Housing

SF 645 is an appropriations bill that allocates state funds to support economic development programs in Iowa. It provides funding to the Economic Development Authority, Iowa Finance Authority, Department of Workforce Development, and the State Board of Regents and their institutions. The bill also extends the end date for the Housing Renewal Pilot Program, allowing it to continue operating beyond its originally scheduled termination.

This bill mandates that counties and cities in Iowa must allow at least one accessory dwelling unit (ADU) on lots with single-family residences. It directly affects property owners by standardizing and simplifying the process of building ADUs, and local governments by limiting their regulatory authority. The legislation sets statewide parameters, such as allowing ADUs up to 1,000 square feet or 50% of the main house, whichever is larger. It prohibits local ordinances from imposing overly restrictive rules on aspects like design, parking, owner-occupancy, or separate utility connections. Furthermore, it requires local governments to approve compliant ADU permits without discretionary review, following the same timeline as single-family home permits.