Michael Ward has submitted his application to replace Marc Sterling on the Sedona City Council

SEDONA, AZ (July 03, 2009) - In response to the direction given by a previous City Council, the City Community Development Department (CDD) researched solutions to providing affordable housing in Sedona. In the fall of 2008, the CDD proposed an ordinance permitting higher densities in prescribed areas along SR 89A in West Sedona. Embedded, but not part of the high density ordinance, was a reference to a second draft ordinance allowing Accessory Dwelling Units (ADUs) in areas that are zoned residential-single family.

At meetings with Sedona residents, most attendees objected to both higher densities and ADUs for a variety of reasons. Aware of citizen concerns, the Planning and Zoning Commission voted to recommend that the City Council not adopt the high density ordinance.

CDD extensively drafted a new ADU ordinance taking into consideration the ADU issues identified by the residents last summer. The proposed ADU ordinance is now before the residents of the city and will be initially presented as a information item to the Planning and Zoning Commission July 2nd and is likely to go before the council in the fall.

The Proposed ADU Ordinance

An Accessory Dwelling Unit is a second smaller housing unit located on the same property as the primary single-family dwelling unit. An ADU can be located within, attached to, or detached from the primary single-family dwelling unit. Mobile homes, travel trailers and recreational vehicles cannot be used as ADUs. An ADU must provide a complete, independent residential living space and shall include provisions for living, sleeping, eating, cooking and sanitation. In the ordinance, an ADU is defined as a “one-half dwelling unit.”

Among the purposes for passing an ADU ordinance are “to provide additional affordable options for long-term rental housing; a broader range of more affordable housing; and a means for residents, particularly seniors, single parents, and families with grown children, to remain in their homes and neighborhoods by obtaining extra income, security, companionship and services.”

In observance of the Community Plan housing density limits, the number of new ADUs is capped at 176 units. After a period of five years, the ADU ordinance would be reviewed by the city and either extended by raising the cap or allowed to expire.

Among the stipulated conditions for having an ADU are: “the property owner must occupy either the primary dwelling unit or the ADU as his/her principal residence for at least 6 months each year; both the primary dwelling unit and the ADU unit cannot be simultaneously rented; ADUs are intended for long-term rental for a period of not less than 90 consecutive days; and the total number of people residing on the property, including the primary residential structure and the ADU, cannot exceed the definition of „family‟ as described in Article 2 (Definitions) of the Land Development Code.”

To construct an ADU, the property owner must pay $16,000 in fees ($9,000 impact fee, $5,500 Sewer Connection fee, and $1,500 building permit fees).

An ADU cannot be less than 400 sq. ft. or larger than 800 sq. ft where the primary dwelling unit is more than 1,500 sq. ft. Where the primary dwelling unit is less than 1,500 sq. ft., the ADU can be no less than 350 sq. ft or more than 500 sq. ft.

An ADU must conform to all applicable zoning and building codes and not encroach upon setback requirements.

There must be two off-street parking spaces for the primary dwelling unit and at least one but no more than two parking spaces for the ADU. Parking on a residential property is prohibited on the property set back in only the front. Parking is also prohibited on a street side yard of a corner lot. The ADU ordinance further restricts parking on interior side yards and back yards by requiring screening from view. All parking must share a driveway with one “curb cut.”

The ordinance also provides for the legalization of the estimated 200 existing illegal ADUs in Sedona providing the owner makes application to the city within 6 months of the ordinance taking affect. The owner must also pay the city fees amounting to pay $16,000 in fees ($9,000 impact fee, $5,500 Sewer Connection fee, and $1,500 building permit fees). The preexisting ADUs must be brought into compliance with all of the provisions of the ordinance. These units would be counted separately from in addition to the limit of the 176 permits to be issued for new ADUs.

Issues:

ADU Definition

The only difference in definition between a guest house and an ADU is that an ADU has a “cooking” area. With the availability of microwaves, cook tops, dorm sized refrigerators, and various counter top appliances like roasters that can be easily moved, how can anyone reasonably make a distinction between a guest house and an ADU?

