Lakewood council adopts changes to rental-housing licensing, including ADU exemption after heated debate

Lakewood City Council on May 4 voted to adopt Ordinance 849, an amendment to Chapter 5.60 of the Lakewood Municipal Code that changes how the city licenses and inspects rental housing.

The council approved two amendments to the draft ordinance: an exemption for accessory dwelling units (ADUs) when the property owner continues to reside in the primary residence or the ADU, and replacement of the ADU definition with the text from section 18A.70 to ensure consistency across the municipal code. The ADU exemption amendment passed on a 4'3 roll call (Yes: Councilmember Pearson, Councilmember Lynholm, Deputy Mayor Bell, Mayor Bokei; No: Councilmember Talbo, Councilmember Bransteader, Councilmember Lauraella). After the amendments were adopted, the ordinance was approved by the council in the final vote.

Why it matters: The ordinance revises the scope of the rental licensing and inspection program that the city established to address substandard rental housing. Supporters of the ADU exemption said owner-occupied ADUs conventionally receive a higher level of informal oversight and that the change protects homeowners who provide housing for family, friends or informal tenants. Opponents warned the exemption reduces guaranteed protections for renters and urged stronger enforcement pathways.

What the council said: Councilmember Laura Pearson, who moved the ADU exemption amendment, said the change was intended to be "more inclusive to all types of owner-occupier arrangements" and to avoid awkward attempts to legislate who counts as "family." She said the exemption targets units where the owner lives on-site and can readily respond to maintenance or safety problems.

Councilmember Bransteader and others strongly disagreed. Bransteader said the exemption "increases the risk to folks who are renting these properties" and urged the council not to treat owner-occupied ADUs differently from other rental units. Councilmember Lorisel and Councilmember Talbo expressed parallel concerns that renters can be vulnerable and are sometimes reluctant to report unsafe conditions.

Self-certification and enforcement: Council debated a staff-proposed self-certification pathway that would allow some owners to submit a certification that their unit meets safety standards rather than receive a city inspection. Staff said third-party inspections or city inspections remain options and described enforcement safeguards: a property owner found to have submitted knowingly false certification could be disqualified from future self-certifications and, in egregious cases, face a criminal penalty (staff suggested a gross misdemeanor provision in the draft enforcement language with fines of up to $5,000 for willful falsification). A council motion to strike the self-certification option failed, leaving the certification pathway in the ordinance alongside penalties and follow-up inspection authority for the city if tenant complaints or evidence of falsification arise.

Outcome and next steps: Ordinance 849, as amended, was adopted by the council. Several council members said they supported the ordinance with reluctance and asked staff to return with monitoring metrics and a review timeline so the council can evaluate whether the self-certification and inspection changes weaken renter protections. Staff indicated they will report back on implementation outcomes and tenant complaint trends.

The council's action changes the administrative approach to a substantial portion of Lakewood's rental housing stock and will affect property owners and renters as ADUs become more common. The city will publish the ordinance text and the revised implementation guidance for property owners and managers on the city website.