The city of Durango could allow homeowners to add rental apartments on their properties in Crestview, Riverview, Hillcrest and other areas this summer.

Allowing more homeowners to build an on-property apartment, also known as accessory dwelling unit, could help supply more affordable housing without relying on public funding, planner Heather Bailey said, during a meeting Thursday at the Durango Public Library. The city needs to add between 185 and 260 homes annually to meet demand, according to the city housing plan.

If allowed, units could be no more than 550 square feet and blend into the existing architecture. They could be built within a house or as a stand-alone structure.

“You really shouldn’t notice a change to the neighborhood,” Bailey said.

Residents seemed split. Some supported the units to help meet the need for housing, but others were concerned about the additional cars and other impacts.

“I think parking is a major issue. It’s not just the cars, it’s everybody’s toys,” Mike Shave said. He said he would prefer Crestview to remain restricted to single-family homes.

Input from neighbors will help determine whether the city will require newly built accessory apartments to have additional parking or if street parking would be acceptable, said Nicol Killian, assistant director of Community Development.

Lori Bryan suggested the city consider a residential parking permit system to address concerns about limited parking. Revenue from the permits could fund public transportation, she said.

If Durango City Council legalized accessory apartments in new neighborhoods, residents across most of the city would have the legal right to add a rental unit to their property, planner Mark Williams said. SkyRidge and Rockridge are two of the larger exceptions, where units are still prohibited, he said.

The apartments cannot be sold separately from a larger single-family home, but rental income can help homeowners pay mortgages, Williams said.

If apartments were legalized in new areas, owners of existing units built illegally would have to register them with the city and pay fees to cover infrastructure costs that they did not pay when they added the unit. The city charges about $9,000 in fees to build a new rental apartment.

Legalizing accessory apartments in historic downtown was controversial from 2011 to 2014 because residents worried it would change the character of neighborhoods.

To address some of those concerns, the city required that either the home or accessory unit be occupied by the property owner, Killian said. Durango City Council approved accessory apartments in historic downtown neighborhoods in 2014 and in East Animas City in 2015.

Since 2014, the city has approved 24 new ADUs and about 250 existing units were legalized.

A survey on legalizing accessory apartments in new areas can be found at durangogov.org/virtualcityhall.

mshinn@durangoherald.com