A proposal to allow accessory dwelling units in part of downtown Fishers faces an uncertain future after city officials withdrew it from the August 17 City Council agenda.

The proposal had received an unusual unanimous “no recommendation” from the Fishers Advisory Plan Commission on August 5. The 7-0 vote sent the measure forward without endorsing either approval or rejection.

Requests from LarryInFishers to the city asking why the proposal was pulled and what happens next have received no response as of publication.

City officials who did not wish to be named have told LarryInFishers the proposal may be off the table for now. That possibility has not been publicly confirmed, leaving unanswered whether the city will revise the measure, bring it back unchanged or shelve it.

Accessory dwelling units, often called “granny flats” or “in-law suites,” provide independent living space on the same property as a single-family home. They can be separate cottages, apartments above garages or living quarters incorporated into an existing house.

The proposed city ordinance would allow them in the Nickel Plate District’s Village Center zoning district. Although the Nickel Plate District encompasses much of downtown, the proposal would have a narrower practical reach. The city identifies the area south of Morgan Drive and along Meadows Drive and Lantern Road as the primary area affected because other portions already contain apartments and townhomes.

The proposed rules would limit each lot to one accessory dwelling of no more than 800 square feet. The owner would have to live in either the main home or the accessory unit.

Each unit would need a separate address or unit number and a paved route to a driveway or alley. Detached units could reach 25 feet in height; units over garages could reach 42 feet. The amendment would not count an accessory unit as a separate dwelling when calculating required parking.

City planning staff recommended approval.

The local uncertainty comes as Indiana pushes communities to examine barriers to housing construction. House Enrolled Act 1001, a housing measure signed by Gov. Mike Braun on March 4, is now law.

The Indiana Housing and Community Development Authority says local governments must report by December 31 that they held a public hearing reviewing zoning and development rules with the goal of increasing housing development. Annual housing progress reports begin in January 2027.  Fishers officials have indicated an October date is expected to conduct the local public hearing.

That statewide review provides a broader backdrop for Fishers’ discussion. It does not explain why this particular proposal was withdrawn. For homeowners interested in adding a smaller residence to their property, the city has yet to provide an answer about the proposal’s future.