This bill amends Arkansas law regarding municipal regulations to establish 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 stipulates that municipalities cannot adopt policies that restrict or prohibit the use of at least one ADU on a lot containing a single-family dwelling. It also outlines specific conditions under which ADUs can be constructed, including size limitations and the types of regulatory requirements that municipalities can impose.

Furthermore, the bill prohibits municipalities from enforcing various restrictions on ADUs, such as requiring additional parking, matching the design of the primary dwelling, or imposing excessive development fees. It allows for a maximum application fee of $250 for reviewing ADU applications and ensures that any existing policies that conflict with this new section will be deemed invalid after January 1, 2026. The legislation also clarifies that municipalities retain the authority to regulate short-term rentals and can adopt more permissive regulations than those outlined in the bill.