permits duplexes or multi-family housing. Today, some single-family zoning districts may permit an accessory dwelling unit but mandate that certain requirements are met or that special circumstances be shown to warrant the use. Accessory dwelling units should be permitted in all single-family zone districts. As mentioned in the above section describing the need for ADUs, as of 2015, 64% of occupied units in the state of Florida were single-family homes. However, traditional single-family zoning procedures no longer fit the needs of the newer generations of our communities as more young people are looking for smaller, affordable places to live with access to opportunity.22 These same zoning procedures restrict the needs of Florida’s growing elderly population – a population that could use ADUs and other smaller units to help them age in place. ADUs capitalize on the dominance of the single-family home by providing an additional family or person’s access to an affordable dwelling unit on the same lot – typically in areas of our communities that are closer to centers of opportunity. A regulatory atmosphere that increases the number of ADUs will bring a positive impact to Florida’s housing stock and to our communities.23 Barring ADUs from single-family districts severely curtails their prevalence from the outset. If local governments are concerned about ADUs changing the character of the single-family district, they should consider reasonable minimum lot size, setback requirements, or other reasonable structural regulations rather than an outright ban. Allowing ADUs in single-family districts is a necessity if the benefits of ADUs are to be realized. As already noted, many house- holds believe they need ADUs for economic or family reasons. If ADUs are not permitted, some households may erect them without pulling building per- mits and create potentially serious life and safety hazards for themselves and their neighbors. A local government that provides sensible ADU regulations is likely to be protecting the welfare of the community. Recommendation • Allow ADUs as a permissible use in all single-family districts. 20 Ross, supra note 1, at 2. 21 Fla. Stat. § 163.31771 (2018). 22 Gottlieb, supra note 2, at 633. 23 See David Garcia, ADU Update: Early Lessons and Impacts of California’s State and Local Policy Changes, UC Berkeley Terner Ctr. for Hous. Innovation (Dec. 2017). Page 37 of 141 Accessory Dwelling Unit Guidebook | Page 21 Owner-Occupancy Restrictions Much has been written about the dangers of a strict owner-occupancy requirement for accessory dwelling units. A strict policy may dis-incentivize ADU development and foreclose many of the benefits they provide.24 Many jurisdictions in Florida currently require that the owner occupy the primary unit if an ADU is used on the property. Others require that the ADU only be used by family members or non-paying guests. Some, however, are more flexible and allow the owner to occupy either the primary unit or the ADU. By allowing homeowners to live in the ADU and rent out the primary dwelling, local governments grant them the option to earn more income on the prima- ry unit and gain additional flexibility in their living arrangements. Some cities do not require owner-occupancy at all. Portland, Oregon is one of those cities. Just as local governments do not mandate that all homeowners be on the property of single-family homes that they rent out, Portland and others take the position that local government should not mandate that owners live on the property of ADUs that they rent. Local governments and communities may fear that a lack of restriction on owner-occupancy requirements may cause neighboring owners of single-family homes to object to having renters in their neighborhood. Communities may perceive a threat to their property values if some lots have two houses where only one is used by the homeowner. However, the addition of a lawfully permitted ADU may increase a property’s value – as there is an additional unit for the homeowner to rent out for income. There are also reasonable concerns that without the homeowner present in the primary unit, ADU development may cause unwanted nuisances. Requiring an owner to be on site may discourage ADU development by negatively impacting that homeowner’s flexibility to rent their property and ulti- mately sell their property. If there are strict owner-occupancy requirements, a homeowner may be forced to sell their entire property instead of having the option to separately rent out the units. If a homeowner is unsure of the return on their investment before building an ADU because of the possible effect of owner-occupancy requirements, they might not build an ADU at all. Recommendations • An owner-occupancy requirement should be flexible enough to encourage ADU creation. At a minimum, the owner should be allowed to occupy the ADU. • Resolve community concerns through other land use controls and code enforcement mechanisms that are less onerous than owner-occupancy restrictions. Minimum lot sizes, setback requirements, and other land use controls can work to ensure that areas with ADUs are in keeping with the character of the community. 24 See, e.g., Peterson, supra note 19; Coppage, supra note 16, at 6. Page 38 of 141 Page 22 | Florida Housing Coalition | FLhousing.org Long Term Rental Use Restrictions In our survey of Florida counties, of the counties that regulate accessory dwelling units in some fashion, at least 22 do not allow ADUs to be rented long- term. These counties only allow ADUs for temporary guests, family members, caretakers, laborers, and in conjunction with certain commercial, industrial, or agricultural uses. ADUs are explicitly allowed to be rented as long-term units in only 21 counties. Recommendations: • Allow accessory dwelling units to be rented to whomever the homeowner chooses to live in the ADU. • Allow accessory dwelling units to be rented long-term. As-of-Right vs. Conditional Use Another barrier to ADU development occurs when ADUs are only allowed as a conditional use rather than “as-of-right.” If an ADU is a conditional use, a public hearing is required, and the local government undergoes a discretionary review to determine if the ADU can be constructed in a particular area. While a required public hearing may be good for educating the public on the impacts of ADU development and for providing a forum for neighborhood input, the onerous, unpredictable, and costly nature of the conditional use process may discourage homeowners from constructing ADUs. When allowed as a permitted use, the development review process is more predictable, as requirements are established up-front. In a typical conditional use process, the homeowner may spend thousands of dollars on application fees, designs, and other requirements, and may still not be approved to add an ADU. As it is, when ADUs are rented at market-rate value, it may take years for the homeowner to break even on their investment. With the additional time and monetary burden of the conditional use process, homeowners may be dissuaded from constructing ADUs entirely or choose to construct illegal ADUs. Recommendations • Allow ADUs as a permitted use in all single-family residential land use classifications. • To encourage ADUs as a tool to increase the housing stock, establish transparent and predictable requirements as opposed to a conditional use process that may be too unpredictable. Page 39 of 141 Accessory Dwelling Unit Guidebook | Page 23 Size, Density, and Other Structural Requirements Minimum lot size, setbacks, and other structural requirements can be used to achieve a compromise with neighborhood concerns about ADU develop- ment. Each area of the state is different and providing a one-size-fits-all policy in this area will not be feasible. 1. Minimum Lot Size There is one county in Florida that requires a parcel of land to be a minimum of 15,000 square feet for a homeowner to lawfully construct an ADU. This effectively bars ADU development on many single-family lots. Austin, Texas, for example, changed its code in 2015 to reduce the minimum lot size requirements from 7,000 square feet to 5,750 square feet. This increased the number of lots that could have an ADU by 8,900.25 Recommendations: • Local governments should study the current single-family home lot sizes of their jurisdiction and taken with public input, reach a solution that sat- isfies residential concerns while also allowing ADUs to flourish broadly. Minimum lot size requirements should be constructed to allow the most possible lots to contain a lawful ADU. 2. Size In determining the allowable size of an ADU, most local governments regulate by reference to the ADU being a set maximum percentage of square footage in comparison to the primary unit. Maxing the size limit of an ADU in relation to the primary unit may have the effect of restricting the use of ADUs on smaller single-family lots. For example, if a local government restricts the size of an ADU to no more than 25% of the principal and a principal unit is 1,750 square feet, the ADU could only be roughly 440 square feet in size. This would not be enough for a two-person household to occupy the ADU safely and comfortably. From our study of ADU ordinances and of ADU advocates across the country, it is recommended that there be around 400 square feet of living space per person. Therefore, to target ADUs as a tool for long-term affordable rental housing, a maximum square footage requirement should be from 800- 1200 square feet. For sizable lots that can contain a larger ADU, local governments should make allowances for a larger unit. Recommendations: • Use a set number of allowable square footage rather than a rule that mandates the ADU be a certain proportion of the primary unit. • Allow ADUs up to 1,200 square feet with additional size allowances depending on lot size. 25 Tyler Whitson, Council Loosens Rules on Accessory Dwelling Units, Austin Monitor (Nov. 20, 2015), https://www.austinmonitor.com/stories/2015/11/council-loosens-rules-accessory-dwelling-units/. Page 40 of 141 Page 24 | Florida Housing Coalition | FLhousing.org 3. Density Residential land uses are based on density. If ADUs are counted in the density calculation, this may push the parcel over the density restrictions for a particular zone and disallow an otherwise lawful ADU from being built. Recommendations: • Exempt ADUs from density calculations. 4. Setback Requirements Any restriction on physical locational density should be dictated by setback and minimum lot size requirements. Setback requirements are a tool local governments can use to forge a compromise between neighboring landowners that may be concerned about ADU development. As with other structural regulations, setback requirements should not be designed in a manner that discourages ADU development. If a setback requirement is too stringent, the homeowner may be forced to build a smaller ADU and miss out on the opportunity to use it as a long-term rental for a two-person household. Most counties in Florida simply require the ADU to satisfy the setback requirements of the principal dwelling. Some local governments have different setback rules depending on if the door of a detached unit faces a side street or other properties. These are reasonable offerings. Recommendations • For maximum flexibility in setback standards, consider zero-lot line configurations in which an ADU would be allowed up to, or very near to, the edge of property lines. • To ensure smaller lots are not inadequately burdened by setback requirements, utilize variance procedures to amend certain setback rules. Utility Hookup Requirements Requiring an ADU to hookup to its own water, sewer, or other utility may be overly burdensome and deter lawful ADU development. Local governments can facilitate an application to attach to the primary unit’s utilities to save the homeowner thousands of dollars in costs. Recommendations • Allow the ADU to file an application to connect to the utilities of the primary residence. Page 41 of 141 Accessory Dwelling Unit Guidebook | Page 25 Parking Requirements Parking requirements can be particularly burdensome to ADU development and if too stringent, may serve to discourage the construction of ADUs. Parking spaces may be very costly for a homeowner and are a challenge from a planning perspective. For smaller lots, a requirement for additional parking could render an ADU impractical – as a lot may not have enough space for both an ADU and a parking spot. These spots can cost thousands of dollars to construct -- pushing the costs on to the renter and lowering the prospects for an ADU to be used as an affordable unit. One local government in Florida does not require a parking space for ADUs that are 500 square feet or less. One county reduces parking require- ments for multifamily developments that have units of 900 square foot or less. These are good compromises if residents are concerned with on- street parking congestion. California has a law stating that local governments may not impose parking requirements for an ADU if the ADU is located “within one-half mile of public transit,” is “part of the existing primary residence or an existing accessory structure,” or when “on-street parking permits are required but not offered to the occupant of ” the ADU or if “a car share vehicle [is] located within one block” of the ADU.26 Most county ordinances in Florida that mention parking requirements have a “one spot per ADU” requirement. In all likelihood, ADUs will be dispersed throughout neighborhoods – they will not be centered on one particular street. Therefore, it is likely that on- street parking could satisfy the parking needs of an ADU without overly congesting the neighborhood and without burdening the homeowner with the costs of an additional parking space. Alternatively, design solutions might be considered to provide additional parking. For instance, stacked parking spaces (one in front of the other) or allowing parking in other areas of the parcel (not just the driveways) can be considered. If parking is a genuine issue, the local government should still avoid a “one spot per ADU” rule and consider requiring parking for locations where it may be impractical to park on the street. It is important to strike a balance between the cost burden placed on homeowners and genuine street congestion concerns. Recommendations • When devising parking requirements, study the impact that permitted ADUs have on the parking supply. A blanket “one spot per ADU” rule without an impact study may hinder ADU development. For example, require one off-street parking spot only if there is no available on-street parking within a certain number of feet from the parcel. • If one parking space is generally required, consider exempting ADUs 500 square feet or less. • After successful implementation of an ADU ordinance, continually monitor parking impacts to assess congestion concerns. 26 Cal. Gov’t Code §§ 65852.2(d)(1)-(5). Page 42 of 141 Page 26 | Florida Housing Coalition | FLhousing.org Page 43 of 141 Accessory Dwelling Unit Guidebook | Page 27 IV. Funding and Incentivizing ADU Development Local governments have the tools to assist in funding and incentivizing ADU development. This section provides some ideas about how local governments can help homeowners create ADUs. As discussed throughout this Guidebook, ADUs are an excellent tool to expand and diversify a community’s housing stock. To increase their prevalence, communities should consider ways to incentivize ADU development. Impact & Applicant Review Fees The current standard practice in Florida for assessing impact fees on an ADU is to charge the unit as a multi-fam- ily unit. If a homeowner is required to pay the same impact fee for their ADU as a developer would pay for a multi-family unit of any size, the homeowner may be discouraged from ADU development. Further, if a home- owner is required to pay the same impact fee for a 500 square foot as an 800 square foot ADU, a homeowner may be inclined to construct the larger unit instead – deterring a smaller, lower-priced ADU from being built. A solution offered by Hillsborough County, provides for a fixed “de minimus” impact fee of $100. If not used for long-term affordable housing and if the local government does not want to waive impact fees entirely, ADUs should be assessed by square-footage rather than by unit.27 With an assessment by square-footage, a developer of a smaller ADU would pay less in impact fees than a developer of a larger ADU. Any waiver or reduction of im- pact fees can be paid for by the local government’s affordable housing fund or other revenue sources. Local governments can also streamline the review and permitting process to save itself administration costs and save the homeowner both time and money. By streamlining and removing certain development review pro- cesses, the cost of development should go down. For example, Leon County passed an ordinance in 2016 that eliminated several steps in the development review process which saved applicants a minimum of $1,697 in per- mitting fees.28 Additionally, this Ordinance had the planned effect of reducing ADU approval time by more than 45%. Similar expedited permitting processes should be considered in every local government. 27 See Florida Housing Coalition, Affordable Housing Incentive Strategies: A Guidebook for Affordable Housing Advisory Committee Members and Local Government Staff, available at http://www.flhousing.org/wp-content/uploads/2012/03/AHAC-Guidebook-2017.pdf. 28 Leon County, Florida Board of County Commissions Regular Meeting Minutes 360 (May 10, 2016), available at http://cvweb.clerk.leon.fl.us/finance/ board_minutes/minutes/pdfs/20160510%20Official%20Minutes.pdf. HIGHLIGHTS Local governments have the tools to fund and incentivize ADU development. Waiving impact fees and providing financial assistance can be the key to establishing ADUs. This section will offer insight on: • Impact & Applicant Review Fees • Financial Assistance • Marketing the ADU Option to Homeowners Page 44 of 141 Page 28 | Florida Housing Coalition | FLhousing.org Recommendations • Waive or otherwise modify impact fees for ADUs that are used for long-term affordable housing or charge a “de minimus” impact fee rate of $100. • If not used for long-term affordable housing, assess impact fees. • Another possible, but less desirable alternative, is to charge an ADU in the same impact fee category as a mobile home. • Streamline and create transparent ADU development processes to the greatest extent possible to lower administration and development costs. Financial Assistance Homeowners who want to create an ADU may not have all the funds they need to build the unit. Through the SHIP program, local governments could explore the possibility of establishing an affordable housing strategy to provide a subsidy for ADUs for very-low, low-, or moderate-income households. The subsidy would be secured with a recorded lien on the rental property to ensure than an affordable rent is charged for a period of at least 15 years. Residents of the ADUs would be income certified yearly. Local governments should be able to loan funds to homeowners for the construction of ADUs if the homeowner utilizes the ADU for long-term affordable housing. A loan program for creating ADUs that has a long history of implementation is found in Santa Cruz, California. To assist homeowners develop rental ADUs for persons at 80% or below the City’s median household income, the City of Santa Cruz, California has an ADU loan program by which homeowners can receive loans of up to $100,000 at a 4 ½% interest rate for ADU construction.29 The County of Santa Cruz, California allows for forgivable loans of up to $40,000 at a 3% interest rate.30 To receive the financing at the City level, the homeowner must agree to keep the rental unit affordable to low-income tenants for a period of at least 15 years. At the County, the homeowner must enter into a deed restriction for a period of 20 years that keeps the ADU or main house at a cost affordable to low-income households. If the homeowner backs out, they must repay the full amount of the loan plus interest. With loan and deed restrictions and the threat of default, local governments can ensure that ADUs they assist financially are used for long-term affordable rental housing for low- to moderate-income persons. Recommendations • Develop a program which loans funds to homeowners who agree to keep their ADU affordable to lower-income tenants. These funds can be derived from the local government’s affordable housing funds. Upon repayment, these funds can be recycled for the ADU program or used for other affordable housing purposes. Local governments can be creative in how to raise additional revenue for their affordable housing funds to help finance ADU development. 29 City of Santa Cruz, CA, Accessory Dwelling Units: Loan Program, http://www.cityofsantacruz.com/Home/ShowDocument?id=3700. 30 County of Santa Cruz, CA, Accessory Dwelling Unit Forgivable Loan Program (Apr. 2018), available at http://sccoplanning.com/Portals/2/County/adu/Forgivable%20Loan%20Program.pdf. Page 45 of 141 Accessory Dwelling Unit Guidebook | Page 29 Marketing the ADU Option to Homeowners If a local government allows ADUs by right in all single-family zones or otherwise makes positive changes to facilitate the development of ADUs, the next critical step is to ensure that developers and homeowners are aware that they now have the option of building ADUs. An advertising campaign to educate the community about the benefits and the process for building ADUs is a key component for increasing the stock of ADUs. Building an ADU may be one of the largest projects a homeowner undertakes on his or her property. Further, most homeowners may be unfamiliar with what it takes to build an ADU on their lot. Therefore, local governments could provide educational materials to ease the learning curve for homeowners interested in ADU development. This may include an easy-to-navigate checklist of the application development review process, development cost pro- jections, zoning and land use regulations, and ADU design considerations. The City of Santa Cruz, which proves to be a model for ADU regulation across the country, provides an ADU manual and a set of ADU design prototypes to encourage development.31 The manual connects homeowners to local architects with ADU construction experience. These materials make it easier for homeowners to construct ADUs. The current design prototypes manual offers seven working drawings by local architects to be used as templates by homeowners. The ADU manual contains a step-by-step guide on how to plan, design, and obtain permits for an ADU. Appendix A of this Guidebook contains a template Manual for local governments to use to educate homeowners. Recommendations • Provide user-friendly brochures and information to homeowners on the benefits of ADUs and the rules and regulations that apply to ADUs. • Provide education on what financial resources are available to assist in developing an ADU. • Connect homeowners to local architects with ADU expertise. • Provide education on how to manage an ADU including landlord tenant laws, leasing, and maintenance. 31 City of Santa Cruz, CA, ADU Prototype Architects, http://www.cityofsantacruz.com/government/city-departments/planning-and-community-development/programs/accessory-dwelling-unit-develop- ment-program/adu-prototype-architects. Page 46 of 141 Page 30 | Florida Housing Coalition | FLhousing.org Page 47 of 141 Accessory Dwelling Unit Guidebook | Page 31 V. Concerns Over ADUs as Short-Term Vacation Rentals & Student Housing 32 Fla. Stat. § 509.032(7)(b) (2018). 33 Id. 34 Fla. HB 987 (2018), available at https://www.flsenate.gov/Session/Bill/2019/00987; Fla. SB 1400 (2018), available at https://www.flsenate.gov/ Session/Bill/2018/01400. There are justifiable concerns about the use of ADUs as short-term vacation rentals. Some critics argue that the use of ADUs for Airbnb and other vacation rental platforms poses a serious threat to their beneficial use as long- term rental units, places for elderly housing, and family flexibility. The proliferation of short-term vacation rentals may negatively affect the supply of long-term affordable housing for residents of the community. As of this writing in 2019, local governments may not create a new law, ordinance, or regulation prohibiting vaca- tion rentals or regulating the duration or frequency thereof.32 This statutory provision, however, does not apply to any local law, ordinance, or regulation adopted on or before June 1, 2011.33 Thus, unless already placed in a local government’s code before this grandfathered date, a local government may not prohibit ADUs as short-term vacation rentals through the zoning code. Local governments can, however, regulate short-term rentals through life safety and building codes. For the past several Legislative sessions (including the 2019 Session), there have been bills to preempt local governments from regulating short-term rentals altogether.34 Thus, local governments should be tuned in to how they may or may not regulate short-term vacation rentals. Options for Local Governments to Regulate the Use of ADUs One way to overcome the short-term vacation rental preemption, is by providing local government assistance that comes with a land use restriction agreement to ensure that ADUs are used for affordable housing. Land use restriction agreements, also known as deed restrictions, can be an important tool if the ADU is built using gov- ernmental assistance or through a modification of impact fees. For example, a local government could condition the reduction of impact fees on an ADU’s use as a long-term affordable housing unit. In this scenario, if the ADU is used for short-term vacation rental, the homeowner will have violated the deed restriction and will have to repay the full cost of the impact fees, and perhaps suffer additional consequences imposed by the local government. HIGHLIGHTS The increasing number of short-term vacation rentals through Airbnb and similar platforms can increase community concerns about the viability of long-term ADU rentals. While ADUs can be used as short-term rentals, through deed restrictions, local governments can require an ADU to be used as a long- term rental if the unit benefits from impact fee modifications or other financial assistance. Page 48 of 141 Page 32 | Florida Housing Coalition | FLhousing.org If not done already, local governments should enter into tax agreements with Airbnb and other short-term vacation rental platforms to recover Tourist Development Tax revenue. Under current law, local governments can only use this tax revenue for authorized uses. Affordable housing is not an authorized use. If the Tourist Development Tax statute is amended to allow local governments to use this revenue for affordable housing, they can use the tax revenue from short-term vacation rent- als towards affordable housing purposes.35 These rentals are booming, and local governments should be allowed to use this new stream of revenue for affordable housing. For exam- ple, in 2017, Broward, Brevard, Hillsborough, and Polk County received $1.87 million, $419,000, $562,000, and $610,000 in tax revenue from Airbnb, respectively.36 If local governments are concerned about the proliferation of ADUs as short-term vacation rentals (and in regards to affordable housing broad- ly), they should be able to use the tax revenue from vacation rentals for incentivizing affordable long-term ADUs in the form of loans, reduction of impact fees, and other costs associated with development. Legislation amending the Tourist Develop- ment Tax statute would allow local governments to address this issue. Ultimately, although strict owner-occupancy requirements are not advisable if the ADU is used for affordable housing, strict requirements can be necessary if the ADU is used as a short- term vacation rental. 35 See Fla. Stat. § 125.0104 (2018). The legislation would amend this statute to al- low local governments to use revenue from a Tourist Development Tax for affordable housing purposes. 36 Florida Trend, Airbnb Releases 2017 Florida Tax Report (Feb. 13, 2018), http:// www.floridatrend.com/article/23942/airbnb-releases-2017-florida-tax-report. Page 49 of 141 Accessory Dwelling Unit Guidebook | Page 33 VI. How to Combat Potential Neighborhood Opposition 37 Jaimie Ross, Avoiding and Overcoming Neighborhood Opposition to Affordable Rental Housing, Nat’l Low Income Hous. Coal. Advocates’ Guide (2018), available at http://nlihc.org/sites/default/files/AG-2018/Ch02-S10_Avoiding-Opposition_2018.pdf. 38 Id. The construction of new accessory dwelling units in single-family districts may bring neighborhood or commu- nity resistance. The owners of single-family homes may object to having renters in their neighborhood; they may fear increased traffic and parking, or perceive a threat to their property value.37 The Not in My Backyard (NIMBY) syndrome connotes objections made to stop the development of affordable or otherwise new housing for rea- sons such as fear and prejudice.38 NIMBYism presents an obstacle to a successful ADU regulatory structure and can result in fewer affordable housing options at a time when Florida is in desperate need of more rental housing. Education Campaign The first thing the local government should do to ease neighborhood opposition toward ADU development is to educate the community about the benefits of ADUs. The more informed the public, local government staff, and elected officials are about the need for affordable rental housing and how ADUs can ease that need, the more leverage advocates will have to advance the development of ADUs. The local government should be equipped with current data about its specific needs for affordable housing and how ADUs can be used to help community members. Here are some of the questions the local government should consider: • How many residents are cost-burdened? • How many cost-burdened residents are forced to live far away from the places they work? • How many of these cost-burdened residents are essential members of the lower-paid workforce, such as home health aides? • How much of the community is zoned single-family? • If ADUs were allowed in all single-family districts, how many new affordable rental units would be possible? Anecdotal information about the successes of existing ADUs as sources of affordable rental housing, elderly and disabled care, and/or workforce housing can support this message. In shaping the message, it is important to demonstrate that ADU development may not be best for everyone; HIGHLIGHTS Proposals to allow ADUs in single-family residential zoning districts may bring out neighborhood opposition. Local governments can ease community concerns through educational campaigns and by addressing legitimate objections. This section will offer some solutions such as: • Education Campaign • Garner Support from a Broad Range of Interests • Address All Legitimate Opposition Page 50 of 141 Page 34 | Florida Housing Coalition | FLhousing.org some people do not want to utilize their backyards for affordable rental housing. Some folks may only want to utilize their ADUs for family members, guests, or elderly housing and not have their ADUs on the public market- place. Sensible ADU regulations would go a long way to help households help themselves to solve their own affordable housing problems by providing additional living quarters to family members. It is important to make clear that thousands of ADUs will not sprout up overnight from the successful implementation of an ADU ordi- nance. The local government should share these points with the community and help residents understand that ADUs will not dramatically alter the landscape of existing neighborhoods. ADU development will be relatively slow, scattered throughout communities, and if a successful ordinance is implemented, local governments can assure their constituents that they will undergo a study to assess the strengths and weaknesses of ADU development. The City of Boston, Massachusetts provides a good method by which to study ADU impacts. Several years ago, Boston began allowing what are called “micro-units” – units with a minimum size of 350 square feet -- in a limited area of the city. Simultaneously, the City teamed up with Harvard University’s Rappaport Institute to study the impacts of the first batch of units.39 Local governments in Florida might consider a similar type of study with Uni- versity partners in Florida to measure the results of an ADU program. Garner Support from a Broad Range of Interests Local governments should partner with local organizations that are interested in affordable housing develop- ment. They should look for members of the business community, clergy, social services agencies, and others who are outspoken about the need for affordable housing and form partnerships to support ADU development. The media can also be a crucial ally. Local governments should contact the media so the public can better under- stand ADUs and their development processes, their public purpose, and the population served. With these allies, the local government will be in a better position to convince their community that ADUs are a beneficial housing tool. For instance, nurses and public safety workers can attest to the need for housing closer to the places in which they work – a need which ADUs in single-family districts can address. Elderly individuals can describe how an ADU may have helped them age in place. With allies from a broad range of interests, more connections between ADU development and community concerns can be voiced. 