Housing Density in the Community Plan

The Community Plan caps Sedona's population by limiting housing growth to a total number of housing units. Because there is no land surrounding Sedona that can be annexed, the number of housing units is controlled by the number of units permitted on existing properties zoned as either single family and multiple family. That total number of housing units is approximately 8,500. There are currently approximately 6,500 housing units built within the city.

It has been generally understood that the ordinance places a cap of 176 new ADU permits over the next 5 years. The CDD maintains that the addition of 176 new dwellings is within the limits established by the Community Plan. There is some question about this and it is unclear how many illegal ADUs were considered when the Community Plan was written.
It was only recently disclosed at an ADU ordinance forum that the intent of the ordinance was for 176 new units in ADDITION to the estimated 200 existing illegal units whose owners may apply for an amnesty. The published wording of the proposed ADU ordinance never made this intent clear.

Residential Single-family and Multi-family Zoning

Sedona's Land Development Code expressly limits an area zoned as residential single-family to one dwelling on the property that houses a family. Areas zoned for multi-family residences are defined as properties having a single building of more than two dwellings or a property on which two or more dwellings are situated.

The proposed ADU ordinance would effectively redefine single-family zoned areas as properties having a single building of no more than two dwelling units or a property on which not more than two dwelling units are situated.

Article 2 (Definitions) of the Sedona Land Development Code broadly defines a family as no more than four unrelated adults with or without minor children domiciled within a single dwelling unit. In addition it permits live-in domestic help and care givers. The proposed ordinance does not change the restriction on the people who may legally reside on one property with an ADU.

Recent census data show that on average, 2.1 people live in a single family unit in Sedona. The primary issue regarding single family zoned neighborhoods is the possible change to the character of the neighborhood when the number of people residing on one single family residential property increases to three or more people.

Garage Conversions

The proposed ordinance allows the conversion of garage space into an ADU. This raises the question of not only where the automobiles that were parked in the remodeled garage will be parked, but where all the “stuff” that is stored in garages ends up being stashed.

Sedona‟s building codes require that any single building housing a second dwelling, a garage conversion for example, must have a separate heating and air conditioning unit for the second unit. All other utilities, gas, water, electric and sewer, may be either consolidated or split.

Parking

The ADU ordinance prohibits parking on the roadway and, presumably, the city police would be responsible for enforcement of the parking restriction. The ADU ordinance requires that there be at least three and not more than four parking spaces located on the property having an ADU. These parking spaces must share one driveway “curb cut.”

Affordable Housing

Although “affordable housing” is not the only reason for ADUs, it is perceived by many as the primary focus of the ADU. Home owners who want to create a legal ADU would need to pay the city $16,000 in fees in addition to the construction costs. To be in building code compliance, an ADU constructed as a garage conversion within a single family home also need separate air cooling and heating system installed. These and other associated costs involved in building an ADU could take a home owner many years to break even at an unaffordable rent. The current ordinance does not place any rent restriction guidelines on ADUs to keep them “affordable.”

Converting Illegal ADUs to Legal Ones

Because of the $16,000 in fees and additional expenses to conform the unit to the ordinance, there is little incentive for home owners who have illegal ADUs to make them legal. The costs may even encourage those contemplating building an ADU to do so illegally. Code enforcement of complaints alleging an illegal ADU are very difficult to substantiate because federal laws prohibit city code enforcement personnel from entering a property uninvited. This is part of the reason why illegal ADUs have proliferated in Sedona.

Search warrants for enforcement investigations are impossible to obtain for lowly misdemeanor investigations and fines are rarely levied. If an illegal ADU is found, the worst penalty is the costs for removing the kitchen.

