A bill for an act relating to county and city regulation of accessory dwelling units. (Formerly SSB 1182.) Effective date: 07/01/2025.

Homeowners gain extra housing options with limits

Beginning July 1, 2025, Iowa cities and counties must allow at least one extra home on a single-family home's lot. This accessory dwelling unit can be attached or separate. Its size limit is 1,000 square feet or half the main home's size, whichever is larger. Building rules still apply, and historic-code restrictions, deed restrictions, and common-interest-community rules can still limit or block it. Local governments cannot impose the prohibited stricter placement or appearance rules, require owner occupancy, or restrict occupants based on family ties, marriage, employment, income, or age. Rental rules cannot be stricter than state landlord-tenant law or local rules for single-family homes. Local governments cannot require extra parking, accept payments instead of parking, or impose different impact fees or development standards. They also cannot demand street or sidewalk improvements beyond those required for the main home. Separate utility lines cannot be required unless full separate metering for billing cannot be provided. Applications meeting state and building requirements must receive approval without discretionary review or hearings, on the normal single-family permit timeline. Written denials must explain the reason and any remedy needed for approval. A manufactured or mobile home must have a permanent foundation, be converted to real property, and be assessed for real estate taxes. Conflicting local rules are void, but cities and counties can allow more generous options. Local rules for common-interest communities cannot be stricter than those for single-family homes. These changes open more housing and rental options but do not guarantee rental income.