Tempe City Council passed a resolution on April 10 that makes it easier and more affordable to build a backyard casita, officially known as an accessory dwelling unit. 

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, a city release explained.

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, the release detailed.

Tempe’s ADU Design Competition is designed to help homeowners move forward with confidence and without breaking the bank. It includes:

• No plan review fee, saving up to $2,000 in total building permit costs;
• Lower design costs with fixed prices of up to $2,000;
• Faster permitting with pre-approved plans.

With the ADU Design Competition, the total potential savings could equal $10,000 or more, and designers retain ownership of their plans but license them to residents at a fixed, affordable rate. 

Tempe Mayor Corey Woods said in the release that Tempe is thinking creatively about housing, and these plans are a smart solution that supports the community.

“These standard ADU plans will help residents add flexible, sustainable homes to their properties while saving time and money,” Woods said.

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, according to the release. 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: 

• Aesthetics & Architecture – High-quality design that fits Tempe neighborhoods 
• Cost to Construct – Efficient use of materials to keep projects affordable 
• Sustainability – Smart energy and water-saving features 
• Context & Versatility – Designed to work on a variety of lot shapes and sizes 
• Accessibility – Inclusive designs that support aging in place and multigenerational living 

Details on the ADU Design Competition will be available in the coming weeks, the release stated. Tempe is also pursuing potential grant funding to support this effort and encourage strong design participation. 

Looking ahead, residents will get the chance to vote on their favorite designs from Aug. 18 to Aug. 29. Final designs will be posted in Tempe’s online plan library this fall, according to the release.

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). The remaining portion of the building permit fee is then paid. 

Visit tempe.gov/ADU for more.