Owensboro planners introduce accessory dwelling units as a housing option; commissioners raise questions about enforcement and short-term rentals

Brian Howard, executive director of OMPC, introduced accessory dwelling units (ADUs) to the Owensboro City Commission on Aug. 19, 2025 as an option to increase housing variety and density in established neighborhoods.

Howard said ADUs are "a smaller secondary residential unit that's on the same property with a primary residence" and described common forms — detached units, above-garage apartments, converted basements and attic or upper‑floor units. He said jurisdictions typically limit ADUs to one per lot and set maximum size thresholds, and he offered 50% of the primary dwelling as an example starting point.

Howard told commissioners ADUs can create an income stream for homeowners, increase housing stock without building new subdivisions and allow family members to live nearby. He also noted potential drawbacks: "It could change the character of the neighborhood," add parking demand and create additional maintenance or tenant-management obligations for owners.

Why it matters: Planning staff framed ADUs as a discussion starter rather than a proposed ordinance. Staff asked the commission whether it wants the planning office to pursue zoning‑text amendments and community outreach.

Commissioners and staff raised several regulatory issues that would shape any future ordinance. Those topics included which zoning districts would allow ADUs (staff suggested single‑family residential and agricultural zones), whether ADUs should be allowed by‑right or require conditional‑use review, parking requirements, and whether owners should be required to live on the property. Howard said owner‑occupancy is a common question and enforcement can be difficult: "When an accessory dwelling unit is initially established, I think it would be easy to determine... Five years from now... How do you enforce that?" He noted Louisville has an owner‑occupancy requirement and staff there have acknowledged challenges enforcing it.

Staff also noted the potential impact of private deed restrictions and homeowners associations. If ADUs require a conditional use process, staff could request an attorney's letter showing an absence of private restrictions; if ADUs are permitted by right, the city would not police private covenants.

Commissioners asked about short‑term rentals and taxes. Planning staff acknowledged that ADUs could be used as short‑term rentals and pointed to Louisville's heavy regulation of short‑term rentals as one policy model. Staff said state law treats long‑term rentals (30+ days) differently from transient lodging taxed under the state's transient room tax.

No motion or ordinance was introduced. Howard and planning staff said they will continue research and outreach if the commission requests further work and community input.

Ending: Commissioners signaled interest in further study but did not direct immediate ordinance drafting. Staff identified Melissa Evans as the planner who performed much of the research and offered to return with draft code language and examples from other Kentucky communities if the commission requests it.