Agenda - Planning Commission - 08/02/2012

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Zoning for Accessory Housing By Tom Daniels Compact, walkable, and well - designed development is a primary goal of smart growth, and accessory housing can provide affordable housing opportunities that promote smart growth without sacrificing appearance. Accessory housing may either be a detached dwelling unit with full services —bath, sleep- ing quarters, and kitchen —or an autono- mous apartment attached to a house. Accessory apartments are often known as "granny flats" or "in -law suites" because of the common practice of keeping an elderly parent as part of the household but in a largely independent living situation. An apartment may be inconspicuously built over an attached or detached garage or added on to the back of a house. Whether attached or detached, acces- sory housing can increase residential densi- ties and encourage walkability. However, many older zoning ordinances present major obstacles to the creation of accessory dwell- ing units (ADUs). Accessory housing is one response to major changes in demographics and the real estate market. First, the number of single - person households is growing, especially among young adults who are marrying later and don't need large homes. Second, many people are living longer and want to age in place with family members nearby, rather than join their fellow senior citizens in an assisted - living complex. Third, many empty nesters are downsizing, and an apartment makes good sense. Fourth, the popularity of off- campus living among college students means a steady demand for apartments, especially within walking distance of school. Finally, people who work in a high -end com- munity often cannot afford to live there as well. ADUs can provide affordable workforce housing for local workers. Efforts to retrofit suburbs and encour- age infill in cities have often focused on large projects such as redeveloping dead malls and multistory mixed use commercial and residential buildings. But financing for these projects is less available since the 2007 downturn in the real estate market. While these large projects are certainly needed to promote mixed uses and walk - ability, the residential market has lately fa- vored renters over buyers. Still, proposals for multifamily rentals often spark a backlash, especially in newer suburbs. One less con- spicuous way to provide more rental units is through an accessory housing ordinance in single - family residential districts. ADVANTAGES OF ACCESSORY HOUSING 1. A way to create mixed income neighbor- hoods without reducing property values (a traditional use of zoning). 2. A way to increase density in urban and suburban areas without multifamily development. Little burden on commu- nity services compared to property taxes generated. 3. A way to provide housing for the elderly, especially for an older family member. This enables senior citizens to "age in place." 4. Workforce and student housing. Interest in accessory housing has existed for decades. In 1985 author Martin Gellen.estimated that there were 10 to 18 million houses with sufficient space to add an accessory dwelling unit, and if just 15 percent of these units were actually built, at least 150,000 units could be added to the nation's housing stock. In much of the 198os and 199os cities and inner suburbs grew more slowly or lost population com- pared to most suburbs and exurban areas, where builders could offer large houses on large lots. In the 20005, this big -house strategy contributed to the housing melt- down in two ways. First, many people paid more than they could afford for these large houses, and second, home builders created an oversupply of houses, which exacerbated the downturn in home prices and left many recent buyers "underwater" —owing more on their mortgage than their house was worth. Although housing prices seem to be stabilizing after five years of declines, rental opportunities remain attractive. Several studies have shown that accessory apartment units rent for below - market rates, in part because the accessory apartments are less expensive to build onto existing houses or garages. Pedestrian access to commercial uses and transit are important, especially for older people who may no jonger drive and for young adults who cannot afford a car or may not want to own a car. Thus, accessory units tend to be more pedestrian- and transit - friendly within cities and inner suburbs, rather than in newer suburbs where residential and com- mercial areas are typically separated and a car is needed for transportation. Two potential longer term threats to ac- cessory housing are gentrification and rising property taxes. Gentrification can lead to re- ductions in accessory housing supply when wealthier residents moving into a neighbor- hood "mothball" or remove accessory units. Also, as property values rise, the rents on the ADUs can rise beyond the affordability of tow- to moderate - income residents. It is also important to keep in mind that the construc- ZONINGPRACTICE 7.12 AMERICAN PLANNING ASSOCIATION Ipage 2