Omaha opens door to more accessory dwelling units, aka mother-in-law houses (2024)

Older people trying to stay in their neighborhoods as they age and younger people searching for an affordable house could have more options under an ordinance approved by the Omaha City Council on Tuesday.

The ordinance changes Omaha zoning regulations to allow accessory dwelling units citywide and to streamline the city processes for approving them. An accessory dwelling unit is an additional small house or apartment set on a single-family residential property.

Omaha has had them for generations. Examples include carriage houses, apartments above garages and mother-in-law houses in which aging parents lived in smaller digs while their children raised families in the main house.

Now, city planners and other proponents see building more such residences as one way to address a critical shortage of affordable housing in Omaha. They changes in zoning code approved Tuesday were the first recommendation to be acted on from the city’s Housing Affordability Action Plan, which the council adopted in December 2022.

“We need 30,000 affordable housing units by 2030 just to start making a difference,” City Council President Pete Festersen said. “(The ordinance) provides for smaller residences that are more affordable, using our current infrastructure. It will provide accessible options for seniors and families in particular. And I think there’s an environmental benefit as well to increasing density as part of that effort.”

AARP Nebraska joined a number of real estate developers and homebuilders in supporting the zoning changes. The council voted 7-0 to approve the ordinance.

“Accessory dwelling units alone will not solve the city’s housing shortage, but they do represent an important family-friendly and age-friendly housing option,” AARP Nebraska State Director Todd Stubbendieck told the council. “Older adults may choose to have an ADU that can either house a family member or other caregiver. Likewise, a family may have an ADU that houses an older relative.”

In both cases, he told the council, the accessory dwelling unit provides an opportunity for the older adult to age in place.

City Planning Director Dave Fanslau said people whose children have grown may want to move out of their houses but stay in their neighborhoods. More accessory dwelling units could give them that option. And that could make more houses available for people to buy in established neighborhoods.

The units also could be rented out. Proponents say that could make housing more affordable because homeowners could have an income-producing property on their lot.

Omaha real estate agent Ron Rubin said he thinks the changes are good. But he wonders whether they’ll help create more affordable housing, or just lead to more Airbnbs and other short-term rentals.

“The city allowing this is a smart idea,” Rubin said. “But I also look at it that you want to make sure that it’s going to meet the needs of working people it’s designed for rather than just a way to generate more income.”

The code will allow no more than one accessory unit per residential lot. They can be rented, but not sold separately from the primary residence. They will have to conform to city regulations, including on setbacks and height.

In neighborhoods zoned for fairly dense residential use, people who want to build accessory dwelling units can do so with Planning Department approval. They won’t have to go through the more extensive process of getting City Planning Board approval.

In neighborhoods zoned for less density, people will still have to go through the Planning Board. That will give neighbors a chance to weigh in publicly with concerns.

Council Vice President Aimee Melton said Tuesday she has heard concerns from constituents, particularly in neighborhoods zoned for less density. She asked Fanslau to provide a list of applications as they come in so the council can track what’s being built and see if they need to amend the zoning code in the future.

People who want to build the units may be able to use designs that have preapproval from the city, saving weeks of permit review time and costs of having to hire an architect for an individual design. AARP sponsored a competition last year for designs. The city is reviewing the winners for potential preapproval.

The City Planning Department also is working on a website explaining the new regulations.

The previous code was “clunky and not very good,” Fanslau said.

“Now that it’s refined, we hope people will be lining up,” he said.