Wednesday, October 14, 2026
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City unpacks ‘ambiguous’ state housing regulation

by RAY ERKU
Staff Writer | October 14, 2026 1:07 AM

For Idaho state law nowadays, residents can legally create larger guest houses, homeowners don’t need to obtain permits for renting out living spaces, and developers can build entire starter-home neighborhoods on far smaller lots than previous generations.

These are just some of the new provisions that are the result of Senate bills 1352 and 1354, as well as House Bill 583.

On Tuesday, Coeur d’Alene planning and zoning officials spent two hours figuring out just how much control it has left over its own infrastructure and curbside appeal. With a deadline of Feb. 1, 2027, the city is in other words trying to do what it can to implement city zoning amendments to fully comply with new state housing laws.

Taking the lion’s share of Tuesday’s workshop was SB 1354. 

“That one probably has the most questions,” said Hillary Patterson, community planning director. “Because that one is a little bit ambiguous when it was signed into law.”

What went into effect July 1, this piece of legislation bans cities with a population of 10,000 inhabitants or more from prohibiting accessory dwelling units. It also increases the minimum ADU size from 800 square feet to 1,000 square feet or 75% of the primary dwelling.

“We can put a limit on size as long as it’s greater than the minimum,” said City Attorney Randy Adams.

In addition to its main provisions, SB 1354 bars ADU limits being lower than the height of the existing primary dwelling while it rolls back requirements for off-street or guest parking for ADUs.

According to the new state law, the only way Coeur d’Alene can continue enforcing parking standards for ADUs is if the street cannot handle additional on-street parking or similar conditions. This means the city can either still require a parking stall to be created for the ADU or simply do away with the ADU parking requirements altogether.

“I don’t feel like that’s protecting the neighborhoods at all,” P&Z Commissioner Sarah McCracken said.

As it stands, Coeur d'Alene requires one parking space for the ADU plus two spaces for the main house. It also limits ADUs in rear years to 18 feet high and ADUs within the principal building envelope to 32 feet high. An ADU above an attached garage in the rear yard is also currently limited to 24 feet high.

The city will decide whether it wants to limit the height of ADUs in the principal building envelope to match principal dwelling or continue to allow the 32 feet.

“We can imagine we’ll have some serious outcry on that,’ said Patterson.

The city can, however, place limitations on ADU heights in rear yards if it poses safety and firefighting concerns. 

“Safety is the primary factor in the whole thing,” said P&Z Chair Tom Messina.

The city also needs to decide what arrangement it wants to allow: Restricting ADUs within the primary dwelling unit, detached in the rear yard, detached or attached in the principal building envelope or a combination of three. 

Tuesday’s workshop also tackled what regulations the city can regulate when it comes to starter home subdivisions. SB 1352 now prohibits requiring minimum lot sizes exceeding 1,500 square feet while it also prohibits setback front lot width and lot depth regulations.

Traditionally, the city’s lot minimum for starter homes is 3,500 square feet. 

“1,500 is very, very, very, very tight,” said Senior Planner Sean Holm.

Tuesday’s workshop ended with a brief discussion regarding HB 583, which rolls back regulations on short-term rentals, which removes owner-occupancy requirements when an ADU is on the property. It also bars permitting for short-term rentals

“We really have no discretion,” Patterson said. “We literally have to comply with the law.”