This report presents model legislation for states and local jurisdictions to develop regulations for creation of accessory dwelling units (ADUs), independent housing units created within single-family homes or on their lots. ADUs have the potential to provide older homeowners with companionship, additional income to help them maintain their independence, increased security, and the opportunity to offer reduced rent in exchange for services. It also is a means of increasing affordable rental housing. The model legislation is based on the experiences of communities that have incorporated ADUs into their zoning practices. The report includes reviews of ADU ordinances and interviews with state and local officials. It evaluates the potential for changes in state laws and local ordinances that would increase the availability of ADUs. The report suggests that regulatory barriers to ADUs are most effectively removed by adoption of a state ADU act and by encouraging localities to adopt ADU ordinances.