“The state said: ‘Set a provision, set a limit and allow for it,’” Seaside Planning Director Kevin Cupples told members of the City Council Monday night. “That’s where we’re at.”

Cupples was referring to a state Senate requirement intended to help address the state’s housing shortage.

In setting size limitations and other rules, councilors responded to the mandate to allow accessory dwelling units within any residential zone allowing detached single-family homes.

The rules are designed to increase the availability of housing in cities with a population of more than 2,500 throughout the state. “I’m very glad that we’re making headway with accessory dwelling units,” Cupples said. “I hope it will help with the shortage of housing. To what extent, I think we’ll know when it’s been in place for a couple of years.”

According to the ordinance, accessory dwelling units will be limited to one story, unless incorporated into the second story of a detached garage. Units may be an interior, attached or detached residential structure used in connection with a single-family dwelling.

An additional paved off-street parking space must be provided in addition to two spaces for the single-family dwelling.

Unlike a guest house, an accessory dwelling unit must include a kitchen and function as an independent dwelling unit.

A unit must be set back a minimum of 5 feet from the main home.

The units are not subject to residential zoning density, but are only allowed on lots that meet the minimum lot size in the zone.

Provisions restrict short-term or vacation rental of either the single-family dwelling or the accessory building, enforceable by the building official.

“Violators could be hit by the building official’s $5,000 fine, a business license fine, and a transient room tax fine,” Cupples said. “They can be hit with some pretty expensive numbers.”

The Planning Commission considered the amendments at two June public hearings before providing their recommendations to the City Council.

At those meetings, commissioners wrestled with proposed sizes of accessory units, recommending 525-square foot maximum.

“I won’t say it’s a magical number, but they felt that would allow you to put in a relatively decent-sized accessory unit,” Cupples said Monday.

The Planning Commission also provided an “out” for change of circumstance, Cupples added, approving a conditional use permit process to allow for larger accessory dwelling units.

Council members asked for a cap on the potential size of the accessory unit. While current law limits accessory structures to 1,000 square feet, the proposed amendment presented no maximum.

Developer Max Ritchie, an owner of Seaside’s 15-acre Blue Heron Pointe subdivision, said the 525-square-foot limit could force crowding and limit financial incentive for homeowners. He recommended a 750-square-foot limit without the need for a conditional use permit.

Councilors stuck with the 525-square-foot limit but set the maximum size of a unit, if permitted by the Planning Commission after a review process, at 800 square feet.

“I’d like to see how it affects affordable housing,” Councilor Randy Frank said. “It would be nice to see how it impacts the city and the people. As Kevin (Cupples) said, we can address it further later.”

Councilors and Mayor Jay Barber approved the first reading of the amendment by a 6-1 vote, with Tom Horning voting in opposition. A second reading will be delivered at the council’s July 9 meeting.