FAQs on Land Use and Housing Legislation

When will grant programs be launched?

We are working to build and launch grant programs to comply with and respond to the requirements in each law that contains a grant program. The funding program contemplated in SB 24-174 (Sustainable Affordable Housing Assistance, sometimes referred to as Housing Planning) will launch first, likely in early 2025. The funding programs in HB 24-1152 (Accessory Dwelling Units) and HB 24-1313 (Transit-Oriented Communities) will launch later in order to provide subject jurisdictions with sufficient time to become certified as being compliant with those laws. HB24-1152 requires submission of a compliance report by June 30, 2025 and HB 24-1313 requires submission of a preliminary compliance report by June 30, 2025 and a final compliance report by December 31, 2026.

Which jurisdictions are subject to which laws? Which are exempt?

Please review the applicability information listed on each law’s subpage. You can find links to these subpages on the 2024 Land Use and Housing Legislation web page. If you are still unsure if your jurisdiction is subject to one of the listed laws after reviewing that information, please contact us for further information or to set up a one-on-one technical assistance meeting.

Please see Section 1.3 of the TOC Guidance for common FAQs about the law.

(HB 24-1152)

When do subject jurisdictions need to take action to comply with the ADU law?

By June 30, 2025, the law requires a subject jurisdiction to allow one ADU as an accessory use to a single-unit detached dwelling, subject to an administrative approval process. The law also prohibits subject jurisdictions from enacting or enforcing certain local laws or otherwise acting in certain ways that would restrict the construction or conversion of an accessory dwelling unit. Subject jurisdictions must submit a report by June 30, 2025 demonstrating compliance, in a form and manner that DOLA will determine. There is also an extension process contemplated in the law, and DOLA will develop a process to provide that option.

How can local governments qualify for grant funding?

In order to qualify for grant funding, a local government must be certified as an “ADU supportive jurisdiction” by DOLA. To become certified, subject jurisdictions (as well as any other jurisdictions that choose to opt-in) must submit a report by June 30, 2025 that documents how local regulations comply with the law as well as the adoption of one or more strategies from a menu, which, as listed in statute includes:

• Waiving, reducing, or providing financial assistance for related fees incurred by low- and moderate-income households,
• Enacting local laws or programs that incentivize affordability of certain ADUs, including those used to house local workforce,
• Providing pre-approved plans,
• Implementing a program to provide education and technical assistance to homeowners,
• Implementing a program to regulate the use of ADUs for short-term rentals,
• Enacting local laws that incentivize accessible and visitable ADUs,
• Assisting property owners to ensure preexisting ADUs comply with local laws,
• Enabling a pathway for the separate sale of an ADU,
• Enacting local laws that encourage factory-built ADUs, or
• Any other strategy approved by DOLA to encourage the construction, conversion, or use of ADUs.

Does the bill allow subject jurisdictions to only allow attached or detached ADUs, but not both?

The definition of an ADU in HB24-1152 is ""Accessory dwelling unit" means an internal, attached, or detached dwelling unit that: (a) provides complete independent living facilities for one or more individuals; (b) is located on the same lot as a proposed or existing primary residence; and (c) includes facilities for living, sleeping, eating, cooking, and sanitation."

DOLA interprets that while subject jurisdictions do not need to use this exact definition in their code, the use of a different definition cannot result in more restrictions on ADUs than are permitted by the law. In other words, because the statutory definition of an ADU includes internal/attached and detached forms of ADUs, subject jurisdictions need to allow both. However, this does not constitute legal advice, and local governments are encouraged to consult with their municipal or county attorney for that purpose.

What types of ADUs would be eligible for the grant funding? For example, could grant funds help with the cost of converting the second story of downtown retail into new residential units? 

Eligible expenses will be outlined in the policies and procedures for the ADU grant program. While we do not anticipate launching that program until after subject jurisdictions have sufficient time to be certified as compliant with the ADU law, we hope to begin program development this fall and will facilitate stakeholder input. Please check this page for updates or sign up for the Community Development Office newsletter to receive information on our stakeholder engagement process as it becomes available.

