This bill amends Arkansas law regarding municipal regulations by establishing specific guidelines for the regulation of 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 prohibits municipalities from adopting policies that restrict or regulate the use of at least one ADU by right on a lot containing a single-family dwelling. It also outlines the conditions under which an ADU can be constructed, including size limitations and the types of regulatory requirements that municipalities can impose.

Additionally, the bill specifies various restrictions that municipalities cannot enforce regarding ADUs, such as requiring additional parking, matching exterior designs, or imposing development impact fees exceeding $250. It allows municipalities to charge a fee for reviewing applications for ADUs, capped at $250, while also permitting them to require standard building fees. The bill ensures that any existing policies that conflict with these provisions will be invalidated after January 1, 2026, and clarifies that municipalities can still regulate short-term rentals and adopt more permissive regulations if desired.