State legislators are making it easier to build accessory dwelling units due to the national housing shortage, increased density benefits, and changing consumer preferences for smaller homes closer to urban areas. In 2024, major ADU legislation was passed in Colorado, Arizona, Massachusetts, and Hawaii, with California also implementing laws to facilitate ADU construction. While state-level policies aim to address local barriers to ADU development, local governments still play a crucial role in the process.
Colorado’s HB24-1152 and Arizona’s SB 1415, for instance, focused on legalizing ADUs by right, reducing parking requirements, limiting design regulations, and relaxing owner-occupancy mandates. Hawaii’s SB 3202 followed a similar path, although it did not address parking rules. Massachusetts’ Affordable Homes Act enables ADUs under 900 square feet on single-family lots, expecting thousands to be built in the next few years. California passed five laws related to ADUs, including making owner-occupancy bans permanent, allowing separate ADU sales, streamlining approval processes, and providing cost estimates for utility connections.
As more states urge municipalities to ease ADU restrictions, impact fees are becoming a focal point in policy discussions. These fees can hinder ADU development, as seen in Colorado towns like Lyons and Nederland, where high fees discourage ADU construction despite community goals. To support ADU growth, municipalities can consider adjusting impact fees based on building size, waiving development charges, reassessing zoning regulations, and expediting permitting processes for pre-approved plans.
Embracing higher density through ADUs can lead to increased tax revenues without the challenges of multifamily buildings. While progress has been made in advancing ADU policies at the state and local levels, municipalities play a pivotal role in realizing the full potential of ADUs in addressing the housing shortage in the United States.
Mike Koenig is the President and founder of Studio Shed.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: editor@housingwire.com.
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