Reno council approves ADU ordinance with design standard, drops 28‑day short‑term rental ban

The Reno City Council approved changes to an accessory dwelling unit ordinance on Sept. 10, advancing new rules to allow ADUs across much of the city while adding design controls and removing a staff‑proposed 28‑day short‑term‑rental restriction.

The council voted to adopt the draft ordinance brought by staff — which incorporated requirements of the state’s AB 396 — with three council changes: adopt the Planning Commission’s recommendation to require attached and detached ADUs meet the same size/design standards; remove a proposed ban on renting ADUs for terms shorter than 28 days; and not require a mailed neighbor notice for routine building permits. The motion passed unanimously.

The ordinance implements statewide changes from AB 396 while also setting local limits. Staff reduced an earlier 9,000‑square‑foot minimum lot size to 5,000 square feet and added design standards intended to keep ADUs visually compatible with primary residences. The ordinance requires detached ADUs to be shorter than the primary structure and maintains that ADUs meet accessory‑structure setbacks. Under AB 396, local rules may not require separate kitchen prohibitions or more than one parking space for an ADU; staff adjusted the draft to comply.

Supporters told council the ordinance will create more housing options and support small business owners who depend on short‑term rental income. Opponents, including speakers from historic neighborhoods, argued the measure threatens neighborhood character, parking and infrastructure and called for stricter standards or carve‑outs for historic districts. Many speakers urged stronger enforcement tools for short‑term‑rental rules; council members and staff acknowledged enforcement capacity is limited but said the city will pursue additional rules for STRs separately.

Councilmember Kathleen Taylor, who supported removing the 28‑day restriction, said existing short‑term rentals are important income sources for some residents and should not be singled out in the ADU ordinance while separate STR rules are still under development. Planning staff and the Planning Commission had urged a ban on short‑term rentals in ADUs as a compromise; council voted instead to leave that question to the forthcoming STR policy.

Staff said building permits for ADUs will require setback verification from a licensed surveyor and standard building‑permit review; the council declined to require mailed notice to neighbors for routine ADU permits, noting the city’s standard public‑notice rules apply for discretionary actions. Staff also told council that owner‑occupied ADUs remain subject to the state’s 3 percent annual taxable value cap while rental units can face an 8 percent cap.

The council instructed staff to return the ordinance for final adoption with the council’s amendments and to continue work on a separate short‑term‑rental policy. The ordinance was described by staff as a compromise intended to comply with state law while addressing neighborhood concerns.