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they support the local economy. New ADU residents also increase the customer base for nearby businesses and services, helping to create more vibrant neighborhoods.23 Potential concerns • Neighborhood character: Critics worry ADUs will change the look and feel of single- family areas. The American Planning Association notes that communities that have actually allowed ADUs find these concerns are "mostly unfounded or overstated."24 • Parking and traffic: Critics worry ADUs will add more cars to neighborhood streets. Oregon DEQ research found ADU residents have below -average vehicle ownership (less than one per household), and any on -street parking impact is dispersed rather than concentrated.25 • Infrastructure and utilities: Sewer and water capacity must be considered at the permitting stage. Most cities require connection to the existing home or utility main, and tiered fee structures can help manage utility costs equitably.26 • Owner -occupancy requirements: While some cities require on -site ownership to prevent speculative development, the APA recommends against these provisions, which constrain homeowner financing options and reduce production.27 • Construction costs: ADUs are significant investments ($50,000—$150,000+), and not all homeowners can finance them without assistance. Financial barriers must be addressed alongside regulatory reform .28 • Short-term rentals: Without explicit restrictions, ADUs may be converted to STR platforms rather than providing long-term housing. Several Minnesota cities (e.g., St. Louis Park) explicitly prohibit STR use in ADUs.29 Recommended best practices for municipal zoning reform The evidence from peer cities nationally and in Minnesota is clear: local government policies and practices that reduce regulatory and cost burdens make a critical difference in whether ADUs can reach their full potential for communities. AARP and APA research identifies four overlapping categories of barriers political, regulatory, procedural, and financial each of which must be systematically addressed for ADU programs to succeed. AARP and APA's collaborative work on ADU policy dates to 2000, when the AARP Public Policy Institute published a model state act and local ordinance drafted by APA staff. An updated ADU Model State Act and Local Ordinance (Attachment E) was released in 2021 and is available as a free resource for state and local elected officials. Staff can provide existing ordinances from surrounding communities when requested. A. Remove Regulatory Barriers Permit ADUs by right (administratively) rather than requiring conditional use permits or public hearings. In California, ministerial processing drove a 25-fold permit increase in Los Angeles and a seven -fold increase in Oakland.30 The APA recommends that " Family Housing Fund (2019). 24 APA (2009). 21 Oregon DEQ (2014). 26 APA (2009) 27 AARP/APA (2023) 28 AARP/APA (2023) 29 HKGi (2019) so Garcia, David. UC Berkeley Terner Center for Housing Innovation. "ADU Update: Early Lessons and Impacts of California's State and Local Policy Changes." December 2017. Page 4 of 8