The following are summaries from articles with credits to writers:

                    Granny flats' finding a home in tight market By Haya El Nasser, USA TODAY

                           "Granny flats" and "in-law-suites," small apartments in garages, basements and backyard cottages,
                           are making a comeback in areas where housing is expensive and land to build it on is scarce.

Cary, N.C., a fast-growing city outside Raleigh. Cary five years ago began allowing "utility dwelling units" in single-family homes. As of this year, homeowners can build an apartment next to their homes, but only in the downtown area.

"We don't have restrictions as to who lives there as long as it meets the standards," says Ricky Barker, the city's associate planning director. "It benefits the homeowners and our vision of getting more people in the downtown area."

Washington State, where cities that have more than 20,000 people must allow second living units in any neighborhood. In Seattle, a local housing coalition launched an initiative to educate communities about the benefits of granny flats.

Chicago, where the Metropolitan Planning Council is pushing the city to allow apartments in coach houses. Originally designed for horses, carriages and drivers, many were turned into garages and small apartments. The city banned new apartments in coach houses in the 1950s.

"It's a viable and important source of affordable housing that even a wealthy community can benefit from," says Deborah Howe, professor of urban studies and planning at Portland (Ore.) State University.

Source:    http://www.usatoday.com/news/nation/2004-01-05-granny-flats_x.htm 
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Welcome Home, Grandma

In November 2002  the state Florida referenda approved  a law allowing homeowners to build "granny flats" as additions without an increase in their property taxes. The details aren't known yet — the state legislature still must pass enabling legislation — but generally the constitutional amendment calls for tax-free additions as long as they're occupied by a grandparent or parent who's 62 or older. Questions to  be resolved are: What happens if the parent moves out or dies? What happens if zoning ordinances or building codes forbid this kind of addition? What about additions that have already been completed — do they get the tax break? "If someone goes to the city or the county and says, I built this for abuela (Spanish for grandmother) and we want to be exempt, does it count?" asked Hialeah Mayor Raul Martinez, who has been fighting illegal additions in his city. But proponents say the benefits of the granny flats outweigh any objections. "This issue is that it benefits keeping families together," says Miami-Dade Commissioner Bruno Barreiro — and perhaps saves the state millions in nursing home care.

http://www.civic-strategies.com/resources/metros/miami.htm
Note:  Perhaps Floridians can report the latest news on this legislation.

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