Graham council rejects accessory dwelling unit proposal amid housing concerns

Graham residents who had hoped to add a small rental unit, house an aging parent or create a lower-cost place for an adult child were left without that option after the City Council rejected an accessory dwelling unit ordinance.

The decision came at the May 12 council meeting, where members spent about an hour debating the issue during a session that lasted almost 5 1/2 hours. The proposal would have allowed one accessory dwelling unit on lots of at least 20,000 square feet, about half an acre, with the ADU capped at half the size of the main home and no more than 1,200 square feet.

Supporters said the change would have given Graham homeowners more flexibility at a time when housing costs remain under pressure across Alamance County. The local board of realtors backed the idea, and Burlington councilman Ian Baltutis told Graham officials that ADUs can help people age in place, one of the most practical arguments for so-called granny flats and backyard cottages. Those units can also give room to older parents, adult children coming back from college, caregivers or tenants who help offset household expenses.

The opposition centered on cost, neighborhood character and density. Former Graham mayor Jennifer Talley argued the city would take on expenses without getting new revenue in return, while council member Bonnie Whitaker said ADUs would change the entire look of a neighborhood. Councilman Bobby Chin favored case-by-case approval rather than giving larger-lot owners an automatic right to build.

The vote matters because Graham is already facing growth pressure, and ADUs are one of the few tools cities can use to add gentle density without approving large apartment projects. The rejection kept the city’s existing zoning approach in place, at least for now, and left property owners without an incremental way to create new housing on land they already own.

The broader policy picture is not standing still. House Bill 627, filed in the North Carolina General Assembly on March 31, 2025, would require local governments to allow at least one ADU for each single-family detached home in residential zones. Under the bill summary, cities and counties would have to adopt implementing rules by January 1, 2027, or ADUs would be allowed without local limits.

The issue had already been under review before the council vote. The Graham Planning Board’s March 30, 2026 agenda packet included AM2601, Accessory Dwelling Units, and the board is advisory to City Council. Graham City Council meets the second Tuesday of each month at 6:00 p.m. at City Hall, 201 S. Main St.

The housing numbers help explain why the debate landed on the council agenda in the first place. Alamance County’s population is projected to rise 5.5 percent, from 185,255 in 2025 to 195,390 by 2030. The county also had just 5.27 months of for-sale inventory in June 2025, and the North Carolina Housing Coalition’s 2026 County Profiles put the statewide housing wage at $22.32 an hour. For now, Graham has chosen to hold the line on ADUs, even as the pressure to add more housing keeps building.