Town staff details state ADU law, warns of infrastructure and workload impacts

Town staff presented a high-level briefing on Maryland’s recent accessory dwelling unit (ADU) legislation and warned the law will limit local zoning discretion while creating infrastructure and administrative challenges for North Beach.

The staff presenter (identified in the record as “staff member”) told the council the state law—identified in the briefing as House Bill 1466 and Senate Bill 891—establishes a statewide policy requiring jurisdictions to authorize ADUs and to remove zoning and permitting practices that create barriers. “The law becomes effective 10/01/2025,” the staff member said, and North Beach must adopt a locally compliant ordinance by Oct. 1, 2026.

The staff member defined an ADU as a secondary dwelling unit on the same lot as a single‑family home, which may be attached or detached. The presenter said the law sets maximum sizing and process limits: localities must limit any ADU to roughly 75% of the primary dwelling’s gross floor area (as described in the presentation), may not impose larger minimum lot sizes or stricter setbacks, may not require more than one off‑street parking space, cannot apply subjective design bans, must avoid impact fees for smaller ADUs, and must act on ADU permit applications within 90 days.

“We are expecting a lot of questions,” the staff member told the council, adding that the town may retain objective development standards, enforce building and safety codes, apply parking requirements supported by a study with a waiver process, restrict alley‑only ADUs in some cases, and allow homeowners associations to treat ADUs as separate lots for voting and assessments when permitted by law.

Council members pressed staff on practical consequences. “Have they done a study on the wastewater treatment plant to see how this affects that?” one council member asked, querying whether neighboring Chesapeake Beach and the regional partners have capacity if many properties add ADUs. The mayor and staff said the town would request answers from the regional plant and report back to the council.

Other council questions addressed potential grant incentives, how ADUs would count toward comprehensive‑plan density targets and reporting obligations, and whether HOA covenants could prevent ADUs in some buildings. A council member asked whether programs could offer grants to homeowners; staff said they would research available grant programs and clarify whether funds could be distributed to individual homeowners.

Staff emphasized the town’s role in a multi‑step process: staff will mark up the existing ordinance, the Planning Commission will hold a public review and evaluate consistency with the comprehensive plan, the town attorney will review legal compliance, and the council will receive Planning Commission recommendations and hold required hearings with the goal of adopting an ordinance by Oct. 1, 2026. The staff member said the town will collect council and public questions, forward them to state experts for definitive answers, and publish an FAQ on the town website as responses arrive.

The presentation repeatedly framed the item as high level: “It’s a very, very strict law,” the staff member said. Several council members noted the law will increase staff workload and require balancing compliance with minimizing local impacts. Staff said they plan to have a draft ready by summer to allow internal adjustments ahead of the October deadline.

Next steps: staff will compile council and public questions, seek written clarifications from state sources, publish answers in an FAQ, and bring draft ordinance language and Planning Commission recommendations back to council for review before the public hearing process.