Property Rights

Legally, a person has the right to use their residential property in whatever way they want, within limits. The individual property owner‟s right is balanced by city zoning and land use ordinances to protect the rights of adjacent property holders, and the city as a whole. The ordinance as proposed requires properties with ADUs to conform to all zoning and land use ordinances, including setback, building height, parking and lighting; the exception is allowing side yard parking. Many property owners are concerned with increased housing densities in single family neighborhoods as well as their rights to live in an area that has been zoned for single-family residences.

Concentrating ADUs in neighborhoods without Residential Covenants

Neither the city nor either county has any reliable way of determining how many subdivisions have active Home Owner Association Residential Covenants. Most of the areas developed more than 20 years ago probably no longer have active Residential Covenants while those subdivisions less than 20 years old do. The Community Development staff is attempting to determine and map which neighborhoods would allow or restrict ADUs in their Residential Covenants. Although no one knows exactly, a fair guess would be that about a third of the Sedona neighborhoods are covered by Residential Covenants restricting ADUs. The greater the number of neighborhoods that prohibit ADUs, the greater is the potential concentration of ADUs in those neighborhoods that do not prohibit them.

Home Values

All homeowners are concerned with the value of their properties. Although it has been stated by Housing Commission members that there is no evidence of the average home value decreasing in cities that allow ADUs, the evidence is anecdotal. The unanswered question is the home value impact on individual properties immediately adjacent to those properties where there are ADUs.

Housing Density

The ADU ordinance‟s stated intent is to not increase the total number of housing units or housing density in Sedona. As stated in the language of the ordinance, the Sedona Community Plan “….limits residential growth to the total number of housing units that can be accommodated once this private land is built out at the densities established upon the City‟s incorporation….” The Community Development staff has indicated that some number of illegal ADUs were anticipated and included in the community plan‟s density calculations. As previously state, this is an open question.

One of the stated benefits of the ADU ordinance is to allow fixed income property owners to remain in their homes and neighborhoods by obtaining extra income. Some numbers of these people live in older single family zoned neighborhoods that have small lot sizes. Introducing ADUs into those neighborhoods would have a greater impact on increased housing density, traffic, parking and congestion. Although, on average, city housing densities would remain unchanged, the proposed ADU ordinance may create unacceptably higher local densities in more modest neighborhoods.

Code Enforcement

The proposed ADU ordinance rightly provides for many Land Development Code restrictions. It requires permitting, implements an annual $100 filing fee and annual building inspections for monitoring compliance of these many restrictions. There is, however, no provision for adding code enforcement staff and the city does not have the funds to do this in any case. Sedona‟s failure to diligently and proactively enforce the Land Development Codes provided the opening for Foothills Property Management, who objected to the sudden enforcement of the 30 day minimum stay codes, to litigate the ordinance. They sought legal relief because the city was not consistent in their enforcement. Defending the suit cost the city legal fees. The case was dismissed on a technicality but there was no judgment on the merits of the case.

My Position:

I have many reservations regarding the proposed ADU ordinance. They have been illustrated in the issues identified above. These same reservations have been voiced by the overwhelming majority of Sedona residents who have attended the various forums on the proposed ordinance. My primary objections to the proposed ADU ordinance are that it does not create affordable housing it is not enforceable, and it may even encourage more illegal ADUs.

To make the ADU housing affordable and discourage illegal ADUs, at a minimum impact fees and perhaps sewer hookup fees would need to be waived. To make the code enforceable, additional city code enforcement employees and an additional person to manage the permitting and inspection compliance paper work would need to be hired. Both the waiving of fee income and additional personnel costs would essentially be public subsidies for ADUs to be paid from an already over extended three cent sales tax revenue source. I do not believe that there is wide spread support for the city to subsidize housing of any kind in Sedona.

I do not believe that enacting this ordinance provides sufficient benefits to the city of Sedona to justify the many issues and problems that allowing ADUs would create for the city and its residents.

To view the proposed ADU Ordinance, reference: http://www.sedonaaz.gov/documents/view.aspx?PK=12435