Grand Rapids does not require owner-occupancy as a condition of operating an accessory dwelling unit. The 2023 ADU reforms in Chapter 61 (Zoning Ordinance) Article 5 removed prior owner-occupancy expectations and treat the ADU as a fully permitted accessory use without an owner-presence condition. Rental of either the principal dwelling or the ADU triggers Grand Rapids' rental certification program under Chapter 173 (Rental Property Maintenance), but does not require the property owner to live on-site. Michigan has no statewide ADU statute.
Grand Rapids was among the earlier Michigan cities to drop owner-occupancy as a precondition for accessory dwelling unit use. Following the 2023 amendments to Chapter 61, Article 5 of the Zoning Ordinance establishes ADUs as a permitted accessory use in nearly all residential zones without a requirement that the property owner reside in either the principal dwelling or the ADU. This brings Grand Rapids in line with the policy direction of jurisdictions that have determined owner-occupancy mandates are difficult to enforce, deter the production of new housing units, and have limited evidence-based connection to neighborhood character. What does remain is rental regulation under Chapter 173 (Rental Property Maintenance and Inspection): every non-owner-occupied dwelling unit in Grand Rapids must obtain a rental certificate, undergo periodic interior and exterior inspections by the Code Compliance Division, and meet property maintenance standards based on the International Property Maintenance Code as adopted by the city. A property with both the principal dwelling and the ADU rented to non-owners must hold rental certificates for both units. Tenancies are governed by Michigan Truth in Renting Act (MCL 554.631 et seq.) and the Michigan Landlord-Tenant Relationships Act (MCL 554.601 et seq.). Michigan has not enacted a statewide preemption of municipal ADU owner-occupancy rules, but no preemption is needed here because Grand Rapids has chosen not to impose one. Private CC&Rs in some Grand Rapids subdivisions (newer East Hills, Heritage Hill historic district covenants, parts of Eastown) may impose owner-occupancy restrictions enforceable under standard Michigan contract law and recorded deed restrictions.
Operating a rental ADU without a Chapter 173 rental certificate: Code Compliance Division citation, civil infraction penalties under the Grand Rapids ordinance, and inability to lawfully collect rent (potential defense to landlord forcible-entry-and-detainer actions). Failure to permit required periodic inspections: certificate suspension and re-inspection fees. Private CC&R or deed-restriction violations: civil action in Kent County Circuit Court between private parties; the city does not enforce private covenants. Misrepresentation of unit status to the Kent County Assessor: separate assessment penalties.
Grand Rapids, MI
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See how Grand Rapids's adu owner occupancy rules stack up against other locations.
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