Tempe might loosen its rules on casitas
Tempe is crafting a plan that could dramatically relax restrictions on casitas and increase the number of properties that are eligible to have one by tens of thousands.
The move is meant to help beef up the local housing stock and increase affordability.
Casitas, also called accessory dwelling units, are tiny homes that are built on the same property as a larger, main house. They’re one way to increase the housing stock in built-out places like Tempe because they can be rented out and don’t require an empty lot.
They are often used to house elderly relatives or young family members who can’t afford their own place.
As of now, Tempe’s rules only allow casitas on properties that have multifamily zoning, but are currently being used for single-family homes. Existing policy applies to only about 250 properties citywide.
But city staffers are exploring a proposal that could make all of Tempe’s nearly 30,000 single-family properties eligible.
It’s part of Tempe Mayor Corey Woods’ broader effort to increase the city’s housing stock during his second term. He said Tempe needs to catch up to other cities such as Phoenix, which legalized casitas in September as an affordable housing solution, if it wants to keep up with increasing housing demand over the next decade.
“I think this is something that we have to get to a ‘yes’ on ... We need more housing. We were actually one of the first cities in the Valley (to adopt) a very forward-thinking policy when it came to” casitas, he said. “But I do think that we are now beginning to fall behind other communities. That’s not a problem. Things happen sometimes. These things move very quickly. But I do think that we need to catch up to where they are.”
But it won’t be clear whether Tempe is open to such a broad eligibility criterion until it has a workable new policy put together. Staffers haven’t drafted a proposal or sorted out details like lot-size rules, design standards, or whether extra parking should be required.
And officials like Councilmember Doreen Garlid have already expressed concern about whether a “blanket, across the city” eligibility policy could alter the character of neighborhoods that might not want to allow casitas, or cause traffic problems in smaller areas that don’t have the capacity.
“There are some neighborhoods that might be all for it and some that don’t want that. But we need to get more information because as much as I want more housing and as much as I think that this is a good idea, I’m not sure if it’s a good idea for Tempe in some of these ways right now,” Garlid said.
The biggest concerns for city leaders right now have to do with preventing the tiny homes from being used as shortterm rentals, as well as keeping investors from buying the properties and converting both the casita and main house into long-term rentals.
But city officials do have the power to tackle both issues in a future casitas policy, according to Tempe’s Deputy Community Development Director Ryan Levesque.
The city could require property owners to live on-site if their lot has a casita or if they want to get a casita building permit. That would make it a violation for investors to just buy up the property and turn both the casita and main home into long-term rentals.
On the short-term rental front, Tempe can prohibit property owners from renting out a casita separately from the main house.
Even with those tools, most officials were wary of the potential consequences that could accompany such a major overhaul if proper guardrails aren’t put in place. Councilmember Arleen Chin urged the city to “move cautiously” in order to avoid any pitfalls.
“People are afraid of the short-term rentals and the negative impacts that they may have on the culture of our neighborhoods. So, we have to move cautiously,” said Councilmember Arleen Chin.