The Quad City Area REALTORS® (QCAR) is proud to be one of seven Iowa communities awarded a 2025 AARP Community Challenge Grant. As part of this initiative, QCAR is launching an Accessory Dwelling Unit (ADU) Design Contest open to students and professionals. Top designs will be publicly displayed and eligible for cash prizes.

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What Is an ADU?

An Accessory Dwelling Unit (ADU) is a small, secondary residential unit that shares a lot with a larger, primary home. While the term may be unfamiliar, these units have existed for centuries.

·        An ADU is a self-contained living unit with its own kitchen or kitchenette, bathroom, and sleeping area.

·        It may be within, attached to, or detached from the main home.

·        ADUs can be converted from existing structures (such as garages) or built new.

·        While compact, ADUs are typically larger and more livable than tiny homes, making them a practical solution for individuals, couples, or small families.

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This past spring, the Iowa Legislature passed Senate File 592 (to take effect July 1, 2025), which fundamentally changes how cities and counties must treat accessory dwelling units (ADUs).

Under this new law:

• Each city and county must permit at least one ADU on the same lot as a single-family home, subject to reasonable building and safety regulations.

• An ADU may not exceed 1,000 square feet or 50% of the size of the principal dwelling (whichever is larger). Iowa REALTORS®+3Iowa Legislature+3Business Record+3

• Local governments cannot impose more restrictive rules—setbacks, heights, lot coverage, architectural matching, parking, or separate utility standards—than they impose on the primary single-family home.

• Also critical: permit applications that meet the standards must be approved in a timely, nondiscretionary process (or be deemed approved after 30 days).

 

In short, the new law removes many of the barrier’s in order to restrict ADU development.

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This change at the state level is transformative: it gives local jurisdictions the legal certainty and to embrace ADUs, while ensuring fairness for homeowners across Iowa.

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Note: ADUs cannot be sold separately from the primary residence.

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As we launch this program, it’s worth reminding ourselves of the broad potential ADUs carry for our community:

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1. Increasing Housing Supply. ADUs create new housing capacity without expanding the city’s footprint. They allow infill, densification in a subtle form, and better utilization of underused land. In many places, ADUs represent one of the fastest ways to add housing that aligns with neighborhood scale.

2. Affordability & Flexibility. Because ADUs are generally smaller, leaner, and more efficient, they can serve as more affordable rental units, accessory homes for family members, or transitional housing. Lower construction and operating costs (shared infrastructure) make them viable in ways full-scale new homes are not.

3. Multigenerational & Aging in Place. Many older adults want to stay in their communities but need smaller, more manageable living options. An ADU on a family property allows close proximity, mutual support, but also independence. AARP Iowa has long championed housing solutions that allow aging Iowans to remain connected, safe, and engaged.

4. Economic Stimulus & Local Jobs. Building ADUs means contracts for architects, builders, plumbers, electricians, landscapers, and local suppliers. The multiplier effect can benefit our local trades and small businesses.

5. Resilience & Flex Use. As demographics, family needs, and economic conditions shift, ADUs can adapt: as in-law suites, home offices, rental income, caregiver housing, or guest quarters. Their flexibility is a strength in uncertain times.

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Join the Movement ​

​If you’re a homeowner, talk to us. If you are a neighbor or council member, ask questions. If you’re a lender, developer, or builder, consider how ADUs could fit in your business model. If you’re a civic volunteer or advocate, help spread the word, push for better rules, and assure that ADUs serve all parts of our community.

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