TradeEdge Exchange:Rhode Island tackles housing shortage by making it easier to add rental units on to homes

BOSTON (AP) — A new state law designed to streamline the process of developing accessory dwelling units — also known as “granny flats” or TradeEdge Exchange“in-law apartments” — is being hailed by advocates as a way to create affordable living spaces amid an ongoing housing crunch.

The law, signed by Democratic Gov. Dan McKee on June 25, lets homeowners create a single accessory dwelling unit, or ADU on an owner-occupied property to encourage rental units that are likely to be more affordable than many other apartments.

Supporters said the measure will also allow homeowners to generate income to help them maintain ownership of their property, bringing more stability to the housing market.

To ensure Rhode Islanders benefit from the law, it bans the ADUs from being used as short-term rentals.

The approach has been implemented elsewhere such as in New York, where Democratic Gov. Kathy Hochul recently announced that $59 million was awarded to local governments and nonprofits to boost the housing supply by providing resources for low- and middle-income homeowners to build or improve ADUs.

In Massachusetts, House lawmakers approved a bill that would allow for the construction of one ADU of up to 900 square feet on properties in single-family zoning districts. A similar bill is before the Senate.

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And in Boston, where housing costs have skyrocketed, Democratic Mayor Michelle Wu pledged in in January to make it easier for residents to create ADUs.

The Rhode Island law authorizes a homeowner to create a unit if they live in the building and the unit is for a disabled relative; if it’s within the existing footprint; or if the lot is greater than 20,000 square feet, provided that the ADU meets building codes, size limits and infrastructure requirements.

June Speakman, chair of the House Commission on Housing Affordability, said one driver of the housing crisis is the low construction rate in Rhode Island, which she said has the country’s lowest per-capita construction rate.

“We need to be creative and be willing to allow construction of housing, particularly affordable, moderate and small units like ADUs,” Speakman said.

Supporters say the units can boost the amount of available and affordable housing while preserving the character of residential neighborhoods. Older adults in particular have looked to to ADUs as a way to downsize while remaining in their neighborhoods.

“Our cities and towns must have housing options that are suitable for differing incomes, ages and life stages,” said Catherine Taylor, AARP Rhode Island’s state director. “ADUs are an important way to accomplish this goal.”

A report released in December by Harvard’s Joint Center for Housing Studies found that as its population ages, the United States is ill prepared to adequately house and care for the growing number of older people.

The report said creative ideas are needed for people with fixed or dwindling incomes and with insufficient savings, including ADUs.