City Council Study Session Agenda and Packet 2022 11 07

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SUBJECT: STUDY SESSION — ACCESSORY DWELLING UNITS DATE: NOVEMBER 7, 2022 PAGE 5 OF 8 family units in the ADU and simply limit number of people regardless of relation. The limitation on occupancy may be in consideration on the size limitations on ADUs or to limit overall residential density and potential external neighorhood impacts (e.g. parking or congestion). Parking requirements: The City of Louisville requires a minimum of two off-street parking spaces for each single-family dwelling. With the addition of an ADU there will typically be demand for additional parking. While many neighborhoods have surplus on -street parking, a typical requirement in ADU codes is to have at least one additional off-street parking space for the ADU, in addition to minimum off-street parking for the principal dwelling. This may help minimize external impacts from on -street parking and impacts to neighborhood character. Utilities/water and sewer taps: Typical ADU regulations require that the ADU share a water and sewer tap with the principal dwelling. This helps to ensure single ownership of the property. Water and sewer tap fees and standards can be based on the fixture count of the combined principal dwelling and ADU to ensure adequate fees are paid into the system to support the water demand. Deed restriction and registration: In order to ensure compliance with the adopted ADU regulations and to track approved ADUs, cities may require registration of the ADU and that owner record a deed restriction with the county clerk and recorder. The deed restriction will then run with the land to new owners of the property if sold. Common elements of the deed restriction include: - Prohibition on sale of the ADU separate from the sale of the entire lot; - Prohibition on subdivision of the lot; - Prohibition on using an ADU as a short term rental; and - Requirement for owner occupancy in the primary dwelling or ADU. Affordable housina and affordable housina incentives: Many cities allow ADUs as an affordable housing strategy. Allowing ADUs will increase housing supply when there is limited land available for new housing development, as is the case in Louisville. In addition, as most ADUs are restricted in size, they tend to provide an affordable rental option and housing type that may be in low supply within a community. Rental income from an ADU also may also help make a property affordable to the property owner. A community may also adopt incentives for affordable housing in the ADU code. The City of Boulder includes an incentive when the property owner agrees to deed restrict the rent on the ADU to 75% of the Area Median Income (AMI). The incentives include CITY COUNCIL COMMUNICATION