ACCE SSOR YDW ELLI NGU NITS
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This issue is a work of Urban Phoenix Project. 2
Prepared by Jacob Cluff
TABLE OF CONTENTS Page no. 1. What is an ADU, why is an ADU?
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2. The ADU diaspora
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3. How to build your own ADU 3.1. Phoenix Zoning Options
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3.2 Permitting
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3.3 Gaps and Non-Permitted Steps
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X. Commercial uses
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4. Addressing the incoming doom of your
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neighborhood and other ADU concerns 5. Conclusion
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1.
What is an ADU, Why is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary residential unit that is included on the same parcel as the primary residential unit. On the surface, it often acts the same as a duplex, however it is the outcome of a different piece of zoning regulation. Zoning is how cities determine what is allowed where, across city boundaries. Duplexes, 3-plexes, 4-plexes and beyond are permitted in various Multi-Family zones (Noted in Phoenix Zoning Code as R-X). When permitted, ADU regulation is generally included in Single-Family residential zones (Noted in Phoenix Zoning Code as R1-X) and as such, they typically have more constraints in their development and use regulations. This issue is focused specifically on ADUs as a way of increasing housing options in Phoenix, which is overwhelmingly zoned Single-Family. It is worth noting however, that there are areas of Single-Family homes in Multi-Family zones. If you are interested in building more units on 4
your property, know your zoning. It can be checked on the Maricopa county assessor website. Check your zoning here. Find what it means here. ADUs are commonly called in-law units or granny flats which points to one of their typical uses. ADUs are a great way to allow for aging in place or other multi-generational family organizations. They can also be used to earn additional income through rent. ADUs give flexibility to adapt to changing life circumstances without having to leave one neighborhood for another. They also add housing options to areas that have limited supply. The average single family home has been continually adding square footage over time. This is largely out of step with demographics that have been changing over the last few decades. ADUs are a fantastic option for demographics outside of the nuclear family that single family homes are built for.
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2.
The ADU Diaspora.
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ATTIC CONVERSION
GARAGE CONVERSION
DETACHED
ADUs can take many shapes and forms. They might be the conversion of a basement, attic, or garage. They could take form as an attached or detached addition or by splitting the existing primary residence without adding any square footage
ADU policy is being introduced in seemingly every city, perhaps most notably in Minneapolis, Portland, and every city in California, but also in rural towns and cities that are far from any coast. ADUs aren’t new, in fact, if one takes a walk in any old neighborhood of their city, they likely will see ADUs, as well as other non-single-family resindential builds.
DETACHED
BASEMENT CONVERSION
ATTACHED
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3.1
Phoenix Zoning Options
In this section, we will be looking at Phoenix zoning code and what it does and doesn’t allow as we look to add more living capacity to Phoenix. Buckle up, we’re about to get technical. But by the end, you should be able to navigate zoning code. Let’s start by looking at definitions. Section 202. Definitions Dwelling Unit: One (1) or more rooms within a building arranged, designed, or used for residential purposes for one (1) family and containing independent sanitary and cooking facilities. The presence of cooking facilities conclusively establishes the intent to use for residential purposes. Accessory Dwelling: A subordinate dwelling situated on the same lot with the main dwelling and used as an accessory use.
Our first potential loophole is the guesthouse. Guesthouse: A free-standing building which is designed to house guests or servants of the occupants of the primary dwelling unit. The difference between an ADU and a guesthouse isn’t a large difference in form (see the following on connecting structure). The main difference is in use. The Guesthouse isn’t intended for leasing by the City of Phoenix. For purposes of a guest house, a “freestanding building” shall be one which is either not connected to the primary dwelling unit or, if connected to the primary dwelling unit, shall be considered free-standing if: 1. The connecting structure is less than ten (10) feet wide; or
2. The connecting structure is greater than ten (10) feet wide and the length of the connection Unfortunately, this is the only place that is more than twice the width of the connecting references ADUs. So we’re going to have to find structure. other options. 8
For purposes of a guest house, the width of the connecting structure shall be the shortest distance across its narrowest point, measured from the inside surfaces of the exterior, enclosing walls. The length of the connecting structure shall be the shortest possible straight line distance from the outside surface of the primary dwelling unit to the most distant outside surface of the connecting structure. For purposes of a guesthouse, a structure shall be deemed to be “designed to house guests or servants of the occupants or the primary dwelling unit” if it contains the following; 1. A shower or bath; 2. A commode; 3. Space for sleeping; and 4. Cooking faculties or space and plumbing and electrical wiring which can be legally accessed and connected without the requirement of a permit issued by the City and which is reasonably capable of accommodation of cooking facilities. The guesthouse is however, only permitted in very specific circumstances and zones, so the guesthouse is effectively outlawed.
