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Prescott staff say state law unclear on long-term ADU rentals; legislature may correct drafting
Summary
Chelsea Walton, Prescott’s community development director, told a workforce-housing forum that a late change in recent state legislation left ambiguity about whether long-term rentals of accessory dwelling units (ADUs) apply to smaller communities; Prescott officials said they are monitoring state action and council review.
Chelsea Walton, Prescott’s community development director, told the forum that a late legislative change last year created uncertainty over whether the law allowing long-term rentals of accessory dwelling units applies to all cities or only those with populations above 75,000.
"There was a late change in the legislature last year that now allows long term rentals for ADUs. However, after a visit to the state capitol, that was not an intended change that would affect all communities of all sizes," Walton said. She explained that the original bill language intended the change to apply to communities of 75,000 population and over, but the enacted text did not reflect that limitation.
Walton said Prescott staff are watching the current legislative session for a possible correction; until any change is acted on at the state level, the law as written permits long-term ADU rentals, but the city is awaiting clarification.
Why it matters: ADU rules are among short-term policy levers the committee highlighted for quickly adding housing. A change to allow long-term rentals of existing guest houses or ADUs could permit quicker housing availability without new construction, but the local effect depends on whether the state amends the statute and how City Council chooses to respond.
