Waco officials see accessory dwelling units like garage apartments and detached in-law suites as an affordable source of more housing, and they are considering changes that would allow more to be built.
Waco’s restrictions on ADUs mean they are only common in pre-World War II neighborhoods like Dean Highland and Castle Heights, where homeowners frequently rent them out to tenants. During a recent presentation to the Waco City Council, Waco Planning Director Clint Peters said the structures are a “win-win,” because they are more affordable than the multifamily housing options renters typically have to choose from and they bring in income for homeowners.
“That could potentially be the difference that allows (property owners) to afford a home,” Peters said.
He said about 20% of households nationwide are multigenerational, and ADUs can be a perfect fit for families that want their elders to remain close but still have their own space and independence. He also said the structures are a less expensive way of adding housing units to established neighborhoods that will not require the city to build new infrastructure.
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Peters proposed regulations, including size and siting rules and a requirement that property owners live on site, though not necessarily in the primary dwelling.
Current Waco ordinances classify secondary buildings as “guest quarters” and forbid them from having kitchens. The law does not apply to ADUs built before the law took effect, including the apartment behind Teresa and Greg Newman’s home on Austin Avenue.
Their home was built in 1917 by the Abeel family who purchased and finished Cottonland Castle next door.
Greg Newman said when they bought their home in 2015 the owner already had an incoming tenant ready to rent the building behind the home, a carriage house a previous owner turned into an apartment. Since the first tenant moved in, they have never had a vacancy.
“The house fit our needs,” Newman said. “This was a bonus.”
He said water, sewer and electricity are included in the rent, which ranges from $800 to $1,000 depending on how many people are living in the unit.
One of the regulations Waco officials are considering would limit the number of ADUs to one per lot and limit ADU sizes to less than 30% of the size of the main house, but no smaller than 500 square feet. Peters said the Waco Housing Authority informed him 500 square feet is the minimum size that can qualify for housing vouchers.
“It was important that this opportunity could be afforded to all residential areas, not just people who have large lots,” he said.
ADUs also would have to be set back 10 feet from other structures on the property and would not be allowed in front of the larger home on the lot.
Recommendations also include requiring ADUs to have similar roof pitches and match the main property. For example, an ADU behind a brick house would have to have some brick in its facade, even if it is not 100% brick.
Other requirements would seek to make homes with ADUs “indistinguishable” from others to passersby, including banning secondary access to parking and requiring ADUs to share city utility connections with the primary structure on the property.
Peters said letting homeowners connect an ADU to its own utility connection opens the door for the homeowner to illegally subdivide as though the ADU were on its own lot.
“If you don’t allow separate meters, everything runs through the primary house. … It’s more difficult to plat that off,” he said.
Roy Nash, president of housing nonprofit NeighborWorks Waco, said he is in favor of ADUs as a housing solution, but said the proposed regulations on the roof pitch and facades might be too restrictive.
“If it’s hidden in the backyard, what does it matter, as long as it looks nice?” Nash said.
He also said requiring owners to use the same utility meters for both structures might make building on some lots impossible.
Peters said city planning officials will contact neighborhood associations to help spread the word and offer to give presentations at their meetings on the possible ordinance changes over the next three months. Then, the Waco Plan Commission may hold a public hearing on changing the ordinance in February, followed by a hearing at a March Waco City Council meeting.
If Waco moves to allow new ADUs fully equipped to serve as residences, it will be following in the tracks of other Texas cities and taking lessons from their experiences.
Caleb Norris, a zoning compliance officer with the city of Denton, said the Denton City Council in 2019 made the city’s ADU regulations less restrictive.
“To my knowledge that was born out of a desire from our citizens to be able to do this,” Norris said. “There was a vocal contingent that wanted more availability. Part of it was driven for affordable housing, and I’m sure part of it was driven by ‘I like to make money off of my property.’”
Scott McDonald, Denton’s director of development services, said his department has been working to tweak the new ADU regulations since they took effect. One builder began constructing homes with ADUs and renting out both without living on site, which Waco City Council members took issue with. One change Denton is considering would limit properties to one mailbox each.
McDonald said Denton allows ADUs to have separate electric meters but not separate water or sewer connections.