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Leavenworth council debates preapproved ADU plan discounts and risk of short‑term rental conversion
Summary
Councilors discussed whether discounts tied to preapproved ADU plans could indirectly encourage short‑term rentals; members proposed options including time‑limited benefits, title restrictions or buyout provisions to protect long‑term rental goals and agreed to return with numbers and a code amendment proposal.
Councilors debated whether a city discount associated with preapproved accessory-dwelling-unit (ADU) plans could unintentionally facilitate short‑term rental conversions and reduce long‑term housing stock.
Staff described a program of preapproved ADU plans intended to lower development costs and increase long‑term rental stock. Several councilors voiced concern that discounted plans might be marketed or used to produce B&Bs or short‑term rentals that would not further the stated objective of permanently expanding long‑term affordable housing.
A councilor summarized the worry: discounting plan costs produces a financial benefit to owners who might build an ADU and then convert it to a short‑term rental. Multiple members suggested policy options to preserve the housing intent, including time-limited restrictions (for example, 5–10 years), placing a title restriction that would require a buyout to remove the covenant, or requiring owners who accept discount benefits to commit to long‑term rental occupancy for a defined period.
Council member Ron suggested the city codify an unencumbering buyout that recoups the discounted benefit if an owner later seeks to remove the restriction. “If we put it in the code … put some restriction on the title, and this is the cost to clear that,” he said, describing a way to preserve the public benefit while allowing owners a clear buyout path.
Staff committed to return with clearer numbers on the fiscal value of the preapproved-plan subsidy, an estimate of how many ADUs would trigger the short‑term‑rental cap, and proposed code language to implement a restriction or sunset. The council directed staff to prepare a discussion/action item with quantitative analysis and suggested amendments for a future meeting.
Next steps: staff will quantify the subsidy, estimate impacts on the short-term rental cap, and draft possible title-restriction and buyout language for council consideration.
