City Commissioners support 5 foot setback for new Accessory Dwelling Units

The City of Newcastle's Planning Commission convened on May 28, 2025, to discuss critical updates regarding housing development regulations, particularly focusing on accessory dwelling units (ADUs) and design standards for residential properties.

The meeting began with a discussion on the proposed 5-foot setback for residential properties. Commissioner Blocker expressed support for this measure but raised concerns about the overall costs associated with constructing ADUs. He emphasized that while increasing housing availability is essential, the costs of essential services like sewer, water, and power could hinder the development of affordable housing options. He questioned whether the city could implement strategies to minimize these development costs.

City officials responded by clarifying that while the city cannot change utility rates, they are taking steps to reduce costs associated with the permitting process. Notably, the city will eliminate the land use review for ADUs, which is expected to lower both costs and processing times. Additionally, impact fees for ADUs will be capped at half the amount charged for single-family homes, further easing financial burdens on developers.

The discussion also touched on the potential for economies of scale when constructing multiple units simultaneously, which could lead to lower costs per unit. However, officials acknowledged that many factors affecting construction costs, such as building codes, are determined at the state or regional level, limiting the city's control.

As the meeting progressed, the commissioners indicated a consensus on the 5-foot setback proposal, moving closer to a vote on this option. Another topic of discussion involved the recent relocation of design standards to the design code section. Officials clarified that this change would not impose new requirements on single-family homes, as the standards align with existing practices.

The meeting concluded with a sense of progress on the discussed items, with the commission poised to finalize decisions that could significantly impact housing development in Newcastle. The next steps will involve formalizing the proposed regulations and continuing to explore ways to enhance housing affordability in the community.