One of the ways that Summit County has combated the problem is by streamlining the process to creating accessory dwelling units, or ADUs. Officials updated county code, changing a policy that required an appearance before the planning commission to a simple, over the counter process. In one year, the number of ADUs quadrupled.

Another tactic they took was to incentivize the construction of ADUs. Summit County has also published various formulaic plans for ADUs that make the permitting process much easier.

“If people want to build an ADU, the architect [backlog] is months to a year out. If we put together a permit-ready set of plans that people can click on, that will save them tens of thousands of dollars, and months of work,” Dietz said.

In Ketchum, the Planning and Zoning Commission and City Council have both discussed potential changes to the city’s more rigid ADU code. Ketchum’s rules state that ADUs are only permitted on single-family lots, meaning duplexes or townhomes can’t take advantage of them. Additionally, setbacks—a term for how far back from the street a building must sit—are determined by the height of the primary structure, not the ADU. This limits the space that homeowners have to work with when constructing secondary dwellings.

Another city regulation that limits the ability of homeowners interested in creating an ADU are lot coverage limits, which dictate how much of a lot can be built on. There are a number of lots in Ketchum that could construct ADUs if this rule were changed. Homeowners may also be limited to a certain number of structures on their property. If they already have a few, they may not be able to construct a standalone ADU.

In order to change these policies, the city has to work to change covenants, conditions or restrictions, often called CC&Rs, which are documents created by homeowners associations that outline conditions of ownership for properties. Ketchum has been engaged in those conversations with various HOAs for the past few months. There are hundreds of unique CC&Rs in Ketchum.

Idaho House Bill 166, written by Rep. Colin Nash, D-Boise, and introduced in committee by Rep. Ned Burns, D-Bellevue, gives private property owners the right to place ADUs on residential property and was signed into law last month. Sun Valley Economic Development Executive Director Harry Griffith said in an interview earlier this spring that the bill could stimulate debate that could lead to an increased housing supply in the valley through the expanded adoption of ADUs.

Gov. Brad Little signed the bill into law on April 3. It will take effect with the rest of the laws from the 2023 session on July 1.

Dietz said that, like in Ketchum, many of the unoccupied structures in Summit County are second homes, used for only a portion of the year. In Summit County, there is an equal number of short-term rentals to vacant second homes. In Ketchum, the number of short-term rentals makes up a much smaller portion of vacant homes: last year, only 276 short-term rental licenses were distributed in the city in the first year of Ketchum’s registration program.

Summit County also conducts a Lease to Locals program, which incentivizes converting short-term rentals into long-term ones. Dietz said it was originally intended to be a short-term solution for the 2021 winter season but has grown into a key tool for the county’s housing authority.

On average, Summit County’s program pays $6,900 per bedroom, more than the $2,000 per tenant for seasonal leases (five-plus months), and $4,500 per tenant for long-term leases (12-plus months) that the Ketchum Lease to Locals program pays. Summit County has converted 56 total units through the program, housing more than 100 people in total. In Ketchum, Lease to Locals has led to 23 people being housed thus far. The average rent per bedroom in the program in Summit County is $1,317. In total, the program has paid out about $760,000 in incentives.

There are also a few notable lessons Summit County has learned from their first few years operating a Lease to Locals program. Dietz reported that rent caps had to be implemented because homeowners were charging exorbitant rent. When the program was first pitched to the City Council last year, Placemate CEO Colin Frolich and Ketchum Housing Director Carissa Connelly recommended against rent caps because they can cause landlords to ask for the maximum amount.

Dietz also said that his staff learned that Lease to Locals leases that end in the middle of ski season aren’t much good to renters.

“We learned that people shouldn’t be able to terminate leases during ski season. If a lease ends then, [renters are] not going to be able to find a new one. So, there is now a rule against that,” he said.

In 2020, Summit County implemented a deed restriction program that has preserved almost 70 units. According to this plan, the county pays existing owners or investors 10-15% of the market value to place a deed restriction on the property. This deed restriction doesn’t have appreciation caps or income limits, it just requires that the home be used by a member of the local workforce.

One last program that Ketchum might have interest in pursuing already in place in Summit County is called adaptive reuse. Summit County converts commercial or hotel space into residential use by acquiring old, run-down properties in town. Summit County split the cost of the historic Wayside Lodge with the city of Breckenridge at a cost of $150,000 per room, significantly less than it would cost to build a new structure.

Dietz said that it’s important to understand the realities of the communities we live in.

“Not all of the housing stock is appropriate for the local workforce. A lot of it is designed for short term rentals and luxury mountain retreats,” he said. “But there is a lot of naturally occurring affordable housing that [exists] around the county.”

Voters in Summit County signaled the importance of housing in 2016 when they decided to dedicate .6% of sales tax to housing initiatives. It has raised $3.5 million per year for workforce housing since. In 2021, that policy was extended for another 20 years, again via voter decision.

In Ketchum, voters will head to the polls this after press time Tuesday to decide whether to reassign .5% of the 1% local option tax to housing.