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Council debates caps on ADUs and short-term rentals amid housing and nuisance concerns

3380595 · February 20, 2025
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Summary

Councilors and residents debated whether to cap accessory dwelling units (ADUs) per property and how many ADUs may be used for short-term rentals, with proposals ranging from keeping two ADUs to limiting one short-term rental in residential mixed-use zones.

HANKSVILLE — Town councilors and residents spent a large portion of a work session debating proposed rules for accessory dwelling units, or ADUs, and whether short-term rentals should be limited in residential areas.

The draft under discussion currently allows up to two ADUs per property. Brandon, who provided a technical definition during the meeting, said, "An accessory dwelling unit is an independent habitable living unit with a kitchen, bathroom, and its own entryway." The draft also distinguishes long-term rentals (30 or more consecutive days) from short-term rentals (less than 30 days).

Speakers raised competing concerns. Some council members and residents said multiple ADUs on a single parcel could be used commercially — "you went from a residential house to ADU to now an Airbnb motel business type resort in a half acre location," one speaker said — and argued for stricter limits in residential mixed-use zones. Advocates for ADUs said they can provide income for seniors and add affordable housing stock.

Several possible compromises were discussed. One proposal would keep a two-ADU cap overall but allow only one of the ADUs on a residential mixed-use property to be used as a short-term rental. Another suggestion was to limit ADUs in residential mixed-use areas to one, while allowing larger agricultural or commercial parcels different treatment through zoning or subdivision processes.

Council members noted related controls already exist in the draft: ADUs must be attached to a primary residence for utility hookup and are not intended to be subdivided off as separate lots. A staff speaker reminded the group that exceeding two dwelling units on a parcel typically requires subdivision approval. Several speakers suggested using setbacks, zoning definitions and occupancy rules to limit commercial-style short-term rental concentrations in neighborhoods.

No formal ordinance vote was held. Councilors directed staff and the planning and zoning commission to continue drafting language to clarify ADU definitions, specify whether ADUs may be used for short-term rentals, and create zoning-based distinctions (for example, treating agricultural parcels differently from residential mixed-use).

Speakers emphasized practical enforcement questions: whether utility hookups will remain through the primary residence, how ADU counts interact with lot size and setbacks, and whether grandfathering provisions are needed for existing short-term rentals. Staff said those operational matters and the interplay with county rules will be addressed as the draft is revised.