IOWA CITY – The Planning and Zoning Commission voted to recommend the proposed changes to the city’s Title 14 Zoning Code regarding Accessory Dwelling Units (ADUs) to city council, passing a motion four members over three at their October 4th meeting. Accessory dwelling units are small, secondary housing units constructed within existing residential lots that can range from basement apartments to backyard cottages. The motion included language to keep an existing requirement that ADUs are only rented on owner-occupied parcels against planning staff recommendation.
Overview
Part of a larger package of proposed zoning changes, the ADU amendments were separated at a commission meeting in August to be discussed independently. The remaining amendments would expand the contexts in which ADUs could be built with the goal of increasing affordable housing construction in Iowa City. Here is an overview sourced from staff’s presentation:
- Allow ADUs for detached and attached single-family, also in duplex lots.
- Allow in all zones that allow residential uses.
- No parking requirement for ADUs
- Eliminate specific bedroom and occupancy limits; Instead use the general rental permit process.
- Increase maximum size to lesser of 1,000 square feet or 50% of main dwelling footprint.
- Allow standalone ADUs
- Eliminate entrance location requirements.
Staff say that the proposed changes are reflective of best practice recommendations by the American Planning Association and advocacy efforts by the AARP and are motivated by the city’s 2022 Affordable Housing Action Plan and current Strategic Plan. According to the presentation, only 52 ADUs have been constructed since 1995 despite an estimated 9,947 lots being eligible under current regulations. Two public open house sessions regarding the ADU proposals were held by staff in September.
Occupancy Debate
ADUs are seen as an attractive housing innovation as they “gently” introduce new housing into existing neighborhoods, while providing the opportunity for homeowners to earn rental income, or to remain in the community as they age. An effort to remove a rule requiring ADUs to be on owner-occupied lots proved controversial for a few commission members and many public commenters.
Concerns focused on potential negative impacts within close-in Iowa City neighborhoods, which fall under the city’s University Impact Area. Many felt that eliminating the owner-occupancy requirement would incentivize developers and “absentee” landlords to purchase homes to convert to lower-quality student housing with ADUs added to the lots, which would diminish the ability of the neighborhoods to retain long-term residents. Others spoke of the perceived poorer quality of maintenance seen in some rental homes within the city.
In his report to the commission, associate planner Kirk Lehmann wrote that occupancy requirements inhibit development of ADUs because they limit the flexibility of use for successive owners in cases of death or foreclosure, and the requirement makes financing construction difficult. The three dissenting votes from the commission appeared motivated by opposition to maintaining the occupancy requirement. Commission member Padron questioned limiting multi-generational households from utilizing both units if they are renters.
Many cities allow ADUs without an owner-occupancy requirement, including Cedar Rapids and statewide in Oregon and California. The AARP reports that more than two-thirds of ADUs are on owner-occupied lots regardless of requirements; further, occupancy requirements may not be legally enforceable in many contexts. A study from the Terner Center for Housing Innovation at UC Berkeley indicates that investors and companies were responsible for only 8 percent of ADU construction in California for the years 2018 and 2019. The researchers additionally describe the difficulties California owners endured acquiring financing, even in the absence of an occupancy requirement:
“Unfortunately, few loan products exist to finance ADU construction, and those that are available often do not go far enough in assisting property owners to build them.”
“Reaching California’s ADU Potential: Progress to Date and the Need for ADU Finance” Terner Center and Center for Community Innovation Report • August 2020
Next Steps
The proposal, without the elimination of occupancy requirements, will now move forward to Iowa City City Council for consideration. Two votes of passage and public hearings will be required before Council can enact the proposal as an ordinance. A date for the first consideration has not yet been set, but will likely be during the council’s November meetings.
Public comments regarding the proposal can be sent to [email protected], or questions to city planning staff here.
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