The industry should support a variety of solutions to address housing affordability .
APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
Accessory Dwelling Unit Laws on the Rise
The industry should support a variety of solutions to address housing affordability .
To combat the nation ’ s housing shortage , states are turning to zoning regulations to increase the minimum density of residential areas . Also known as granny flats or mother-in-law suites , Accessory Dwelling Units ( ADUs ) are separate dwellings paired with a single-family home . Primarily targeted toward single-family homeowners , this policy can act as a positive tool in the toolbox to increase the supply of quality , affordable housing options for renters while simultaneously alleviating the burden felt by multifamily housing providers to keep up with the demand for housing .
The National Apartment Association ( NAA ) is currently tracking 12 bills across 8 states addressing ADUs , all of which were introduced in 2024 . As of last year , at least 8 states have adopted policies preempting local bans against constructing ADUs . Similar legislation has been proposed this year in Arizona , Colorado , Massachusetts , Minnesota and New Hampshire . Key examples include :
A few current bills can serve as examples of the current legislative battle :
• Vermont : Vermont ’ s proposal focuses on permitting by exempting the construction or improvement of an ADU from a municipal land use permit requirement . Additionally , the policy exempts the conversion of a commercial building into no more than 29 dwellings from requiring a permit amendment .
• South Carolina : South Carolina ’ s proposal would provide for a property tax exemption if the homeowner rents to an individual earning up to 80 percent of the county ’ s area median income and maintains the ADU as affordable housing for a minimum of ten years .
• California : The six bills currently considered by California address further implementation measures including a tax exemption for new ADUs , a directive to revise housing element plans for increased density , two bills permitting local agencies to adopt ordinances pertaining to streamlining inspections for residential use and a proposal aimed to expand ADU development on lots with existing or proposed multifamily dwellings .
34 | TRENDS MAY 2024 www . aamdhq . org