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County Accessory Dwelling Unit Update & Multigenerational Tax Exemption

Tiny homes, cottages or garage apartments are a great way to use extra space on your property to provide a home for a family member or a source of long-term rental income. Pinellas County recently updated its rules for these homes, called ADUs (Accessory Dwelling Unit), to make them easier and less expensive to build. These changes apply to properties located in unincorporated Pinellas County, though many cities have recently updated their ADU rules too.  

What’s New: 

  • Increased maximum ADU size from 750 square feet to 1,000 square feet 
    • Except for locations within the Coastal Storm Area and other flood hazard areas (max 750 sf) 
    • Detached ADUs cannot be taller than the primary home
    • Garages and storage space serving the ADU calculated as part of its size 
  • Quicker review for ADUs up to 20% over max size
    • Staff-level review for larger sizes if certain criteria are met (up to 20% over max) 
    • Over 20% requires a variance from the Board of Adjustment & Appeals 
  • Applicable development review fees waived for ADUs
    • Making the review process quicker and less expensive 
  • Rent both primary home and ADU if used for affordable housing
    • Owner-occupied requirement is waived for affordable housing purposes 
    •  Required to be affordable at 80% or below area median family income 
    • Owner must agree to keep units affordable through a 20-year Land Use Restrictive Agreement 
  • Clarifying the following ADU rules and requirements: 
    • To qualify as an ADU, the home must have… 
      • An entrance separate from the primary dwelling unit, 
      • Its own sleeping quarters and bathroom, 
      • A full kitchen with sink, cooking unit, and refrigerator 
  • Certain ADUs are exempt from parking requirements, but those over 750 square feet will require at least one off-street parking space 
  • A single-family home can have a second kitchen under the following conditions:  
    • One primary entrance, one address, no separate metered utility connections 
    • Provides flexibility for extended or generational family living arrangements 
    • If conditions not met, 2nd kitchen only allowed as part of an ADU or a duplex 
  • Multifamily dwelling units on a parcel can be detached or attached to each other 
    • This allows for cottage style or tiny home rental developments on a single lot 

Tax Exemption for Multigenerational ADUs  

A homeowner who renovates or builds an ADU to house their parents or grandparents can now qualify for a tax break on the assessed value of their property. The reduction covers the increase in value from construction/reconstruction of the ADU or 20% of the total assessed value of the property after the improvements, whichever is less.  

Here are the guidelines:   

  • At least one parent/grandparent must reside in the ADU and they must be at least 62 years old. 
  • Only applies to improvements made after adoption date of this ordinance, July 30, 2024. 
  • Improvements must be completed before January 1st of the year when reduction is sought. 
  • Only applies for taxable years during with parent/grandparent maintains primary place of residence in the living quarters – they cannot have homestead exemption elsewhere. 

The property owner must file an application and documentation with Property Appraiser 

  • If property ownership changes, a new application from the new owner would be required. 
  • The property owner must notify Property Appraiser if they no longer qualify for reduction. The reduction value would be added back January 1st of the next year. 
  • If any willful false statements in the application are found, the assessed reduction shall be revoked, and a tax lien may be filed pursuant to Florida Statutes.