MEMO. Board of County Commissioners. FROM: Community Development Department Staff. DATE: January 16, Efficiency Homes (AKA Tiny Homes)

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1 MEMO TO: Board of County Commissioners FROM: Community Development Department Staff DATE: January 16, 2017 RE: Efficiency Homes (AKA Tiny Homes) BACKGROUND Tiny homes have garnered a significant amount of national attention in the past few years and their popularity appears to be growing mainly due to what is perceived as a lifestyle choice. This lifestyle choice is reflected in both a reduction of overall of size and/or footprint associated with a larger home as well as home affordability and overall cost for maintaining a home ultimately it is about having additional choices for housing types. Some of the drivers for the Tiny Home movement include some long-term housing trends as follows: The average home size in the U.S. increased 61% since 1973 to over 2600 square feet. In that time period the average household size decreased, leading to a 91% increase in home square footage per inhabitant (1000 SF per person) (source: US Census Bureau). The average house in the U.S. uses approximately 17,300 board feet of lumber and 16,000 square feet of other wood products. A 200 square foot tiny house uses only 1,400 board feet of lumber and 1,275 square feet of additional wood products. The lifetime conditioning costs can be as low as 7% of a conventionally sized home. National home ownership fell to 63.7% in 2015, the lowest level in two decades. Increased housing cost is cited as the main reason for low ownership rate. (source: Joint Center for Housing Studies (JCHS) at Harvard University) The average home in the United States costs approximately $358,000 to build, an increase of roughly $200,000 since 1998, whereas the average annual income in the United States has remained unchanged for the last several years, lingering near $52,000. (source: US Census Bureau) The average American spends roughly 27% of their annual income on housing (nearly 11 hours of every 40-hour work week). 48% of households making less than $30,000 annually pay more than half of their income on housing, leaving these households less than $15,000 a year to purchase food, health care, education, clothing, and anything else. (source: JCHS) The cost of new construction for a 200 square foot tiny house can be as low as $35,000. A typical down payment on an average-sized house is $72,000, more than twice the full cost of a tiny house (IRC public comment). 1

2 Cities can benefit from tiny house ordinances. With significant need for affordable housing, cities are hard-pressed to find solutions that quickly expand their low -income housing stock without burdening an already burdened system. Tiny houses can be quickly installed in municipalities and set up at little or no cost to the cities (IRC testimony). With the increase of interest in these unit types, comes a significant amount of inquiry to the County about if and where people may be able to live in one of these units. There is no set definition for a tiny home, however they are generally units ranging in size from 200 square feet to 1,000 square feet. Because of their small size, a typical tiny home (generally consider a home under 500 square feet) may be of a dimension that can be transported (or towed) by a standard full size truck (e.g. Park Model) while a larger unit (generally ranging from 500 to 1,000 square feet) may be transported on a flatbed trailer or by its own chassis. The IRC is considering a definition of tiny home as a dwelling 400 square feet or less. Because of the variation in size and building type, for the purpose of this memo, we have generally characterized and called these units Efficiency Homes. Most Efficiency Homes are manufactured off-site (though many are on-site stick-built), which generally offers a level of affordability that may not otherwise be available in a traditional site built home. Though there is a great deal of variation in the costs associated with the units (some pre-fab homes can rival or exceed a stick-built home). While Efficiency Homes are used for all types of purposes, such as primary and accessory dwelling units, vacation rentals, artist studios and lodging such as a cabin, the focus of this memo is to explore the regulations surrounding using these types of units as permanent dwelling units. Examples of Tiny Houses on Wheels and on a Foundation CURRENT COUNTY REGULATIONS In reviewing the County s Land Use and Development Code (LUDC) the one location in the code that precludes the construction or use of an Efficiency Home within the County is the dimensional standard that requires a dwelling unit to be a minimum 20 feet long by 20 feet wide. Article 15 of the LUDC defines a Dwelling Unit, Detached as the following: A single-unit dwelling at least 20 feet wide and 20 feet long, and that meets the Building Code. It is generally understood that the 20 feet wide and 20 feet long dimensional requirement was codified as a traditional part of land use regulations across the country (including Garfield County) for jurisdictions that did not wish to see the proliferation of single-wide mobile homes in traditional single-family lot 2

