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City staff brief council on new state ADU law, says limited local impact expected
Summary
City Administrator Troy Kelsey briefed the council on a new state law (effective July 1, 2025) requiring cities to allow at least one accessory dwelling unit on lots with single-family residences under defined conditions.
City Administrator Troy Kelsey gave a detailed presentation July 8 on a new state law, effective July 1, 2025, that requires cities and counties to allow at least one accessory dwelling unit (ADU) on lots containing single-family residences if the ADU meets several statutory conditions.
Kelsey summarized the law’s key features: an ADU must be an additional residential unit on the same lot as a single-family residence (attached or detached); it must comply with building regulations that apply to single-family residences; it may not exceed 1,000 square feet or 50% of the primary residence (whichever is larger); it must be on a permanent foundation and assessed for real estate taxes; and the city may not impose ADU-specific restrictions that are more restrictive than those for single-family homes. The law also prohibits municipalities from imposing requirements that a property owner live in one of the units, require familial or employment relationships between occupants, or prohibit rental uses. Kelsey noted that homeowners’ associations (HOAs) remain able to enforce covenants restricting ADUs.
When asked what counts as a "permanent foundation," staff said local building-code definitions vary and staff would consult the building official; a mobile or temporary structure would typically not qualify unless converted to permanent real property and made to meet building-code standards. Kelsey said the city’s building code, lot sizes and other existing restrictions are likely to limit detached ADU construction in most University Heights neighborhoods; conversions of existing detached garages to ADUs are the most plausible scenario the city might see.
The presentation included guidance that ADU permit applications that meet statutory conditions must be approved without discretionary review and that denials must include written reasons and remedies. Kelsey advised the council the city may be more permissive than state law but may not be more restrictive. He recommended staff continue to monitor state guidance and the Iowa League of Cities for any model procedures.
No council action was required or taken on the ADU law during the meeting.
