A rebate program launched by the city of Durango last year to incentivize the use of accessory dwelling units and create more infill housing has performed better than city staff expected. But potential changes to the program and city code could present yet more opportunities for ADUs.
Dan Armentano, city planner, said at a City Council study session last week the city has issued 44 certificates of occupancy out of 67 received applications for ADUs since the program first launched in 2014.
The city receives on average about 10 applications per year. The city has approved six applications so far this year with several others under review and he said he expects the number of applications to spike.
He said interest in ADUs appears to be trending in the right direction thanks to the rebate program established last September, but the overall ratio of applications to certificates of occupancy might reflect the cost burden residents face when it comes to actually building an accessory dwelling.
“When push comes to shove and folks actually have to spend the money to build the units themselves, that’s where they can potentially run into some issues financially,” he said.
The rebate program was put in place to help residents offset impact fees and permitting costs for new ADUs, he said. This year, the city earmarked $80,000 for its rebate program to offset up to $8,000 in fees and costs for 10 ADUs. One rebate has been offered so far, with more potentially coming down the pipeline this fall.
“We are hoping the increased interest in ADUs following that rebate program, which has exceeded staff’s expectations, will be illustrated through increased ADUs and ownership opportunities within Durango,” he said.
City land use codes focused on ADUs have changed in the last decade, with some significant changes coming about last year, Armentano said. The city removed minimum lot size requirements for ADUs attached to primary homes, expanded on-street parking options in specific neighborhoods and removed a city code preventing residents from using alternative code compliance when building ADU’s.
Further code changes could make ADUs more accessible.
Durango resident Sweetie Marbury was a member of City Council when ADUs were first legalized in Durango in 2014. She said during last week’s City Council meeting the city should eliminate minimum lot sizes for ADUs in established neighborhood zones 1-3.
She also said a requirement that the owner live at the primary residence the ADU is located at should be preserved.
“The owner occupied regulation is what protects every neighborhood. By eliminating lot sizes, Durango can keep teachers here, provide income for families and is one more tool to help with the housing crunch while using existing infrastructure,” she said.
She said she voted to allow ADUs in 2014, adding that ADUs aren’t causing problems for neighbors nearly 10 years later, and the city should revisit eliminating lot sizes.
Christina Rinderle, another former member of City Council, also advocated for allowing ADUs “across the board” in Durango. She said lot size requirements, implemented in 2014 when she was the city’s mayor, were a compromise with residents who feared overbuilding and the character of their neighborhoods would be changed by ADUs.
“Really, it has not changed the character of the neighborhoods,” she said. “We did that in a gradual, incremental phase and we feel like now it’s time to move on to the next phase.”
She said ADUs not only provide affordable rental options for people, but also help homeowners offset their mortgages with the additional rent income.
She also said ADUs allow adult children to move back home with their parents, and allow elderly residents to downsize and live with family.
“They do provide this great fabric for our community,” she said.
City planner Lilly Oswald said new potential code changes could include altering lot size requirements (currently, ADUs must have a maximum floor area of 550 square feet), and adjustments to the rebate program and parking standards in different neighborhoods.
Councilor Gilda Yazzie said she is interested in exploring parking standards and looking into eliminating or modifying lot size requirements to allow for more ADUs.
“The reason I wanted to review the ADU issue is because I do think these would provide more accessible and affordable housing for our residents because we are in a housing crunch,” she said. “So maybe long-term you can look at those two things (parking and lot size).”
Councilor Jessika Buell said she likes the idea of reconsidering maximum lot size requirements.
“The spirit and character of Durango is super important. But also, housing and getting as much infill as possible is obviously super important, too,” she said.
Councilor Olivier Bosmans said he is concerned about ADUs negatively impacting existing neighborhoods and asked if the planning department has considered allowing multifamily homes in more neighborhoods. He also asked how the city can ensure residents aren’t disturbed by new ADUs being introduced.
Durango Community Development director Scott Shine said owner occupancy requirements and unit size restrictions help keep ADUs in check. A homeowner lives on the same property as his or her ADU and is expected to manage an accessory home better than an off-site landlord, and keeping units under a certain size makes hosting several people in an ADU impractical.
Armentano said a community survey the city carried out last year showed the community strongly supports having ADUs and the city’s rebate program.
cburney@durangoherald.com