Can subject jurisdictions restrict the number of occupants in ADUs?

Yes, however, per HB 24-1007, occupancy cannot be restricted based on familial relationships. Please review FAQs below regarding further questions about HB 24-1007.

Can subject jurisdictions require owner occupancy? 

A subject jurisdiction may choose to require demonstration of owner occupancy of the parcel at the time an application is submitted to construct or convert an ADU, but may not require a long-term or permanent commitment to owner occupancy such as through a deed restriction. This exception does not apply for an ADU that is being constructed simultaneously with a new primary dwelling unit.

Can subject jurisdictions require demonstration of owner occupancy as part of local short-term rental regulations?

Yes.

Does the ADU law apply to mobile home parks?

HB24-1152 requires subject jurisdictions to allow (subject to an administrative approval process) one ADU as an accessory use to a single-unit detached dwelling in any part of the subject jurisdiction where the jurisdiction allows single-unit detached dwellings. The law defines single-unit detached dwellings as "a detached building with a single unit on a single lot." DOLA interprets that mobile home or manufactured home parks with multiple homes on a single lot would not meet this definition, and so HB24-1152 would not apply in these situations. However, this does not constitute legal advice, and local governments are encouraged to consult with their municipal or county attorney for that purpose.

How would an administrative review process for Accessory Dwelling Units (ADU) applications interface with requirements for public hearings in historic districts?

The law explicitly does not prevent a subject jurisdiction from applying design standards and procedures of a historic district. Additionally, the definition of an administrative approval process explicitly includes an option for subject jurisdictions to “require an appointed historic preservation commission to make a decision, or to make a recommendation to local government administrative staff, regarding a development application involving a property that the local government has designated as a historic property.” Please note, this allowance does require (1) that the local government has been designated a certified local government by the state historic preservation office within History Colorado and (2) that the appointed historic preservation commission's decision or recommendation is based on standards either set forth in local law or established by the Secretary of the Interior of the United States. 

What are the requirements for rear setbacks in the case of an attached ADU?

Minimum rear setbacks may not be larger than those that apply to other accessory building types in the same zone, or five feet, whichever is greater. DOLA interprets this to mean, in the case of attached ADUs, that if the ADU is an addition to the rear of the house, the minimum setback for an ADU would need to be 5 feet (or the setback for other accessory buildings in that district, if it's greater) or less. However, if the ADU is not located in that addition (for example if the applicant added a family room to the rear while converting a previous basement family room into an ADU), then the minimum would be the same as the primary unit since the ADU is within the original footprint of the primary dwelling.

What does the law say regarding HOAs and ADUs?

HOAs and other common interest communities cannot restrict the creation of an ADU in any way prohibited by HB24-1152 in Section 29-35-103 (the section of statute that restricts subject jurisdictions from applying restrictive design and dimensional standards, etc.), though can apply "reasonable restrictions" which is defined in the law as “a substantive condition or requirement that does not unreasonably increase the cost to construct, effectively prohibit the construction, or extinguish the ability to otherwise construct an ADU.” The ADU guidance gives examples of a "reasonable restriction" as standards also applied to the construction of other types of accessory buildings or to other internal modifications of the primary home. For more information, please see Section 3.9 of the ADU guidance document.

Does the law allow subject jurisdictions to require detached ADUs to be located in the rear yard or behind the front façade of the primary dwelling unit?

Yes, this is an objective standard, and is not included in the definition of a restrictive design and dimension standard in the law.

(SB 24-174)

What sort of help can the state provide to local governments that want to or must create a water element, but lack the resources?

DOLA will be developing supportive resources for communities to complete water elements as part of comprehensive plans. This may include guidance and samples. Additionally, we have our Land Use and Water Planner, Scott Williamson, on staff to provide direct technical assistance, as well as our Energy/Mineral Impact Assistance Fund Grants that are able to fund comprehensive plans.

