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Phoenix forced to change backyard casita rules per state law

Aerial view of a Valley neighborhood
Getty Images

 A year after approving backyard casitas, Phoenix leaders have to change their rules because of a new state law.

When the City Council approved accessory dwelling units, known as ADUs, they banned them from being used as vacation or short-term rentals.  Vice Mayor Debra Stark said Phoenix has been trying to increase more affordable long-term housing options.

“If you really want to solve the problem of affordable housing, you need to make the ADUs available to people that live in the city. Let's help house the people that actually live in the city,” she said. “However, the Legislature took a different approach and said they can be used for short-term rentals, and I think that goes against the idea of affordable housing.”

Starting Jan. 1, state law says ADUs — or backyard casitas — can be used as short-term rentals. 

“Our version of ADUs and what we viewed as a prohibition on short-term rentals were crafted with insight from our community members that was vetted over a substantial time period. We have procedures that worked for the residents of Phoenix and I encourage the Legislature again, rather than moving forward with these preemptive notions, how about we do this in a more collaborative manner,” Councilwoman Kesha Hodge Washington said during Wednesday's City Council meeting.

Councilwoman Ann O’Brien said the state punishes Phoenix and she doesn’t understand why.

“We're doing what we need to do, but communities like Fountain Hills do not and have not committed to the same ratio of housing when compared to Phoenix and receive exemption from these state laws,” she said.

The law applies to cities and towns with populations over 75,000.

Mayor Kate Gallego said Phoenix has entitled more than 60,000 units in the past five years. 

“This council really is passionate about encouraging more housing,” she said. “We have been crafting rules that do things like allow multi-family homes in more neighborhoods, encourage density near transit, improve the permitting process.”

The new state law also allows two ADUs per single-family lot, and in some cases three per lot, overriding Phoenix’s rule limiting ADUs to one per lot. 

As a senior field correspondent, Christina Estes focuses on stories that impact our economy, your wallet and public policy.
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