Expect to see more tiny homes in Rapid City

RAPID CITY, S.D. (KOTA TV) - Rapid City Council approves ordinance to make more tiny homes to help the local housing market.

It looks like accessory dwelling units are not leaving anytime soon.

On Monday night, the Rapid City Council agreed to an ordinance that will create more opportunities to create accessory dwelling units (ADUs) in residential districts.

ADUs are small housing units like a little house or even a basement apartment that could help provide more affordable housing in the city.

Though Mike Derby, who works in the hospitality industry, likes the ordinance, he thinks there is a loophole.

The ordinance says ADUs can only be rented out for a minimum period of 28 days to help seasonal workers, college student and other single-families have affordable homes.

But Derby said people may get around the limit and make them Airbnb homes instead.

"We just have a question in regards to the hospitality industry that by only saying that there has to be more than 28 days that this inventory will end up as an Airbnb instead of as an affordable housing for somebody. My proposal was to lengthen that time to 90 days and that way it's a win-win for the hospitality industry and for the affordable housing world," Derby, Canyon Lake Resort owner, said.

Existing ADUs need to register in the next two years with the Community Development Department to be recognized as legal property.