39 Casey Ross, Housing-Starved Cities Seek Relief in Micro-Apartments, Boston Globe (Mar. 26, 2013), https://www.bostonglobe.com/busi- ness/2013/03/25/micro-apartments-tight-squeeze-but-livable/vDRdMnChgdhCdFOrmupnyN/story.html. Shape the Message It is important to make clear that thousands of ADUs will not sprout up overnight from the successful implementation of an ADU ordinance. • ADUs will not dramatically alter the landscape of existing neighborhoods • ADU development will be relatively slow and scattered throughout communities • Assure constituents that studies to assess the strengths and weaknesses of ADU development will be used to inform the decision-making process. Page 51 of 141 Accessory Dwelling Unit Guidebook | Page 35 Address All Legitimate Opposition The key to overcoming community opposition to establishing a regulatory structure for ADUs is to address the community’s legitimate concerns. The local government should be prepared to describe the numerous commu- nity benefits of ADUs and willingness to address legitimate concerns. For example, ADUs architectural and design compatibility with the neighborhood may be an issue. Local governments could include a modest and simple set of design guidelines to assure compatibility with the surroundings. For instance, the guidelines could deal with mass, scale, height, and site position of the ADUs to gain community support. Guidelines would make the overall design of the ADU more predictable and compatible with the principal structure and neighborhood. Parking Parking may be an issue a local government will need to address. Some community members may oppose ADU development specifically in terms of parking. However, requiring new parking may be too costly to homeowners looking to build an ADU. It is unlikely that 1) dozens of ADUs will sprout up overnight after implementation of a flexible code; and 2) even if they did sprout up overnight, it is unlikely they would all be located on the same block or in the immediate vicinity. As mentioned previously, the parking problem for ADUs in single-family areas can be solved through innovative design solutions. Local governments should be prepared to advocate for their methods. The City of Orlando provides a potential compromise in this area. Orlando requires parking for ADUs 500 square feet or more but does not require parking to be built for ADUs less than 500 square feet. This solution was de- signed to encourage smaller units and in recognition of the complexity of building a new parking space on a parcel while meeting setback, maximum lot coverage, and other structural requirements. Garner Support Partner with local organizations interested in affordable housing such as: • Business community, • Clergy, and • Social services agencies. Contact the media to inform the public so that they can learn more about: • How ADUs are developed, • Their public purpose, and • Populations served Page 52 of 141 Page 36 | Florida Housing Coalition | FLhousing.org Page 53 of 141 Accessory Dwelling Unit Guidebook | Page 37 VII. ADUs and Tiny Homes Tiny homes are increasing in popularity; local governments may be asked how tiny homes and ADUs differ. ADUs and tiny homes have many similarities. Both are relatively small in size compared to traditional dwelling units, are flexible in where and how they are built, and cause relatively little impact on the environment and existing infra- structure. However, there are differences in the two housing types which require different rules and regulations from a zoning and land use standpoint. Simply put, ADUs can be tiny homes and tiny homes can be ADUs. Yet, this is not always the case. Here are some main distinctions between the two housing types: 1. By Definition By definition, ADUs are accessory to a primary unit and under the same ownership. An ADU cannot exist on a lot by itself. This contrasts with a tiny home which can stand on a lot independently. Because of this, local governments regulate the location, size, and structural requirements of tiny homes differently from ADUs. A tiny home can be an ADU if built in the backyard of a single-family home and under the same ownership. An ADU can be considered a tiny home based the size of the unit. If a tiny home is built as a backyard unit, it will need to follow ADU regulations. Otherwise, local governments tend to regulate tiny homes separately. 2. Size Tiny homes are generally smaller in size than the typical ADU. A tiny home is usually defined as a habitable structure of less than 500 square feet. This square footage definition depends on the jurisdiction. ADUs, by contrast, are typically up to 1,000 square feet or larger in some circumstances. Thus, when local governments regulate stand-alone tiny homes without reference to a primary unit, they tend to max the size requirement at 400 or 500 square feet. If it is considered an accessory dwelling unit, the tiny home can be larger in size. 3. Mobility One main distinction between the two housing types is that tiny homes can be built on wheels. Tiny homes on wheels (THOW) are typically allowed in areas zoned for mobile homes. If a tiny home is on wheels, it likely cannot be an ADU as local governments generally require ADUs to be on a foundation. THOWs will need to be registered with the Florida Department of Highway Safety and Motor Vehicles. HIGHLIGHTS ADUs and Tiny Homes are alternative housing solutions. ADUs are always accessory to the primary unit. Tiny homes can stand alone. As a result, different regulations apply. Tiny homes and ADUs differ by: • Definition • Size • Mobility Page 54 of 141 Page 38 | Florida Housing Coalition | FLhousing.org If the tiny home is an on-site structure, it will be subject to the same zoning requirements as a single-family home, ADU, or clustered site, depending on the circumstances. In sum, a tiny home can be an accessory dwelling unit and an ADU can be considered a tiny home. Different rules and regulations apply whether the tiny home is a backyard unit, whether it is a stand-alone unit, and whether it is on wheels. If a backyard unit, the tiny home will need to follow the relevant ADU regulations. If a tiny home is a stand-alone unit on a single-family site, multi-family cluster site, or on wheels within a mobile home park, different standards apply based on zoning districts and location. An ADU cannot exist on a lot by itself. A tiny home, however, can exist by itself. A tiny home can be an ADU if built in the backyard of a single-family home and under the same ownership. Tiny homes are generally less than 500 square feet which is smaller than the typical ADU. Tiny homes can be built on wheels. and are typically allowed in areas zoned for mobile homes. Generally, ADUs are required to be on a foundation. A tiny home can be an accessory dwelling unit and an ADU can be considered a tiny home. However, different rules and regulations often apply. Page 55 of 141 Accessory Dwelling Unit Guidebook | Page 39 VIII. Best Practices Below you’ll find best practices chart for a successful ADU program. CATEGORY BEST PRACTICES Zoning • Allow ADUs in all single-family districts as an accessory use • Owner must occupy either the primary or accessory dwelling unit • No rental restrictions • No parking requirement if there is on-street parking available • 375-1200 sq. feet with allowances for an increased maximum if lot a certain size • Must meet district setback requirements • Exempt from density calculations • Shall connect to existing utility connections Development Review, Fees, & Incentives • Waiver of impact fees if used as affordable rental; if not, “de minimis” impact fee of $100 or by square footage • Streamlined and transparent permitting process • ADU Loan Program for affordable rental construction w/funds from local housing trust or other revenue pool Administration • Monitoring system to study local ADU impact on parking, nuisances, property values, etc. • Homeowner & Community Education program HIGHLIGHTS This section provides a best practices chart for a successful ADU program, including: • Zoning • Development Review, Fees, & Incentives • Administration Page 56 of 141 Page 40 | Florida Housing Coalition | FLhousing.org Page 57 of 141 Accessory Dwelling Unit Guidebook | Page 41 IX. Model Ordinance This Model Ordinance combines our findings with the recommendations as provided in Section 163.31771 of the Florida Statutes. Certain requirements will depend on the unique nature of each community. This Model Or- dinance contains the baseline of requirements to ensure an ADU-friendly regulatory structure. Local ordinances may contain greater or fewer requirements than what is provided here. At minimum, local governments should allow ADUs in all single-family districts and adhere to owner-occupancy flexibility regulations. After creating an ADU regulatory structure, it is essential for the local government to have a system in place to track the total number and location of each permitted ADU. For an ADU system to work, the local government ought to continuously monitor the progression of the program. The numbers provided here, especially in reference to lot size and size of the ADU overall, are reflective of what are considered best practices. Fundamentally, when devising an ADU ordinance, it is essential that local govern- ment regulations do not hinder the potential of ADUs as a source of affordable housing. Accessory Dwelling Units (a) Purpose — The intent and purpose of this section is to allow accessory dwelling units to be permitted in all single-family districts and other zone districts as _________ (City/County) finds necessary. It is also the intent and purpose of this section to create a regulatory framework that encourages the development of accessory dwelling units that are rented on the local housing market to members of the community. _________ (City/ County) adopts the view of the Florida Legislature as stated in Section 163.31771 of the Florida Statutes pertaining to the need to encourage the permitting of accessory dwelling units in single-family residential areas in order to increase the availability of affordable rentals for extremely-low-income, very-low-income, low-income, or moderate-income persons. (1) Accessory dwelling units are intended to provide additional housing that is incidental to a primary use. Accessory dwelling units are intended to be used as a necessary smart growth tool to increase the supply of affordable housing, elderly and disabled care units close to family members and caretakers, and/or workforce housing development. Accessory dwelling units are unique housing tools that pro- vide for infill development with low environmental impacts that can connect to existing infrastructure. HIGHLIGHTS This section includes a Model Ordinance with baseline requirements to ensure an ADU- friendly regulatory structure. Page 58 of 141 Page 42 | Florida Housing Coalition | FLhousing.org (2) With surging housing costs and lack of affordable housing stock, accessory dwelling units capitalize on the prominence of the single-family home by providing an additional family or persons access to an affordable dwelling unit on the same lot – typically in areas of our community that are closer to areas of greater opportunity. Creating a regulatory atmosphere that encourages increasing the number of accessory dwelling units will have a positive impact on our community’s housing shortage and on the property rights of homeowners. (3) These standards are devised to ensure that the development of accessory dwelling units do not cause negative impacts on the character or stability of single-family neighborhoods. (b) Definitions (1) “Accessory dwelling unit” means an ancillary or secondary living unit that has a separate kitchen, bathroom, and sleeping area existing within the same structure, or on the same lot, as the primary dwelling unit. The accessory dwelling unit may be a separate and detached unit, an attached unit to the principal structure, a repurposed existing space within the principal structure, an apartment over a garage, or a similar structural form. (2) “Affordable rental” means that monthly rent and utilities do not exceed 30 percent of that amount which represents the percentage of the median adjusted gross annual income for extremely-low-income, very-low-income, low-income, or moderate-income persons. (3) “Lot requirements” means restrictions on lot size, setbacks, building coverage, and similar zoning requirements. (4) “Short-term rental” means the rental of a primary or accessory unit for thirty days or less. (c) Standards (1) Accessory dwelling units are to be permitted as accessory uses to single-family homes in all residential districts and all other districts as _______ (City/County) deems necessary. (2) Unless the accessory dwelling unit is used as a short-term rental, the owner must occupy either the principal or accessory dwelling unit. (A) If used as a short-term rental, the owner must occupy the primary unit. (3) No more than one accessory dwelling unit shall be allowed on any residential lot or within any principal nonresidential structure. (4) An accessory dwelling unit may be constructed with or after the construction of the primary unit. (5) The establishment of a new accessory dwelling unit shall only be allowed if the lot area of the principal building is at least 5,000 square feet. (6) The accessory dwelling unit shall be subordinate to the principal building as to location, height, square footage, and building coverage. The design of the accessory dwelling unit shall be uniform, compatible, or complementary in appearance to the primary residence. (7) The floor area of the accessory dwelling unit shall be no less than 300 square feet and no greater than 1,200 square feet. A variance to increase this amount may be requested provided that the total building coverage does not exceed district standards. Page 59 of 141 Accessory Dwelling Unit Guidebook | Page 43 (8) All accessory dwelling units shall meet the applicable zoning district setbacks. Total building coverage on the lot shall not exceed district stan- dards. The accessory dwelling unit shall comply with the requirements of all applicable housing or buildings codes. (9) No additional parking spaces are required if there is on-street parking available within ______ feet of the parcel. If there is no on-street parking available, one off-street space is required unless the ADU is 500 square feet or less. (10) Accessory dwelling units are exempt from zone district density calculations. (11) The accessory dwelling unit may connect to existing water, sewer, and other existing utility connections. (d) Development Review Procedures (1) Applications for accessory dwelling unit development shall be streamlined to the greatest extent possible. (2) Applicants may seek a variance from all structural and lot requirements. (e) Impact Fees (1) If used for affordable rental, impact fees shall be waived. An application for a building permit to construct an affordable rental must include an affidavit from the applicant which attests that the unit will be rented at an affordable rate to an extremely-low-income, very-low-income, low-in- come or moderate-income person or persons. _________ (City/County) will enter into deed restrictions or other agreements as necessary to ensure that the ADU is used for affordable housing purposes. (2) If not used for affordable rental or the application does not include an affidavit which attests to the accessory dwelling unit as an affordable rental, impact fees will be assessed at a “de minimis” impact fee of $100. Page 60 of 141 Page 44 | Florida Housing Coalition | FLhousing.org Page 61 of 141 Accessory Dwelling Unit Guidebook | Page 45 X. Examples of ADU Policies in Florida 40 City of Orlando, Staff Report to the Municipal Planning Board, LDC Amendment – Accessory Dwelling Units (ADUs) (May 15, 2018), available at http:// www.cityoforlando.net/city-planning/wp-content/uploads/sites/27/2018/05/MPBStaffReport2018-05_LDC2018-10004.pdf. 41 Orlando, Fla. Code of Ordinances CH 58, Part 3A (2018). Orlando The City of Orlando recently adopted an ADU ordinance with a clear intent to promote the use of ADUs. The ordinance allows ADUs in all single-family districts, does not require parking if the ADU is 500 square feet or less, and does not have a strict owner-occupancy requirement. The staff report presented in support of the ordinance demonstrates the local government’s understanding of ADUs as a tool for affordable housing and the need to create a regulatory atmosphere that encourages their use.40 The staff report includes an excellent description of the benefits ADUs provide, a survey of comparative local governments and their ADU policies, and a compre- hensive analysis of how the new ADU ordinance lessens the land-use restrictions on local governments. Elements of the Ordinance41: • Type of Use: Accessory • Zone Districts Allowed: All residential districts as well as mixed use and office districts. • Size: Maximum of 50% of the size of the principal unit and can be no larger than 1,000 square feet. • Minimum Lot Size: Correlated with the size of the ADU and depends on the zoning district. Residential districts require a lot size of a minimum of 5,500 square feet for an ADU of up to 500 square feet and 8,250 square feet minimum for an ADU of up to 1,000 square feet. • Parking: No required parking for ADUs of 500 square feet or less. One additional off-street parking space is required for ADUs above 500 square feet. • Owner-Occupancy: Not explicit in the ordinance. Pinellas County Pinellas County’s ordinance has an important element that is worth showcasing: ADUs are exempt from density calculations. This is a best practice as it allows more single-family lots to construct lawful ADUs. Further, Pinellas County allows the owner of the property to occupy either the primary unit or ADU. This flexibility in owner-occu- pancy is essential to a successful ADU Ordinance. HIGHLIGHTS This section provides examples of ADU policies. Examples are from the following jurisdictions: • City of Orlando • Pinellas County • Alachua County Page 62 of 141 Page 46 | Florida Housing Coalition | FLhousing.org Elements of the Ordinance42: • Type of Use: Accessory • Zone Districts Allowed: All single-family districts and multi-family residential • Density: ADUs are exempt from density calculations • Size: Shall not exceed 750 square feet or 50% of the living area of the primary, whichever is less • Owner-Occupancy: Owner must occupy either the primary unit or ADU Alachua County As with Pinellas County, Alachua County does not include the size of an ADU in gross residential density calculations and allows the homeowner to live in either the primary unit or ADU. The Alachua County ordinance is similar to Pinellas’ in many respects and is also a model for local governments around the state. A change a county like Alachua could make is to consider zero-lot line configurations when establishing setback requirements. A relaxed setback requirement can encourage healthy ADU development on lots that may be otherwise unable to build a lawful ADU. Elements of the Ordinance43: • Type of Use: Accessory • Zone Districts Allowed: Single-family districts and agricultural districts • Density: ADUs are exempt from density calculations • Size: Maximum of 50% of principal residence or 1,000 square feet, whichever is greater • Setbacks: Must meet applicable zoning district setback requirements • Owner-Occupancy: Owner must occupy either the primary unit or ADU 42 Pinellas County Land Development Code § 138-1 (2018). 43 Alachua County Code § 404.24 (2018). Page 63 of 141 Accessory Dwelling Unit Guidebook | Page 47 EXAMPLES OF ADU POLICIES IN FLORIDA Elements of the Ordinance City of Orlando Pinellas County Alachua County Type of Use Accessory Accessory Accessory Zone Districts All residential districts as well as mixed use and office districts. All single-family districts and multi-family residential Single-family districts and agricultural districts Density -ADUs are exempt from density calculations ADUs are exempt from density calculations Size Maximum of 50% of the size of the principal unit and can be no larger than 1,000 square feet Shall not exceed 750 square feet or 50% of the living area of the primary, whichever is less Maximum of 50% of principal residence or 1,000 square feet, whichever is greater Minimum Lot Size Correlated with the size of the ADU and depends on the zoning district. Residential districts require a lot size of a minimum of 5,500 square feet for an ADU of up to 500 square feet and 8,250 square feet minimum for an ADU of up to 1,000 square feet. -- Parking No required parking for ADUs of 500 square feet or less. One additional off- street parking space is required for ADUs above 500 square feet. -- Setbacks --Must meet applicable zoning district setback requirements Owner-Occupancy Not explicit in the ordinance Owner must occupy either the primary unit or ADU Owner must occupy either the primary unit or ADU Page 64 of 141 Page 48 | Florida Housing Coalition | FLhousing.org Page 65 of 141 Accessory Dwelling Unit Guidebook | Page 49 XI. Other Resources for ADU Models Santa Cruz, California Accessory Dwelling Unit Program • Santa Cruz offers its residents assistance through loans, an ADU Manual, and ADU design prototypes. • http://www.cityofsantacruz.com/government/city-departments/planning-and-community-development/accessory-dwelling-units-adus Family Housing Fund – Twin Cities ADU Guidebook for Homeowners • Family Housing Fund is an affordable housing organization based in Minneapolis, Minnesota that has released ADU Guidebooks for Homeowners, ADU Developers, and Policy Leaders. • http://www.fhfund.org/adu/ Decatur, Georgia • Decatur allows ADUs on all single-family lots and recognizes the use of ADUs as a tool to supply the “missing middle” of the housing stock. • http://www.decaturga.com/city-government/city-departments/planning-and-zoning-redesign/permits-and-zoning/accessory-dwelling-units Urban Land Institute Study – Jumpstarting the Market for Accessory Dwelling Units: Lessons Learned from Portland, Seattle and Vancouver • This study describes in detail how these three cities removed barriers to ADU development and the increase in construction that occurred. • http://ternercenter.berkeley.edu/uploads/ADU_report_4.18.pdf NYU Furman Center – Responding to Changing Households: Regulatory Challenges for Micro-Units and Accessory Dwelling Units • This work dives through several cities and their ADU regulations and discusses some barriers to ADU development. • http://furmancenter.org/files/NYUFurmanCenter_RespondingtoChangingHouseholds_2014_1.pdf R Street Policy Study No. 89 • This study provides an introductory overview to ADU development, discusses ADU benefits and their barriers to full implementation. • http://www.rstreet.org/wp-content/uploads/2017/03/89.pdf Department of Housing and Urban Development Accessory Dwelling Units: Case Study • This 2008 study by HUD is outdated in some respects but does provide examples of how local governments have regulated ADUs around the country. • https://www.huduser.gov/portal/publications/adu.pdf Page 66 of 141 Page 50 | Florida Housing Coalition | FLhousing.org Page 67 of 141 Accessory Dwelling Unit Guidebook | Page 51 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners Appendix: ADU Manual for Homeowners This document is intended to be a template for local governments to assist homeowners who may want to create an ADU. Table of Contents • What are ADUs? Introduction to ADU development • Zoning and Design Standards Land Use/Zoning Regulations and Local Assistance • Designing your ADU Neighborhood compatibility, ADU planning, financing, and design • Permitting and Building your ADU Navigating the Local Development Process • Managing your ADU Landlord/Tenant laws, leasing, and maintenance • More Resources Page 68 of 141 Page 52 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na Chapter One: What are ADUs? Introduction Walking around your neighborhood, you may have seen windows and a door above a garage or a cottage sized home in the backyard of your neighbor’s house. What you have seen is likely an accessory dwelling unit. Interested, you may be wondering how the unit was built, if it is lawful, and how you can build your own for your elderly relative, collegiate son or daughter, or as a rental unit. Accessory dwelling units (ADUs) are additional living quarters typically on single-family lots that are independent of the primary dwelling unit. An ADU can be an apartment within a primary residence or it can be an attached or freestanding home on the same lot as the primary residence. Accessory dwelling units were formerly referred to as granny or mother-in law flats and are also sometimes referred to as accessory apartments, garage apartments, carriage houses, and backyard cottages. ADUs were a common feature of early 20th century development in America but their use dwin- dled with the onset of single-family suburb. ADUs were rarely included as an eligible use in municipal codes regulating land use, zoning, and general land development regulations. The tide is changing. Increasingly, local governments around the State of Florida see the benefits that ADUs provide and are changing their zoning codes to allow ADUs as a lawful use in single-family neighborhoods. CITY/COUNTY allows ADUs as-of-right in single-family neighborhoods. This Manual an- swers questions you may have about ADU development and how you can construct a lawful unit on your property. What are the benefits of an ADU? ADUs provide many benefits for the homeowner and the community. If rented on the long-term market (typically, with a minimum six-month lease), an ADU can provide a homeowner additional income to help pay down a mortgage, meet other expenses, or provide income for investment. Due to the relatively small size of the unit and because it does not require additional land or major new infrastructure, an ADU can be a valuable affordable housing tool for low- to moderate-income individuals. ADUs promote mixed-income communities where lower-income households can find an affordable home in an area that may have greater employment and educational opportunities. If not rented, an ADU can provide numerous other benefits. ADUs can be used by elderly or disabled individuals that strive for continued indepen- dence. An elderly or disabled individual could remain in their home and use an ADU for their caregiver. ADUs can also provide for family flexibility. The ADU can be used as a “granny flat” for elderly members of a family to help them age-in-place near the comfort of the family unit. With an ADU, a young adult could continue to live with their parents, but in a separate unit, as he or she works towards economic independence. Further, when developed close to employment centers, an ADU can re- duce a person’s reliance on transportation, providing additional benefits to society through environmental and energy cost savings. Page 69 of 141 Accessory Dwelling Unit Guidebook | Page 53 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners Who can build an ADU in (CITY/COUNTY)? This Section should contain the basics of your ADU ordinance. Include ba- sic details about minimum lot size, zoning, maximum lot coverage, own- er-occupancy, and setback requirements. Below is an example. Any homeowner within CITY/COUNTY who has a lot that is DESCRIBE MINIMUM LOT SIZE REGULATION or more in an area that is zoned for sin- gle-family dwellings may be able to build an ADU. An ADU must meet set- back, lot coverage, and other land use regulations as described in Chapter Two of this Manual. The homeowner must live in either the main house or the ADU and only one ADU per single-family lot is allowed. The ADU may be detached from the main dwelling or attached. What do I need to know to build an ADU? Building an ADU may be one of the largest projects a homeowner un- dertakes on their property. First, decide whether you want to utilize the ADU as a long-term rental unit or for family members or other guests. If you choose the former, be aware of the landlord-tenant legal obligations and financial implications of leasing an ADU. Then, assess your finances and utilize this Manual to see if your lot is suitable for ADU development. Be sure that developing an ADU on your lot will meet zoning standards. If unsure that ADU development is right for you, CITY/COUNTY can assist in making this decision. Page 70 of 141 Page 54 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na Chapter Two: Navigating ADU Development This Chapter should describe the zoning and design standards as described in the local government’s ADU Ordinance. It should provide easy-to-read charts on what properties are eligible to build a lawful ADU. CITY/COUNTY has developed zoning standards for ADUs. These standards were established with community input to allow ADUs on the most possible lots. The table below provides a summary of CITY/COUNTY standards for an ADU located in a single-family zone. The Table can contain more zoning standards as the local government finds necessary. Zoning Standard Requirement for ADUs Other Comments Minimum