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Council adopts zoning changes to allow ADUs and enable affordable‑housing incentives

City Council of the City of Cottonwood, Arizona · July 16, 2024
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Summary

Council adopted two related zoning ordinances to permit accessory dwelling units (ADUs) in most single‑family zones — capped at 75% of the principal dwelling or 1,200 sq ft — and to authorize development‑agreement incentives tied to area‑median‑income affordability controls and covenants prohibiting short‑term rentals in regulated units.

The Cottonwood City Council voted July 16 to adopt a pair of zoning code amendments intended to expand housing options and provide incentives for affordable housing.

Senior planner Gary Davis told the council the package includes a new definition and permitting approach for accessory dwelling units (ADUs), allowing attached or detached ADUs in R, R1 and AR zones. "This would allow ADUs on most lots, assuming they're big enough to accommodate these," Davis said. The code limits ADU size to 75 percent of the principal dwelling, capped at 1,200 square feet, and maintains a maximum height no taller than the primary dwelling. If an ADU is used as a short‑term or vacation rental, Davis said, the owner must live on the same lot.

Other amendments remove a maximum lot‑coverage limit in single‑family zones, relax some multifamily setbacks to encourage infill, and clarify that the community development director can reduce required parking spaces in justified cases. For multifamily buildings adjacent to single‑family lots, the code sets transitional height limits to protect neighborhood character.

A companion ordinance creates a defined category of "affordable housing" that can be implemented via development agreements. Those agreements can include fee adjustments, changes to development standards and recorded covenants tying rents or sale prices to a percentage of area median income for a set period (commonly 30 years). Davis said compliance and monitoring would be spelled out in each development agreement and would likely require staff time to administer.

Council members questioned enforcement and monitoring; Davis and staff said details about monitoring would be negotiated in individual development agreements. Both ordinances were adopted by roll call vote after public questions from a resident about building heights above garages were addressed by staff.

Council members said the amendments are intended to increase housing supply and provide flexibility while retaining protections for existing neighborhoods.