Sioux Falls, SD Accessory Structures: ADU Owner Occupancy (2026)

Under Sioux Falls Code § 160.093 (Accessory Uses), where an accessory dwelling unit is permitted on a single-family lot, only one additional single-family dwelling unit is allowed and one of the units must be owner-occupied. This is among the strictest ADU constraints in the Sioux Falls code: the property owner must reside in either the principal dwelling or the ADU as their primary residence. The rule effectively prohibits absentee landlords from operating both units as rentals and is intended to preserve single-family-neighborhood character. The owner-occupancy requirement applies continuously, not just at construction; if the owner moves out and rents both units, the ADU is in violation. Owner occupancy is generally verified at residential rental permit application under § 150.177 (the permit applicant must identify which unit is owner-occupied). South Dakota has no statewide statute prohibiting or preempting local owner-occupancy mandates — contrast California Government Code §66317 which eliminated owner-occupancy requirements statewide. The Sioux Falls home-rule charter (SDCL Chapter 6-12, SD Constitution Article IX § 2) is the legal basis for this local restriction. Property owners contemplating ADU construction should evaluate the long-term occupancy requirement before applying for permits.