Newcastle adopts regulations for ADUs and middle housing to increase affordable options

Newcastle's City Council is gearing up for significant changes in housing regulations, set to take effect on July 1, 2025. The new rules will allow for duplexes in single-family zones and permit homeowners to build two accessory dwelling units (ADUs) on their properties, a shift from the current allowance of just one. This reform is part of the state's middle housing initiative aimed at increasing affordable housing options.

The proposed regulations will also eliminate the owner-occupancy requirement for the main house, making it easier for property owners to rent out their ADUs. Notably, these ADUs will now be saleable, a change from existing codes that restrict their sale. However, the city plans to maintain restrictions on ADUs built on duplex lots.

In addition to ADUs, the council discussed the introduction of "step housing," which includes various forms of transitional and permanent supportive housing, as well as co-living arrangements in multifamily areas. These changes are designed to address the growing need for diverse housing options in Newcastle.

To facilitate the construction of ADUs, the council is proposing to reduce dimensional standards, allowing for smaller setbacks and more usable yard space. For instance, the rear setback for detached ADUs could be reduced from 20 feet to just 5 feet, enabling homeowners to place these units more conveniently in their backyards. However, to mitigate potential impacts on neighbors, the maximum height for ADUs will be lowered from 30 feet to 24 feet, and those built closer than 15 feet to rear property lines will require semi-translucent glass to maintain privacy.

The council's discussions reflect a broader commitment to affordable housing, with plans to implement a policy that mandates on-site affordable units for developments of four or more units. This initiative aims to ensure that as the city grows, it remains accessible to a diverse population.

As Newcastle prepares for these changes, the council emphasizes the importance of balancing development with community needs, aiming to create a more inclusive and sustainable housing landscape.