How Cities Can Support ADU Production

Although state-level laws are making it easier for homeowners to build accessory dwelling units, high impact and development fees remain a major barrier for many prospective ADU builders.

1 minute read

November 14, 2024, 8:00 AM PST

By Diana Ionescu @aworkoffiction


Craftsman-style two-story home with detached converted garage apartment accessory dwelling unit.

A detached garage converted to an accessory dwelling unit. | Sightline Institute: Missing Middle Homes Photo Library, CC BY 2.0, via Wikimedia Commons / Wikimedia Commons

While many states are liberalizing regulations related to accessory dwelling units (ADUs) to make ‘granny flats’ easier to build, “local governments remain the key gatekeepers when it comes to ADU liberalization,” writes Mike Koenig in HousingWire.

For Koenig, there’s still work to do to ensure property owners around the country can easily and affordably build backyard cottages or other add-on units on residential lots that can help gently increase density and improve housing affordability.

“As state legislatures continue to press municipalities to ease or remove ADU-related restrictions (13 and counting have done so), utility and other fees—collectively known as impact fees—move toward the center of pro-ADU policy discussions. That’s because impact fees can add up to more than enough to stifle ADU development.” Koenig recommends a few ways cities can ensure their regulations aren’t limiting ADU production, including prorating impact fees and waiving certain development fees.

Koenig points out that the higher density created by ADUs can bring long-term benefits to the community beyond housing affordability, including higher tax revenues. But while costs and other barriers remain high, “States and municipalities have come a long way in smoothing the paths forward for those who hope to add vital infill housing through ADUs.”

Monday, November 11, 2024 in HousingWire

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Streetcar and bus stopped at station on Market Street in San Francisco with Ferry Building visible in background.

Waymo Gets Permission to Map SF’s Market Street

If allowed to operate on the traffic-restricted street, Waymo’s autonomous taxis would have a leg up over ride-hailing competitors — and counter the city’s efforts to grow bike and pedestrian on the thoroughfare.

April 16 - San Francisco Examiner

Parklet with wooden benches and flower boxes on street in Ireland.

Parklet Symposium Highlights the Success of Shared Spaces

Parklets got a boost during the Covid-19 pandemic, when the concept was translated to outdoor dining programs that offered restaurants a lifeline during the shutdown.

April 16 - Streetsblog San Francisco

Bronze statue of homeless man (Jesus) with head down and arm outstretched in front of St. Matthew Cathedral in Washington D.C.

Federal Homelessness Agency Places Entire Staff on Leave

The U.S. Interagency Council on Homelessness is the only federal agency dedicated to preventing and ending homelessness.

April 16 - The New York Times