Colfax council introduces ADU ordinance update amid debate over short-term rentals

Colfax City Council introduced an ordinance on July 9 to update the city's accessory dwelling unit (ADU) regulations to be substantially consistent with a model ordinance from the California Department of Housing and Community Development (HCD). The council opened a public hearing, heard from city planning consultant Kathy Pease and several residents, and directed staff to return with a final ordinance for adoption at the July 23 meeting.

The proposed update would repeal the city's existing ADU ordinance adopted during the 2023 zoning code overhaul and replace it with language reflecting recent state guidance. Kathy Pease, the city's planning consultant, said the model ordinance narrows local discretion on some items and requires the building department to process ADU permit applications within 60 days. "The item before you tonight is an update of our accessory dwelling unit ordinance," Pease told the council.

Why it matters: ADU rules affect how many smaller, typically lower-cost units can be built on single-family lots and how quickly permitting occurs. The state's model is intended to make it easier to build ADUs, but some council members and residents raised concerns about unintended local impacts, especially the potential for ADUs to be used as short-term rentals (Airbnb/VRBO) rather than long-term housing.

Discussion highlights and staff direction

- Short-term rental limit: The model ordinance language that prohibits ADUs being rented for less than 30 days was discussed at length. Pease said HCD's model reads as if it disallows rentals under 30 days, but that the underlying state law leaves that issue to local discretion. Councilmembers asked whether Colfax should keep a 30-day minimum or permit shorter stays. Councilmember Larry Hilberg argued for keeping a 30-day minimum, saying short-term rentals can worsen housing availability. Several public commenters supported allowing shorter stays for ADUs because short-term rentals can bring visitors who spend locally; Tom Barnum called that a benefit for businesses.

- Owner-occupancy and enforcement: Pease and staff noted the state model includes provisions that encourage owner-occupancy of the primary residence when an ADU is present; the city currently lacks a strong mechanism to track how ADUs are used after construction. Staff said they monitor listing sites (Airbnb/VRBO) and had identified roughly 10'12 advertised short-term units in Colfax, with only two having completed the city's permitting process. Pease said the city could cross-reference ADU rules with the existing short-term rental chapter (17.123) to apply the same registration and operating requirements to any ADU used for short-term rentals.

- Permitting timeline and preapproved plans: Under the state approach, the building department must act on ADU permit applications within 60 days or the permit is deemed approved. Staff said Colfax had posted links to preapproved ADU plans (hosted by Placer County) to help meet that timeline.

Council action and next steps

Mayor Lohman moved to introduce the proposed ordinance as amended (removing the explicit 30-day restriction and cross-referencing the city's short-term rental regulations), waive first reading, and schedule the second reading and adoption for the July 23 regular meeting; the motion was seconded and taken under roll call. The council directed staff to forward the draft to HCD for review, to amend the ordinance language as discussed to reference the short-term rental chapter if ADUs are used as short-term rentals, and to post preapproved plans and permitting guidance on the city's website.

Quotes from the hearing

"It sounded like by law you were not allowed to have an ADU rented for less than 30 days. But I checked the wording of the actual law, and it says that's discretionary on behalf of the city," Kathy Pease, planning consultant, said during the hearing.

"One of the reasons we're against short-term rentals is that there are a lot of Airbnbs, and all we're doing now would be to allow an additional dwelling unit to be an Airbnb and just compound the problem," Councilmember Larry Hilberg said.

Context and background

ADUs are typically secondary units on single-family lots and were part of Colfax's 2023 zoning update. State guidance in recent years has sought to increase housing supply by easing ADU standards, limiting certain local impact fees and setback requirements, and shortening review timelines.

Remaining questions and implementation risks

Staff acknowledged enforcement challenges: advertised short-term listings can be hard to trace before reservations disclose the address, and the city currently relies on manual monitoring of listing platforms. The council asked staff to track advertised listings and report back if ADU use as short-term rentals grows.

The ordinance introduction does not finalize policy changes; final adoption is scheduled for July 23, when the council will vote on the ordinance for second reading and adoption.