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San Antonio leaders want more casitas, but the tiny homes have sparked a big debate

City leaders want to encourage more homeowners to build 'in-law suites' in their backyards, but they've not yet decided how to incentivize construction.

SAN ANTONIO — City leaders want to make it easier for San Antonio homeowners to build casitas in their backyards, but policymakers aren't yet sure how to incentivize construction without inviting problems. 

Mayor Ron Nirenberg and others say the small homes, sometimes called in-law suites, could be key to adding affordable housing options. Homeowners could rent out the facilities to help offset higher property taxes, too.

To encourage residents to build casitas on their lots, San Antonio leaders have proposed loosening regulations governing accessory dwelling unit (ADU) construction. 

Next week, council members will debate ordinance amendments which would allow for larger suites, higher occupancy, and remove some design requirements. 

The proposal would also allow homeowners to add unique utility meters to the casita, separating a key monetary relationship between the two buildings on the same property. 

Some council members and dozens of neighborhood associations fear some of the relaxed rules will encourage investors, not friendly neighbors, to buy up properties and erect smaller dwellings. 

"(Casitas) are a building block," said Bianca Maldonado, a founding member of the Tier One Neighborhood Coalition. "But as we add more, there needs to be some caution to ensure we protect the integrity of a community." 

Investors bought nearly half of all the homes sold in Bexar County in 2021, up from 11 percent in 2020, according to a National Association of Realtors report. 

A homeowner cannot currently rent out a casita unless he or she lives on the property. Maldonado says that policy is ill-enforced. 

She says she worries companies would buy properties and cram tenants onto one lot, while skirting city regulators' scrutiny. She also warns that relaxed design requirements might allow property owners to drop modular homes or shipping containers in their backyards. 

District 9 councilman John Courage expressed similar concerns.

"It would be opportunistic for someone to buy a home as an investment, then... add a little home in the back," he said. "If they're buying it as an investment, then they're out to make money on the home they buy and the home they build."

"The owners only cares about one thing: making a buck," he continued. "He does not care about the neighborhood. He does not care about the people in the community."

Courage worries some investors would let the casita as a short-term rental unit, like an Airbnb.

"Too often, many of these short-term rentals are misused," he said. "They become party houses." 

Courage made clear that he supports incentivizing homeowners to build more casitas. He says he wants city officials to create a detailed enforcement plan, which could include adding staff to ensure property owners live where they're supposed to. 

He also advocated for a registry that would allow city officials to better track casita owners. 

Other council members have lobbied for waving some fees to incentivize construction instead of relaxing certain construction rules. 

Council is scheduled to consider amending its ADU ordinances on Nov. 3.

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