Coeur d’Alene officials clash with Idaho laws easing tiny-home limits

Coeur d’Alene officials no longer hold the final word on many backyard homes. Idaho’s new housing law, Senate Bill 1354, forces the city to accept accessory dwelling units up to 1,000 square feet, up from Coeur d’Alene’s 800-square-foot cap, and bars the city from setting ADU height limits below the height of the main house on the lot, except in recognized historic buildings and districts.

At a Monday workshop on April 14, 2026, members of the Coeur d’Alene City Council and Planning Commission spent much of the discussion weighing how little local control remains. The Idaho House had passed SB 1354 by a 47-23 vote on April 4, the same day it approved Senate Bill 1352, 36-34. Both measures were sponsored by state Sen. Ben Toews, R-Coeur d’Alene. SB 1354 also undercuts city and HOA rules that could block an ADU outright, shifting decision-making power from local boards to the state.

The practical effect is immediate for homeowners who want to add a small second home, garden cottage or mother-in-law suite. In most neighborhoods, the city can no longer rely on its smaller size cap to deny a project, and it cannot force the unit to stay lower than the main house just to preserve a subordinate profile. That matters in a city where even modest additions carry real weight: Coeur d’Alene’s population is 56,447, the median property value was $518,700 in 2024, and the homeownership rate stood at 71.3 percent.

The housing pressure behind the fight is broad. Idaho Housing and Finance Association’s 2025-2029 Consolidated Plan found that 100% of surveyed residents and stakeholders said affordable housing needs had increased over the previous five years. The National Low Income Housing Coalition says Idaho’s rental crisis is being driven by a severe shortage of affordable homes for the lowest-income renters. In North Idaho, Housing Solutions Partnership North Idaho says Kootenai County has a shortage of housing for local workers, while the third phase of Coeur d’Alene’s Atlas Mill project is expected to add more than 100 attainable housing units.

Not everyone at city hall saw the changes as a loss. Councilmember Dan Sheckler said the added flexibility could help owners of small lots and increase supply, which is the lever many housing advocates say actually moves affordability. Coeur d’Alene’s workshop made clear that Idaho’s pro-housing push is no longer just a Capitol debate. It is now landing in permit offices, neighborhood plans and the rules that shape whether a tiny home can be built at all.