Sedona Housing Commission (clockwise from left to right):  Chair Linda Martinez, Commissioner Gene Snyder, and Commissioner Sandy Moriarty.

In down economy, Sedona Housing Commission crafts ordinance for guest house rentals

by Carl Jackson

SEDONA, AZ - March 3, 2009 - This may be the year when the stars finally align and the Sedona Housing Commission can implement one of its strategies for increasing the affordable housing stock in Sedona: Accessory Dwelling Units (ADUs), guest houses with their own full kitchen. 

In Sedona, it is illegal to rent a guest house and it may not have a full kitchen.  In addition, there is an ordinance against residential rentals less than 30 days. 

These laws are intended to reduce traffic and population density and retain a sense of community and small town character in residential neighborhoods.

It appears that Sedona residents want it that way.  In recent years, the community has defeated attempts to allow rentals less than 30 days and a proposed text amendment to the community plan that would have allowed increased unit density in multi-family and commercial areas in exchange for affordable housing units.

This year may be different. 

With arguably the worst economic slowdown since the Great Depression leading to job losses and the collapse of real estate prices, people are looking for extra income and a way to buoy the price of their home.  Rental income from ADUs may be one answer.  Said Housing Commission Chair Linda Martinez, "In this economy it's a good time to move ADUs forward." 

The Commission is pushing hard to submit a proposed ordinance to the City Council sometime this year; but first they'll need to host public forums to get community input and try to secure approval from the Planning & Zoning Commission.

Obtaining public support and city approval will require that the ordinance thread the needle between the need for affordable housing in Sedona and maintaining low density neighborhoods. 

Enforcement is also a concern. Once the Pandora's Box of ADUs is opened, who will ensure that they comply with noise and other regulations?  Said Commissioner Gene Snyder, "Enforcement comes from the community.  That's how code enforcement works.  It's a reactive thing, not a proactive thing."

To that end the Commission's current thinking is to:

• Limit ADUs to no more than 800 square feet so that they are affordable;
• Restrict rental length to greater than 30 days so that the ADU doesn't become a rental turnstile;
• Require that the home owner live on site for at least 6 months each year to ensure that the property is taken care of and complies with regulations;
• Prohibit both the main residence and the ADU from being rented at the same time;
• Allow no more than one ADU per residence;
• Require adequate parking and prohibit street parking;
• Allow a maximum of two bedrooms to avoid large families; and
• Stay within current city codes regarding occupancy limits and housing unit density.

The current code allows four unrelated individuals to reside in a single family residence, and the Commission will propose that ADUs be considered part of the single family residence for occupancy purposes. Despite this, the Commission is concerned that the community might want to limit the number of individuals living there.  However, restricting family size could run afoul of current law.  Said Audree Juhlin, Assistant Director of Community Development, "Under the Fair Housing Act, if [the ADU] has a family with 10 kids [the city] can't say you have to vacate."

The biggest unresolved issue is what to do with the illegal ADUs out there?  Should they be grandfathered?  What if they don't comply with the new ADU ordinance? The backlash from the community may be severe if it feels that law breakers are getting a break. 

Said Commissioner Sandy Moriarty, "There are a whole bunch of illegal ADUs out there that are going to have a difficult time complying."

City staffer Audree Juhlin suggested offering monetary incentives to illegal ADU owners to help them comply. Said Chair Linda Martinez, "I have a problem with a monetary incentive [for illegal ADUs] when there are people who have been waiting for the ADU approval so that they can comply." 

The current Commission thinking is to allow an amnesty period during which time illegal ADU owners will have an opportunity to come out of the shadows and comply with the new ordinance.  If they don't come forward, they could be subject to fines and other penalties.

Whether ADUs will ultimately be approved is difficult to gauge but this may be the year when advocates for affordable housing and residents seeking extra income can finally join arms.