ADU/GUESTHOUSE
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The final and most usable way to add room for people is the guestroom. Guestroom: A single room within a dwelling unit which may be occupied by no more than two persons and which are not members of a family. A guest room may not contain any cooking facilities. Family: A family is: 1. An individual or two (2) or more persons related by blood, marriage, or adoption, and usual servants, living together as a single housekeeping unit in a dwelling unit, or 2. A group of not more than five (5) persons, who need not be related, living together as a single housekeeping unit in a dwelling unit. So with a guestroom, a single-family home could add or adapt rooms to house non-family members or additional roommates. Like the Guest House, it can have a full bathroom and space for sleeping. Unlike the Guest House, it may not contain cooking facilities and it must be located within the principle residence. So, yes, Phoenix is not an ADU friendly city (yet), and its zoning ordinances are quite restrictive. But with some creativity, it is still possible to add more housing options, even in single family zoning. And someday, when Phoenix does allow for ADUs you could easily renovate these rooms and get a legal permit for that kitchen that you totally did not ask your electrician or plumber to wire and plumb for anyway. That kitchen that you absolutely didn’t install without a permit because you were waiting patiently. You can remove the door that provides interior access to the rest of the house that you left there until you were given permission to seal it. Your Guestroom can become an ADU. 10
In this 2bd/2bt home, either of the rooms could be considered guestrooms. The master suite contains a full bathroom, no cooking facilities and is accessed from the interior. It is however not as private or independent as one might hope if it is to be a real housing option.
With some adjustments (items in magenta will need a permit, see section 3.2) the guestroom can be more independent while maintaining the letter of the law. The single window is turned to a door and the closet is opened to be a kitchenette (with no cooking facilities). Finally, furniture or other items can be moved in front of the interior door to hide it and make it inoperable.
This final step is for the time when Phoenix loosens up on regulations to expand access to housing choice. More windows can be added, the interior access door can be removed and sealed which, in this case, gives space for laundry, which before would have been shared. The kitchen could even become a small, but full kitchen.
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3.2 Permitting
Getting your addition permitted is really as complex as you want it to be. If you are hiring a designer or architect for your ADU or guestroom addition, it is their job to get you through permitting. They will handle most of it and let you know what is needed from you, the owner. If you want to go it alone. This is the link to the city’s official process.
The purpose of this section is to give a simplified version of the permitting process so that anyone looking to go through it understands better how it functions. Residential Plan Submittal Checklist Residential Permit Application
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As a note; The following items are officially listed by the city of Phoenix as needing a permit to take place: • Water softeners • Electrical updates/rewires • Room additions • Projects involving gas line • Porch enclosures • Carport enclosures • Some roof replacements (call first) • Driveways and curb cuts • Window replacement—when size is altered • Detached structures (over 200 sq. ft.) • Wall removal and/or relocation • Sinks, toilets or tubs to be added or relocate
1. Customer submits building plans. Here, the homeowner, most likely working with a designer, will come up with how the addition should work. Additionally the designer will be responsible for ensuring that what is designed is up to code so that it is safe for use. 2. Building plans reviewed. The building plans will be reviewed by the city planning board who will double check the work by the designer. If they find issues, a ‘dialogue’ will begin in which they send it back, the designer makes changes and resubmits, and the city reviews those changes. This will go on until the plans are approved. 3. Building plans approved, permit issued. Once you have your permit, construction is able to take place.
4. Construction activity. I think this step is pretty clear. 5. During construction, inspections will be made on certain elements to make sure that everything is being built to plan. At the end of construction, a city inspector will come out and also make sure that it was built according to what was permitted. 6. Certificate of occupancy On a positive inspection review, you will receive a certificate of occupancy.
This is pretty simple and really as complicated as it needs to be.
