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Restricted-Affordable ADUs for Acre+ Lots

Arizona HB 2720 lets 1-acre Scottsdale homeowners add a second, smaller ADU—max 500 sq ft—as long as the unit is deed-restricted for affordable housing or family occupancy. We navigate the extra deed language and rent caps so you stay compliant and profitable.

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Download the ADU Compliance Checklist

  • Lower impact fees, perfect for caregiver housing, boosts resale on luxury properties.

Benefits

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  • Highlight 1-bed 480 sq ft plan, 5-ft max side/rear setbacks.

Compliance Checklist Highlights

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Turnkey from $140k, ROI through stable 80 % AMI rents.

Pricing Guidance

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Explore our full ADU services →

Process Timeline (Short List)

  1. Acre-Lot Eligibility Check (Day 1)
    • Verify the parcel is ≥ 1 acre and outside airport-influence overlays.
    • Confirm the main home already meets parking and utility capacity requirements.

  2. Concept Plan + Affordable-Rent Pro-Forma (Week 1)
    • Draft a 500 sq ft 1-bed layout and a quick cost vs. rent analysis capped at ≤ 80 % AMI. azleg.gov

  3. Deed-Restriction Draft & City Pre-Application (Week 2)
    • Prepare the deed language that limits tenancy or rent.
    • File the sketch with Scottsdale’s One-Stop Shop for an early zoning nod.

  4. Permit Submittal & Deed Recording (Weeks 3 – 5)
    • Submit full plans + the signed deed; Scottsdale’s target review is 10 days administrative + 21 days substantive for “all other” residential plans. scottsdaleaz.gov
    • Record the deed with the Maricopa County Recorder before the permit is issued.

  5. Site Prep & Vertical Build (Weeks 6 – 12)
    • Shallow foundation, framing, MEP rough-ins, exterior envelope—all under Got Ur Six’s 90-day guarantee.

  6. Compliance Sign-Off & Tenant Screening (Weeks 13 – 14)
    • Final inspection → certificate of occupancy.
    • File the city’s affordable-housing affidavit, then lease to an income-qualified household.

Book compliance briefing

FAQ's

  1. How does the deed restriction work? Scottsdale records a permanent deed restriction (or development agreement) that runs with the land. It requires the unit to be rented only to households earning ≤ 80 % of the Area Median Income (AMI) or to qualifying family members. Any future buyer must accept and abide by the same restriction. azleg.gov

  2. How do I calculate the maximum legal rent? Start with HUD’s current 80 % AMI figures for Maricopa County (e.g., $52,400 for a one-person household in 2025). Thirty percent of that income is the annual housing cost ceiling—divide by 12: roughly $1,310 /mo for rent plus utilities. Keep your lease at or below that figure and adjust each spring when HUD publishes new limits. maricopa.gov

  3. Does the restriction ever expire or need renewal? The restriction is indefinite unless the city sets a specific term (many jurisdictions choose 30 years). Compliance is verified through an annual affidavit you submit to Scottsdale showing tenant income certification and the current rent amount. Selling the property automatically transfers the obligation to the new owner. azleg.gov

  4. What financing options cover a restricted-affordable ADU?  Lenders treat the build as a renovation or home-improvement project. Popular choices include Fannie Mae’s HomeStyle ® Renovation loan, ADU-friendly HELOCs from local credit unions, and FHA 203(k) streams. HomeStyle lets you roll construction costs and permanent financing into one conventional mortgage with as little as 5 % down.

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