Colfax City Council updates accessory dwelling unit ordinance amid public concerns

Property values are taking a hit in Colfax, as local businesses struggle to attract customers amid a tightening economy. During the July 9, 2025, Colfax City Council meeting, concerns were raised about the impact of new restaurants in nearby Auburn competing for limited consumer spending.

The council also addressed a significant update to the city’s accessory dwelling unit (ADU) ordinance, prompted by state recommendations. City Planner Kathy Pease explained that the state’s housing department has requested the repeal of Colfax's existing ADU ordinance, urging the adoption of a model ordinance that aligns with state guidelines. This update aims to streamline the process for homeowners looking to build ADUs, which are typically smaller units that can be standalone or converted from existing structures.

Key changes include a mandate for the city to process building permit requests for ADUs within 60 days and a provision allowing one standalone ADU and one junior ADU per single-family residential lot. However, a contentious point emerged regarding rental regulations for ADUs. The state model ordinance suggests that ADUs cannot be rented for less than 30 days, but Pease clarified that this is discretionary for the city.

Public comments during the hearing highlighted the potential for ADUs to serve as short-term rentals, like Airbnbs, which could attract tourists and benefit local businesses. However, concerns were voiced about the implications of allowing such rentals, particularly regarding the risk of turning residential areas into transient zones.

Council members debated the merits of allowing short-term rentals in ADUs, with some advocating for a minimum rental period of 30 days to maintain the intent of ADUs as long-term housing solutions. Others suggested a more flexible approach, allowing for short-term rentals while ensuring compliance with existing short-term rental regulations.

The council ultimately agreed to move forward with the proposed ordinance, incorporating feedback from the public and council members. A second reading and potential adoption of the updated ADU ordinance are scheduled for the next regular meeting on July 23, 2025. This decision reflects the city’s ongoing efforts to adapt to state housing mandates while balancing community needs and economic realities.