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AGENDA ITEM - 3E ,!Tt -ADEN HILLS MEMORANDUM DATE: March 9, 2026 TO: Honorable Mayor and City Councilmembers FROM: Jake Reilly, Community Development Director SUBJECT: Accessory Dwelling Units (ADUs) Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Council should consider the information provided on Accessory Dwelling Units (ADUs) and provide direction to Staff on next steps. Background In 2025, the City Council requested a work session agenda item to allow for discussion of Accessory Dwelling Units (ADUs). Council is asked to consider the information below and provide direction to Staff on next steps and/or other information that is needed for future discussion. Defining accessory dwelling units An Accessory Dwelling Unit (ADU) is a self-contained residential unit located on the same lot as a primary single-family or small multifamily home.' Also known as carriage houses, in-law suites, granny flats, backyard cottages, basement apartments, or secondary dwelling units, ADUs include their own kitchen, bathroom, bedroom(s), and private entrance.2 AARP's Livable Communities program describes them as small homes that exist on the same property lot as a single-family residence and highlights that they come in many shapes and styles.3 ADUs may take several physical forms, each permissible to varying degrees depending on local zoning ordinances:4 1 Family Housing Fund. "ADUs: Housing Options for a Growing Region." February 2019. fhfund.org/report/adu/ 2 American Planning Association. "PAS QuickNotes No. 19: Accessory Dwelling Units." 2009. planning.org/pas/quicknotes/ (accessed March 2026) 3 AARP Livable Communities. "All About Accessory Dwelling Units." aarp.org/livable-communities/housing/info- 2019/accessory-dwelling-units-adus/ (accessed March 2026). 4 APA (2009) Page 1 of 8