Chelan addresses state mandate on accessory dwelling units

CHELAN – The city council addressed its agriculture-based short-term rental (STR) code at its Feb. 11 meeting to bring the city in alignment with legislation enacted by the state in 2023.

House bill 1337 relative to accessory dwelling units (ADUs) was passed in July 2023 and is now state law under RCW 36.70A.680.

In response to a housing affordability crisis the new state law addresses the shortage in communities in need of more rental housing across the income spectrum. 

“Many cities dedicate the majority of residentially zoned land to single detached houses that are increasingly financially out of reach for many households,” the bill’s notes said. “Due to their smaller size, accessory dwelling units can provide a more affordable housing option in those single-family zones.”

Community Development Director John Ajax reported on recommendations from the planning commission following a January public hearing. The goal is to rework the code to include home stay options inside the special use district (SUD) that the current code does not allow.

“The whole point of our SUD is to promote these sorts of uses in our commercial and mixed-use zones,” said Ajaz. “Our ag tourism code does not work for this soP we wanted to put his back in to make sure we are fulfilling that comprehensive plan need.”

A stipulation requires a minimum lot size of five acres with an onsite agriculture component. The USDA defines a working farm as one that can demonstrate the ability to produce a crop of $2,000 a year from fully established agriculture. 

“We are looking at uses like vineyards and orchards and not a quick turnaround where someone plants hay overnight,” said Ajax. “It has to be fully established and productive.”

Ajax illustrated several theoretical examples of SUD options including:

• A 10-acre lot would allow one STR along with an ADU. It would include an option to subdivide and split the lot.
• Current code inside an SUD (no STR) - A 10-acre lot in either of the Gateway units north and south of the city, one house and one ADU. Subdividing would allow up to 10 lots requiring 50 percent in open space or active agriculture.

“You could have one ADU currently on each of those lots so a potential of 20 dwellings,” said Ajax. “In 2026 be allowed to have a second ADU, so potentially 30 structures on 10 acres in the north and southwest SUDs.”

• A higher density allowance in the Lord Acres area would permit up to 30 lots with a lower 20 percent open space requirement.

“On each of those lots you could have currently one house and one ADU and in 2026, two ADUs,” said Ajax. “So potentially 90 structures on 10 acres inside the SUD with 20 percent open space. None of those could be used for STRs.” 

Ajax said control measures would regulate the pace of development.

‣ A conditional use permit (CUP) process with public notification to neighboring property owners.

‣ A cap on the number of licenses that could be issued each year.

‣ A cap of five rooms that could be rented between a single-family home and an ADU.

‣ Additional rental units for existing wineries.

“We want to provide monetary incentive to property owners to preserve agriculture as an alternative to full blown development to try to protect some of these areas that are unique to the city,” Ajax said.

He reminded the council of the opportunity to make changes after a public hearing to gather more testimony from the public.

Mike Maltais: 360-333-8483 or michael@ward.media