Newcastle Council exempts cottage housing from affordable housing requirements

The City of Newcastle's Planning Commission meeting on April 25, 2025, focused on the implications of new housing regulations, particularly regarding cottage housing and parking requirements.

A key discussion point was the exemption of cottage housing from affordable housing requirements. Officials noted that while new homes in Newcastle are typically large, around 3,000 square feet, the proposed 1,500 square foot cottage model could offer a more affordable option. The rationale for this exemption is to encourage the development of smaller, potentially less expensive homes, which have not gained traction under the current regulations.

The meeting also addressed parking requirements for cottage housing. Under new state laws, all forms of middle housing, including cottages, must adhere to uniform parking standards. This means that while the city can allow for fewer parking spaces, it cannot mandate more than the state requirements. The only major transit stop in Newcastle that influences these regulations is a bus stop on I-405, which limits the number of parcels affected by the parking rules.

Overall, the discussions highlighted the city's efforts to adapt housing policies to promote more affordable living options while complying with state mandates. The Planning Commission will continue to refine these regulations to balance development needs with community goals.