Lot Size Side-yard Setback Front-yard Setback Rear-yard Setback ADU Size Parking Owner-Occupancy Maximum Lot Coverage Impact Fees Density Calculations Maximum Height ADU Entrance Page 71 of 141 Accessory Dwelling Unit Guidebook | Page 55 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners It is important to make sure that your lot can contain a lawful ADU. CITY/ COUNTY can provide this guidance. You can also contact a local engineer to inspect your property for compatibility with these regulations. If you have further questions, please contact the RELEVANT DEPARTMENT at PHONE NUMBER/OTHER CONTACT INFORMATION to schedule an ap- pointment to discuss the possibility of including an ADU on your property. Local Government Assistance This section should describe, in detail, any assistance that the local gov- ernment offers for ADU development. It can include items such as an ADU loan program, impact fee reduction for long-term affordable units, techni- cal assistance, and other financial assistance. Page 72 of 141 Page 56 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na Chapter Three: Designing your ADU Once I figure out the zoning standards for ADU development, what should I do next? For this portion of the Manual, the local government should consider part- nering with local architects and provide information on who has expertise in ADU development. As with any construction or remodeling in CITY/COUNTY, appropriate building permits are required to develop an ADU. Chapter Four of this Manual provides information on how to navigate the permitting require- ments. The permitting process will require drawings and models of your ADU. This Chapter discusses how to design your ADU. Once you are sure that you can build a lawful ADU on your property, con- tact a local architect to begin designing the ADU. It will be beneficial to work with a qualified designer, builder, or engineer to make sure your proj- ect meets your needs as well as CITY/COUNTY permitting requirements. It is important to select professionals that are familiar with local develop- ment processes to ensure maximum ease of development. Local profes- sionals can better anticipate the types of technical and regulatory issues you will need to address. How should I begin designing the ADU? First, it is important for your ADU to be a good fit with your home and the surrounding neighborhood. Consider talking to your neighbors to see how your ADU can best fit on your site and into your neighborhood. You should walk around your neighborhood and gather as much information as you can to make sure the ADU is compatible with the surrounding environment. Here are some good questions to consider before designing your ADU: • What is the predominant height of homes in the neighborhood? • How much space is there between homes? • How many neighboring properties have accessory units in their backyard? • Do these accessory units blend in with the surrounding buildings? Are they attached or detached? • Is there one material or color that is predominately used for the homes on your block? • Where do most of the homes have their garages? Are they detached or attached? • What do the backyards in your neighborhood typically contain? • How private are the backyards in the neighborhood? Does vegeta- tion exist on the sides or rear of homes? Answering these questions will help you design an ADU that can blend in with the neighborhood. Understanding this fit will allow the ADU to exist within the fabric of the existing community. Privacy of Adjoining Properties. It is also important to understand the pri- vacy aspects of building an ADU. Your neighbors may not want a dwelling in the backyard next to theirs that can potentially see into their home. You can resolve privacy issues with additional vegetation, careful planning, and com- munication with your neighbors. The orientation of an ADU can solve privacy issues. You may think about which way your unit faces and where the windows and doors are located. Privacy for ADU residents. When designing your ADU, there is the op- portunity to plan for which parts of the parcel will be used exclusively for the homeowner, the tenant, and for shared use. You will need to consider how tenants can access the ADU to limit passing by private rooms on route to the ADU. The location of parking and the ADU can also have a noise and physical impact on the primary unit and surrounding properties. You may Page 73 of 141 Accessory Dwelling Unit Guidebook | Page 57 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners want to be sure that tenants of the ADU need not walk near surrounding dwelling units on the way to the ADU. Design Compatibility. You will also need to consider the architectural compatibility with your primary unit. The ADU should be similar in appear- ance to the primary unit to create an aesthetic and ownership connection between the main house and the ADU. You should also be careful in de- signing the ADU in a manner that restricts the view of the primary unit or neighboring units. A larger ADU, for example, may restrict visual and/or physical access to a lake or other natural spaces. At a fundamental level, it is important that the ADU blend into the surrounding neighborhood and not be cause for concern from a design and planning standpoint. Fundamentally, you will need to decide: • Where the ADU will be located your property • The size of the ADU • Which direction the ADU faces • How to access the ADU with the least impact on surrounding properties • How to minimize privacy concerns • Design compatibility with the primary unit and surrounding neighborhood • When you are going to schedule the work All these decisions should be made with the underlying goal to design your ADU in a way that fits into the existing community. Work with your site engineer/architect or contact CITY/COUNTY for more information on designing your ADU. How much will an ADU cost? At this point in process, you will also need to figure out the financing and development costs for your ADU. If you plan to use the ADU as a long-term rental unit, you may want the rent to cover the cost of development while keeping the monthly rent low enough to be attractive to renters. If you are building the ADU for other reasons, such as to house a caregiver, you may weigh the costs and benefits of building the ADU in comparison to the costs and benefits of moving to an assisted living facility, for example. First, you will need to consider the “hard costs” of ADU development. These costs are expenses directly related to the physical construction of the building. These costs cover the material and labor that will go into ADU development. The material hard costs include items such as cement, drywall, carpet, windows, and doors. Labor hard costs can include land- scaping, site excavation, carpentry, and general building of the ADU. To lower your hard costs, you have some control over your destiny. Rather than building a detached ADU, for example, you can save money convert- ing your garage into an apartment or by building an attached ADU. You can also choose the materials that you use to build the ADU. If parking is not required and you are able to connect to existing utilities, you can save costs there as well. You can also decide to do part of the work yourself instead of hiring additional labor. Below is an example ADU budget pro- vided by the City of Santa Cruz, California. This is only a sample of what tools you will be dealing with as the prices will likely be different based on material selection, your customization needs, and the current pricing of these supplies in Florida. Page 74 of 141 Page 58 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na Topic Total Dollars Off Site Improvements Water Service $3,500 Foundation Grading/Excavating/Backfill/Compaction Concrete & Rebar, Anchoring $2,500 $7,500 Framing Studs, joists, rafters, sheathing, beams, headers, connectors $24,500 Plumbing Rough Finish $2,500 $900 Roofing Asphalt shingle $3,500 Doors Interior, exterior, shower encl. $3,500 Windows Wood $4,500 Finishes Drywall Carpeting Resilient Flooring Countertops (laminate) Cabinets Ceramic Tile Painting (interior and exterior) $3,250 $900 $800 $750 $1,200 $1,200 $5,000 Metalwork Piperail Guardrails (Int.) Gutters, downspouts $2,500 $1,000 Mechanical Tankless Water Heater Gas Fired Wall Heaters Garbage Disposal $750 $800 $200 Landscaping Allowance $500 Total Preliminary Estimation of Construction Cost $76,000 Page 75 of 141 Accessory Dwelling Unit Guidebook | Page 59 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners Next, you will need to consider the “soft costs” of ADU development. These costs are expenses indirectly related to the construction of the ADU. These include development fees, planning costs, utility hook-up fees, and professional design and engineering services. If you work with a local en- gineer with experience with the local development process, these costs may be easy to calculate. Other soft costs include the maintenance of the ADU. Be sure to consider ongoing repairs as a part of your cost calculation and decide on materials up-front that may bring less maintenance costs down the road. How can I finance my ADU? If you do not have enough cash on hand, traditional mortgage products are regularly used to construct ADUs. First, you could seek a Home Equity Line of Credit (HELOC) or a Home Equity Loan. Both of these products are essentially second mortgages backed by the equity you own in your home. A Home Equity Loan provides a fixed amount of cash on a fixed repayment schedule backed by the equity in your home. A HELOC is sim- ilar but is structured as revolving lines of credit, like a credit card, that has shorter repayment terms and only charges interest on the balance you have drawn. You can typically borrow up to 85% of the value of your home minus the amount you owe. This product typically has a 10-year draw peri- od followed by a 20-year repayment period. Similarly, you can seek cash-out refinancing. This method is similar to home equity financing except that it replaces your current mortgage, has a fixed interest rate over the life of the loan (instead of an adjustable interest rate) that is typically lower than a HELOC, has greater initial payments, and is typically more cumbersome to receive. This method allows you refinance your current mortgage for more than what you currently owe in order to receive a lump-sum of cash to build your ADU. An advantage to this option is you can set the loan term for thirty years, lowering the monthly payments by spreading the cost of the ADU over a longer period. A construction loan can also be used. This loan can be utilized if you do not have sufficient equity based on your current home value. This type of loan looks at the improved value of the home rather than the current home value, allowing you to receive a greater loan if you lack necessary home equity. The closing costs and interest rates for a construction loan are typi- cally higher than a standard refinance. If the local government offers a loan program for ADUs used as long-term affordable housing units, include that information here. For instance, the local SHIP program could be used for a loan program for ADUs, and the additional benefit of using SHIP would be the assurance that the ADU would serve an income eligible renter (could not be used for tourist vaca- tion rental) and would be monitored for compliance. Contact your financial advisor, lender, or RELEVANT DEPARTMENT at PHONE NUMBER/OTHER CONTACT INFORMATION for more informa- tion on the best financing options for your ADU. Page 76 of 141 Page 60 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na Chapter Four: Permitting and Building Your ADU The Land Development Process Once you have your ADU design and financing figured out as described in Chapter 3, you will need to begin navigating the local development process. Contact RELEVANT DEPARTMENT at PHONE NUMBER/ OTHER CONTACT INFORMATION for more information on starting the development process for your ADU. In this section, include information on the local land development process with in-depth information on how a homeowner can navigate relevant pro- cedures. Building Your ADU Once your permits are finalized, you can begin building your ADU! First, you will want to hire a licensed and insured residential building contractor. You should ask two or three contractors to bid on your ADU. All bids should be based on the same set of plans and specifications and with the same materials, appliances, windows, and similar tools. Discuss the bids in detail with each contractor and gather as much as you can about the success and reputation of each. It is important to choose a contractor that is perfect for you. Ask the contractor for local references to see if former clients were satisfied with the work. Construction Contract Once you have a contractor in place, make sure you have a written contract in place and do not sign anything unless you completely understand what you are signing. Consult with an attorney if possible. Be as specific as possible and be sure the terms of the contract are clear. The contract should include the total price, when payments will be made, and whether there is a cancellation penalty. Include all aspects of the work that you consider important, including complete cleanup, removal of debris and materials, and when the work shall be done. After the contract is signed, be aware that modifications can be made with mutual agreement. Always use a signed “change order” if you add or delete work, substitute materials or equipment, or change the completion date. It is very important to have all modifications signed by both parties. Inspections This section should contain information on the local inspection process. Page 77 of 141 Accessory Dwelling Unit Guidebook | Page 61 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners Chapter Five: Managing Your ADU Renting your ADU This section applies if you decide to rent your ADU. If you intend to rent your ADU, you will be a landlord and there are many items you will need to consider. Choosing a tenant for your ADU may be the most important thing you do as a landlord. You will be choosing a person or household that will be liv- ing on your property. To ensure the right tenant, you can first establish a screening process to attract responsible and honest applicants. Choose criteria by which to judge applicants and apply the criteria consistently for all applicants. Here are some potential screening points: • Require contact information for most recent landlords • Require submittal of a complete application • Run a credit and criminal background check • Personal references It is important to use a written rental application when selecting tenants. A good application gives you access to verifiable information. Contact a local rental housing association or legal counsel for copies of sample rental applications. There are many resources at your disposal in this context. Be- fore potential tenants submit their application, it is a good time to distrib- ute your tenant selection criteria as well as specific information about secu- rity deposits, vehicles, pet policy, maximum occupancy, and other issues related to the rental of the ADU. If the applicant rides a bicycle, consider providing a secure location for the bike. After receiving applications, request a credit check on each tenant who will be signing the lease. Credit checks reveal information about installment and revolving credit lines, court records, collection accounts, judgments, liens, and may be used to determine whether you think an applicant has the ability to pay rent. You can also check with the applicant’s previous landlords to determine whether the applicant will be a tenant who pays in a timely fashion and keeps the property in good order. If the applicant is local, you can also ask permission to visit their current residence to assess their housekeeping. In choosing your ADU tenant, be sure to use a pro- cess that is simple and fair. Follow all relevant civil rights laws which are designed to prevent discrimination based on issues that are unrelated to a person’s qualifications to be a good tenant. Once you have chosen the tenant, execute a written lease. First, decide how long the lease-term will be. If the lease term is for six months or less, you must remit Florida’s 6% sales tax plus any applicable discretionary sales surtax. Lease terms of longer than six months are exempt from sales tax. The lease agreement is vital to forming the understanding between the two parties. Responsibilities should be comprehensive and as clear and concise as possible, and spell out all expectations and responsibilities of each party. Consult with an attorney when devising a lease agreement. Finally, consult with your insurance agent to make sure you have adequate coverage for your ADU. Obligations as a Landlord Being a landlord in Florida brings responsibilities. In exchange for receiv- ing rent and the right to have the ADU returned to you undamaged at the end of the lease term, you must satisfy your duties as a landlord. If unsure of your obligations, consult with an attorney before renting your ADU. As a landlord, you have the duty under Section 83.51 of the Florida Stat- utes to provide a home that is safe and meets applicable housing, build- ing, and health codes. You must make reasonable repairs as necessary to make sure the structural components of the ADU are in good repair and capable of resisting normal forces and loads. This may include fixing bro- ken pipes, windows, doors, and other items that impair the safety of the Page 78 of 141 Page 62 | Florida Housing Coalition | FLhousing.org TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners na home. You must make sure the plumbing is in reasonable working con- dition and provide for functioning facilities for heat during winter, running water, and hot water. Florida law also proscribes affirmative disclosures you must make to your tenant. It is also your duty to respect the tenant’s rights as defined in Chapter 83 of the Florida Statutes and pursuant to the Lease. One of the most import- ant tenant rights is the right of peaceful possession. You must not interfere with the tenant’s leasehold without first consulting the tenant and pro- viding reasonably timed notice. You have the right to protect your ADU through inspection, but you must give a reasonable notice of at least 12 hours. You may not show prospective buyers or tenants the ADU without notice to and with the agreement of the existing tenants. Further, it is unlawful to increase or decrease services in a discriminatory manner or threaten to bring an action for possession in retaliation. Retal- iation may be presumed if it occurs after a tenant has complained about housing conditions. It is also unlawful to lock the tenant out, shut off utili- ties, or remove tenant’s property from the ADU. A landlord must follow all lease terms in accordance with the termination of the lease. If there is no written rental agreement or if the lease does not state otherwise and unit is rented on a month-to-month basis, you must give at least 15 days- notice in writing to end the tenancy. A week-to-week rental period requires seven days- notice. The notice may be posted on the door of the ADU if the tenant is absent from the premises. If the lease agreement is violated by the tenant, certain circumstances must be met before the tenant can be evicted. Section 83.20 of the Florida Stat- utes lists the causes for removal of tenants. If the tenant fails to pay rent or refuses to move out, you may evict the tenant, but only after you have taken the proper steps to commence an action for possession. These include notifying the tenant and if the tenant does not cure the violation within three days after receiving notice, the landlord may file for eviction. Other steps follow. Because these steps are so technical, you should consult with an attorney when engaging in the eviction process. The purpose of this information is not to dissuade you from creating and renting an ADU, but rather to provide a full picture of the landlord obliga- tions that come with renting any home or apartment. Maintaining the ADU The ADU must be maintained in accordance with housing, building, and health codes. If your ADU is a rental unit, be sure to respond to any tenant complaints in a swift manner. Follow the lease terms as to maintenance of the ADU. Most leases will state a procedure for repairs and damages in the event of a breach of contract. Under Section 83.201 of the Florida Statutes, if the lease is silent on the procedure to be followed to effect repair or mainte- nance and the tenant places the obligation on the landlord, the tenant may withhold rent after notice to the landlord if the landlord fails to repair the unit. If the landlord does not fix the issue within 20 days, the tenant may withhold rent until the repair has been performed. Once the repair is com- pleted, the tenant shall then pay the amounts of rent withheld. The lease may provide for a longer period of time for repair or maintenance. Page 79 of 141 Accessory Dwelling Unit Guidebook | Page 63 TEMPLATE FOR LOCAL GOVERNMENT USE: ADU Manual for Homeowners Chapter Six: More Resources In this section, include resources as the local government finds necessary to round out this educational material. This section should include a copy of the ADU ordinance and other applicable laws including, but not limited to, landlord-tenant laws and civil rights laws. This section may include local contractors, engineers, and architects that have expertise in ADU development as well as the contact information of all relevant departments of the local government. It may contain permit fees, a local ADU development checklist, other building codes, and other useful websites for homeowner education. If you would like assistance in developing your local government’s Homeowner ADU Manual, please contact the Florida Housing Coalition. Page 80 of 141 Notes Page 81 of 141 Page 82 of 141 ACCESS AN ELECTRONIC VERSION OF THE Accessory Dwelling Unit GUIDEBOOK AND OTHER VALUABLE RESOURCES UNDER THE PUBLICATIONS TAB ON THE FLORIDA HOUSING COALITION’S WEBSITE AT: FLhousing.org p^fZd^ahnlbg`Z__hk]Z[e^ SPONSORED BY: The Florida Housing Finance Corporation Page 83 of 141 Accessory Dwelling Units Model State Act and Local Ordinance CREATED FOR STATE AND LOCAL LEADERS BY AARP Government Affairs DETACHED ATTACHED INTERIOR (UPPER LEVEL) INTERIOR (LOWER LEVEL)GARAGE CONVERSIONABOVE GARAGE Page 84 of 141 Copyright © 2020–2021 by AARP | AARP is a registered trademark. All rights reserved. No part of this publication may be reproduced in any form or by any means without the prior written permission of AARP, except brief quotations in connection with reviews written specifically for inclusion in magazines, newspapers or websites, or limited excerpts strictly for personal use. | Cover art by Design Park, Inc. Limit of Liability/Disclaimer of Warranty: While AARP has used its best efforts in preparing this publication, it makes no representations or warranties with respect to the accuracy or completeness of the contents, examples, instructions and/or guidance contained herein. The advice, policies and strategies discussed may not be suitable for each reader’s or community’s situation. Consultation with local professionals is advised, and compliance with local regulations is required. 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AARP | 601 E Street NW, Washington, DC, 20049 | AARP.org | 888-OUR-AARP Toll-Free: 1-888-OUR-AARP (1-888-687-2277) Toll-Free Spanish: 1-877-342-2277 International Calls: +1-202-434-3525 | TTY users dial 711 (English: 1-877-434-7598 | Spanish: 1-866-238-9488) AARP Public Policy Institute Founded in 1985 and part of the AARP Policy, Research and International Group, the AARP Public Policy Institute (PPI) promotes the development of sound, creative policies to address the common need for economic security, health care and quality of life. PPI’s livability experts focus on policies that relate to issues including land use, housing, transportation and broadband — all of which facilitate aging in place. PPI also hosts the AARP Livability Index, a free, interactive, online tool that scores neighborhoods and communities throughout the United States based on the presence of the types of services and amenities that impact people’s lives the most. 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Accessory Dwelling Units: Model State Act and Local Ordinance Created for state and local leaders by: AARP Government Affairs A part of the AARP Community, State and National Affairs (CSN) group, Government Affairs advances AARP’s work on behalf of older adults and their families through legislative and regulatory advocacy with policymakers and elected officials at the federal, state and local levels, as well as through judicial advocacy. Assistance provided by: See page 52 for contact information and links to the mentioned resources. This report is available as a PDF download via AARP.org/ADUs. Page 85 of 141 1 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance TABLE OF CONTENTS I. About Accessory Dwelling Units .................................................2 AARP supports the wider availability of accessory dwelling units (ADUs) as an affordable, accessible housing option for people of all ages. That’s why, late in the last century, the AARP Public Policy Institute asked the American Planning Association to develop model legislation — specifically, a state statute and a local ordinance — as a resource to assist AARP volunteer leaders and other interested residents, planners and government officials in evaluating potential changes to state laws and local zoning codes. This publication is an update of that model legislation, which was released in the year 2000. This section provides an overview of what ADUs are and why they are so needed. II. Model State ADU Act ...............................................................9 Two policies are presented in this section. The first is the “Optimal” state act, which limits local governments from prohibiting or discouraging the creation of ADUs. The second, referred to as the “Minimal” version, grants local governments the full range of authority to permit and regulate ADUs. III. Model Local ADU Ordinance ....................................................29 This model ordinance is designed for communities in places where state law allows local ordinances authorizing and governing ADUs but does not impose any constraints on local governments. Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Learn More ............................................................................52 Acknowledgments .....................................................................53 Accessory Dwelling Units Model State Act and Local Ordinance DETACHED ATTACHED INTERIOR (UPPER LEVEL) INTERIOR (LOWER LEVEL)GARAGE CONVERSIONABOVE GARAGE Page 86 of 141 2 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance I. About Accessory Dwelling Units An Introduction Accessory dwelling units (ADUs) are independent housing units, typically (but not always) created on single-family lots through remodeling or expanding the existing home or constructed as a detached dwelling. Detached ADUs may be freestanding or incorporated into another structure, most oft en a garage. ADUs have many other names, such as “secondary suites,” “granny flats,” “English basements,” “accessory apartments,” “laneway homes,” “ohana houses,” “casitas” and “backyard cottages.” To avoid confusion and in recognition of the term’s increasing prevalence, this document simply uses “ADU.” ADUs serve multiple purposes for their owners, purposes that may change over time. They assist older homeowners in maintaining their independence by providing additional income to off set property taxes and maintenance and repair costs or by providing housing for a caregiver. ADUs can also become the residents’ home if they wish to downsize, allowing them to rent out the main house or to have family move into it. As of the date of this publication, eff orts are underway across the country to test the feasibility of using ADUs as a way of providing below-market housing through a variety of public and nonprofit investments and incentives. In this way, ADUs help realize equity objectives by increasing the economic diversity of neighborhoods that may be rich in opportunities and amenities. They help realize goals of compact growth found in many land use and transportation plans. In most places, ADUs do not require the construction of new infrastructure (roads, sewers, schools, etc.) to serve them. Accessory dwelling units were relatively common before World War II. Many were created by middle- aged and older persons, oft en widows, seeking to take in boarders aft er their children moved out. During the war, ADUs housed the influx of workers in war industries. Following the war, the explosive growth of the suburbs was governed by suburban zoning ordinances that reserved land almost exclusively for single-family housing for the middle-class nuclear family. ADUs and Housing Thatʼs Aff ordable ADUs can be a cost-eff ective means of increasing the supply of market-aff ordable rental housing in a community and accommodating new growth without dramatic changes to the character of a neighborhood. The critical qualifying words at the time of this edition are can and market-aff ordable. According to a 2018 survey of ADU occupants in the Canadian city of Vancouver, British Columbia, 15% of the ADU occupants reported incomes of less than $40,000. Another 16% had incomes of $40,000 to $60,000, and another 6% had incomes of $60,000 to $80,000. The median household income in Vancouver in 2015 was $65,327. The median household income in the Vancouver metropolitan region in 2018 was $89,000. A report on ADU production in California found that 20% of ADUs constructed from 2016 to 2019 were built in census tracts with a median household income of less than $61,000, and another 24% were completed in census tracts with incomes of $61,000 to $84,000. The median household income in California from 2014 to 2018 was $71,228. SOURCES: City of Vancouver, Laneway Housing Survey Summary, 2019 | Census Profile, 2016 Census Vancouver, British Columbia. | Statistics Canada, Table 11-10-0009-01, Selected Income Characteristics of Census Families by Family Type | Chapple, Garcia, Valchuis, Tucker, Reaching California’s ADU Potential: Progress to Date and the Need for ADU Finance, Terner Center for Housing Innovation, University of California, Berkeley, August 2020 | U.S. Census Bureau Quick Facts, California “Income and Poverty,” table CA-PST04529 | Accessory Dwelling Units as Low-Income Housing: California’s Faustian Bargain, Ramsey-Musolf, Urban Sci. 2018, 2(3) 89 Page 87 of 141 3 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Some communities prohibited any and all types of multifamily housing and mandated large homes and large lot sizes for single-family homes. These regulations often excluded Americans of modest means from significant portions of urban regions. Zoning combined with federal redlining, and other public and private practices enforced racial and ethnic as well as economic segregation. Zoning in many older cities was changed to prohibit ADUs along with town houses, duplexes and courtyard apartments — what