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3.3 Regulatory Gaps
Given how few options there are in city zoning ordinance to add housing by right (the ability to build without special permits or permissions), there is a lot that Phoenix can do to address housing option shortcomings. As this issue deals with ADUs, we are focusing on that, however, much could be done in terms of regulation on density, parking, permitted uses, setbacks, etc. But let’s keep with ADUs for now. A good first step would be to loosen up on guestroom restrictions. Allowing rooms to be attached to the principal residence without interior access could be a way to easily add rooms or suites, albeit without full amenities, in a more appealing way for homeowners and renters. Better would be to allow expanded access to Guesthouses by permitting them in single-family and other zoned areas. Remember that guesthouses can have full amenities but have additional regulations when attached to the principal residence.
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The obvious step here is that Phoenix could permit ADU construction by right in SingleFamily zoned districts. This would allow for neighborhoods to grow incrementally in a way that would allow the character of the neighborhood to grow with it. With so much ADU advocacy and cities around the country including ADUs in their zoning ordinances, there is a wealth of knowledge and precedent that Phoenix could look to and learn from to make sure that the implementation benefits all Phoenicians. The following are abbreviated portions of zoning ordinance from a very ADU friendly city, Portland and from Phoenix’s kid brother that has nothing in common with Portland, Mesa; showing what they allow for (left column) along with some notes and commentary on what Phoenix could learn and adopt from them (right column).
Mesa, AZ One Accessory Dwelling Unit is permitted on a residential lot in all Single Residence (RS) Districts. The maximum floor area of an Accessory Dwelling Unit shall not exceed 30 percent of the roof area of the primary unit.
Yes, in sleepy Mesa, AZ, ADUs are permitted by right in all single family residence districts. Despite this, ADUs are still fairly uncommon, which will be addressed here in section 4. This ADU regulation is pretty restrictive. If the primary residence is less than 1,000 sq ft, then the ADU must be less than 300. To improve on Mesa’s standard, a Phoenix standard could add the same provision as well as one that allows an ADU to be included with the principle residence towards the lot coverage maximum (In Phoenix’s R1-6 zoning, the max. lot coverage is set at 40%) and let the owner pick whichever is greater.
Special Use Permit (SUP) is required if Additionally, the requirement of a SUP in Accessory Dwelling Unit is leased or rented order to rent creates an additional hurdle that isn’t as a secondary apartment really necessary, especially if we want to prioritize long term over short stay leasing. Portland, OR One accessory dwelling unit is allowed on a site with a house, attached house or manufactured home in the RF through R10 zones. Up to two accessory dwelling units are allowed on a site with a house, attached house or manufactured home in the R7 through R2.5 zones when the lot meets the minimum lot area requirement. The living area of the accessory dwelling unit may be no more than 75 percent of the living area of the primary dwelling unit or 800 square feet of living area, whichever is less. This maximum size standard does not apply when the basement of a primary dwelling unit is converted to an ADU. No additional parking is required for the accessory dwelling unit.
Portland is a very ADU friendly city. This friendliness comes, in part, out of necessity. Phoenix may not be as pinched as Portland, but it would be wise to expand ADU access (and pursue other strategies) before we are. The minimum lot areas of R7-R2.5 are between 5,000 and 3,200 sq. ft. So, a 3,200 sq. ft. lot can potentially have three units on it.
This is a better version of what was proposed above. The provision for basement conversions is simultaniously genius and stupidly obvious. There aren’t too many basements here in Phoenix but something similar could be done for garage conversions. Phoenix is an auto-oriented city. Even so, we could use this same provision. A two car garage and a driveway has enough space for the parking demand of an ADU.
