Dock Line
A small wooden tiny home with an orange deck and green siding among trees
A tiny home west of Salem, Oregon. Killeen’s proposed overlay would allow homes of 400 square feet or less in North Killeen. (Photo: Rick Obst / Wikimedia Commons, CC BY 2.0)

Sidney Sherman

October 20, 2026 · 3 min read

Killeen Weighs Allowing Tiny Homes and Backyard ADUs by Right Across North Killeen

A proposed overlay covering about 1,842 acres would allow ADUs and tiny homes without rezoning and bar new after-hours clubs, game rooms and BYOB spots.

Killeen homeowners in a large stretch of North Killeen could add a backyard cottage or put a tiny home on a lot without a zoning change under an ordinance the City Council takes up Tuesday. The same ordinance would bar new after-hours nightclubs, game rooms and bring-your-own-bottle clubs from the area.

The council holds a public hearing on the North Killeen Overlay District at its Oct. 20 meeting, which starts at 5 p.m. at City Hall, 101 N. College Street, according to the agenda. The overlay would cover about 1,842 acres bounded by North Fort Hood Street, the Fort Hood Army post, W.S. Young Drive, and Hallmark Avenue, Trimmier Road and Terrace Drive. The underlying zoning would stay in place.

What owners could build

Under the draft ordinance, accessory dwelling units, tiny homes and tiny homes on wheels would be allowed by right in every residential district in the overlay that permits single-family houses. Each would still need a building permit, an approved site plan and inspections under the International Residential Code.

  • ADUs: One per lot, only with a main house, on lots of at least 6,000 square feet. An ADU could be no larger than 800 square feet or half the main home’s floor area, whichever is less. It must sit on a permanent foundation, and an attached garage could not be converted into one.

  • Tiny homes: 400 square feet or less. On a permanent foundation, one could go on any lot where a detached house is allowed.

  • Tiny homes on wheels: Allowed only on lots smaller than 3,600 square feet. They would have to be connected to city water and sewer, with no composting toilets, parked on pavement, tied down, and skirted to hide the wheels and chassis.

City staff counted about 99 residential lots in the overlay small enough for a tiny home on wheels, according to the staff presentation. An ADU could be used as a short-term rental if the owner holds the city’s registration permit.

Killeen City Hall, a red brick former school building with tall windows, partly framed by trees

Killeen City Hall, the former Avenue D School built in 1923, where the council meets Tuesday. Photo: Larry D. Moore / Wikimedia Commons, CC BY 4.0.

What would be banned

New after-hours nightclubs, private gambling places such as card clubs and game rooms, BYOB establishments and outdoor sales of secondhand goods would not be allowed in the overlay. The council could still approve a BYOB site with a three-fourths vote. Buildings could not stay boarded up more than 90 days without the director’s approval.

Businesses already operating with a valid certificate of occupancy would become legal nonconforming uses and could stay. Staff listed nine, including a poker room on West Rancier Avenue, two motorcycle clubs, four event centers and a thrift shop on East Veterans Memorial Boulevard.

How it got here

The council directed staff on April 7 to draft the overlay, according to the city’s FAQ, which says the plan will not rezone property, require renovations or set taxes. Staff mailed 3,662 notices to owners of 4,264 properties and had received no written responses.

The Planning and Zoning Commission recommended approval 6-0 on Sept. 14 after cutting the ADU minimum lot size from 7,500 to 6,000 square feet. At that hearing, two residents spoke in opposition, citing aging infrastructure and property values, and others asked about nonconforming uses and the effect on investment property, according to the minutes.

Also on Tuesday’s agenda are a $116,000 agreement with Families in Crisis, a $2,051,906.90 design contract for Zephyr Road and a closed-door discussion of a possible purchase of Killeen ISD property for affordable housing. Dock Line also covered the city’s recent hiring in Killeen Hires a New City Manager at $260,000. One Council Member Balked at the Contract.

Related on Dock Line: Part 2: The Houses Are Coming. Who Pays for the Roads, Water and Drainage?