is now commonly called “missing middle housing.”1 At the same time, the size of single-family homes grew. In 1950 the average single-family home was 983 square feet. According to the U.S. Census the average size of a single-family home completed in 2019 was 2,301 square feet. From 1973 to 2016 the average square feet per resident of those homes increased from 551 to 1,058.2 The United States has much more house per person but not nearly enough homes for people. ■ Changing Circumstances Have Strengthened the Case for ADUs During the past 20 years, communities have been forced to reconsider postwar housing regulations due to: • The aging of the U.S. population and the growing need for housing that serves people of all ages, including older adults • The crisis of unaffordable rents and home prices, which has spread to many urban areas, large and small • Out-of-pocket costs for care in residential settings may be out of reach for many who need long-term care and are looking for lower-cost housing alternatives to allow for family caregiving needs • The COVID-19 pandemic, which has driven home the need for housing that allows for caregiving. The pandemic has also worsened socioeconomic disparities in housing affordability as well as substandard housing conditions, which impact many households, including ones in communities of color affected by discriminatory housing practices and residential segregation • The lack of adequate retirement savings for many older adults • A greater awareness of the significant fiscal and environmental benefits of infill and redevelopment, including as part of a strategy for combating climate change • The rise of online, short-term rental services that compete for existing housing in high amenity locations • An increase in the awareness of systemic racism and class division that is embedded in typical single-family zoning, which excludes people of color and of modest means from neighborhoods that offer advantages in schooling, amenities, transportation and jobs • A modest shift back to larger, multigenerational households (partly a reflection of high home prices and rents), which are a more traditional form of households Page 88 of 141 4 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance The vast majority of older adults want to remain in their current homes and communities. • 77% want to live in their community for as long as possible • 76% want to continue living in their current residence • 59% anticipate they will be able to remain in their community, either in their current home (46%) or a diff erent home (13%) • About 1 in 3 would consider building an accessory dwelling unit on their property independent of a care need • The most compelling reason for why older adults would consider living in an accessory dwelling unit is to live near others but still have their own space (67%), receive help with daily activities (63%) or for economic reasons (54%) • 7 in 10 respondents said they would consider building an ADU for a loved one who needs care According to an AARP survey of people age 50 or older … AARP Home and Community Preferences National Survey of Adults Age 18-plus (August 2018) Page 89 of 141 5 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance ■ Accumulating Experience with ADU Legislation and Ordinances Since 2000, many more local governments have adopted or revised regulations authorizing the construction of accessory dwelling units. Los Angeles, California, issued permits for 4,171 ADUs in 2018, up from 117 in 2016. This volume is equivalent to 20% of all permitted housing units (including a substantial share of permits legalizing formerly illegal ADUs).3 Portland, Oregon, authorized an average of about 450 ADUs per year from 2015 to 2018, equivalent to about 10% of all housing permits.4 In Canada, Vancouver, British Columbia, approved about 550 ADUs per year from 2015 to 2019, accounting for slightly more than 8% of the new housing supply for 2017 to 2019.5 On the other hand, some changes to local land use regulations intended to authorize ADUs or make it easier to build them have not (yet) resulted in a significant increase in ADU construction. By 2015, four years after legalizing ADUs, the city of Minneapolis, Minnesota, had permitted only 137.6 Seattle, Washington, initiated a pilot program in 2006 allowing detached ADUs to be built in the southeast part of the city. It was considered a success, and the city expanded the program to include all of Seattle in 2009. Yet, as of 2016, only 221 ADUs had been built on the roughly 75,000 eligible single-family lots. In response to the low ADU production numbers, during the 2010s the previously cited communities and others (such as Austin, Texas, and Montgomery County, Maryland) revised their ADU ordinances to reduce the regulatory barriers that seem to be obstacles to ADU construction. In 2018, Minneapolis reformed its land use plan and followed up in 2019 by adopting sweeping changes to all of its residential zones. In 2019, Seattle adopted an ambitious round of reforms of ADU regulation. When AARP issued its 2000 edition of the Accessory Dwelling Units: Model State Act and Local Ordinance, only Washington State had legislation requiring local governments to authorize ADUs.7 Since then, many states have adopted legislation preempting local prohibitions to one degree or another, usually for larger cities and towns. This legislation has been enacted in California (2016),8 New Hampshire (2017),9 Oregon (2017),10 Rhode Island (2017)11 and Vermont (2005).12 In parallel with local governments’ continuing revisions to their ADU ordinances, California (2019),13 Oregon (2019)14 and Vermont (2020)15 passed many amendments to their initial ADU legislation, chipping away at various local regulatory barriers to ADU construction. Legislation authorizing or encouraging local governments to authorize ADUs was passed in Florida (allowing ADUs as affordable housing, 2004)16 and Maine (2019).17 Hawai’i has had legislation allowing counties to permit two dwellings on all single-family lots since 1981.18 The American Planning Association documented ADU legislation in many other states in the years immediately preceding the publication of this update.19 The continuing demand for, and evolving experience with, ADU legislation spurred AARP to prepare an updated version of Accessory Dwelling Units: Model State Act and Local Ordinance. AARP recognizes that the rapidly changing regulatory landscape and its intersection with changes in the housing market and the need to evaluate the results of recent changes means this edition is unlikely to be AARP’s last effort on this topic. Page 90 of 141 6 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance ■ Major Changes from the 2000 Edition The 2000 edition included provisions for states to mandate local government authorization of ADUs. That was a far-sighted provision at the time. As noted previously, since 2000 several states have adopted legislation to override local regulatory barriers and require local governments to authorize ADUs, broadly following the AARP Model State ADU Act. This state-level legislation has informed the update of the Model State ADU Act. Similarly, local government amendments on the same topics have informed the update of the Model Local ADU Ordinance. Many of these regulatory changes reformed provisions that were identified as problematic in the 2000 edition. Such “poison pills” are: Owner occupancy requirements Parking requirements Conditional use permit review procedures and standards Discretionary standards related to design or “neighborhood character” Several notes in the 2000 edition raised the question of the fairness and the logic of imposing limits and constraints on ADUs that were not applied to the primary single-family dwellings. The 2020–2021 edition treats ADUs as a legitimate rather than a suspect and contingent type of housing. This change is the basis for not including several provisions from the 2000 Model Local ADU Ordinance that limited the purposes for which ADUs could be constructed, as well as the types of homes and lots that could be used for ADUs. ■ Methodology of the 2020 Update The 2000 (first) edition relied on an analysis of all state ADU legislation, 50 local ADU ordinances, a review of the existing literature on ADUs, a survey of planning agencies and consultants, and follow-up interviews. Aft er an initial draft was prepared, several state and local off icials interviewed earlier reviewed the draft model legislation to assess its utility and feasibility in light of actual administrative practice and community experience. This edition — prepared in 2020 and released in early 2021 — shift ed the methods used to reflect the intervening quarter-century of experience with ADU legislation and the implementation of that legislation. The update looks to those state and local governments that are experiencing a significant volume in ADU construction as models. In these locations there are other forces at play supporting the construction of ADUs: market factors (e.g., high rents), public education eff orts by nonprofit organizations and governments, and the blossoming of professional services (in design, permitting and finance) to help homeowners take advantage of the opportunity to build an ADU. However, those influences would have no eff ect if ADU laws and regulations made the construction of ADUs impossible. Continued on page 7 Page 91 of 141 7 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance A few new topics have been added, including: ADUs in an expanded range of zones Development opportunities and fee waivers to incentivize meeting equity and environmental goals Appeal procedures Short-term rentals Not all of these topics are associated with proposed statutory or ordinance language, either because provisions addressing them are not necessary or can be found in provisions of more general application. The update draws on some of the accumulating research on ADUs and the continuing legislative and administrative innovations by state and local governments adopted to promote their construction. Continued from page 6 Methodology of the 2020 Update The revision process began with the preparation of a heavily annotated version of the 2000 edition referencing the evolving state and local ADU legislation along with recent policy discussions. Working group members used the annotated version to provide more than 300 comments on the overall structure and audience for this edition. These were compiled into a spreadsheet for consideration by the entire working group and AARP leadership. A teleconference was used to confirm major areas of agreement. Summaries of relevant research on a few topics were prepared and additional model provisions were identified to help inform the draft ing process. Based on the working group’s comments and direction from AARP leadership, a first draft of the 2020 edition was provided for another round of comments. A second draft was prepared and went through a similar review. During the preparation of the second draft additional examples and supporting information were identified. The second draft received a final technical editing review, leading to a third draft , which became this publication. Page 92 of 141 8 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance ■ Organization of the 2020 Edition Significant changes have been made from the 2000 edition. The most important is that, consistently with the idea of a “model” act and ordinance, only the best, model language is offered for each section; the “favorable” and “minimal” provisions have been deleted. In a few instances, different but equally favorable provisions are offered. 1. The Model State Act on Accessory Dwelling Units The 2020 edition of the Model State ADU Act is organized differently from the 2000 edition in that it offers both an “optimal” and “minimal” version of the entire Model State ADU Act. The Optimal version of the Model State ADU Act mandates the authorization of ADUs by local governments. It limits local governments’ discretion over procedures, regulations and conditions that may effectively block the construction of ADUs. It retains the prior version’s approach of including default standards that ADU applicants can use in the event local implementation regulations are rejected or delayed. As in the 2000 edition, the state plays a role in monitoring and enforcing these provisions. With a very few exceptions, the 2020 version of the Model State ADU Act eliminates the optimal, favorable and minimal versions for various subsections; it specifies only the best, “model” language. The ordering and grouping of the subsections have been modified. The updated Model State ADU Act includes a new optional section related to private covenants, conditions and restrictions (CCRs) that bar the construction of ADUs. The Minimal version of the Model State ADU Act removes any question about the authority of local governments to authorize ADUs in states where local government authority is limited to what the legislature has expressly authorized. In other words, it clears the way for action by local governments without obliging them to authorize ADUs or constraining how they regulate them. In this minimal state act, state governments’ role is limited to collecting and disseminating information about ADU production. A discussion of short-term rental issues has been added, but no suggested statutory language is offered, for reasons given in the commentary itself. In the Optimal version, this includes commentary on the reasons for eliminating local authority to impose conditions and procedures that effectively block ADU construction. 2. The Model Local Ordinance on Accessory Dwelling Units The Model Local ADU Ordinance is drafted for those local governments that have complete discretion over the regulation of ADUs, without any state legislative constraints. Of course, if there is state legislation constraining local discretion, as is found in the Model State ADU Act, then the local ordinance must conform to those requirements. The Model Local ADU Ordinance has been reorganized in parallel with the Model State ADU Act. Commentary has been added identifying regulatory requirements common in local ADU ordinances that should not be retained, such as owner occupancy requirements. The commentary explains how these provisions inhibit or effectively prohibit ADU construction. New regulatory options for authorizing ADUs on multifamily properties and through remodeling units have been added. Also added is a commentary on possible building code revisions that may facilitate ADU construction. A Note to Readers: The italic text that appears in the Model State ADU Act and the Model Local ADU Ordinance is used to provide an explanation or discussion of the recommended provisions. Page 93 of 141 9 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance II. Model State ADU Act TABLE OF CONTENTS Optimal Model State ADU Act: Statutory Authorization of Accessory Dwelling Units in Residential Zones and Limits on Local Government Discretion That May Be Used to Prohibit or Discourage ADUs .....................11 I. Findings, Policy and Legislative Intent, Definitions . . . . . . . . . . . . . . . . . . . . . . .11 A. Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 B. Policy and Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 C. Definitions ................................................................. 12 II. Authorization of Accessory Dwelling Units, Local Government Implementation ..........................................14 III. Health and Safety Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 IV. Private Deed and Homeowner Association Restrictions on ADUs ........14 V. Local Regulations and Interpretations May Not Be Used to Frustrate Purposes of the Act ...........................................15 VI. Utility Connections and Building Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 A. Utility Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 B. Building Codes ..............................................................15 VII. Local Government ADU Authority, Density Limits and Miscellaneous Matters .......................................................17 A. Authority to Adopt Reasonable Regulations and Impose Reasonable Conditions. . . . .17 B. Short-Term Rentals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 C. Density Limitations ...........................................................18 D. Exemption from Local Growth-Limitation Measures .............................18 E. Less Restrictive Provisions ....................................................18 F. Fees and Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Page 94 of 141 10 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance VIII. Standards Governing ADUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 A. Number of Units .............................................................19 B. Minimum Lot Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 C. Size of ADUs .................................................................21 D. Parking Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 E. Building Setbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 XIII. Default Provisions Governing Applications for Accessory Dwelling Units in the Absence of a Certified Local Ordinance .....................22 A. Default Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 B. Only Basis for Denial .........................................................22 C. Maximum Standards in Absence of Local Ordinance .............................22 D. No Changes to Local Ordinances Necessary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 E. Default Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 F. Local Government Review of Applications for ADUs ..............................23 XIV. State Oversight and Monitoring ............................................24 A. State Certification of ADU Ordinances ..........................................24 B. Local Government Annual Reports to State .....................................24 C. State Annual Report ..........................................................25 D. State Advisory Board on ADU Policies ..........................................25 Minimal Model State ADU Act Granting Local Governments the Full Range of Authority to Permit and Regulate Accessory Dwelling Units ..................................................................26 A. Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 B. Policy and Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 C. Definitions ..................................................................27 D. Grant of Regulatory Authority .................................................28 E. Local Government Authority to Prospectively Limit or Prohibit Private Agreements or Restrictions That Bar the Construction of ADUs .......................... . . . . 28 Page 95 of 141 11 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Optimal Model State ADU Act Statutory Authorization of Accessory Dwelling Units (ADUs) in Residential Zones and Limits on Local Government Discretion That May Be Used to Prohibit or Discourage ADUs I. Findings, Policy and Legislative Intent, Definitions A. Findings (1) The Legislature finds and declares: (a) Many communities in our state face a severe housing crisis, with home prices and rents unaffordable by families and households of middle and moderate incomes. (b) The State is falling far short of meeting current and future housing demand, with serious potential consequences for the state’s economy and the well-being of our residents, particularly lower- income and middle-income earners. (c) The State can play an important role in reducing the barriers that prevent homeowners from building accessory dwelling units. (d) There are many benefits associated with the creation of legal accessory dwelling units on lots in single-family zones and other zoning districts. These benefits include: (i) Increasing the supply of a more affordable and diverse type of housing not requiring government subsidies; (ii) Helping older homeowners, single parents, young home buyers, and renters seeking a wider range of homes, prices, rents and locations; (iii) Providing opportunities to reduce segregation of people by race, ethnicity, and income that resulted from decades of exclusionary zoning; (iv) Providing homeowners with extra income to help meet rising ownership costs; (v) Creating a convenient living arrangement that allows family members or other persons to provide care and support for someone in a semi-independent living arrangement while remaining in his or her community; (vi) Increased security, home care and companionship for older or other homeowners; (vii) Reducing burdens on taxpayers while enhancing the local property tax base by providing a cost-effective means of accommodating development without the cost of building, operating and maintaining new infrastructure; (viii) Promoting more compact urban and suburban growth, which reduces the loss of farm and forest lands, as well as natural areas and resources, while limiting increases in pollution that contributes to climate instability; and (ix) Enhancing job opportunities for individuals by providing housing nearer to employment centers and public transportation. (2) Accessory dwelling units are, therefore, an essential component of the state’s housing supply. Page 96 of 141 12 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance B. Policy and Intent It is the policy of the State to promote and encourage the creation of accessory dwelling units in order to meet our residents’ housing needs and to realize other benefits of ADUs. It is the intent of the Legislature that accessory dwelling unit ordinances adopted by local governments allow the creation of such units and that these local ordinances not unreasonably restrict the ability of homeowners to create these units in zones in which they are authorized. C. Definitions There are many alternative terms for ADUs. Although the term “Accessory Dwelling Unit” may be awkward and technical, it is now in such widespread use that it would add to the confusion to propose a replacement term or terms. To further simplify the discussion, the Model State ADU Act and Model Local ADU Ordinance do not distinguish between the different forms and types of ADUs, such as detached “cottages” or “internal apartments,” since the standards do not require that differentiation. The sole exception is the “Junior Accessory Dwelling Unit” (JADU), which is offered as an optional provision. Three alternative definitions of ADUs are presented with the numeral “1.” Choose one of the following options: Limiting ADUs to parcels that are already the site of a single-family dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling. The ADU provides complete independent living facilities for one or more persons. It may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled primary dwelling. The ADU to be built before or concurrently with a single-family home 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel on which a single-family dwelling is present or may be constructed. It provides complete independent living facilities for one or more persons and may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled dwelling. This definition allows for the construction of an ADU prior to or concurrent with that of the primary residence. Two common circumstances in which an ADU might be built before the primary residence are: (1) when a homeowner wishes to stage construction expenses and living arrangements and (2) when the homeowner owns an adjacent legal lot (typically used as a side or backyard) and would prefer to site an ADU there rather than on the lot with the primary residence. Suppose that an owner built a 600-square-foot detached dwelling on the second lot to serve as an ADU. If that lot was separately sold and the home on it was not identified as an ADU, then the new owner might find that regulations limiting the size of an ADU to 75% of the primary dwelling would treat the small home as the primary residence and limit the size of an official ADU to 400 square feet. The ADU to be created is on a lot with a multifamily dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling or a multifamily structure. It provides complete independent living facilities for one or more persons and may take various forms: a detached unit; a unit that is part of an accessory structure, such as a Page 97 of 141 13 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance detached garage; a unit that is part of an expanded or remodeled single-family unit; or a unit in a multifamily dwelling. This third alternative allows for building detached ADUs on properties with multifamily housing structures and through additions to or remodeling of those structures. 2. “Default Provisions” means the standards of Section XIII of this Act, which a community must apply if it has no local ADU ordinance. 3. “Dwelling Unit” means a residential living unit that provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation and a separate entrance. 4. “Governing Document” means articles of incorporation or bylaws or else a declaration, rule, regulation or resolution, any of which were properly adopted by a homeowners association, or else any other instrument or plat relating to common ownership or common maintenance of a portion of a planned community that is binding upon lots within the planned community. 5. “Junior Accessory Dwelling Unit” (JADU) is a separate living unit of less than 500 square feet, with a separate entrance. It may share sanitation facilities with another dwelling unit other than an ADU. The definition and authorization of junior accessory dwelling units are based on California’s definition and authorization of this type of ADU. See California Government Code Section § 65852.22. 6. “Living Area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. 7. “Local Government” means a general-purpose local government created by general law or a charter. It exists in a city of any class or a county, borough, township or village. 8. “Reasonable Local Regulations” means regulations that do not unreasonably increase the cost to construct, effectively prohibit the construction of, or extinguish the ability to otherwise construct an accessory dwelling unit [or junior accessory dwelling unit] consistently with the provisions of this Act. “Reasonable local regulations” do not include owner occupancy requirements applied to either the primary or accessory dwelling unit; requirements to construct off-street parking beyond what is required by this Act; or restrictions on the terms of rentals that do not apply generally to other housing in the same district or zone. For an explanation of the limits imposed on local government regulation of owner occupancy, parking and short-term rentals, see the notes under Section VII-A, “Authority to Adopt Reasonable Regulations and Impose Reasonable Conditions.” 9. “Town House” is a single-family dwelling constructed in a group of three or more attached units, with each unit extending from foundation to roof and with a yard or public way on not fewer than two sides. This definition is included to enable implementation of provisions allowing ADUs in or with town houses. Page 98 of 141 14 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance 10. “Zoning Administrator” means the local off icial who is responsible for processing and approving or denying applications to develop or legalize ADUs. II. Authorization of ADUs, Local Government Implementation Local governments shall adopt ordinances, in conformity with this Act, authorizing accessory dwelling units in single-family zones or districts and on appropriate lots in other zones that allow housing (except as specifically exempted in Section B) and authorizing their use as rental housing. This provision is written to require local governments to authorize ADUs in single-family residential zones and in a range of zones that authorize housing, such as zones that allow detached and attached housing, or in mixed- use zones that allow commercial, institutional and other uses along with housing. However, it does not limit the discretion of local governments to authorize ADUs only on certain lots within those zones, such as lots with a single- family residence or, more broadly, lots in residential use. III. Health and Safety Exemptions The [appropriate state agency] may grant an exemption from these provisions for those properties where new single-family homes have been prohibited because of limitations on safe drinking water or because of risks to public health due to limits on sewage disposal or because of the risk of fires, floods or landslides. IV. Private Deed and Homeowner Association Restrictions on ADUs Any covenant, restriction or condition contained in any deed, contract, security instrument or other instrument aff ecting the transfer or sale of any interest in a planned development, and any provision of a governing document that either eff ectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit [or junior accessory dwelling unit] as a rental unit, though the latter otherwise meets the requirements of this Act, is void and unenforceable. This section does not apply to provisions that impose reasonable private restrictions on accessory dwelling units or junior accessory dwelling units. For purposes of this subdivision, “reasonable private restrictions” means restrictions that do not unreasonably increase the cost to construct, eff ectively prohibit the construction of, or ❝Neighborhood fears and misperceptions about ADUs can put political pressure on local elected off icials to use their powers to veto homeownersʼ plans to develop ADUs. A wide variety of local government actions and regulations can be used for this purpose. This section makes it illegal for them to do so.