Phoenix leaders are frustrated over a new state law that expands what’s allowed for backyard guest houses, also called casitas. In May, Gov. Katie Hobbs signed the legislation into law, which requires Phoenix to change its rules.Before state lawmakers got involved, Phoenix had already addressed accessory dwelling units, or ADUs, as way to increase housing options. In September 2023, Phoenix approved an ordinance allowing single-family homeowners to build ADUs in their backyards with limits on size and height and requiring running water and electricity. The city limited one ADU per single-family property and banned them as short-term rentals or vacation homes. The new state law says Phoenix has to allow two ADUs on a lot, possibly three depending on the size, and they can be used as short-term rentals. “So the city’s policy focused on housing. The state allowed party houses,” said Mayor Kate Gallego, who pointed out the state law exempts cities and towns with populations less than 75,000. “They exempt Fountain Hills, Paradise Valley, Prescott Valley. Just very disappointing. Phoenix is a city that has embraced diversity, but so many cities that do not have the incredible diversity we do were somehow exempted. I wonder why.”During Tuesday’s City Council meeting, Josh Bednarek, Phoenix’s planning director, was asked about the law’s potential impact.“If you have a particular neighborhood that’s going to see an onslaught of investment in ADUs, certainly the demand on the infrastructure, with the streets, with traffic, with parking, water and se …
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