On Thursday night, the Tempe City Council passed a resolution that makes it easier and more affordable to build a backyard casita, officially known as an Accessory Dwelling Unit (ADU).
These detached secondary homes can be used to house extended family members, support aging-in-place, or create a small rental unit for supplemental income.
The new resolution waives the initial plan review fee—worth more than $2,000—for the upcoming, pre-approved ADU designs, as determined through the City’s ADU Design Competition.
This is the first time Tempe is offering a library of ready-to-use ADU designs directly to the public with cost savings built in. The fee waiver is part of a broader effort to reduce barriers and support more flexible and affordable housing options in Tempe.
How much can you save with a standard plan?
Tempe’s ADU Design Competition is designed to help homeowners move forward with confidence and without breaking the bank.
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No Plan Review Fee – Save Over $2,000!
Normally, plan review fees make up 65% of the total building permit cost. For a $200,000 project, that’s a direct savings of $2,182.74.
Total potential savings: $10,000 or more.
Designers retain ownership of their plans, but license them to residents at a fixed, affordable rate.
“Tempe is thinking creatively about housing,” said Tempe Mayor Corey Woods. “These standard ADU plans will help residents add flexible, sustainable homes to their properties while saving time and money. It’s a smart solution that supports our community.”
What makes a great ADU design?
The Tempe ADU Design Competition will be open to architects and designers interested in contributing high-quality, ready-to-use backyard home plans for the community. Designers are invited to submit creative, efficient, and versatile ADU concepts that meet Tempe’s zoning and building standards.
Up to 10 designs will be selected by a panel of local professionals and community members, based on the following criteria:
Details on the ADU Design Competition will be available in the coming weeks.
Tempe is also pursuing potential grant funding to support this effort and encourage strong design participation.
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What’s next?
Aug. 18–29: Residents will get to vote on their favorite designs.
This fall: Final designs will be posted in Tempe’s online plan library.
Residents who use one of the selected plans will receive a waiver on their plan review portion of the permit fee (unless it’s a custom plan). Remaining portion of the building permit fee is then paid.
Note: applications for an ADU also require a site plan permit, and likely a grading & drainage permit.
Visit tempe.gov/ADU to learn more about the competition, the design process and how you can benefit from this new program.
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