Tempe does not require owner occupancy for ADUs. Arizona HB 2720 (ARS 9-461.18) prohibits cities over 75,000 population from conditioning ADU permits or use on owner occupancy. Both the primary residence and the ADU may be rented to separate tenants. HOA CC&Rs in Tempe's smaller HOA communities (The Lakes, Warner Ranch, Circle G Ranches) may still impose occupancy restrictions subject to ARS 33-1817.
Arizona HB 2720, codified at ARS 9-461.18, prohibits Tempe from requiring the property owner to reside in the primary dwelling or the ADU as a condition of permitting or continued use. Tempe's Zoning and Development Code was updated to comply with the statutory preemption effective January 1, 2025. Owners may construct an ADU on rental property, sell the property with the ADU intact, and rent both units to separate tenants. Tempe has a comparatively lighter HOA layer than Mesa, Gilbert, or Chandler, but several HOAs (The Lakes, Warner Ranch, Circle G Ranches, Lakes at Westchester) operate within the city. Older HOA covenants sometimes contain owner-occupancy provisions for casitas; ARS 33-1817 limits HOA restrictions that effectively prohibit lawfully created ADUs, though reasonable architectural and use restrictions remain enforceable. Tempe's strong rental demand from ASU students and faculty makes rented-out ADUs particularly common.
No city enforcement of owner-occupancy. HOA enforcement of CC&R owner-occupancy provisions continues but is subject to legal challenge under ARS 33-1817. HOA fines typically range from $25 to $250 per violation under the community's adopted enforcement schedule, with escalation provisions and the possibility of attorney fee awards in covenant litigation.
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Side-by-side rule comparisons with other cities in Maricopa County.
See how other cities in Maricopa County handle adu owner occupancy.
See how Tempe's adu owner occupancy rules stack up against other locations.
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