3 subdivisions. This was historically seen as a method for preserving home and property values. The most common dimension for a single wide is 15 feet wide by 72 feet long. As this definition requires that single unit dwellings be at least 20 feet by 20 feet ( 20x20 ), the County currently does not permit any units that do not meet these dimensional requirements which has the effect of excluding many Efficiency Homes from the County s housing stock as well as single-wide mobile homes. In addition, the 20x20 standard requires that a home be at least 400 square feet in size many tiny homes fall below this threshold. While this requirement still allows for what some would consider small homes, it does not allow for what is broadly called a tiny home. In addition, because the structures are required to be 20x20, off-site construction is more difficult and costly since units are not easily transported in a single component. According to DOT and FHA standards, the maximum width of a unit can be 8 feet 6 inches before it requires a wide load permit. In general, widths over 15 feet wide are not allowed without lane closures and more complex permitting requirements for transporting the unit. It is important to note that the International Residential Code (IRC), as currently adopted would continue to be applicable to all dwelling units (tiny, small, Efficiency, McMansion or otherwise) and staff would not recommend deviating from the adopted IRC as the code generally provides for basic design standards related to life, health and safety. As such, the IRC requires certain dimensional standards as well as the provision of specific amenities that would need to be incorporated into any dwelling unit. For example, the IRC requires the following in order for a structure to be a permitted dwelling unit: Must have a foundation. Must have a kitchen with a sink. Must have a toilet, lavatory, and a bathtub/shower and must have running hot and cold water. Must be hooked up to a sanitary sewer or approved On-site Wastewater Disposal System. The bathroom needs to be a separate room of roughly 5 feet by 5 feet with a door. Must have one habitable room of 70 square feet (kitchen may be a part of this room) with a minimum dimension of 7 feet in any horizontal dimension Minimum ceiling height of 7 feet. Must have a smoke alarm. Any stairs to a second floor sleeping loft must be Code compliant (not just a ladder). Must be a heated structure. It is worth noting, however, that the Code Council is currently considering incorporating an appendix addressing tiny homes as part of the forthcoming 2018 IRC. The draft of the IRC code appendix defines Tiny Homes as a dwelling less than 400 square feet and addresses issues such as anchoring, minimum ceiling heights, habitable room dimensions, lofts, ladders and emergency escape and rescue openings. Staff would anticipating reviewing this appendix when it is adopted and making a recommendation to the Board regarding adoption of this appendix. Other Jurisdictions Regulations Garfield County is not alone in examining its regulatory structure as it relates to permitting Efficiency Homes. Other jurisdictions have similar regulations though most have historically had minimum dwelling unit sizes. A few examples of jurisdictions that have moved to allow/permit some form of tiny houses are outlined as follows: 3

4 Washington County, Utah (St. George). The minimum home size of 800 square feet was removed. All units must be on a foundation, hooked up to utilities, and meet the building code. Considered RV if on wheels. Town of Spur, Texas. No minimum house size. All units must be on a foundation, have a flush toilet, and receive a permit for electrical and structural safety. Considered RV if on wheels. Chaffee County, Colorado. No minimum house size. All units must be on a foundation, have water and sewer, and meet the building code. Considered RV if on wheels. City of Salida, Colorado. Permitted in limited zone districts with a Conditional Use Permit. All units must be on a foundation, hooked up to utilities, and meet building code. Considered RV if on wheels. WAYS TO PERMIT EFFICIENCY HOMES IN THE LAND USE AND DEVELOPMENT CODE Should the Board wish to allow for Efficiency Homes in unincorporated Garfield County, the most simplistic approach would be to modify the dimensional size requirements (20x20) for a dwelling unit. Removing that requirement would result in the following changes to Article 15 of the Land Use and Development Code: Dwelling Unit, Detached. A single-unit dwelling at least 20 feet wide and 20 feet long, and that meets the Building Code. Staff would also note that modifying this dimensional standard would allow for a wide array of different types of homes, ranging from the architecturally pleasing modern pre-fab home to a single wide mobile home, so long as the unit met the IRC or were an otherwise approved HUD/CO. Division of Housing structure. If this modification was made to the definition of a dwelling unit, these types of units would be allowed in all residential zone districts and most other (nonresidential and resource lands) zone districts within the County, as provided in Article 3 of the Land Use and Development Code. REQUESTED DIRECTION TO STAFF With the continued interest in Efficiency Homes paired with the County s ongoing problem of affordable and attainable housing, Staff is looking for direction from the Board on whether to pursue a Land Use and Development Code Text amendment to permit Efficiency Homes in some fashion. 4

5 Generally, Staff sees two options for consideration. Either: Maintain current regulations to require a dwelling unit to be at least 20 feet by 20 feet in size, or Remove (or otherwise modify) the dimensional requirements of 20 feet by 20 feet. Should this dimensional requirement be removed or modified, the Board should consider if additional standards such as site design, unit design, minimum unit size and others may be appropriate. As well as if dwelling units should be an allowable use (with or without review) within the industrial zone district. Staff would like direction in regard to initiating a land use and development code text amendment and/or any standards that should be contained therein. 5