❞ Page 99 of 141 15 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance extinguish the ability to otherwise construct an accessory dwelling unit or junior accessory dwelling unit consistently with the provisions of this Act. Based on California Civil Code Section 4751, which was added by Statutes 2019, Chapter 178, Section 2. [AB 670], effective January 1, 2020. Covenants, Conditions and Restrictions (CCRs): These are private regulations incorporated into the deed of a property and administered by an association for a Common Interest Community, such as a homeowners association. They were used in the past to prevent ethnic and racial minorities from buying or renting homes in some neighborhoods. Judicial decisions invalidated those provisions many decades ago as violations of the U.S. Constitution. However, other provisions of these private restrictions are still valid and remain an important tool in maintaining economic, racial and ethnic segregation even in situations in which the underlying zoning has been reformed. In legislation adopted in 2019, California invalidated CCRs that directly or indirectly prohibit ADUs and junior ADUs. There may be state constitutional or statutory limits on a legislature’s ability to invalidate existing CCRs. If so, a legislature should adopt a provision invalidating any future covenants, codes or restrictions that would preclude ADU construction. Two examples of prohibitions that operate only prospectively are Oregon Revised Statutes 94.776 and 27 Vermont Statues Annotated § 545 as amended by Section X of Vermont Senate Bill 237, signed by the Governor and effective October 12, 2020. V. Local Regulations and Interpretations May Not Be Used to Frustrate Purposes of the Act Local governments may adopt only reasonable regulations to govern the review and operation of accessory dwelling units. No local government may develop, amend or interpret other codes or regulations, such as building codes or special taxing district provisions, in ways that interfere with the intent of this Act. VI. Utility Connections and Building Codes A. Utility Connections A local agency, special district or water corporation shall not require the applicant to install new or separate water and sewer lines directly between the accessory dwelling unit and the trunk lines unless the accessory dwelling unit was constructed with a new single-family dwelling. Applicants may choose to use a shared water meter for the primary structure and the ADU or have a separate water meter installed for the ADU.20 A best practice for municipalities is to not require new, dedicated lateral services from the utility/right-of-way to the property. These utilities include water, sewer, electric and gas connections. Commonly, water and sewer services are provided in part by governmental agencies, whereas electric and gas utilities are commonly provided by private energy providers. Ideally, energy providers do not require ADUs to have a dedicated lateral service connection from the right-of-way to an ADU, as new connections often cost several thousand dollars. When energy utilities are publicly owned, the same principle should apply. B. Building Codes (1) Within one year of the effective date of this Act, the [State Building Codes Division] shall by rule establish building codes that local governments shall use to approve the conversion of single-family dwellings, Page 100 of 141 16 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance [town houses] and accessory structures to create accessory dwelling units [and junior accessory dwelling units] for structures legally in existence prior to the effective date of this Act. The standards established under this subsection shall allow for revisions to local government building code standards governing ceiling heights, access and egress; energy efficiency; seismic safety; and other standards that may unnecessarily inhibit the construction of accessory dwelling units within, or primarily within, existing structures. These alternate standards shall describe the information that must be submitted before an application for conversion of a structure into an ADU will be deemed complete. (2) A building official must approve or deny an application to create an accessory dwelling unit under the accessory dwelling unit building codes adopted pursuant to subsection (1) of this section no later than 25 business days after receiving a complete application. A building official who denies an application for alternate approval under this subsection shall provide to the applicant a written explanation of the basis for the denial and a statement that describes the applicant’s appeal rights. Based in part on Oregon Revised Statutes 455.610(8),(9)(2019). Building codes can inhibit or facilitate the construction of ADUs, especially internal and garage conversions. Both state and local governments adopt building codes, often based on a variety of national and regional model codes. The degree of discretion allowed to local governments to deviate from state building codes varies between states. Since many garages and basements weren’t built to today’s earthquake or frost line standards, requiring that a structure meet the current structural code will effectively require demolition and new construction, thereby eliminating a realistic or feasible option for a structural conversion. Permitted, nonconforming structures should be allowed to change their use from a nonhabitable use to a habitable use without a conditional use permit or special exception from building code, even if the structure meets former but not current structural standards. This is commonly referred to as “grandfathering in” existing structures. This policy is critical to enable structural conversions. There are several other key considerations for internal conversions related to existing ceiling heights and existing stairwells. In general, the goal should be to allow existing spaces to have reduced building code thresholds for numerous building code standards.21 The City of Portland’s guide “Converting Attics, Basements and Garages to Living Space” makes internal conversions of living space to ADUs more feasible by adjusting several elements of building codes: Achieving higher energy efficiency in buildings is a critical strategy for reducing greenhouse gases. But it can increase the cost or reduce the design feasibility of ADUs created by conversions of existing space. Conversions of basements and garages to ADUs are the most common type of ADU conversion. In the past homes and garages were built with 2"x 4" stud walls versus the 2"x 6" framing used today, which accommodates much thicker insulation. Requiring a conversion to meet today’s energy standards may require the replacement of all existing Ceiling heights Exceptions to ceiling heights for beams, heating ducts, pipes Sloped ceilings Existing stairs Noncompliant stairs Stair landings Firewall separation Page 101 of 141 17 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance stud walls to create sufficient wall cavity space to accommodate the insulation required to meet modern energy codes. This interior stud wall, or additional 2" wall furring, or exterior rigid foam insulation, can add substantially ($5,000 to $20,000 in the Portland market in 2020) to construction costs and reduce the interior size of the living space of an already small dwelling. If the effect of these energy standards is that more large homes or new apartments are constructed, the net effect might be an increase in energy consumption due to higher heating and cooling costs of the larger spaces and because of the embedded energy in the materials used for new construction. VII. Local Government ADU Authority, Density Limits and Other Matters A. Authority to Adopt Reasonable Regulations and Impose Reasonable Conditions Local governments may adopt reasonable local regulations governing ADUs, addressing height and bulk, setback, lot coverage, and regulations generally applicable to other residences in the same zones. Local governments may impose reasonable conditions of approval to ensure compliance with the regulations. Those regulations must be implemented using clear and objective standards and the procedures specified in this Act. Owner Occupancy Requirements The definition of authorized “reasonable” local regulations in I.C.(8) forbids the imposition of a requirement that the owner live on the same property (whether in the primary dwellings or the ADU), yet such requirements are pervasive. The 2000 edition of the Model State ADU Act provided for the imposition of owner occupancy requirements on the grounds that such requirements ensured better oversight of renters and better maintenance of the property. This restriction took the form of a covenant on the deed or other restrictions on the title of the property. Owner occupancy covenants or conditions give pause to homeowners and institutions financing home purchases because of the limits they place on successive owners, who will not be able to rent out or lease their main house, which might be necessary as a result of a divorce, job transfer or death. They can also make financial institutions reluctant to provide financing for construction of an ADU, and because covenants or conditions serve as a restriction on a mortgage lender’s security interest in a property, lenders may withhold consent to any owner occupancy requirement that takes the form of a covenant.22 The 2020 Model State ADU Act prohibits any form of owner occupancy provision because the practical impact of this requirement is to inhibit construction of most ADUs. That conclusion is reflected in amendments to California’s and Oregon’s ADU legislation and in Seattle’s 2019 local code revisions. Aside from its effect on ADU production, there is a problem with the logic and fairness of applying an owner occupancy standard to ADUs if there is no such requirement with single-family homes generally. If single-family homes can be rented out (by a nonresident owner), then what is the policy basis for requiring occupancy when there is an ADU on the property? One of the justifications for the owner occupancy requirement is the assertion that resident owners take better care of their property than nonresident owners. But there are certainly resident homeowners who do not take care of their property and nonresident owners who keep their property in excellent condition. The 2020 Model State ADU Act treats ADUs as an equal and important type of housing that, in general, should be subject to the same set of rules that governs the use of other housing. ADUs should not be treated as an inferior form of housing that requires additional restrictions and policing. Authorizations of or prohibitions against renting out dwellings should be applied consistently to ADUs and other homes. If owner occupancy is required for the primary dwellings in a single-family zone, then that requirement can be easily extended to ADUs. Page 102 of 141 18 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance B. Short-Term Rentals Many cities and residents are concerned about the use of houses, apartments and ADUs for short-term rentals, especially in regions, cities or districts that are tourist destinations. Use of these dwellings for short-term rentals can remove existing housing from the supply available for residents, worsening affordability and introducing commercial types of impacts into residential areas. Short-term rentals are often a major subject of debate in high-amenity areas, where the return on investment in ADUs used for short-term rentals is generally much higher than with those used for long-term housing. But the exact same concerns apply to short-term rental use of the primary dwelling. If short-term rental regulations are adopted, they should apply to all housing in the jurisdiction or zone, not just ADUs. Many existing ordinances have such limitations or prohibitions built into the list of permitted uses authorized for all housing. In legislation passed in 2020, Vermont amended its ADU legislation to allow for the regulation of short-term rentals, provided those regulations were not applicable to or did not inhibit the construction ADUs for longer-term rental use.23 There is a counterargument in support of short-term rental use of ADUs. The high return spurs the construction of more ADUs than would otherwise occur and these ADUs typically, over time, convert into long-term rentals or other uses. If the goal of ADU authorization is wealth creation or allowing people to stay in their homes as they age, then the use of ADUs for short-term rentals should be encouraged because short-term rentals help realize those objectives. C. Density Limitations An ADU authorized under this Act shall not be considered to exceed the allowable density for the lot upon which it is located and shall be deemed a residential use consistent with the existing general plan and zoning designations for the lot. D. Exemption from Local Growth-Limitation Measures ADUs shall not be restricted by any local government ordinance, policy or program intended to limit residential growth in residential zones or residential planning districts or mixed commercial and residential zones. Adapted from California Government Code Section 65852.2(a)(5). This section is drafted to apply only to locally adopted growth limitations and not state-level farm, forest, or natural resource conservation zones or districts that are part of a growth management program. E. Less Restrictive Provisions This Act does not limit the authority of municipalities to adopt less restrictive requirements for the creation of ADUs. Adapted from California Government Code Section 65852.2(e). F. Fees and Incentives Local governments charge permit processing fees, system development charges (for funding a share of capital improvements, such as water lines, sewage treatment capacity, schools and parks), utility connection upgrades, and fees for new residential development. The average local government fee charged for development of an ADU in California in the late 2010s was $9,250, Page 103 of 141 19 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance according to a paper by the Terner Center at the University of California, Berkeley.24 In established neighborhoods where ADUs are being added, system development charges designed to pay for capital improvements may not be appropriate if existing capital improvements are already adequate to handle a modest increase in residential population. Many older neighborhoods have lower population densities than they did when they were built and household sizes were larger. The Model State ADU Act waives and reduces fees for smaller ADUs to incentivize construction or to encourage affordability, equity or environmental goals. (1) An accessory dwelling unit shall not be considered by a local government or agency, special district or water corporation to be a new residential use for the purposes of calculating connection fees or capacity charges for utilities, including water and sewer service. (2) A local government or agency, special district or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit with less than 750 square feet. Any impact fees charged for an Accessory Dwelling Unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit. (3) A local government or agency, special district or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. The connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square footage or its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. VIII. Standards Governing ADUs A. Number of Units In California (as of 2020) a single-family lot can have both an ADU and a junior accessory dwelling unit, which may be no larger than 500 square feet and must be part of the primary residence. In 2019 Seattle, Washington, authorized the creation of one detached ADU and one internal ADU per single-family lot; if green building or affordability requirements were met, a second detached unit is also allowed. In 2020, Portland, Oregon, decided to allow two ADUs in any configuration on each single-family-zoned lot as part of broad reform of residential zoning. Since 2016, the Canadian city of Vancouver, British Columbia, has allowed a “secondary suite” (internal ADU) and a “laneway home” (detached ADU with alley access) on single-family lots on corner, double-fronted lots and lots with an alley. There are many different ways to accommodate more than one ADU that are sensitive to concerns about neighborhood appearance. For example, two internal ADUs can be accommodated by remodeling a large home without increasing height or bulk. An internal unit can be allowed along with an ADU over an attached garage without increasing the area of the lot occupied by the structures. Discussions about allowing more than one ADU per lot in single-family zones may result in a challenging but beneficial community discussion about the purposes of single-family zoning. Minneapolis, Minnesota; Portland, Oregon; and the State of Oregon have reformed their residential zoning. Page 104 of 141 20 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance The Model State ADU Act allows two ADUs per lot without specifying their form, leaving that to local government or homeowner discretion. This provision is written to allow for both concurrent and prior construction of ADUs. The timing of ADU construction relative to that of the primary dwelling is discussed in the alternate definitions of ADUs in I.C.(1). Some ordinances, for example Seattle’s, have made additional ADUs conditional on achieving other community goals, such as affordability, accessibility and green building performance standards. This follows the precedents created by inclusionary zoning ordinances that allow for additional units in multifamily developments if the rents for those units meet an affordability standard for a specified period. It is too soon to know whether these incentives will be effective in creating additional ADUs. Provisions allowing these “Bonus ADUs” (BADUs) are presented here as options. (1) Any lot with, or zoned for, a principal single-family-dwelling unit may have up to two accessory dwelling units. Bonus ADU Provisions (2) The Zoning Administrator may authorize an additional accessory dwelling if: (a) The additional accessory dwelling unit is a rental unit affordable to and reserved solely for “income-eligible households,” as defined in this ordinance, and is subject to an agreement specifying the affordable housing requirements under this subsection to ensure that the housing shall serve only income-eligible households for a minimum of 50 years. The monthly rent, including basic utilities, shall not exceed 30% of the income limit for the unit, all as determined by the Director of Housing, and the housing owner shall submit a report to the Office of Housing annually that documents how the affordable housing meets the terms of the recorded agreement. Prior to issuance, and as a condition of issuance, of the first building permit for a project, the applicant shall execute and record a declaration in a form acceptable to the Director that shall commit the applicant to satisfying the conditions for establishing a second accessory dwelling unit as approved by the Director; or (b) The applicant makes a commitment that the new principal structure or the new accessory structure containing a detached accessory dwelling unit will meet a green building standard, and the applicant shall demonstrate compliance with that commitment, all in accordance with this ordinance. A second accessory dwelling unit that is proposed within an existing structure does not require the structure to be updated to meet the green building standard; or (c) The applicant designs at least one of the dwellings on the lot to meet visitability standards, including a no-step entry, [36"] wide doors and hallways, a bathroom that can be used by someone in a wheelchair, and at least [300 square feet] of living space on the main level. Based on Seattle Municipal Code 23.44.041.A.1.a.(2). B. Minimum Lot Size A local government may not require a minimum lot size for ADUs that is larger than the minimum lot size for single-family houses [or town houses] in the same zone or district. Page 105 of 141 21 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance C. Size of ADUs Accessory dwelling units may be any size, provided that the proposed ADU’s total square footage is less than that of the primary dwelling’s and other requirements are satisfied. Many local governments have adopted minimum and maximum sizes for ADUs. The Model Local ADU Ordinance recommends eliminating minimum size since the basic requirements for a living space (kitchen, bathroom, living/ sleeping area) and the housing market will establish a minimum size. In expensive housing markets the success of micro-apartments of less than 300 square feet and the proliferation of tiny homes on wheels demonstrates that there is demand for very small units. At the other end of the scale, limits on maximum size prevent the construction of ADUs that could be home for a family of three or more persons. For situations in which the existing residence is very small, local governments might consider authorizing ADUs up to 800 square feet when the primary dwelling is smaller than 800 square feet. Burlington, Vermont, takes a different approach to this issue. It allows accessory dwelling units to be 30% of the gross square footage of a house of 800 square feet, whichever is greater. 25 D. Parking Requirements Many local governments have required one or more off-street parking spaces for each ADU. This is a serious inhibition to the construction of ADUs for two reasons. First, the cost of building off-street parking spaces.26 Second, the lot size, location of the primary residence and topography may make the construction of one or more parking spaces impossible.27 The impact of parking requirements on ADU production is suggested by the results of a 2018 survey of California cities with ADU regulations. Out of the 168 cities, 68% reported having minimum off-street-parking requirements for ADUs . Prior to the 2017, California legislation that eliminated off-street parking within a half-mile of transit, localities receiving frequent ADU applications were much more likely to lack off-street-parking requirements (31% versus 13%).28 Given the general oversupply of parking29 and its impacts on home prices and rents (and more generally urban development and redevelopment), minimum parking requirements are being reconsidered and reduced. Hartford, Connecticut;30 Buffalo, New York;31 and Edmonton, Alberta, Canada,32 are among the cities that have eliminated most or all minimum parking requirements. Other cities have reduced or eliminated parking requirements for different types of housing.33 No additional off-street parking is required for construction of an ADU. If the ADU removes one of the existing off-street parking spaces, the local government may require that the space be replaced on site if required by the underlying zoning. In lieu of an on-site parking space, an additional on-street parking space may be substituted if there is already sufficient curb area available along the frontage for a parking space or by removing the parking space access ramp and reinstalling the curb. Based on Seattle Land Use Code 23.44.041 A.5. E. Building Setbacks No setback shall be required for an existing garage living area or accessory structure or for a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or for a portion of an accessory dwelling unit. A setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or for a new structure constructed in the same location and to the same dimensions as an existing structure. Based on California Government Code 65852.2(a)(D)(vii). Page 106 of 141 22 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance XIII. Default Provisions Governing Applications for Accessory Dwelling Units in the Absence of a Certified Local Ordinance A. Default Provisions If a local government without an adopted state-certified ADU ordinance receives an application for a permit for an ADU on or after [the effective date of the Act], it shall accept the application and approve or disapprove the application pursuant to the default provisions of this section of the Act unless it adopts a certified ordinance in accordance with this Act within 120 days after receiving the application. This provision governs how local governments are to process their applications to create an ADU if they do not have an ordinance that conforms to the Model State ADU Act. It also incentivizes local governments to adopt their own ordinance and secure state certification promptly rather than apply the Model State ADU Act’s default provisions. B. Only Basis for Denial No local ordinance, policy or regulation shall be the basis for the denial of a building permit or a use permit under the default provisions of the Act. Adapted from California Government Code Section 65852.2(b)(2). C. Maximum Standards in Absence of Local Ordinance The default provisions of this section establish the maximum standards that municipalities shall use to evaluate proposed ADUs on lots that are zoned for residential use and contain an existing single-family dwelling. No additional standards, other than those provided in this section, shall be used or imposed. Adapted from California Government Code Section 65852.2(b)(2). D. No Changes to Local Ordinances Necessary No changes to zoning ordinances or other ordinances or any changes to the general plan shall be required to implement the default provisions of this Act. Any local government may amend its zoning ordinance or general plan to incorporate the policies, procedures or other provisions applicable to the creation of ADUs if these provisions are consistent with the limitations of the default provisions. Adapted from California Government Code Section 65852.2(b)(4). A community is subject to the default provisions of this Model State ADU Act if it does not have an ADU ordinance of its own. But if a community without an ADU ordinance wants to amend a comprehensive plan or other ordinance, this provision allows it to do so if the amendment is consistent with the default provisions. E. Default Standards (1) Zones Where ADUs Are Authorized: The lot proposed to contain the ADU is in a zone in which single- family residences are authorized and is the current site of a primary dwelling or qualifies as the site for a future primary residence. Many local governments have chosen to allow ADUs only in a limited number of residential zoning Page 107 of 141 23 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance classifications. However, excluding ADUs from zones applicable to higher income neighborhoods will raise questions of fairness (for neighbors, property owners and prospective ADU tenants alike). Treating ADUs as a less desirable, inferior, type of housing — instead of a housing type that can benefit people of all incomes and backgrounds — will likely reinforce patterns of housing discrimination and class and residential segregation. In recent years many local governments have relaxed the stringency of residential zones, in some cases by authorizing different types of housing in the same zones as commercial uses and other times in zones with light industrial uses. There is no policy reason to exclude ADUs from these zones if single-family dwellings are allowed in them. (2) Time of Construction: ADUs may be built concurrently with or before the primary residence. Building an ADU concurrently with the construction of a new home has many advantages in cost savings, design consistency and logical siting. California’s 2019 legislative reforms included general authorization of ADUs built concurrently with new homes. The common circumstance in which the construction of an ADU might precede that of a primary residence was discussed above in I.C.(1) under the definitions of “Accessory Dwelling Unit.” (3) Detached ADUs: Detached ADUs (including ADUs built as part of a garage or another accessory building) may be built before the primary residence. The location, scale and other aspects of the ADU must not preclude or constrain the construction of a primary dwelling in conformity with regulations governing those dwellings. (4) Unit Size: The living area of an ADU shall be smaller than the living area of the primary residence. There is no minimum size, provided code requirements governing kitchen, sanitation and other relevant provisions are satisfied. (5) Separate Sale of ADUs: Local governments may choose to limit or prohibit the separate sale of ADUs. The separate sale of ADUs is discussed in Section II-M of the Model Local ADU Ordinance. (6) Other Matters: Requirements related to height, setback, lot coverage, site plan review, fees, charges and other zoning requirements generally applicable to residential construction in the zone in which the property is located are applicable to any ADU, except when the provisions of this Act specify otherwise. F. Local Government Review of Applications for ADUs A permit application for an accessory dwelling unit shall be approved or denied ministerially without discretionary review or a hearing, notwithstanding any local ordinance regulating the issuance of variances or special use permits, within 90 days after receipt of a completed application. If the permit application to create an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the permitting agency may delay acting on the permit application for the accessory dwelling unit or a junior accessory dwelling unit until the permitting agency acts on the application to create the new single-family dwelling, but the application to create the accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the 90-day time period shall be tolled for the period of the delay. The ministerial decision on the ADU application shall be the final decision of the local government for purposes of judicial review. Adapted from California Government Code 65852.2(a)(3). Page 108 of 141 24 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance If judicial review of local ADU approvals proves to be a major inhibition to ADU (or other needed housing) construction, state legislators may wish to examine the model of a specialized state land use appeals board of the type Oregon has used since the 1980s, including provisions that limit review to an appellate review based on the local government record and require expedited review by that tribunal and the appellate courts.34 XIV. State Oversight and Monitoring A. State Certification of ADU Ordinances (1) Submission for Certification: A local government shall submit the zoning ordinance provisions implementing this Act 90 days prior to final approval of such an ordinance or amendment, seeking an opinion from the [state agency] on whether the ordinance conforms to this statute. This submission must include the local government’s date of planned final approval. The [state agency] may notify other relevant agencies so that they may also comment on whether the municipality’s draft ordinance conforms to the statute. The [state agency] shall notify the local government prior to the planned date of final approval of its opinion as to the conformity of the ordinance to this statute. If, in the opinion of the [state agency], the ordinance and/or amendments reviewed do not conform to this statute, the [state agency] shall notify the local jurisdiction of actions that must be taken to bring the ordinance(s) and/or amendments into conformity. (2) Local Government Action on Deficiencies: The local government shall bring its ordinance into conformity, as recommended by the [state agency], within 90 days of notification of nonconformance pursuant to the prior section. If the municipality has not brought its ordinance into conformity within the 90-day period, the [state agency] will notify the jurisdiction that it must automatically accept and process applications for ADUs under the default regulations of this Act until conformity is certified by the [state agency]. Prior to any certification by the [state agency], any applications submitted under the default regulations of this Act shall be processed fully and solely under those regulations. (3) Amendments: Changes to a municipality’s ordinance certified by the [state agency] must be submitted and certified in the same manner and procedure as the initial proposed ordinance pursuant to this section. B. Local Government Annual Reports to State (1) L ocal governments shall report annually to the [state agency] the number of: (a) Single-family structures in the jurisdiction; (b) Single-family structures in single-family-residential zones and in multifamily residential zones in which accessory dwelling units are permitted; (c) Illegal accessory dwelling units, attached and unattached, and known or estimated to be in the jurisdiction; (d) Applications to legalize illegal accessory dwelling units submitted to the jurisdiction