Launched in Q1 2025, DOLA’s Housing Planning Grant Program provides grants to local governments and regional entities to help them better understand their housing needs and to develop actionable and compliant housing needs assessments (HNAs), housing action plans (HAPs), and comprehensive plan elements.

Is an existing housing needs assessment sufficient to meet the requirements in the law?

The law includes an option for subject jurisdictions to submit recently completed housing needs assessments to DOLA for review. A housing needs assessment (HNA) may satisfy the requirements in the law if it was conducted after January 1, 2022 and conforms to the methodology published by DOLA, which will be available by December 31, 2024. A local government may submit its HNA to DOLA for review by December 31, 2024 and DOLA will make a determination within 90 days as to whether the assessment conforms to the methodology required by the law.

Is an existing housing strategic plan sufficient for an action plan?

The law includes an option for subject jurisdictions to use existing plans, provided they meet certain criteria. The housing action plan must:

• have been created through an inclusive public process; 
• engaged communities at risk of displacement; 
• consideration for participation by persons unable to attend meetings in person or at the local government’s regularly scheduled meeting times; 
• consider any applicable HNAs, regional and local plans, and any available assessments of public services and facilities; and 
• be posted publicly on a local government’s website for at least 30 days before a public hearing.

The housing action plan must also include eleven baseline components, listed in the legislation. For example, an assessment of the effect of existing zoning on development, a narrative analysis of any area or community identified as being at an elevated risk of displacement, and a description of opportunities for intergovernmental coordination to address regional needs. A housing action plan that substantially meets the requirements of the law and was the subject of a public hearing held between January 1, 2024 and July 1, 2024 is not required to conduct another housing action plan until 5 years after the adoption date.

(HB 24-1007)

How can local governments limit occupancy under this law?

Local governments retain authority to implement residential occupancy limits based on demonstrated health and safety standards, such as international building code standards, fire code regulations, or Colorado Department of Public Health and Environment wastewater and water quality standards. Local governments may also implement residential occupancy limits based on local, state, federal, or political subdivision affordable housing program guidelines.

(HB 24-1304)

Does the limitation on minimum parking requirements apply to project applications that are for new mixed-use?

Regarding types of uses, the law restricts local governments from enacting or enforcing “local laws that establish a minimum parking requirement that applies to a land use approval for multifamily residential development, adaptive re-use for residential purposes, or adaptive re-use mixed-use purposes which include at least fifty percent of use for residential purposes.” As this list does not include language about new mixed-use development applications, we recommend local governments consult their attorney to answer this question.

How can a subject jurisdiction require ADA spaces when the number of ADA spaces is determined by the number of spaces provided?

Subject jurisdictions should refer to ADA requirements. While subject jurisdictions may not require a minimum number of parking spaces, many projects will likely still provide parking spaces, which could be the baseline used to determine the number of ADA spaces.

Do the parking maps apply to all of a property if only a part is inside the buffers?

Yes. The law applies to land use approvals for applicable projects that are “at least partially within an Applicable Transit Service Area.” (Section 29-36-103)

What definition of multifamily applies in HB24-1304?

This statute does not define multifamily housing, so local jurisdictions may use their own definitions, such as their existing multifamily residential definition or other common multifamily definitions. C.R.S. 38-45-101 offers a reasonable definition of multifamily, which reads ““Multi-family dwelling” means any improved real property used or intended to be used as a residence and that contains more than one dwelling unit. Multi-family dwelling includes a condominium or cooperative.” Another common definition of multifamily housing is any building with three or more residential units, which is how building codes typically delineate residential building types.

How does the law apply to mixed use developments that are not adaptive reuse?

The law applies to the multifamily residential portion of mixed use developments, but does not apply to the commercial portion, except in the cases where it is an adaptive reuse project where at least 50% of the building space is for residential uses.