City of Durango
Background
The City of Durango has a high share of rental housing, with nearly half of the housing units occupied by renters. Its strong tourism economy has exacerbated the need for more affordable and diverse housing options, particularly for service industry workers. Over time, many of Durango’s alley-loaded neighborhoods had non-conforming living units developed in accessory structures. While these units offered an opportunity for much-needed housing, they were developed and operated outside of code, raising regulatory and safety concerns.
To address these challenges, the City launched an ADU discovery and registration program in 2014, called the Pre-Existing Unit Voluntary Registration Program, alongside a land use code update that allowed new ADUs. Doing so created a pathway for owners of preexisting ADUs to legalize their units. The goal was to create a simple, low-barrier way for people to retain pre-existing units and provide a low-impact housing option for the community.
Image Source: City of Durango
Program Design and Considerations
Supporting Homeowners to Bring Preexisting ADUs into Compliance
The Program started as a pilot in two alley-loaded neighborhoods, where unpermitted ADUs were known to be common, and eventually expanded citywide. The City created an online registration form and opened a one-year window for homeowners to voluntarily register preexisting units. The one-year pilot was later extended to three years under Council’s direction.
To get a better sense of the scale of unregistered ADUs, planning staff and community members did a walking inventory of alley-loaded neighborhoods. While there was some initial discussion about involving the building department to do inspections to bring units into compliance, the City ultimately decided against it. Limited staff capacity and life and safety requirements made it difficult to conduct inspections. Instead, they developed a simple process that made it easy for homeowners to come forward to register their preexisting units.
To register a unit, homeowners had to show when the unit was built by submitting supporting documentation, which could include something as simple as a notarized statement from a neighbor attesting to the age of the unit. Fees for registering units were assessed based on the age of the unit, using a three-tiered system:
- Built before 1941 prior to zoning, were exempt from fees and update requirements.
- Built between 1941 and 1989 when loose zoning standards were in place, faced minimal requirements and followed the same process as above.
- Built between 1989 and 2014 when impact fees and zoning standards were in place, were subject to a prorated fee schedule based on the year the unit was established.
Built-in flexibility for homeowners with preexisting units was a key consideration of the program, especially around determining the age of the ADU and allowing minor variances for nonconforming aspects of the unit, such as setbacks and parking. The City also introduced an “Age and Safety Affidavit” in place of full inspections to confirm the unit met health and safety standards.
Incentivizing Affordable ADU Rentals
The City also recently launched a limited ADUs for Locals Rebate Program that will support 10 homeowners with the construction of a new ADU (or legalization of an existing ADU) in exchange for renting to someone in the local workforce. Each project will receive $8,000 from previously appropriated Housing Incentive Program funds. Owners must rent their ADU to a local who works at least 32 hours a week for a business or organization located in La Plata County. Tenants must reside in the unit as their primary residence.
Takeaways
The City faced community pushback early on. At the time, ADUs were still a relatively new concept in smaller communities like Durango, and many community members were concerned about how ADUs might impact neighborhood character. To address these concerns, the City took an incremental approach to encouraging ADUs by first focusing on legalizing existing units. This helped demonstrate a proof of concept and that infill units could expand housing options without drastically changing the neighborhood character. Additionally, the City included design guidelines as part of the process and conducted extensive education and outreach, including mass mailings to homeowners and creating a “Know Your ADUs” Video.
In 2022, as part of a broader effort to increase housing options, the City of Durango amended its land use code to relax standards for new ADUs. As part of the code update, the City shifted its policy on allowing ADUs in neighborhoods with protective covenants that previously limited properties to a single dwelling unit per lot. Under the new updates, homeowners can apply for permits through the City, with the understanding that they assume any risk or costs related to the enforcement of private covenants. This policy change allowed the City to begin accepting applications from pre-existing ADUs in areas that were previously not eligible, further expanding the reach of the Program.
Resources
- City of Durango ADU Webpage includes an overview and information on the ADUs for Locals Rebate Program
- ADU Ordinance effective June 19, 2024
- ADU Presentation developed for APA
- Articles: City Starts Registering ADUs by Durango Herald and How One CO City Instantly Created More Affordable Housing by Bloomberg