and the results of processing these applications; (e) Legal accessory dwelling units in the jurisdiction; (f) Applications for new accessory dwelling units accepted for processing; Page 109 of 141 25 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance (g) New accessory dwelling units approved and permits issued by type of unit (internal, attached, detached integrated with another accessory structure and detached stand-alone), size, number of bedrooms, location and level of accessibility; and (h) Applications disapproved, with reasons categorized by requirements not met. C. State Annual Report The [state agency] shall prepare an annual report to the Governor and the Legislature from the annual reports from local governments, including the installation rates of ADUs and recommendations, if any, for amending the Act or other implementation measures necessary for promoting the development of ADUs to increase housing supply generally or for particular residents or communities. The annual report shall include any recommendations on ADU policies from the State Advisory Board. D. State Advisory Board on ADU Policies (1) Creation: The [state agency] shall establish an Advisory Board to monitor implementation of the Act and to recommend amendments to the Model ADU Act or Model Local Ordinance provisions to the [state agency]. (2) Composition: The Advisory Board shall be appointed by the Director of the [state agency] in consultation with the Legislature and Governor and shall include one representative from each of the following groups: renters, remodelers, mortgage bankers, real estate agents, new home builders, nonprofit home builders, first-time home buyers, home health care agencies and local permitting agencies; organizations for the disabled, older persons and neighborhoods; and historically underrepresented communities and neighborhoods. (3) Duties: The Advisory Board’s duties shall include, but not be limited to, preparing an annual commentary on the report prepared by the [state agency] on accessory dwelling units. The Board’s commentary shall contain recommendations for furthering the purposes of the legislation and will be published and circulated with the [state agency’s] annual report. This section of the Model State ADU Act is optional. It gives the state the role of encouraging ADUs and reviewing local efforts to accommodate them. The optional monitoring provision here would require communities to report specific ADU data to the responsible state agency and to obtain ADU policy recommendations from a State Advisory Board. With the benefit of the community data and the Advisory Board recommendations, the responsible agency would prepare an annual report proposing new or amended policies to the State Legislature and Governor. This optional monitoring mechanism would assist the state in assessing the law’s effectiveness. Because it allows well-informed policy adjustment to be made, it should help ensure the ultimate success of the state’s ADU policies. Page 110 of 141 26 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Minimal Model State ADU Act Granting Local Governments the Full Range of Authority to Permit and Regulate Accessory Dwelling Units (ADUs) A. Findings (1) The Legislature finds and declares: (a) Many communities in our state face a severe housing crisis, with home prices and rents unaffordable by families and households of middle and moderate income. (b) The State is falling far short of meeting current and future housing demand, with serious consequences for the state’s economy and the well-being of our residents, particularly lower- income and middle-income earners. (c) There are many benefits associated with the creation of legal accessory dwelling units [and junior accessory dwelling units] on lots in single-family zones and in other zoning districts. These benefits include: (i) Increasing the supply of a more affordable type of housing not requiring government subsidies; (ii) Helping older homeowners, single parents, young home buyers and renters seeking a wider range of homes, prices, rents and locations; (iii) Increasing housing diversity and supply, thereby providing opportunities to reduce the segregation of people by race, ethnicity and income that resulted from decades of exclusionary zoning; (iv) Providing homeowners with extra income to help meet rising homeownership costs; (v) Creating a means for a family member or others to provide care and support to a family member in a semi-independent living arrangement while remaining in the community; (vi) Providing an opportunity for increased security, home care and companionship for older or other homeowners; (vii) Reducing burdens on taxpayers by providing a cost-effective means of accommodating development that can avoid the construction, operations and maintenance of new infrastructure while accommodating population growth and increasing the local tax base; (viii) Promoting more compact urban and suburban growth, a pattern that reduces the loss of farm and forest lands and natural areas and resources and limits increases in pollution that contributes to climate instability; and (ix) Enhancing job opportunities for individuals by providing housing nearer to employment centers and public transportation. (2) Therefore, accessory dwelling units [and junior accessory dwelling units] can be an essential component of the local housing supply. Page 111 of 141 27 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance B. Policy and Intent It is the policy of the state to grant local governments the full range of authority needed to promote and encourage the creation of accessory dwelling units in order to meet their housing needs and to realize other benefits of accessory dwelling units. C. Definitions There are many alternative terms for ADUs. Although the term “Accessory Dwelling Unit” may be awkward and technical, it is now in such widespread use that it would add to the confusion to propose a replacement term or terms. To further simplify the discussion, the Model ADU Act and Model ADU Ordinance do not distinguish between the different forms and types of ADUs, such as detached “cottages” or “internal apartments,” since the standards do not require that differentiation. The sole exception is the junior accessory dwelling unit, which is offered as an optional provision. Three alternative definitions of ADUs are presented with the numeral “1.” Choose one of the following options: Limiting ADUs to parcels that already are the site of a single-family dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling [or town house]. The ADU provides complete independent living facilities for one or more persons. It may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled dwelling. The ADU to be built before or concurrently with a single-family home 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling [or town house] or a parcel on which a single-family dwelling is present or may be constructed. It provides complete independent living facilities for one or more persons and may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled dwelling. The ADU to be created on a lot with a multifamily dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling, [a town house] or a multifamily structure. It provides complete independent living facilities for one or more persons. It may take various forms: a detached unit, a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled single-family unit or a unit in a multifamily dwelling. 2. “Default Provisions” means the standards of Section 4 of this Act, which a community must apply if it has no local ADU ordinance. 3. “Dwelling Unit” means a residential living unit that provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking and sanitation, as well as a separate entrance. Page 112 of 141 28 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance 4. “Governing Document” means articles of incorporation or bylaws or else a declaration, rule, regulation or resolution, any of which were properly adopted by a homeowners association, or else any other instrument or plat relating to common ownership or common maintenance of a portion of a planned community that is binding upon lots within the planned community. 5. “Junior Accessory Dwelling Unit” (JADU) is a separate living unit of less than 500 square feet, with a separate entrance. It may share sanitation facilities with another dwelling unit other than an ADU. The provision of junior accessory dwelling units is based on California’s definition and authorization of this type of ADU. See California Government Code Section § 65852.22. 6. “Living Area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. 7. “Local Government” means a general-purpose local government created by general law or a charter, including a city of any class or a county, borough, township or village. 8. “Reasonable Local Regulations” means regulations that do not unreasonably increase the cost to construct, effectively prohibit the construction of, or extinguish the ability to otherwise construct an accessory dwelling unit or junior accessory dwelling unit consistently with the provisions of this Act. “Reasonable local regulations” do not include owner occupancy requirements for either the primary or accessory structure, requirements to construct off-street parking beyond what is required by this Act or restrictions on the term of rentals that do not apply generally to other housing in the same district or zone. For an explanation of the limits imposed on local government regulation of owner occupancy, parking and short- term rentals, see notes under “Authority to Adopt Reasonable Regulations and Impose Reasonable Conditions” in the longer version of the Model State ADU Act. 9. “Town House” is a single-family-dwelling unit constructed in a group of three or more attached units in which each unit extends from foundation to roof and with a yard or public way on not fewer than two sides. 10. “Zoning Administrator” means the local official who is responsible for processing and approving or denying applications to develop or legalize ADUs. D. Grant of Regulatory Authority Notwithstanding any other statute, local governments are granted full authority to adopt ordinances in conformity with this Act authorizing and regulating accessory dwelling units and junior accessory dwelling units in any zones or districts that allow housing. E. Local Government Authority to Prospectively Limit or Prohibit Private Agreements or Restrictions That Bar the Construction of ADUs Notwithstanding any other statute, local governments are granted full authority to adopt ordinances that limit or prohibit future private agreements or restrictions that bar the construction of accessory dwelling units and junior accessory dwelling units within their jurisdictional boundaries. Page 113 of 141 29 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance TABLE OF CONTENTS I. General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 A. Purpose and Intent. ..........................................................30 B. Definitions ..................................................................31 C. Authorization of ADUs by Zoning District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 D. Number of ADUs Allowed Per Lot in Single-Family Zones . . . . . . . . . . . . . . . . . . . . . . . . .34 II. Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 A. Minimum Lot Size in Single-Family (and Town House) Zones .....................36 B. Types of Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 C. Size of ADUs .................................................................37 Introduction to Lot Coverage, Setbacks, Height, Bulk and Floor Area Ratios . . . . . . . . . . .37 D. Lot Coverage Limits ..........................................................38 E. ADU Setbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 F. Floor Area Ratios .............................................................39 G. ADU Height Limit ............................................................39 H. Architectural Consistency and Design Review ...................................39 I. Orientation of Entrance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 J. ADU Screening, Landscaping and Orientation. ..................................40 K. Parking Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 L. Short-Term Rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 M. Separate Sale of ADUs ........................................................41 N. Owner Occupancy (Residency) Standards ......................................42 O. Other Common Standards Not Recommended for Application to ADUs ............43 III. Utility Connections and Building Codes .....................................43 A. Utility Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 B. Local Building Codes .........................................................43 IV. ADU Application and Review Procedures .....................................44 A. Application Process ..........................................................44 B. Clear and Objective Versus Discretionary Standards .............................45 C. Review Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 D. Appeals of ADU Decisions .....................................................45 V. Fees ................................................................................46 VI. Legalizing ADUs .................................................................46 III. Model Local ADU Ordinance Page 114 of 141 30 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Model Local ADU Ordinance This Model Local ADU Ordinance is designed for communities in states where state law allows for local ordinances authorizing and governing ADUs but does not impose any constraints on local governments. In states where local governments do not have the discretionary authority to approve ADUs (Dillon Rule states) state legislation giving them that authority must be adopted first. AARP’s “Minimal Version” of the Model State ADU Act would give local governments that authority along with complete discretion over the content of their ADU ordinances. If there is a state ADU statute that limits local government discretion (as is proposed in the AARP Model State ADU Act) then the local ordinance will need to conform to those requirements. Many provisions and notes related to standards and procedures for ADUs are duplicates, or near duplicates, of provisions and notes in the Model State ADU Act. Rather than referring readers back to those sections, which can be tiresome and confusing, this guide reproduces them as parts of the Model Local ADU Ordinance. I. General Provisions A. Purpose and Intent In this section of the ordinance, a community states its purposes in adopting the ordinance. This information may help in defending the ordinance when informing residents of how the ordinance will benefit and protect their interests and in responding to legal challenges. If a community has no purposes that differ from those of the Model State ADU Act, it may choose to reference that act’s findings and its purposes and intent, but it is recommended that at a minimum the minutes of the meeting at which the ordinance is adopted include a discussion of those benefits and a statement that they are the basis for the local ordinance. If a community has public purposes that are different from those in the Model State ADU Act, those purposes should be specified in the ordinance (after consulting legal counsel on whether they are inconsistent with any state ADU legislation). (1) The [local governing body] finds and declares: (a) Our community faces a severe housing crisis, with home prices and rents unaffordable by families and households of middle and moderate incomes. (b) The community is falling far short of meeting current and future housing demand with serious consequences for the state’s economy and the well-being of our residents, particularly lower- income and middle-income earners. (c) The [local government] can play an important role in reducing the barriers that prevent homeowners from building accessory dwellings. Page 115 of 141 31 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance (d) There are many benefits associated with the creation of legal accessory dwellings on lots in single-family zones and in other zoning districts. These include: (i) Increasing the supply of a more affordable type of housing not requiring government subsidies; (ii) Helping older homeowners, single parents, young home buyers, and renters seeking a wider range of homes, prices, rents and locations; (iii) Increasing housing diversity and supply, providing opportunities to reduce the segregation of people by race, ethnicity and income that resulted from decades of exclusionary zoning; (iv) Providing homeowners with extra income to help meet rising homeownership costs; (v) Creating a convenient living arrangement that allows family members or other persons to provide care and support for someone in a semi-independent living situation without the latter leaving his or her community; (vi) Providing an opportunity for increased security, home care and companionship for older and other homeowners; (vii) Reducing burdens on taxpayers while enhancing the local property tax base by providing a cost-effective means of accommodating development without the cost of building, operating and maintaining new infrastructure; (viii) Promoting more compact urban and suburban growth, a pattern that reduces the loss of farm and forest lands and natural areas and resources and limits increases in pollution that contributes to climate instability; and (ix) Enhancing job opportunities for individuals by providing housing nearer to employment centers and public transportation. (2) Accessory dwelling units are, therefore, an essential component of housing choices and supply in [local government name]. B. Definitions Even if there are controlling definitions in state ADU legislation, it is preferable to incorporate them into a local ordinance for the convenience of the users, as has been done here. The same notes found in the Model State ADU Act are repeated here. There are many alternative terms for “ADUs.” Although the term “Accessory Dwelling Unit” may be awkward and technical, it is now in such widespread use that it would add to the confusion to propose a replacement term or terms. To further simplify the discussion, the Model State ADU Act and Model Local ADU Ordinance do not distinguish between the different forms and types of ADUs, such as detached “cottages” or “internal apartments,” since the standards do not require that differentiation. The sole exception is the Junior Accessory Dwelling Unit, which is offered as an optional provision. Page 116 of 141 32 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Three alternative definitions of ADUs are presented with the numeral “1.” Choose one of the following options: Limiting ADUs to parcels that are already the site of a single-family dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling. The ADU provides complete independent living facilities for one or more persons. It may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled dwelling. The ADU to be built before or concurrently with a single-family home 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling or a parcel on which a single-family dwelling is present or may be constructed. The ADU provides complete independent living facilities for one or more persons. It may take various forms: a detached unit, a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled dwelling. The preceding definition allows for the construction of an ADU prior to or concurrent with that of the primary residence. Two common circumstances in which an ADU might be built before the primary residence are (1) when a homeowner wishes to stage construction expenses and living arrangements; and (2) when the homeowner owns an adjacent legal lot (typically used as a side or backyard) and prefers to site an ADU there rather than on the lot with the primary residence. Suppose an owner built a 600 square foot detached dwelling on her second lot to serve as an ADU. If that lot was separately sold and the home on it was not identified as an ADU, the new owner might find that regulations limiting the size of ADUs to 75% of the primary dwelling’s size would treat the small home as the primary residence and limit the size of an official ADU to 400 square feet. The ADU to be created on a lot with a multifamily dwelling 1. “Accessory Dwelling Unit” (ADU) means a residential living unit on the same parcel as a single-family dwelling or a multifamily structure. The ADU provides complete independent living facilities for one or more persons. It may take various forms: a detached unit; a unit that is part of an accessory structure, such as a detached garage; or a unit that is part of an expanded or remodeled single-family unit or a unit in a multifamily dwelling. 2. “Junior Accessory Dwelling Unit” (JADU) is a separate living unit of less than 500 square feet, with a separate entrance, that may share sanitation facilities with another dwelling unit other than an ADU. The provision on junior accessory dwelling units is based on California’s definition and authorization of this type of ADU. See California Government Code Section § 65852.22. 3. “Living Area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. 4. “Zoning Administrator” means the local official who is responsible for processing and approving or denying applications to develop or legalize ADUs. Page 117 of 141 33 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance C. Authorization of ADUs by Zoning District In the absence of state legislation addressing the issue, communities have wide discretion in permitting ADUs in many types of residential zoning districts. The merits of locating ADUs in the major types of residential zones is discussed below. As a general principle, in communities with high rents and home prices relative to incomes, the governing body should allow ADUs in the full range of zones where residences are authorized. Different zones and their suitability for ADUs are discussed below. Mixed-Use Zones: In the last few decades, governments and planning advocacy groups (including AARP) have recognized the many adverse consequences of strict single-use zoning. Across the country, zoning has been reformed to allow a greater mixture of uses along with residential uses, such as institutional uses, professional services and retail commercial uses. Because of the success over the last century in reducing the pollution and noise impacts from many types of urban land uses, some communities have gone further and allowed residential uses intermingled within a wide range of nonretail commercial and light industrial zones. ADUs may not be appropriate on a variety of lots in these mixed-use zones, but they make sense on lots that are the site of a detached single-family dwelling. Multifamily Zones: These zones are distinguished by apartments or condominiums with multiple dwellings on the same lot, typically in multiunit and/or multistory structures. In recent years some cities with high housing costs have approved or are considering the authorization of ADUs on lots with multifamily structures. California requires jurisdictions to allow new ADU units to be created out of existing parts of multifamily buildings if those parts are not currently used as livable space, such as storage rooms, garages, or basements or through an addition to the building.35 In May 2020 the Chicago City Council considered a draft ADU ordinance that would allow new ADUs equal in number to 33% of the existing units in a multifamily structure on the lot. Town House Zones: These zones contain single-family dwelling units that have common walls but are not atop one another, typically one dwelling per lot. Siting ADUs in these zones can have its challenges, given building orientation and lot coverage. On the other hand, Washington, D.C., is an example of a city where many historic townhouses included an “English basement” on the lowest floors of the building. Ordinances addressing the creation of ADUs in these districts will need to provide more flexibility regarding both siting requirements and some building code standards (flexibility that does not compromise health and safety). Single-Family Zones: These zones contain one single-family dwelling unit per lot and provide the greatest opportunities for siting all types of ADUs. Some jurisdictions also allow clusters of small single-family homes, each on their own small lot or as condominium units with common space. Single-family zones also include detached single-family homes on their own lot and can be treated the same way as those homes are treated in single-family zones. Even in these single-family zones, however, neighbors’ concerns about property values, aesthetics and “neighborhood character” have often caused communities to ban detached ADUs or to allow them only on larger lots. Perversely, this can mean that ADUs are prohibited in single-family zones with large lots and bigger houses, where they can be more easily sited as detached units or created by remodeling existing space, but allowed on small lots where this is more challenging. This kind of policy choice reinforces rather than reduces the impact of exclusionary zoning. For reasons of equity and to realize the benefits described in the statement of purpose and intent, ADUs should be authorized in all single-family residential zones. In adapting the model provisions to a local zoning ordinance, a community will substitute its zoning district Page 118 of 141 34 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance names (or abbreviations) for the model provisions’ descriptions of zoning districts. Accessory dwelling units are allowed in all zoning districts that allow residential use, subject to the requirements of this ordinance. Optional Provision: Accessory Dwelling Units on Town House Lots Definition: “Town house” is a single-family dwelling unit constructed in a group of three or more attached units, with each unit extending from foundation to roof and having a yard or public way on not fewer than two sides. A town house structure may be constructed or remodeled as a group of two or more attached two-family dwellings under the following conditions: (1) one of the two-family dwelling units shall conform to the requirements of the accessory dwelling unit standards and (2) each two-family dwelling within the town house structure shall meet the definition of an attached house, including that it be located on its own lot. D. Number of ADUs Allowed Per Lot in Single-Family Zones In California (as of 2020) a single-family lot can have both an ADU and a junior accessory dwelling unit that is no larger than 500 square feet and is part of the primary residence. In 2019, Seattle authorized that one detached ADU and one internal ADU can be located per single-family lot. If green building or affordability requirements are met, a second detached unit could be allowed. In 2020, Portland, Oregon, decided to allow two ADUs in any configuration on each single-family zoned lot as part of a broad reform of residential zoning. Since 2016, the Canadian city of Vancouver, British Columbia, has allowed a “secondary suite” (internal ADU) and a “laneway home” (detached ADU with alley access) on single-family corner lots, double-fronted lots and lots with alleys. There are many ways to accommodate more than one ADU while being sensitive to concerns about neighborhood appearance. For example, two internal ADUs can be accommodated by remodeling a large home without increasing height or bulk. An internal unit can be allowed along with an ADU over an attached garage without increasing the area of the lot occupied by structures. Discussions about allowing more than one ADU per lot in single-family zones may result in a challenging but beneficial community discussion about the purposes of single-family zoning. Minneapolis, Minnesota; Portland, Oregon; and the State of Oregon have reformed their residential zoning. The Model State ADU Act allows two ADUs per lot without specifying their form, leaving that to local government or homeowner discretion. This provision is written to allow for both concurrent and prior construction of ADUs. (The issue of the timing of ADU construction relative to construction of the primary dwelling is discussed in the alternate definitions of ADUs in I.C.1.) Some ordinances, for example Seattle’s, have made the creation of additional ADUs conditional on achieving other community goals, such as affordability, accessibility and green building performance standards. This follows the precedents created by inclusionary zoning ordinances that allow for additional units in multifamily developments if the rents for those units meet an affordability standard for a specified period. It is too soon to know whether these incentives will be effective in spurring the creation of additional ADUs. Provisions allowing these “Bonus ADUs” (BADUs) are presented here as options. (1) Any lot with, or zoned for, a principal single-family dwelling unit may have up to two ADUs. Page 119 of 141 35 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Bonus ADU Provisions (2) The Zoning Administrator may authorize an additional accessory dwelling if: (a) The additional accessory dwelling unit is a rental unit affordable for and reserved solely for “income-eligible households,” as defined in this ordinance. It is subject to an agreement specifying the affordability requirements under this subsection in order to ensure that the housing shall serve only income-eligible households for a minimum period of 50 years. The monthly rent, including basic utilities, shall not exceed 30% of the income limit for the unit, all as determined by the Director of Housing, and the housing owner shall submit a report to the office of housing annually that documents how the affordable housing meets the terms of the recorded agreement. Prior to issuance of the first building permit for a project, and as a condition of that issuance, the applicant shall execute and record a declaration in a form acceptable to the Director that shall commit the applicant to satisfying the conditions for establishing a second accessory dwelling unit as approved by the Director; or (b) The applicant makes a commitment, in the manner required by this ordinance, that the new principal structure or the new accessory structure shall contain a detached accessory dwelling unit will meet a green building standard. A second accessory dwelling unit that is proposed within an existing structure does not require the structure to be updated to meet the green building standard; or (c) The applicant designs at least one of the dwellings on the lot to meet visitability standards including a no-step entry, [36"] wide doors and hallways, a bathroom that can be used by someone in a wheelchair, and at least [300 square feet] of living space on the main level. Based on Seattle Municipal Code 23.44.041.A.1.a.