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Accessory Apartments — Partial Cure for Affordable Housing Shortage?
By John Donaldson

Did you ever think of creating an accessory apartment in your dwelling or your garage as a source of extra income to help pay your property taxes and other expenses, or to create living space for a caretaker or relative, or for some other reason? If so, the Vermont legislature and the Valley towns have made it easier for you to do so and this could help alleviate the shortage of affordable housing in the Valley. An accessory apartment is an efficiency or one-bedroom apartment in a single-family dwelling that has facilities for independent living, including sleeping, bathroom and kitchen facilities.

In 2004, the Vermont Legislature made a significant number of amendments to Chapter 117 of the Vermont Municipal and Regional Planning and Development Act that became effective on September 1, 2005. This is the statute by which Vermont towns are given the authority to enact zoning ordinances, among many other things. With the stated purpose of promoting affordable housing, this amendment prohibits towns from having zoning ordinances that excluded accessory apartments in any part of the town. The state has set minimum thresholds, but towns can be more permissive than state law.

What these statutory changes mean for local zoning ordinances is that accessory apartments must be a “permitted use”, as long as: 1) the property has sufficient wastewater capacity, 2) the accessory apartment does not exceed 30 percent of the total habitable floor area of the single-family dwelling, and 3) all applicable setback, coverage, and parking requirements are met. “Permitted use” generally means that the local permitting board, such as a Development Review Board or Zoning Board of Adjustment, does not require an applicant to go through an application and hearing review process. If the applicant meets all the relevant conditions, the local zoning administrator will issue the building permit for an accessory apartment. Under the statutory changes, local zoning ordinances may only require a “conditional use” review process (i.e. an application and hearing) if: 1) a new accessory structure is to be built, 2) there would be an increase in the size of the existing dwelling, or 3) there is an increase in the dimensions of the parking area.

Fayston, Moretown, Waitsfield and Warren have all amended their zoning ordinances to comply with the Chapter 117 amendments. Some towns have made their accessory apartment provisions even more permissive than the state requires. Warren, Waitsfield and Fayston do not require either the principal dwelling or the accessory apartment to be owner-occupied. Warren has gone the furthest and removed any size limitation on the accessory apartment.

Even with the changes discussed above, creating an accessory apartment can still be a somewhat complicated process to navigate. There are many other items to consider, such as a building permits, adequacy of the septic system or public sewer, design, construction, financing, leases, and the state fire safety requirements and Rental Housing Health Code. These items are outside the scope of this article.

However, the Mad River Valley Housing Coalition wants to help. This group has recently been reconstituted with many new members and a mission to take action to increase the availability of affordable housing in the Valley. The MRVHC is in the initial stages of planning an education and assistance program to help people create accessory apartments. More information will be available in the near future. In the meantime, if you think you are a good candidate for creating an affordable apartment and would like some help, contact Linda Lloyd, 496-7173 or mrvpd@madriver.com.