Accessory Dwelling Units in Norwich, VT Presented to the Norwich Planning Commission Emily Schneider and Paulomi Rao This report was written by undergraduate students at Dartmouth College under the direction of professors in the Rockefeller Center. Policy Research Shop (PRS) students produce non-partisan policy analyses and present their findings in a non-advocacy manner. The PRS is fully endowed by the Dartmouth Class of 1964 through a class gift in celebration of its 50th Anniversary given to the Center. This endowment ensures that the Policy Research Shop will continue to produce high-quality, non-partisan policy research for policymakers in New Hampshire and Vermont.

Background ADUs are small, fully functional housing units on the same lot as a larger primary residence. Can be attached to the primary residence or a separate building. Must include fully functional kitchen and bathroom

Methodology Literature Review: Review existing research on ADUs Stakeholder Interviews: Speak with local experts to gain insight on the situation in Norwich. Case Study Analysis: Examine four cases of ADU development to learn the benefits and drawbacks of ADU use.

Major Barriers to Development Zoning Regulations ADUs are required to undergo conditional review. NIMBYism Lack of resident buy-in can impede ADU uptake. Discontinuous Renting and Short Term Rentals Homeowners frequently stop renting their ADUs. High nightly rates can lead to the exclusive use of ADUs as short term vacation rentals.

Major Barriers to Development Safety and Utilities Smoke and carbon monoxide detectors are required with an additional permit The lack of a central waste treatment system Old septic system infrastructure is often quite challenging to replace and requires significant construction Affordability Lack of available information regarding costs, procedures, and guidelines regarding renting may deter homeowners Taxes There are no tax exemptions that would incentivize homeowners to build an ADU

Case Studies: Lexington, MA Town Information: Population: 33,000 Median Household Income: $150,000 Known for high quality schools, which are a driver of housing demand and high home prices. ADU Development: Allowed ADUs in 1983 Bylaws relaxed in 2005 Emphasis on Accessory Apartments Today there are 99 ADUs in Lexington. However, lack of education has led to little awareness of ADUs.

Case Studies: Lyons, CO Town Information: Population: 2,000 Median Household Income: $90,000 Recently had a major flood that damage affordable housing stock. Located 30 minutes from Boulder, where most residents work. ADU Development: 2013 town ordinance allowed for ADU development 2016 waiver for utility connection fees passed in conjunction with a ban on short term rentals. Today there are 60 ADUs in Lyons. There is ongoing discussion of expanding ADUs and issues of affordability.

Case Studies: Brattleboro, VT Town Information: Population: 11,487 Median Household Income: $44,359 Steep topography has resulted in closely packed houses and buildings, giving the town a semi-urban atmosphere, despite its small size ADU/Development: Reaction to National Low Income Housing Coalition report that VT resident would need to work 1.7 jobs to afford housing and high “housing wage” BAAH offers both technical and financial assistance to homeowners Town encourages flexible zoning practices that allow for 50 new ADUs

Case Studies: Portland, OR Town Information: Population: 650,000 Median Household Income: $61,532 The 21st century community hub has attracted many young professionals leading to significant increase in population and rising home prices ADU/Development: In 2010, Portland significantly reduced municipal fees and shifted the city’s zoning codes Tackled issue of short term and discontinuous renting in 2018 by stating “any structure that benefit from the fee exemption could not be rented on short term rental sites” Provided more housing in the city, but the role of ADUs as affordable housing is still unclear

Main Findings ADUs have increased housing stock, they have not succeeded as affordable housing options ADUs can rent at market rate, out of reach of low-income residents in need of affordable housing ADUs may not be affordable option for families Successful municipalities who have tried to implement ADUs were generally successful, and often relied on similar policies: Waiving of utility connection fee Loosening zoning restrictions Providing technical support for construction Providing financing options for prospective ADU owners

Moving Forward Officially waive the conditional review process for ADU construction. Educate residents and provide information on ADU development. Waive utility connection fees. Educate homeowners on the process of renting. Assist residents in expanding or updating septic systems. Provide and support financing opportunities.