Free Resource

Arizona ADU
Guide.

Everything you need to know before building a casita in Phoenix or Scottsdale — HB 2720, permitting, HOA rules, lot requirements, and financing. Updated July 2026.

What Is an ADU?

An ADU (accessory dwelling unit) is a self-contained second living space on a residential property — with its own entrance, kitchen, and bathroom. In Arizona, detached backyard ADUs are most commonly called casitas.


HB 2720: What the Law Gives You

  • Right to build at least one detached ADU on your single-family lot
  • No required off-street parking for the ADU
  • No design-match requirement
  • Maximum 5-foot setback requirement
  • ADU up to 1,000 SF on lots under 10,000 SF
  • No owner-occupancy requirement for long-term rentals (90+ days)
Important: HB 2720 does NOT override private HOA CC&Rs. If your HOA restricts additional structures, those rules may still apply. Check your HOA eligibility →

Lot Size Requirements

Lot Size Max ADU Size VCC Models That Qualify
Under 5,000 SF75% of primary home or 1,000 SFThe Studio (400 SF)
5,000–10,000 SFUp to 1,000 SFStudio, Casita, Retreat, Hacienda
Over 10,000 SF3,000 SF or 10% of lot areaAll models including The Sonoran (1,400 SF)

Phoenix vs. Scottsdale

Factor Phoenix Scottsdale
Permit timeline60–90 days120–180 days
Permit fees$2,500–$4,200$5,000–$8,000
STR owner-occupancyFlexibleRequired
Second ADU limitUp to 1,000 SF500 SF

The Permitting Process

01
Site Analysis & Plat Review

We pull your plat map, confirm lot size and dimensions, locate utility easements, and determine which city's permitting rules apply to your parcel.

02
HOA Review

We review your CC&Rs and advise on any HOA approval process. If submission is required, we prepare all documentation on your behalf.

03
Architectural Drawings

Full construction drawings prepared: site plan, floor plan, elevations, electrical, mechanical, and structural. Submitted directly to your city's building department.

04
City Plan Check

Your city reviews drawings for code compliance. We respond to any plan-check comments and resubmit as needed.

05
Permit Issuance

Once approved, the building permit is issued. We schedule the groundbreak.

06
City Inspections

Inspectors visit at key milestones: pre-slab, rough framing, rough electrical/plumbing, insulation, and final.

07
Certificate of Occupancy

Final city inspection confirms code compliance. CO issued, walkthrough, and keys.

Total timeline from consultation to move-in: approximately 6–9 months for most Valley Casita Co. projects.


Financing Your Casita

Most Common
HELOC

Borrow against home equity. Keep your mortgage rate. Draw funds as needed during construction.

Good if Rates Dropped
Cash-Out Refi

Refinance your mortgage, pull equity as a lump sum. One payment covers your home and the casita.

Low-Equity Option
Construction Loan

Short-term loan that converts to a mortgage at completion. Good if you don't have significant equity.

See our full financing guide for a detailed comparison and lender referrals.

Quick Links
Free HOA CheckFirst step for every projectOur 5 Models400 SF to 1,400 SFPricingStarting from $133,000Financing OptionsHELOC, refi, construction loanOur ProcessConsult to keysGet a Free QuoteNo obligation
Get a Free Quote → Free HOA Check

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