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Bonus: Commercial Uses
In Section 1, we learned about why people If we can get regulations that allow for have and continue to build ADUs. However, in that both more people and commercial uses, we end section, the focus was on the homeowner, or the up with walkability. individual level. Imagine a neighborhood that has If we zoom out to the neighborhood level, shops, offices, and other forms of commercial there is a reason to include ADUs as well. Thats uses and enough people to support them. The because ADUs means more people. Now, that in of residents here now have a reason to walk rather itself is not necessarily beneficial, but if we look at than drive. the neighborhood or community as an ecosystem, If they are out walking, they will have people are essential for providing a casual form better physical and mental health. of safefy and, what we’ll focus on here, supporting If they are out walking, there will be small businesses. more safety because they are providing casual When people are stretched too thin, small security to each other by virtue of being present businesses cannot survive and the only ones (the commonly used term for this is ‘eyes on that can are large corporations that can afford the street’). Also, if they are walking, they aren’t the larger upfront cost of operating in this way. driving. Safety bonus. Anecdotely, Sam Walton, founder of WalMart, would fly around suburbs and rural areas to pick As this issue is focused on ADUs and the locations of new stores. These low population how folks might get them, or an approximation areas were perfect for him because residents in on them in a city like Phoenix, it seems these areas didn’t have small shops nearby that important that we take a brief moment here to could serve them because the small shops didn’t talk about commercial uses in a similar way. have enough people to support them. Small and diverse shops go hand in hand with more people. 16
Using your Phoenix home as the launchpad So many businesses, many of them Fortune for your new business venture is difficult, and 500s, were started in garages. there aren’t a lot of options. Why? Because that drastically reduces the upfront cost and risk of starting a new business. It gives Here is what can be done: people the opportunity to take risks on incomplete ideas and experiment. Home occupation - essentially white collar workers can work from home given that they have If the ideas and experiments don’t no employees present at the home that do not end up working, no harm done, the would-be reside there. entrepreneurs will be able to try again with Thats right, in Phoenix, it is barely legal to work something else. from home as so many of us had to during the height of the pandemic. If the ideas and experiments do work, they’ll grow and hopefully become thriving Community Garden -A garden can be maintained businesses, creating jobs and generating tax and produce from it may be sold. revenue for the city. Farmer’s Market - Less than six markets can be held a month. I told you this would be brief.
By not allowing a wider variety of uses that give people the opportunity to try something without high risk, Phoenix is walking past milliondollar bills on the streets it is paying so much to operate and maintain.
These are simplified. Not only are commercial uses restricted essentially to what Keep in mind, the listed uses are for Singleis on the list above, each of those items actually Family zoned areas, there are other zones nearer have more restrictions and regulations placed on to Downtown and other higher intensity areas them. that offer more opportunities for commercial use and there is wisdom to concentrating them rather than letting them spread as much as housing has. But there is another way. Even so, restrictions could loosen up a bit to allow more than white collar work and more than self employment. Special Permit Uses. Here, one can make a case before the Commision as to why they should be allowed to operate a non-conforming use from their home. This takes time, and since it is not byright, gives an advantage to a naysaying neighbor, and ultimately depends on the the Commision’s approval. Ya. I know. 17
4.
ADU Concerns
In this section devoted to concerns, I would like to divide it into two parts, one oriented towards people who are opposed to ADUs and ADU-friendly policies, and the other to those who like the idea and would be interested in building an ADU but who don’t know how to go about doing it or have very real barriers stopping them from doing so. 1. Parking. I understand the fear that a neighborhood The primary oppositions to ADUs fall under street would be filled with vehicles up and down the umbrella of neighborhood character and I each side and in the yards. I wouldn’t want that can certainly understand the initial fear of ADUs. either. The gut feeling that Pandora’s box is about to be However, if we take the assumption that opened. I don’t blame anyone for feeling some an ADU can be no larger than 800 sq. ft., then anxiety. that type of housing is really only going to work for demographics that, coincidentally, typically I do, however, find most of these arguments don’t have as many cars. to be rhetorical and lacking in imagination (as well as actual data, which I won’t be providing here Let’s take this further by imaging a as this is a primer. If you would like to sink your family whose child just moved back home after teeth into something more crunchy, you can find university. While they were gone, the family websites and articles by people who are paid for built an ADU, and that is where the child is now their time). going to live in order to have some privacy (as I also find the fears to be greatly I mentioned in the intro, ADUs are commonly exaggerated. Even in places where ADUs are used in multigenerational households). If their allowed by right, like Mesa, AZ, or cities where child still uses their high school car, there has single-family zoning has been eliminated, like been no net change in car numbers from when Minneapolis, we still don’t see the type of ADU/ that same child was in highschool. Duplex construction that opponents fear. 18 First, to the skeptic.
