Lewes approves legal accessory dwelling units

Lewes city leaders have been aware that illegal accessory dwelling units exist.

Now, mayor and city council have taken them out of the shadows and made them legal in an attempt to create affordable workforce housing within city limits.

They also see ADUs as an option for older residents to age in place.

Mayor and city council approved the ADU ordinance 4-1 Sept. 9.

The Lewes Planning Commission’s Housing Subcommittee worked on drafting the ADU ordinance for more than a year. LPC recommended its approval.

“This is not a silver bullet to achieve workforce housing needs our community has, but I believe it is a good tool for workforce housing and for folks who can age in place,” said Khalil Saliba, Lewes deputy mayor.

The Delaware State Housing Authority’s 2023 Housing Needs Assessment said that the state is more than 19,000 affordable units short to accommodate demand, according to the ordinance.

The Lewes ordinance defines an ADU as an attached or detached unit such as a garage or guesthouse on the same lot as the principal structure.

A property owner must meet the following requirements to be approved for an ADU:

• Owner must live on premises in either the principal or accessory unit

• Unit must be a long-term rental of at least 12 months

• Unit must include cooking, sleeping and sanitation facilities.

The city will exempt ADUs from the gross rental receipts tax if the owner complies with what the city has identified as affordable rents: efficiencies, maximum $1,200 per month; one bedroom, maximum $1,200 per month; two bedroom, maximum $1,400 per month.

The number of ADUs is capped at 40 for the first year to assess how the ordinance is working. There is no limit after that.

Mayor Andrew Williams said the city believes most of the first applications will come from owners of existing ADUs who want to become legal.

Councilman Tim Ritzert voted against the ordinance. He said it is a matter of protecting individual property rights.

“We’re putting at risk the people in this city who made the decision to buy homes in the historic district, in R-2, wherever they bought, with the understanding of what they are buying. Now, we’re upsetting that balance, and I think that’s very consequential,” Ritzert said.

Williams disagreed with Ritzert’s opinion.

“Cities are organic. Cities change with changing needs. If [buyers] wanted assurances that they would be protected, they could have bought in a community with an HOA,” Williams said.

The Lewes Board of Public Works voted unanimously at its Sept. 25 meeting to accept the ordinance’s provision that an ADU may use the same sewer and water service, and meter as the principal home.

Council had discussed the possibility that BPW might require additional service and a new rate structure to address ADUs.