(2). “Income eligible” is not defined in the Model Local ADU Ordinance, since that can be a matter left to local discretion. Seattle has chosen to link its definition to a percentage of the U.S. Housing and Urban Development’s published Median Family Income data. See Seattle Municipal Code Section 23.84A.025. This Model Local ADU Ordinance also does not incorporate a green building standard; a local government may rely on its existing standards or adopt new ones for this purpose. Seattle’s green building standard is rigorous, referencing the standards in Leadership in Energy and Environment Design (LEED), passive house and living building design standards, and other standards. The green building standard was adopted by the Director of Seattle’s Department of Construction as Rule 20-2017 and Inspections and can be found at Seattle.gov/dpd/codes/ dr/DR2017-20.pdf. Some other mechanisms to promote affordable ADUs are: Letting the landlord charge market rate rent, but adopting no-fault eviction protection and/or a cap on the rate of rent increase over time. Requiring the landlord to accept Section 8 vouchers. Based on Philadelphia Fair Housing Ordinance [Chapter 9-800 of the Philadelphia Code]: Adopting the Good Cause eviction regulations for short-term rental [less than 12 months]. Page 120 of 141 36 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Provisions like these require a commitment to enforcement that is often a challenge for local planning and building departments, which are frequently underfunded. One simple mechanism for enforcement is to send a letter to the landlord every year that must be signed and returned attesting to his or her adherence to the income limit, a practice Santa Cruz adopted. II. Standards A. Minimum Lot Size in Single-Family (and Town House) Zones This section addresses the lot sizes required for ADU installation. Local governments have often imposed excessive minimum lot sizes for ADUs, which greatly restricts the number of ADUs in a community. In a survey of 50 ordinances for the 2000 edition of the Model State ADU Act and Local Ordinance, the minimum lot size requirement varied from 4,500 square feet to 1 acre (APA 1996). One community allowed detached ADUs only on lots that were 1.5 times the minimum lot size of the zoning district (Orange County, Florida, Zoning Code Sec. 38-1426 (f)(4). Some communities have the same minimum lot-size requirements for all ADUs. As a policy matter, it should not be necessary to establish a separate qualifying lot size for ADUs if the purpose is to assure the retention of landscaping and privacy between homes, because the setback and lot coverage standards can achieve those objectives. The language below requires that the minimum sized lot required for an ADU is the same as the minimum lot size for the primary dwelling. There is one exception: ADUs may be created within or attached to an existing house on lots smaller than the minimum lot size if there is an existing house on the lot. It also allows ADUs to be built concurrently with or before the primary residence (for reasons discussed in notes to the alternative definitions for accessory dwelling units). This provision also addresses the issue of legally platted lots made nonconforming by the imposition of subsequent lower-density zoning, something that occurred in many cities in the middle of the 20th century. Accessory Dwelling Units may be created on any lot that meets the minimum lot size required for a single-family dwelling (or town houses). Attached and internal accessory dwelling units may be built on any lot with a single- family dwelling (or town house) that is nonconforming solely because the lot is smaller than the minimum size, provided the accessory dwelling units would not increase the nonconformity of the residential use with respect to building height, bulk or lot coverage. B. Types of Structures Many off-site manufactured and modular ADUs have been and continue to be produced; old conceptions of what constitutes a manufactured or modular home have become outdated. The Model Local ADU Ordinance provision maximizes the opportunities for ADUs by allowing any type of structure to be an ADU if that structure is allowed as a principal unit in the zoning district. A manufactured or modular dwelling unit may be used as an accessory dwelling unit in any zone in which accessory dwelling units are permitted. Page 121 of 141 37 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance C. Size of ADUs Many local governments have adopted minimum and maximum sizes for ADUs. The Model Local ADU Ordinance recommends eliminating minimum-size limits since the basic requirements for a living space (kitchen, bathroom, living/sleeping space) and the housing market will establish a minimum size. In expensive housing markets the success of micro-apartments of less than 300 square feet and the proliferation of tiny homes on wheels demonstrate that there is demand for very small units. At the other end of the scale, limits on the maximum size prevent the construction of ADUs that could be home for families of three or more persons. An accessory dwelling unit may be any size, provided the proposed unit’s total square footage is less than the primary dwelling’s and other requirements are satisfied. For situations in which the existing residence is very small, local governments might consider authorizing ADUs up to 800 square feet when the primary dwelling is smaller than that size. Burlington, Vermont, takes a different approach to this issue; it allows accessory dwelling units to be 30% of the gross square footage of the house or 800 square feet, whichever is greater. 36 ■ Introduction to Lot Coverage, Setbacks, Height, Bulk and Floor Area Ratios Lot coverage, setbacks, height and bulk (floor area ratio) limits are adopted primarily to address the appearance (the “built character”) of neighborhoods. (There are some fire safety aspects to setbacks.) Cities with steep terrain apply additional or modified requirements that address vertical proximity as well as structural safety. Local governments use a number of methods to regulate the size and location of buildings (residences and other structures) to achieve aesthetic goals and assure a minimum amount of undeveloped land. These methods are limits on the proportion of a lot that is used as a site for permanent structures (“lot coverage”); the setback from the property lines; and height and floor area ratios that establish the maximum square footage of residential structures based on a percentage of the total lot area. These limits are often used in various combinations, sometimes as alternative standards. For example, setbacks alone without a separate lot coverage limit can effectively create a lot coverage maximum. The failure of some ADU ordinances to result in the production of ADUs can be traced back, in part, to these requirements, especially the unintended interaction between those regulations. Before adoption of these requirements for ADUs, local governments may benefit from analyzing the combined effect of these regulations on a representative set of lots in each zone. In addition to determining whether the effect is to make it physically impossible to build a detached (or attached) ADU on some lots, the local government should estimate the return on investment on that portion of the lots where ADU construction is allowed. This will provide some idea of the strength of the potential market incentive for ADU construction. However, the analysis needs to reflect that the homeowners building ADUs are often considering both a market return and nonmarket returns. For example, assume the desired ADU is intended to meet the needs of an older relative with mobility limitations. A 500-square-foot structure would be small but sufficient. But if the overlapping regulations on lot coverage and setbacks mean the structure would need to have two stories in order to provide 500 square feet of living space, then this kind of structure might generate a good rental return but would not meet the needs of the intended resident. Page 122 of 141 38 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance D. Lot Coverage Limits Coverage limits can be applied to all structures on a lot, combined (e.g., primary house, detached garage, garden shed, ADU); all accessory structures combined, including an ADU; or a separate lot coverage applicable just to detached ADUs that are not part of another accessory structure. Lot coverage allowances and limits intersect not only setbacks but floor area ratio limits and height limits. If detached or attached ADUs are significantly constrained by a lot coverage limit, then the possibility of having a two-story ADU may determine whether the investment in an ADU will generate a big enough return to justify its construction. Steep slopes and impacts on stormwater runoff may require differences in lot coverage allowances for some sites. Some communities are under consent decrees entered into with the U.S. Environmental Protection Agency to address stormwater discharges. These consent decrees, which set standards for the maximum proportion of a lot that can be covered with impermeable surfaces, must be incorporated into local standards. Requiring or allowing the use of permeable pavers, which can be exempted from lot coverage calculations, helps address those standards. These consent decrees are another good reason not to require on-site parking. Whenever possible, limitations on lot coverage should be addressed at the planning stage (for example, through the use of overlay districts) rather than being determined and applied in the permitting process. Siting and design standards that help meet performance standards for building safety and stormwater runoff can be determined and adjusted at the permitting stage for these kinds of sites. That is preferable to a complete prohibition. An accessory dwelling unit (detached, attached or built by expanding the footprint of an existing dwelling) on a lot of 4,000 square feet or larger shall not occupy more than 15% of the total lot area. For single family lots of less than 4,000 square feet, the combined lot coverage of the primary dwelling and the accessory dwelling shall not exceed 60%. Accessory dwelling units built within the footprint of existing, legal accessory structures are considered not to have changed existing lot coverage. E. ADU Setbacks (1) A setback of no more than 4 feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and with the same dimensions as an existing structure. (2) No setback shall be required for an existing garage living area or accessory structure or a structure constructed in the same location and with the same dimensions as an existing structure and converted to an accessory dwelling unit or to a portion of an accessory dwelling unit. (3) A detached accessory dwelling unit is not permitted on the front half of a lot, except when located a minimum of 30 feet from the front line or if it falls within the provision of subsection (2). Adapted from California Government Code 65852.2(a)(D)(vii) and Los Angeles Metropolitan Code 12.22 A.33(d)(3). Page 123 of 141 39 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance F. Floor Area Ratios Floor area ratios (FARs) qualify the relationship between the size of a lot and the maximum square footage that can be built on the lot. A FAR can be written as, for instance, 0:75 to 1, 0.75 or 75. FARs are commonly used in commercial districts, like downtowns, but sometimes are applied to residential zones. For example, a FAR of 0.75 applied to a 5,000-square-foot lot would allow for a maximum of 3,750 square feet of residential living space. The most common substitute for FARs is a zonewide maximum square footage for homes. FARs have advantages as a method for regulating ADUs because they provide more flexibility about the size of the ADU, whether internal, attached or detached. They also lend themselves to bonus provisions that allow for ADUs or types of ADUs that achieve goals concerning housing production, affordability and the like. Many local governments do not include the area of a below ground basement in the FAR limitation. This exclusion makes sense when applied to basement ADUs. In the absence of this kind of provision, the design of basement ADUs can include strange elements, like a small storage area usable only by the upstairs primary dwelling, in order to reduce the square footage of the ADU in an effort to conform to the maximum-size regulation. The Model Local ADU Ordinance does not propose provisions on the topic because of the wide variety of variations possible and potential complexity when combined with other siting standards. But readers interested in how FARs can be tailored to accommodate and promote a variety of housing types, may wish to consider the application of FARs developed through the residential infill project in Portland, Oregon (2016–2020). Portland sharply reduced the maximum size of single-family dwellings but allowed additional FAR for additional units.37 G. ADU Height Limit The maximum height of an Accessory Dwelling Unit is 25 feet or the height of the primary residence, based on the highest point of its roof compared with the lowest point of ground level at the foundation, whichever is less. Adapted from Charlottesville, Virginia, Municipal Code Sec. 34-1171.(3). H. Architectural Consistency and Design Review Concern about the consistency of detached ADUs with the design of residential architecture in the neighborhood has translated into a variety of standards and procedures. Highly discretionary standards based on neighborhood “character” or “quality” can be serious obstacles to the construction of ADUs. Vague standards of that sort hamper homeowners and decisions-makers alike. They can become an avenue for channeling neighborhood objections to ADUs in general. In some cases, the prescriptions for particular designs and materials can also add considerably to the cost of an ADU. A better approach is to reduce key design elements to a set of objective standards governing roof pitch, window orientation and siding. In some cases, design standards only apply in certain districts or when the ADU is larger than a specified height or taller than one story. Some cities are experimenting with standardized, preapproved designs for ADUs that do not require the same level of regulatory review. This approach can be used to encourage the use of designs that fit comfortably within the prevailing aesthetic of neighborhoods. As has been noted in other parts of the Model Local ADU Ordinance, with regard to design standards ADUs Page 124 of 141 40 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance should be held to the same standards as primary dwellings. If bold new architectural designs are allowed for primary residences, then it does not make sense to require an ADU to look like a craftsman bungalow. For this reason, the Model Local ADU Ordinance recommends against establishing separate architectural or design standards for ADUs. I. Orientation of Entrance Many ADU regulations limit the location and design of the entrance to the ADU. While presented as a matter of aesthetics, an ADU entrance on the same side of the house as the main entrance may be considered objectionable because it advertises the existence of a second dwelling, which is taken as detrimental to the single-family-dwelling “character” of the neighborhood. This is evident in communities that allow direct access into different levels of the house (daylight basement or French doors for a bedroom) or stairs to outside decks but prohibit entrance doors and stairways accessing ADUs. Ironically, some of these places have policies promoting ADUs and requiring notice to the neighbors before an ADU can be built, yet also have a code provision intended to hide the entrance to the ADU. These requirements can compromise the design and increase the cost of the ADU, substituting a more awkward and expensive entrance. Following the general principal of treating ADUs like the primary dwelling, the authorization and location of access doors and stairs for detached and attached ADUs should be the same as for primary dwellings. Regulations governing the location, type and number of entrances into primary dwellings apply to ADUs. J. ADU Screening, Landscaping and Orientation Privacy is a major concern of neighbors, but ADU regulations addressing privacy were/are relatively rare. In some cases, the loss of privacy caused by an ADU is identical to the loss of privacy that would result from the construction or remodeling of an adjacent home. Sometimes the loss of privacy is caused by the removal of trees or shrubbery necessitated by the construction of the ADU. Again, this loss of screening vegetation for the primary dwelling is often not regulated. Thus, it should not be regulated with ADUs. K. Parking Requirements Many local governments require one or more off-street parking spaces for each ADU. This is a serious inhibition to the construction of ADUs for two reasons. First, the cost of creating off-street parking spaces.38 Second, the lot size, location of the primary residence and topography may make the creation of a parking space impossible.39 The impact of parking requirements on ADU production is suggested by the results of a 2018 survey of California cities with ADU regulations. Out of the 168 cities, 68% reported having minimum off-street parking requirements for ADUs . Prior to the 2017 California legislation that eliminated off-street parking within a half-mile of transit, localities receiving frequent ADU applications were much more likely to lack off-street parking requirements (31% versus 13%).40 Given the general oversupply of parking41 and its impacts on home prices and rents (and more generally urban development and redevelopment) minimum parking requirements are being reconsidered and reduced. Hartford, Connecticut;42 Buffalo, New York;43 and Edmonton, Alberta,44 are among the cities that have eliminated most or all minimum parking requirements. Other cities have reduced or eliminated parking requirements for different types of housing.45 Page 125 of 141 41 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance No additional off-street parking is required for construction of an ADU. If the construction of the ADU necessitates the removal of an existing off-street parking space, it must be replaced on-site if required by the underlying zoning. In lieu of an on-site parking space, an additional on-street parking space may be substituted if there’s already sufficient curb area available along the frontage for a parking space or by removing the parking space access ramp and reinstalling the curb. Based on Seattle Land Use Code 23.44.041 A.5. L. Short-Term Rentals Many cities and residents are concerned about the use of homes, apartments and ADUs for short-term rentals, especially in regions, cities or districts that are tourist destinations. Use of these dwellings for short-term rentals can remove existing housing from the supply available for residents, worsening affordability and introducing commercial-use types of impacts in residential areas. Short-term rentals are often a major subject of debate in high- amenity areas where the return on investment in an ADU used for short-term rentals is much higher than from those used for long-term housing. But the exact the same concerns apply to the short-term rental use of primary dwellings. If short-term rental regulations or prohibitions are adopted they should apply to all housing in the jurisdiction or zone, not just ADUs. Many ordinances already have such limitations or prohibitions on the use of homes as transient lodging in their land use regulations, and those could be extended to ADUs. However, the following are examples of counterarguments in support of the short-term rental use of ADUs (and primary dwellings): The high return from short-term rentals spurs the construction of more ADUs than would otherwise occur, and these ADUs will, over time, convert into long-term rentals or other uses. The goals of ADU authorization are wealth creation and allowing seniors to stay in their homes, and the high return from short-term rentals helps realize those objectives. Survey research shows that ADU owners value the flexibility of ADUs. If the owner loses a job, she may cope by turning her home office in the ADU into a short-term rental. If an elderly parent living in an ADU moves to a nursing home, the owners can then rent out the ADU as a short-term rental to pay the nursing home costs. M. Separate Sale of ADUs Most accessory dwelling unit ordinances are silent on the separate sale of the units as condominiums. A few prohibit this practice. The policy basis for these restrictions seems to be a concern that allowing ADUs to be sold as condos will fuel speculative redevelopment of existing housing in high-cost neighborhoods. In addition, neighbors and local officials fear the prospect of both units being rental units, which is the basis for the owner occupancy requirement. On the other hand, neighbors who have concerns about having rental units nearby might logically prefer an owned ADU to a rented ADU. Property owners and developers in Austin, Texas, determined that state law authorizes the separate sale of ADUs as condominiums. Developers subsequently began to purchase single-family homes, build ADUs (called Auxiliary Dwelling Units) on the lots, then sell the ADU condominiums and primary residences separately. Only some lots and homes are appropriate, however — typically those with alley access, because of the requirements for separate access and parking. As of the writing of the second edition of the Model Local ADU Ordinance, builders in Austin are contacting homeowners about forming a condo association with them and buying backyards as sites for the second homes. Page 126 of 141 42 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Vancouver, British Columbia, allows the separate sale as “strata” (condominium) units alley-fronting “coach houses” on lots with “character” homes (certain ones built before 1940 that are not on a historic register) as a financial incentive to carry out major upgrades needed to bring homes up to current building codes.46 “Condominium” refers not to a type of structure but a form of ownership in which an agreement among the parties defines separate and common areas and establishes standards and procedures governing the common areas. Allowing ADUs to become separately owned condominium units avoids the political reaction of authorizing land divisions to create separate lots for ADUs. But fee simple ownership is less complicated and easier to finance and sell than condominiums. As a matter of terminology and logic, it would be confusing to call a detached dwelling “accessory” to a principal dwelling if that dwelling is on a separate lot with separate ownership. The Model Local ADU Ordinance leaves this policy question open, providing as alternatives the allowance of and prohibition of the separate sale of ADUs. N. Owner Occupancy (Residency) Standards Requirements that the owner live on the same property (whether in the primary dwellings or the ADU) are pervasive. The 2000 edition of the AARP Model Local ADU Ordinance noted: “Many communities monitor ADUs to ensure that the owner still lives on the premises. A variety of methods are used to do this monitoring including registration of occupants, certification of occupancy, and annual licensing of rental units with annual inspections. Other communities require ADU owners to record the requirements of the ADU ordinance as deed restrictions, particularly the owner-occupancy requirement. The deed restrictions accompany the title of the property and give notice to all subsequent buyers of the occupancy requirement.” Owner occupancy covenants or conditions give pause to homeowners or institutions financing home purchases because of the limits they place on successive owners who will not be able to rent out or lease their main house, which might be necessary as a result of a divorce, job transfer or death. They can also make financial institutions reluctant to provide financing for construction of the ADU. Finally, because a covenant or condition serves as a restriction on a mortgage lender’s security interest in the property, the mortgage lender can withhold consent to any requirement that takes the form of a covenant, which means the local government would be required to deny the application to build an ADU.47 The practical impact of the occupancy requirement is to inhibit construction of most ADUs. That conclusion is reflected in amendments to California’s and Oregon’s ADU legislation and in Seattle’s 2019 local code revisions. Aside from its effect on ADU production, there is a problem with the logic and fairness of applying an occupancy standard to ADUs if there is no such requirement for single-family homes generally. If single-family homes can be rented out (by a nonresident owner), then what is the policy basis for requiring occupancy when there is an ADU on the property? One of the justifications for the owner occupancy requirement is the assertion that owners take better care of their property than nonresident owners. But there are certainly resident homeowners who do not take care of their property and nonresident owners who keep their property in excellent condition. The 2020 Model State ADU Act treats ADUs as an equal and important type of housing that, in general, should be subject to the same set of rules that governs the use of other housing. ADUs should not be treated as an inferior form of housing that requires additional restrictions and policing. Authorizations of or prohibitions on renting out Page 127 of 141 43 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance dwellings should be applied consistently to ADUs and other homes; if there is no owner occupancy requirement for primary residences, there should be none for ADUs. O. Other Common Standards Not Recommended for Application to ADUs The following commonly used standards are no longer recommended for inclusion in ADU ordinances: Density of ADUs in a zone or district Age of principal dwelling Size of principal dwelling Tenure of current owner Number, age, relationship and physical condition of persons who can live in the ADU Annual renewal and monitoring of permits Owner occupancy/residency on the same property III. Utility Connections and Building Codes A. Utility Connections New or separate water and sewer lines directly between the accessory dwelling unit and the trunk lines are not required unless the accessory dwelling unit is constructed before or in conjunction with a new single-family dwelling. Applicants may choose to use a shared water meter for the primary structure and the ADU or have a separate water meter installed for each. A best practice for municipalities is to not require new, dedicated lateral services from the utility/right-of-way to the property. These utilities include water, sewer, electric, and gas connections. Commonly, water and sewer services are provided in part by governmental agencies, whereas electric and gas utilities are commonly provided by private energy providers. Ideally, energy providers do not require ADUs to have a dedicated lateral service connection from the right-of-way to an ADU, as new connections often cost several thousand dollars. However, when energy utilities are publicly owned, then the same principle should apply. B. Local Building Codes Since many garages and basements weren’t built to today’s earthquake or frost line standards, requiring that a structure meet current code may effectively require demolition and new construction, thereby eliminating a realistic or feasible option for a structural conversion. Permitted, nonconforming structures should be allowed to change their use from a nonhabitable use to a habitable use without a conditional use permit or special exception from the building code, even if the structure does not meet current structural standards. This is commonly referred to as “grandfathering in” existing structures. This policy is critical in enabling structural conversions. There are several other key considerations for internal conversions related to existing ceiling heights and Page 128 of 141 44 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance existing stairwells. In general, the goals should be to allow existing spaces to have reduced building code thresholds for numerous building code standards.48 The Portland, Oregon, guide to “Converting Attics, Basements and Garages to Living Space” makes internal conversions of living space to create ADUs more feasible by adjusting several elements of building codes: Ceiling heights Exceptions to ceiling heights for beams, heating ducts, pipes Sloped ceilings Existing stairs Noncompliant stairs Stair landings Firewall separation Achieving higher energy efficiency in buildings is a critical strategy for reducing greenhouse gases. But it can increase the cost or reduce the design feasibility of ADUs created by conversions of existing space. Conversions of basements and garages to ADUs are typically the most common type of ADU conversion. In the past, homes and garages were built with 2"x 4" stud walls versus the 2"x 6" framing used today, which accommodates much thicker insulation. Requiring a conversion to meet today’s energy standards may require the replacement of all of the existing stud walls to provide sufficient wall cavity space to accommodate sufficient insulation and meet modern energy code. This interior stud wall or additional 2" wall furring or exterior rigid foam insulation can add substantially ($5,000 to $20,000 in the Portland market in 2020) to construction costs and reduce the interior size of the living space of an already small dwelling. If the effect of these energy standards is that more large homes or new apartments are constructed the net effect might be to increase energy consumption in order to heat and cool the larger spaces and because of the embedded energy in the materials used for new construction. IV. ADU Application and Review Procedures There are many potential procedural challenges facing ADU applicants: complex regulations, complicated application forms and procedures, vague and discretionary standards that must be addressed by the applications, the length and complexity of the procedures for acting upon an application, and appeals from the initial decision on the application. A. Application Process Zoning regulations, even in small jurisdictions, are almost inevitably complicated. Even in mid-sized cities they can run to hundreds of pages. Unlike developers and homebuilders, many applicants for ADUs don’t have the resources to hire an attorney or consulting planner for more than a few hours to help them navigate the regulations and application process. In response, many local governments have developed simplified application forms, guidebooks, and online tools to determine whether and how an ADU can be sited on a property. This is a best practice recommended by AARP. See the Resources section for links to some examples. With the authorization and construction of more ADUs, more private sector specialists in ADU permitting are helping to fill this need. Page 129 of 141 45 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance B. Clear and Objective Versus Discretionary Standards Vaguely worded standards contribute to the difficulty of securing ADU permits and may even inhibit homeowners from applying for a permit. Particularly problematic are standards that leave a great deal of discretion to the zoning administrator or require extensive interpretation. Even an apparently objective standard such as a 25-foot height limit requires the exercise of considerable discretion if the ADU roof has