Now, something that is begging to be addressed here is Short-Term Rentals, because of course, neighborhood character is defined by social aspects too. I do get this. When the ‘neighbors’ are only around for the weekend, it can be hard to feel like home. However, other cities that allow ADUs show that most are actually used for longI find it improbable. term leases. And while I might be in danger The areas that are the most car dependent of sounding like a broken record, ADUs are commonly used by multigenerational families. In are the ones that are furthest from city centers addition to this, regulations can be adopted that where there is a large concentration of work, entertainment, and higher education opportunities. confront the problem rather than ADUs. As a result, they will see less demand for So here’s my counter-argument: ADUs are development. Especially if other developments are taking place - more and better transit options and great for neighborhood character. infrastructure., more and better transit oriented development, more and better public spaces, etc. 3. Home Value. I think it’s important to point out that a So truly, I think that the parking argument home has two types of value, Use-Value (a place is greatly exagerated. to live) and Investment-Value (an asset with which to create or hold wealth). 2. Neighborhood Character. This argument deals with the latter. And Unlike parking problems, I have a hard time thats shitty, because it comes at the expense of relating with this one if we’re talking about form. those looking for the former. The thing with ADUs is that they are by I’m not so cynical as to think that nature, incremental. it takes place step by step, homeowners see every new home built as a over time. For a historic/old neighborhood, this threat to their own home’s resale value, but I do is the best development option for preserving think that they might fear that their house could neighborhood character. No rapid development be less desirable if there were a parking issue on clearing older homes and mature trees. Just the street (see point 1) or a chaos of neighborhood a home here, a home there allowing the form (see point 2). A quick Zillow eye-test of neighborhood to adapt at the same pace as properties with ADUs denies that this is a fear development. based on reality. Is the worry that new development will contrast too sharply with the old? There are solutions for that that don’t go so far as outlawing ADUs (form-based code, anyone?). Plus, they’re pretty hidden from view, being in the backyard or part of the original residence. So you see, it’s actually families with multiple driving age children who are the real culprits behind the parking apocalypse. Now, seriously, in an auto-dependent city like Phoenix, is there real substance to that fear even though it might not materialize elsewhere?
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4.1
ADU Concerns
I would now like to address those who actually like the idea of ADUs and would like to build one, or would like them to be more common. It’s worth mentioning again that there is a lot of material out there that will cover all of this much more thoroughly and have actual data to back it up. This is only meant as a primer. 1. Cost. Yup. That’s a kicker. Luckily, with ADUs typically being a smaller footprint and the land already being owned, they can be built for much cheaper. Not luckily at all, it can be harder to secure a loan for construction. Some banks might not offer a loan at all. Also, the people who need ADUs because they can’t afford or don’t want an entire house don’t own land - How are they supposed to get an ADU? I don’t have a good answer on how to get the money needed to build an ADU if banks don’t offer it. Shop around with banks and credit unions near you to see what they offer. I would like to point out, however, that the guest room conversion to full ADU detailed in Section 3.1 should be covered through a home renovation loan. 20
Now, the following might not be good answers, but they are ideas on how landless persons could get access to ADUs. One could buy a prefab unit and then pay to get the needed hookups installed on the land of a willing owner. The benefit to this is that if the ADU can be moved to new locations, it is an extemely flexible housing option, and you don’t lose any equity if it comes with you. One might also set up a business that is an intermediary between landowners and renters. The business pays the initial construction cost plus a monthly fee to the landowner, then they find renters and collect rent from them. This isn’t super viable at moment due to Phoenix’s restrictive zoning ordinances. Its also not an original idea. Check out Dweller for more info.
2. Risk If you’re looking at an ADU as an investment, but aren’t sure if it’s a safe one, I have to say (really, I have to say it) that I’m not a financial advisor and all investments involve risk. That being said, I’m optimistic about it. Single-family homes are largely out of step with the demographic changes that have taken place over the last few decades. The 2020 census shows that the average household size in Phoenix is 2.82. These smaller households might actually want a smaller unit. In addition to that, there is low housing inventory, especially in areas near amenities. As a result there is a high demand. With it being on the same property, you can also save money by being your own landlord.
3. Is my sibling/friend who can’t hold onto money and has a hard time paying rent and is always getting in trouble with their landlord going to expect me to let them stay in my ADU and give them breaks on rent? Probably, but I’m afraid I can’t help you with that.
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5.
Conclusion
Phoenix is still a ways away from being a great city, the kind that people want to travel to and experience. While it has made gains, principally in the downtown area, there is still a long way to go. Here, we have addressed how individuals and residents can make the most of the tight restrictions in order to have more flexibility in how and where they live through ADUs. We’ve also talked about what regulatory steps the city can take to enable more flexibility for ADUs. Concerns have been addressed for both proponents and opponents of ADUs and the case for ADUs as a way to allow neighborhoods to grow and adapt incrementally was made. We hope you have found this issue helpful and that it has stirred your imagination, giving you a vision of what Phoenix, our neighborhoods, and our homes could potentially be. Phoenix is not an ADU friendly or highly walkable city yet. We’ll get there. 22
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