Phoenix just legalized guesthouses citywide to combat affordable housing crisis
Phoenix City Council passed a new policy that legalizes backyard guesthouses for homeowners citywide Wednesday, a move that supporters say will increase affordable housing stock and provide flexibility for families with aging parents or adult children who struggle to afford to live elsewhere.
Mayor Kate Gallego celebrated the policy, saying "We're very excited ... we believe everyone deserves a place to call home," and noted how it's one of many strategies the city is deploying to address the affordable housing crisis.
Vice Mayor Yassamin Ansari called it "just a small piece of the puzzle but a very necessary one."
Councilwoman Betty Guardado, of District 5 in the Maryvale area, said the policy would particularly benefit her constituents who live in multi-generational households.
The council voted 8-1 to approve the policy, with Councilmember Jim Waring of District 2 in northeast Phoenix voting no over concerns the city struggles to adequately enforce short-term rental regulations.
Councilmembers Debra Stark and Laura Pastor emphasized that they worked on a new policy to address concerns about short-term rentals, which would come up for a vote later this month. Stark represents District 3 in the Moon Valley area and Pastor represents District 4 in the midtown and uptown areas.
Previous city law allowed for backyard storage sheds, but full-fledged guesthouses with plumbing and electricity were only permitted in certain areas with large lots.
The new policy creates a path for all homeowners to build backyard casitas but has certain restrictions pertaining to size and location within the backyard. It also bans the guesthouses from being used as short-term rentals. The law also adds definitions for duplexes and triplexes to distinguish them from casitas, otherwise known as accessory dwelling units or ADUs.
Citywide casita legalization comes three years after the city passed an official Housing Phoenix Plan, with the goal of building or preserving 50,000 homes by 2030. The city is more than halfway to its goal with more than 31,000 units created or saved, according to its website. Nearly 40% of the units are considered affordable or workforce.
Workforce housing typically refers to units where renters live within a certain percentage of the area median income. They're often teachers, restaurant workers or blue-collar workers.
Here's what you need to know about how the new policy will work:
What is a casita, or accessory dwelling unit?
It's basically a guest house located in the backyard of a single-family home. An ADU can have electricity and plumbing for kitchens and bathrooms to make it a fully functioning living space. They can be attached to or detached from the home.
Where will ADUs be allowed?
Any Phoenix homeowner could construct a casita in the backyard.
Are there size restrictions?
There are restrictions on the height and square footage of ADUs in the new city law. The maximum height is 15 feet, although individuals can request exceptions through the city. That would be more common for ADUs that are physically attached to the back of the single-family home.
The square footage restrictions are based on a formula:
The ADU can't be more than 75% of the size of the primary home.
On a 10,000-square-foot lot, the ADU can be a maximum 1,000 square feet.
On lots larger than 10,000 square feet, the ADU cannot be bigger than 3,000 square feet or 10% of the lot size, whichever is smaller.
Can the casita be pushed up to a backyard wall?
Mostly no. The casita has to be at least 3 feet away from the side yard walls and 1 foot away from the back wall. Backyards that abut alleyways are the exception. In that case, the casita can touch the backyard wall.
Can I use my ADU as a short-term rental?
City officials told the City Council Wednesday they added language to the ordinance that would explicitly ban the use of ADUs for short-term rentals.
This was a change from language presented in June, when Chris DePerro, from the city's planning department told the council, "We do believe that state law does limit our ability to put many restrictions on short-term rentals."
DePerro told The Arizona Republic after Wednesday's vote that the city believes it can legally protect the provision because the city isn't banning short-term rentals on any property as a whole. The primary residence can still be used as a short-term rental, but the new regulations ban the guesthouse itself from becoming a short-term rental.
City attorneys were trying to be conservative in June, DePerro said, but the council and staff now believe that the state Legislature will be more amenable to its position on short-term rentals in the upcoming session.
After Councilmember Kesha Hodge Washington, of District 8 in south Phoenix, asked about enforcement of the ban, city staff said Phoenix's Neighborhood Services Department would be in charge of receiving and investigating complaints.
Phoenix City Council is also slated to vote on a new short-term rental policy Sept. 20 that would require short-term rental landlords to register their property and provide emergency contact information to the city. Landlords that don't register their property could face fines of up to $1,000 per month, according to city documents.
Can HOAs ban guesthouses?
Yes, homeowners' associations have the right to ban guesthouses in their codes, covenants and restrictions, or CC&Rs.
After Councilmember Ann O'Brien of District 1 in north Phoenix asked about HOAs that didn't already ban ADUs, City Attorney Julie Kriegh said those communities could follow their own processes to adopt bans.
How much will the city permitting process cost if I add an ADU?
City officials said it's typically 3% of your overall costs. The ADU itself plus its delivery and installation make up the bulk of the costs. The permitting costs depend on the complexity of the ADU, which makes it hard to generalize, city officials said.
Neighborhood residents who weighed in on the new ADU policy over the summer suggested that the city investigate new ways to make casitas accessible for low- and moderate-income people.
More: What Phoenix City Council, neighborhood groups say about proposed ADU policy
Can a travel trailer be used as a casita?
No. The law calls ADUs "structures," and vehicles do not meet the definition of a structure.
How would ADUs work in protected, historic neighborhoods?
ADUs are still allowed in historic home backyards under this law. The city said, however, the Phoenix Historic Preservation Commission would still have oversight over the design and where on the lot an ADU could be located.
Can I add an ADU to my detached backyard garage, as a second floor?
Most likely, but it would require a use permit hearing, city officials said.
ADU legalization a tool but not the cure for affordable housing crisis
For years, Phoenix policymakers have been working to combat the state's affordable housing shortage. Housing experts point to the Great Recession as the impetus for today's crisis. The recession essentially stopped home building in its tracks, and the Valley has been trying to catch up with ever-increasing demand since then.
Booming population growth, supply chain issues during the pandemic and labor shortages have exacerbated the Valley's housing crisis.
Home values in the Phoenix area were still increasing as of June, despite high interest rates. And a renter in the area needs to make $30 an hour, or $62,000 annually, to afford a 2-bedroom apartment, according to an analysis from local consultant Elliot Pollack.
Phoenix council members look at ADUs not as a fix-all measure, but rather, as one of several tools to attack the problem from different angles.
Councilmember Deb Stark, before Wednesday's vote, said she didn't believe guesthouses would solve housing affordability, in part because she doesn't believe they'll widely or rapidly proliferate.
Stark pointed to how the casitas would still be moderately expensive and require permitting processes in the city. In her view, ADUs won't be a quick, easy fix for everyone, but they might at least be more cost effective than assisted living for an aging parent or renting an apartment for college-aged kids.
Reporter Taylor Seely covers Phoenix for The Arizona Republic / azcentral.com. Reach her at tseely@arizonarepublic.com or by phone at 480-476-6116.
This article originally appeared on Arizona Republic: Phoenix legalizes backyard casitas: What you need to know
