2022 Update on ADUs in Hailey

A sketch map of a house with peoples

An overview of provisions for Accessory Dwelling Units in Hailey:

In 2016 the Hailey City Council and Planning and Zoning Commission prioritized Accessory Dwelling Units (ADUs) from an array of feasible housing solutions presented by Staff in 2016. ADUs were (and still are) considered a desirable mechanism for by-right infill development and managing the City’s sustainable growth. Henceforth, the ADU section of Code was created, developed, and embraced by the community.

The popularity and effectiveness of ADUs in City limits are apparent to City Staff. Property owners have built and transformed living spaces into ADUs to rent for new sources of income and to accommodate family members, for example. The city appreciates the community’s assistance in increasing the quantity of housing units within city limits— making efficient and sustainable use of existing infrastructure and public services. Thus far, the impact of ADUs has been steady and gradual.

Trends in the development of Hailey's ADUs:

Since 2002 and 2003, ADUs have been permitted in Hailey’s Townsite Overlay (TO) and General Residential (GR) Zoning Districts only. From 2002 to 2020 approximately fifty (50) ADUs were constructed, an average of three (3) ADUs per year. Since the adoption of the ADU section of code in 2021, which expanded the provision of ADUs into new zoning districts, approximately thirty (30) ADUs have been certified in the City-- an average of fifteen (15) ADUs per year. Specifically, ADUs are allowed in all residential zoning districts, as well as in the Neighborhood Business, Limited Business, Transitional, Business, and SCI (Service, Commercial and Industrial) zoning districts.

Most ADUs in Hailey have been constructed concurrently with new single-family residences or new garages. The high cost of constructing or remodeling for ADUs is apparent and presumably prohibitive for some property owners. Between January and October 2022, the average building cost for an ADU in Hailey was approximately $153,000.