The bill amends Arkansas law regarding municipal regulations to establish guidelines for accessory dwelling units (ADUs). It introduces a new section, 14-56-205, which defines key terms related to ADUs, such as "accessory dwelling unit," "by right," and "regulatory requirements." The bill stipulates that municipalities cannot adopt policies that restrict the use of at least one ADU on a lot containing a single-family dwelling. It also specifies that an ADU can be attached, detached, or internal to the primary dwelling and sets limitations on its size relative to the main dwelling.

Furthermore, the bill outlines specific prohibitions for municipalities, including restrictions on additional parking requirements, design matching with the primary dwelling, and occupancy rules. It limits development impact fees for ADUs to $250 and allows municipalities to charge application fees for reviewing ADU proposals, also capped at $250. The bill ensures that any existing municipal regulations conflicting with these provisions will be deemed invalid after January 1, 2026, while still allowing municipalities to enforce regulations for short-term rentals and adopt more permissive policies if desired.