different elevations and the ground slopes in different directions. AARP recommends using only clear and objective standards to govern ADUs.49 A best practice is to use expert advice to prepare and test language to ensure that it is clear enough to be administered fairly and easily. C. Review Procedures The two basic options available to a community are to allow ADUs “by right” or to allow ADUs through conditional use permits (sometimes called special exception, special permit, or special land use). “By right” means that the process involves filling out an application and presenting it to a local building official or zoning administrator, then checks to see that it meets the requirements of the ordinance. If the standards are clear and objective, no discretionary decision-making is involved and thus no hearing is necessary. This is also called a “ministerial” review. This is the way building or remodeling a home or building an accessory structure is typically treated. By contrast a conditional use permit process typically involves the application of discretionary standards, public notice of the application and a public hearing. Discretionary standards combined with a public hearing process create opportunities for obstruction by neighbors or organizations opposed to new housing in an established neighborhood. The cost of hiring attorneys or other experts and the delays associated with hearings and appeals can easily exhaust the budget and patience of even an affluent ADU applicant. These obstacles have led many local and state governments to decide that ADUs should be a use allowed by right and subject only to ministerial review. Some have also imposed time limits for decisions on ADUs. (Some governments apply these requirements to other types of housing.) The Model Local ADU Ordinance takes the position that building an ADU should be treated the same way as building or remodeling a home or building any accessory structure — it is a ministerial matter decided by a zoning administrator without notice or opportunity for a hearing. D. Appeals of ADU Decisions Many local zoning ordinances allow for initial decisions on ADU applications by a zoning administrator to be subject to internal appeals — to a hearing officer, the planning commission or a local governing body. Some local governments allow up to two internal appeals. The final local government decision on an ADU, or other land use matter, may be followed by an appeal to the judicial system. There are many variations on internal appeal procedures, for example whether the scope of review is limited and who qualifies as a party to such an appeal. Page 130 of 141 46 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance The Model Local ADU Ordinance obviates the need for detailing these provisions by making the ministerial decision the final local government decision, reviewable by the courts subject to the standards and procedures generally applicable to judicial review of local government decisions. This is consistent with the default procedural provisions in the Model State ADU Act. The zoning administrator’s decision on an application for an Accessory Dwelling Unit constitutes the final decision of [name of local government]. V. Fees In addition to construction cost, regulatory standards and procedures, homeowners interested in building an ADU must consider permit processing fees, system development charges (to fund a share of capital improvements, such as water lines, sewage treatment capacity, schools and parks), and utility connection upgrades and charges. The average local government fee for development of an ADU in California in the late 2010s was $9,250.50 In established neighborhoods where ADUs are being added, system development charges designed to pay for capital improvements may not be as appropriate if existing capital improvements are already adequate to handle a modest increase in residential population. Many older neighborhoods have a lower population density than when they were built and household sizes were larger. Another approach is to offer fee processing waivers for homeowners who use preapproved ADU designs. Waiving or reducing fees can incentivize ADU construction. Portland, Oregon, saw a surge in ADU applications when it offered to temporarily waive up to $15,000 in system development charges that would have applied to ADUs; ADU permits tripled from about 200 per year to 600 per year.51 The Model Local ADU Ordinance follows the Model State ADU Act in limiting charges for ADUs to 30% of the charges applied to a single-family residence. Permit application and review fees, utility hook-up fees and charges for public improvements for accessory dwelling units shall not be more than 30% of the application fees for a typical single-family dwelling unit of 2,000 square feet or greater than 10% of the estimated construction costs for the ADU, whichever is less. Additional amounts may be charged for a variance but subject to the overall maximum fee limit of 30% of the fees charged for a typical single-family residence of 2,000 square feet. The information required on applications for creating or legalizing ADUs shall be the same information required to construct a single-family-dwelling unit. VI. Legalizing ADUs An illegal ADU is one installed without obtaining the required permits from the local government. Some ADUs existed prior to any ordinance that made them illegal. Local governments generally have the discretion to certify those ADUs as legal, nonconforming ADUs if they conformed to building codes in effect at the time of their construction. To this end, California has adopted legislation allowing that “the appropriate enforcement official may make a determination of when a residential unit was constructed and then apply the California Building Standards Code and other specified rules and regulations in effect when the residential unit was determined to be constructed for purposes of issuing a building permit for the residential unit.” Page 131 of 141 47 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Other ADUs that were nonconforming may be made conforming by subsequent code revisions, such as those proposed in the Model Local ADU Ordinance, and an application and receipt of a permit. The continued existence of illegal ADUs may actually be encouraged by harsh regulations, excessive fees and tedious application procedures. Many ADU owners strongly resist legalization out of a fear of higher (and possibly unaffordable) property taxes, fines, legal sanctions, income taxes on rental income, the costs of conforming to local codes and the possibility that code inspectors will discover a variety of code violations. For these reasons, programs to accommodate illegal ADUs have not been very successful. In addition, most communities have limited budgets for enforcing ADU regulations, meaning that code enforcement relies on specific complaints. Thus, most communities simply ignore illegal ADUs. Especially challenging are the large numbers of unpermitted units in working class and poor neighborhoods with high housing costs. The number of unpermitted units can be so great that they cannot be treated as a minor compliance problem that can be remedied quickly. In these places, unlike in many other neighborhoods, water and sewer systems are overtaxed due to high population densities and low revenue from system development charges over time (given that most of the added units are unpermitted). A grant program or long-term investment strategy is needed to allow for infrastructure capacity and state-of-good-repair upgrades. Regulations imposed on units applying for amnesty in these areas need to distinguish between matters of true health and safety (adequate egress, electrical wiring, light, ventilation, etc.) and other concerns (parking, setbacks, building heights, etc.). Amnesty should not be an all-or-nothing process. There should be some sort of mechanism for graduated compliance over time (perhaps several years), with the most urgent life-and-death conditions being fixed first and others later. Onerous utility-related requirements (such as fully separate water and sewer main connections) may be counterproductive. Many or most homeowners going through amnesty will need technical assistance and perhaps grant funding. Grant funding should be justified on the basis of an amnestied ADU typically costing far less than the city subsidies needed for a below market new construction housing unit. There are many entities, such as nonprofits and university planning and architecture departments, with which a city can partner for technical assistance. A city can also require affordable rent concessions as a condition of amnesty, at least for middle- and higher-income homeowners. Some benefits accrue to communities that legalize illegal ADUs. If illegal units are tolerated, the risk increases that other people will be encouraged to have illegal units. In this instance, it can be quite important for community leaders to make the statement through ADU regulation that they are committed to the public interest, as demonstrated by requirements that owners of illegal ADUs come forward and legalize their units, coupled with a commitment to the kinds of funding and assistance programs for moderate- and low-income homeowners Page 132 of 141 48 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance of the type described previously. Legalizing illegal ADUs provides the opportunity to correct safety hazards, such as inadequate electrical wiring. We recommend against harsh regulations, lengthy application processes and high fees, which will lead to even more illegal ADUs. We recommend publicizing the opportunity for amnesty for ADUs made compliant as a result of amendments to local ordinances, nonpunitive safety inspections when public health is threatened, amnesty periods from enforcement, extended periods to comply with regulations, exemption from all but safety regulations, a comprehensive long-term approach to code compliance in moderate-income neighborhoods, and reliance on the threat of stiff penalties only after all else has failed. Page 133 of 141 49 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance Endnotes 1 See MissingMiddleHousing.org. 2 Find the average size of a single-family home, the square footage per person, the number of new homes that began construction and gross domestic product per person, starting in 1920. “Size of a Home the Year You Were Born,” Evan Comen, Michael B. Sauter, April 5, 2019, 247wallst.com 3 “California ADU Growth by City from 2012–2019, Charted,” August 22, 2020, BuildingAnADU.com.. 4 Kol Peterson, AccessoryDwellings.org. 5 “Housing Vancouver,” City of Vancouver, Progress Report and Data Book to Council (June 2020), pages 7, 8, 25. Vancouver.ca. 6 Jessica Lee, Greta Kaul, “ADUs Were Supposed to Help Minneapolis’ Housing Crunch. How’s That Working Out?” May 1, 2019, MinnPost.com. 7 Revised Code of Washington 43.63A.215. 8 California Government Code 65852.150. 9 New Hampshire RSA 674:71-73. 10 Oregon Revised Statutes 197.312(5). 11 § 45-24-37 (limited to use by persons over 62 or with disabilities). 12 24 Vermont Statutes Annotated Section 4412 (E). 13 The revisions made as the result of passage of one Senate and five Assembly bills are summarized in the California Department of Housing and Community Development’s Accessory Dwelling Unit Handbook, pages 4–7 (September 2020). 14 Oregon Revised Statutes 197.312(5)(b)(B), 455.610(8), (9) as amended or added by Oregon House Bill 2001 (2019), HCD.ca.gov. 15 Vermont Senate Bill 237 signed by the Governor and effective October 12, 2020, amending 24 Vermont Statutes Annotated §4412(1)(E), 24 Vermont Statutes Annotated § 2291(29) and 27 Vermont Statues Annotated §545. 16 2019 Florida Statutes online §163.31771. 17 30-A Maine Revised Statues Annotated §4301, sub-§1-B. 18 Hawai’i Revised Statutes §46-4(c). 19 Accessory Dwelling Unit Legislation: An Overview of State Policy, American Planning Association (APA) and AARP, 2021. 20 ADU Program Guide, City of Portland, Oregon, March 2019, Portland.gov.. 21 City of Portland, Oregon, “Converting Attics, Basements and Garages to Living Space,” February 2019, Portland.gov 22 Here is an excerpt from a 2018 letter sent from a bank to a prospective borrower. It discusses an owner occupancy covenant on the property that would be required as a condition of approval for construction of an ADU: “I have reviewed the Accessory Dwelling Unit Covenant and as a lender I have a number of concerns: 1. The covenant does not provide the lender with protections in the case of a foreclosure or deed in lieu of foreclosure as the restriction will affect marketability of the property. The covenant requires at least one of the units be owner-occupied. In a market where there is a demand for investment property, this limits the pool of potential buyers thus affecting the sales price and marketability of the property. A potential homeowner or home purchaser may have a difficult time obtaining conventional financing with this deed restriction; 2. Your covenant states that the owner needs to occupy the residence, if the lender forecloses the lender can clearly not occupy the property and will be in violation of your proposed covenant.” Another example is provided by a reply to a request from homeowners asking their mortgage lender to consent to an owner occupancy covenant, which was required by the local government as a condition of approval of an ADU that the homeowners hoped to build. The mortgage lender replied: “The proposed Accessory Dwelling Unit Covenant would place certain limitations on this property, and as such could be construed as a transfer of interest in the property. [The bank] is not able to provide consent to such transfer at this time.” 23 24 Vermont Statutes Annotated § 4412 (1)(F)(2) and 24 Vermont Statutes Annotated § 2291(29) as amended by Sections 1 and 3 of Vermont Senate Bill 237, signed by the Governor and effective October 12, 2020. Page 134 of 141 50 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance 24 “Regulating ADUs in California: Local Approaches & Outcomes,” Deirdre Pfeiffer, University of California, Berkeley, Terner Center for Housing Innovation (2018), CaliforniaLandUse.org 25 “Accessory Dwelling Units,” City of Burlington, Vermont, BurlingtonVT.gov. 26 The cost to put in a new driveway averages $4,421, with a typical range between $2,379 and $6,472. A customer can expect to pay $2 to $15 per square foot for materials and installation. (“How Much Does a Driveway Cost?” HomeAdvisor.com, checked December 21, 2020). A 10-foot-wide driveway 60 feet in length would cost between $1,200 and $9,000, using these cost-per-square-foot numbers. | Kol Peterson, author of Backdoor Revolution: The Definitive Guide to Accessory Dwelling Unit Development, estimates the cost range as $2,500 to $15,000, depending on whether the additional driveway requires excavating and pouring a new pad on a flat surface next to the street or if it calls for a new curb cut and new landscaping. 27 Research conducted for Oregon’s House Bill 2001 (2019), which mandates the authorization of middle housing in single-family- residential zones), found“[o]n small lots, even requiring more than 1 parking space per development creates feasibility issues because it limits the potential building footprint.” EcoNorthwest (2020), Summary of Triplex/Fourplex Financial Feasibility Sensitivity Testing for Middle Housing Model Code, Oregon.gov. 28 “ Regulating ADUs in California: Local Approaches & Outcomes,” Deirdre Pfeiffer, University of California, Berkeley, Terner Center for Housing Innovation (2018), CaliforniaLandUse.org. 29 Professor Donald Shoup of the University of California, Los Angeles (UCLA), calculates that the U.S. has 2 billion parking spaces for 250 million cars and light trucks and that more land has been set aside for housing cars than housing people. “Parking Is Sexy Now. Thank Donald Shoup,” Bloomberg News CityLab, May 20, 2018, Bloomberg.com. 30 City of Hartford, Connecticut, “Zone Hartford: Hartford Zoning Regulations,” Section 7.2 Parking Requirements, effective January 16, 2016, as amended June 5, 2020. 31 Daniel Baldwin Hess (2017) “Repealing Minimum Parking Requirements in Buffalo: New Directions for Land Use and Development,” Journal of Urbanism: International Research on Placemaking and Urban Sustainability, 10:4, 442-467. 32 Edmonton City Council Votes to Remove Minimum Parking Requirements: With the Change, Edmonton Becomes First Major City in Canada to Drop Parking Minimum,”CBC News, June 23, 2020, CBC.ca. 33 For example, City of Oakland, California, Oakland Planning Code (as amended through June 2020), 17.116.060, “Off-Street Parking: Residential Activities” (no parking required for single family and multifamily residences in many zones): City of Portland, for sites within 1,500 feet of a transit stop, “The minimum number of required parking spaces for a site with a Household Living use is: (1) Where there are up to 30 dwelling units on the site, no parking is required; (2) Where there are 31 to 40 dwelling units on the site, the minimum number of required parking spaces is 0.20 spaces per dwelling unit”; Portland City Code, Title 33, Planning and Zoning 33.266.110, “Minimum Required Parking Spaces,” as of October 2020. 34 Oregon Revised Statutes 197.805 – 197.860. 35 California Government Code 65852.2.(e)(1)(C), (D). 36 “Accessory Dwelling Units,” City of Burlington, Vermont, BurlingtonVT.gov. 37 As of November 2020, the City of Portland’s website includes links to Ordinance 190093 as amended to accommodate the reforms in single-family zoning, adopted August 12, 2020, and resulting from the residential infill document and various supporting documents, including staff reports and research that addresses height, bulk, set backs and floor area ratios, Portland.gov. 38 The cost to put in a new driveway averages $4,421, with a typical range between $2,379 and $6,472. A customer can expect to pay $2 to $15 per square foot for materials and installation. (“How Much Does a Driveway Cost?” HomeAdvisor.com, checked December 21, 2020). A 10-foot-wide driveway 60 feet in length would cost between $1,200 and $9,000 using these cost-per-square-foot numbers. | Kol Peterson, author of Backdoor Revolution: The Definitive Guide to Accessory Dwelling Unit Development, estimates the cost range as $2,500 to $15,000, depending on whether the additional driveway requires excavating and pouring a new pad on a flat surface next to the street or if it calls for a new curb cut and new landscaping. 39 Research conducted for Oregon’s House Bill 2001 (2019), which mandates the authorization of missing middle housing in single-family residential zones, found “[o]n small lots, even requiring more than 1 parking space per development creates feasibility issues because it limits the potential building footprint.” EcoNorthwest (2020), “Summary of Triplex/Fourplex Financial Feasibility Sensitivity Testing for Middle Housing Model Code,” Oregon.gov. 40 “Regulating ADUs in California: Local Approaches & Outcomes,” Deirdre Pfeiffer, University of California, Berkeley, Terner Center for Housing Innovation (2018), CaliforniaLandUse.org. Page 135 of 141 51 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance 41 Professor Donald Shoup of the University of California, Los Angeles (UCLA), calculates that the U.S. has 2 billion parking spaces for 250 million cars and light trucks and that more land has been set aside for housing cars than housing people. “Parking Is Sexy Now. Thank Donald Shoup,” Bloomberg News CityLab, May 20, 2018, Bloomberg.com. 42 City of Hartford, Connecticut, “Zone Hartford: Hartford Zoning Regulations,” Section 7.2 Parking Requirements, effective January 16, 2016, as amended June 5, 2020. 43 Daniel Baldwin Hess (2017) “Repealing Minimum Parking Requirements in Buffalo: New Directions for Land Use and Development,” Journal of Urbanism: International Research on Placemaking and Urban Sustainability, 10:4, 442-467.. 44 “Edmonton City Council Votes to Remove Minimum Parking Requirements: With the Change, Edmonton Becomes First Major City in Canada to Drop Parking Minimum,” CBC News, June 23, 2020, CBC.ca. 45 For example, City of Oakland, Oakland Planning Code (as amended through June 2020), 17.116.060, “Off-Street Parking: Residential Activities” (no parking required for single-family and multifamily residences in many zones): City of Portland, for sites within 1,500 feet of a transit stop, “[the] minimum number of required parking spaces for a site with a Household Living use is: (1) Where there are up to 30 dwelling units on the site, no parking is required; (2) Where there are 31 to 40 dwelling units on the site, the minimum number of required parking spaces is 0.20 spaces per dwelling unit,” Portland City Code, Title 33, Planning and Zoning 33.266.110, “Minimum Required Parking Spaces,” as of October 2020. 46 Details can be found at Vancouver.ca/home-property-development/retain-your-character-house.aspx. 47 Here is an excerpt from a 2018 letter sent from a bank to a prospective borrower. It discusses an owner occupancy covenant on the property that would be required as a condition of approval for construction of an ADU: “I have reviewed the Accessory Dwelling Unit Covenant and as a lender I have a number of concerns: 1. The covenant does not provide the lender with protections in the case of a foreclosure or deed in lieu of foreclosure as the restriction will affect marketability of the property. The covenant requires at least one of the units be owner-occupied. In a market where there is a demand for investment property, this limits the pool of potential buyers thus affecting the sales price and marketability of the property. A potential homeowner or home purchaser may have a difficult time obtaining conventional financing with this deed restriction; 2. Your covenant states that the owner needs to occupy the residence, if the lender forecloses the lender can clearly not occupy the property and will be in violation of your proposed covenant.” Another example is provided by a reply to a request from homeowners asking their mortgage lender to consent to an owner occupancy covenant, which was required by the local government as a condition of approval of an ADU that the homeowners hoped to build. The mortgage lender replied: “The proposed Accessory Dwelling Unit Covenant would place certain limitations on this property, and as such could be construed as a transfer of interest in the property. [The bank] is not able to provide consent to such transfer at this time.” 48 Converting Attics, Basements and Garages to Living Space,” City of Portland, 2019, Portland.gov. 49 Because of the uncertainties created for approval of housing, Oregon has, since the 1980s, required local governments to use only clear and objective standards to review needed housing. Oregon Revised Statutes 197.307(4). 50 “Regulating ADUs in California: Local Approaches and Outcomes,” Deirdre Pfeiffer (2018), University of California, Berkeley, Terner Center for Housing Innovation, CaliforniaLandUse.org. 51 When the waiver was made permanent for ADUs that were subject to a prohibition on short-term rentals the volume declined as the deadline was removed, but remained at more than 300 per year. Page 136 of 141 52 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance ■ The ABCs of ADUs A Guide to Accessory Dwelling Units and How They Expand Housing Options for People of All Ages A primer for elected off icials, policymakers, local leaders, homeowners, consumers and others, The ABCs of ADUs is an award-winning, 20-page introductory and best-practices guide for how towns, cities, counties and states can include ADUs in their mix of housing options. AARP Livable Communities Website: AARP.org/Livable Email: Livable@AARP.org Facebook: @AARPLivableCommunities Twitter: @AARPLivable Interactive Map: AARP.org/LivableMap Free Newsletter: AARP.org/LivableSubscribe or text the word LIVABLE to 50757 AARP Public Policy Institute Websites: AARP.org/LivablePolicy AARP.org/FutureOfHousing Twitter: @AARPPolicy Interactive Tool:AARP.org/LivabilityIndex Visit AARP.org/ADUs to download or order these free guides and find links to other ADU resources, including this publication. Two free publications about how ADUs expand housing options for people of all ages ■ Accessory Dwelling Units A Step by Step Guide to Design and Development Featuring ADU policies and projects from Austin, Texas; Denver, Colorado; Oakland, California; and Washington, D.C., this 113-page Accessory Dwelling Units design catalog contains information about financing and budgeting for an ADU project as well as visuals that show how ADUs can be easily designed to serve people of diff ering ages and abilities. An ADU Design Catalog with a summary of ADU policies in Austin, TX; Denver, CO; Oakland, CA and the District of Columbia. Accessory Dwelling Units A Step by Step Guide to Design and Development Learn More Page 137 of 141 53 | AARP – Accessory Dwelling Units: Model State Act and Local Ordinance ACKNOWLEDGMENTS Late in the last century, the AARP Public Policy Institute asked the American Planning Association to develop model legislation (a state statute and a local ordinance) that would assist AARP volunteer leaders and other interested residents, planners and government officials in evaluating potential changes to state laws and local zoning ordinances in order to encourage the wider availability of ADUs. This update of Accessory Dwelling Units: Model State Act and Local Ordinance was produced by members of the AARP State Advocacy & Strategy Integration group: Coralette Hannon, Senior Legislative Representative Gerri Madrid-Davis, Director, Financial Security and Consumer Affairs A working group provided advice on the revisions, drawing on the members’ expertise within and outside of AARP. The internal members of the working group: Danielle Arigoni, Director, AARP Livable Communities Tammy Bresnahan, Associate State Director of Advocacy, AARP Maryland Shannon Guzman, Senior Strategic Policy Advisor, AARP Public Policy Institute Rodney Harrell, Ph.D., Vice President, Family, Home and Community, AARP Public Policy Institute Austin Hodge, Senior Advocacy Specialist, AARP Massachusetts Amber Miller, Associate State Director for Community Outreach, AARP Wisconsin Addison Pollock, Associate State Director of Advocacy and Outreach, AARP Indiana Carmel Snyder, Director of Advocacy and Outreach, AARP Oregon Terri Worman, Associate State Director for Advocacy and Outreach, AARP Illinois The external members of the working group: Cheryl Cort, Policy Director, Coalition for Smarter Growth (Washington, D.C.) Jessica Eckman, Principal, Bailey Consulting, LLC June Grant, Founding Principal, blinkLAB Architecture (Oakland, California) Jason Jordan, Policy Director, American Planning Association Eric Kronberg, Founding Principal, Kronberg Urbanists and Architects (Atlanta, Georgia) Kol Peterson, Author, Backdoor Revolution, and ADU consultant and educator (Portland, Oregon) Steve Vallejos, CEO, Valley Home Development (Fairfield, California) Jake Wegman, Professor, University of Texas, Austin The updated draft also benefited from the comments of Eli Spevak, founder of Orange Splot Development, co-author of The ABCs of ADUs (see page 54), and a member of the Portland, Oregon, Bureau of Sustainability and Planning during the period of its reform of the city’s single-family zoning. Robert Liberty, an attorney with four decades of experience with planning legislation and implementation, was hired by AARP to structure the efforts of the working group and prepare the manuscript. AARP is very grateful for the contributions of everyone who played a role in this project. Contributing Editors: Melissa Stanton (Senior Advisor/Editor, AARP Livable Communities) and Don Armstrong | Designer: Jennifer Goodman Page 138 of 141 Learn more and download this guide by visiting AARP.org/ADUs Illustration from Accessory Dwelling Units: Model State Act and Local Ordinance, published in 2000 by AARP and the American Planning Association. ADUs are an affordable, accessible housing option for people of all ages. This resource was created for use by state and local leaders and other interested citizens, planners and government officials to evaluate potential changes to state laws and local zoning codes. Accessory Dwelling Units Model State Act and Local Ordinance 01 2 0 2 1 Page 139 of 141 TR-GCI0822810-01 ST.LUCIE COUNTY LOCAL PLANNING AGENCY/ PLANNING AND ZONING COMMISSION LAND DEVELOPMENT CODE TEXT AMENDMENT WORKSHOP Thursday, February 17,2022 NOTICE IS HEREBY GIVEN that the St.Lucie County Local Planning Agency/Planning and Zoning Commission will be presented with a workshop providing a brief review of the Land Development Code proposed Text Amendment to allow Accessory Dwelling Units (ADUs) in communities to provide flexibility to families to accommodate aging parents or transitioning children into adulthood. Accessory Dwelling Units can also provide homeowners anothermeans for income,whenfaced withrising homeownershipcosts,by rentingout these backyard units to those who need a small space and affordable rent.Accessory Dwelling Units can be an efficient way to address the need for affordable housing for young people entering the workforce, retirees,and others,overseen by the homeowner,and integrated into established neighborhoods.Among the issues to consider are how to address the need for additional parking,whether there are areas that are not appropriateforAccessoryDwelling Unitsand considerany other adverse impacts from this potential new use. The LocalPlanningAgency/Planning andZoningCommissionworkshop will be held in the Commission Chambers,Roger Poitras Annex,3rd Floor,St.Lucie County on Thursday,February 17,2022,beginning at 6:00 pm or as soon thereafter as possible. All interested persons will be given an opportunity to be heard.Written comments received in advance of the public workshop will also be considered.Written comments to the Local Planning Agency/Planning and Zoning Commission should be received by the Planning and Development Services Department -Planning Division at least 3 days prior to the scheduled meeting. The proceedings of the Local Planning Agency/Planning and Zoning Commission are electronically recorded.PURSUANT TO SECTION 286.0105,FLORIDA STATUTES,if a person decides to appeal any decision made by the Local Planning Agency/Planning and Zoning Commission with respect to any matter considered at a meeting or hearing,he or she will need a record of the proceedings.For such purpose,he or she may need to ensure that a verbatim record of the proceedings ismade,whichrecord includesthe testimony andevidence upon which the appeal is to be based.Upon the request of any party to the proceeding,individuals testifying during a hearing will be sworn in.Any party to the proceeding will be granted anopportunity to cross- examine any individual testifying during a hearing upon request.If it becomes necessary,a public hearing may be continued to a date certain. Anyone with a disability requiring accommodation to attend this meeting should contact the St.Lucie County Risk Manager at least forty-eight (48)hours prior to the meeting at (772)462-1546 or T.D.D. (772)462-1428. LOCAL PLANNING AGENCY/ PLANNING AND ZONING COMMISSION ST.LUCIE COUNTY,FLORIDA /S/James Taylor,CHAIRMAN PUBLISH DATE:Friday,February 4,2022Page 140 of 141 Page 141 of 141