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 associated with SB 24-174, the Housing Planning Grant Program or HPLN, launched its first funding cycle on March 12, 2025. Awards for the first cycle of HPLN funding are anticipated in May 2025. The funding programs in HB 24-1152 (Accessory Dwelling Units) and HB 24-1313 (Transit-Oriented Communities) will launch later in 2025 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 assessment report by June 30, 2025 and a final compliance report by December 31, 2026.

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

Subject jurisdictions and other related applicability information is 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.

How do I submit the required compliance reports to DOLA?

The Land Use and Housing Implementation Portal is currently under development. This portal will allow jurisdictions, consultants, and other entities to log in and view the required and optional forms specific to their jurisdiction. Before the portal is ready, DOLA has published preliminary reporting instructions for several of the required and optional reports, which have been uploaded to the subpage for each law (please contact us if you have questions about accessing these documents or preparing submissions). These instructions outline the questions that will be asked in the portal and specify the necessary information, links, and/or files jurisdictions will need to submit to demonstrate compliance. Though minor language edits may occur between the publishing of the preliminary instructions and the portal going live, it is unlikely there will be substantive changes. 

DOLA is designing this portal with efficiency, ease, and understanding in mind. Stay tuned for further information about getting started with the Portal and providing your valuable feedback!

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, as detailed in the guidance on the ADU law’s subpage. Subject jurisdictions must submit a report by 11:59 p.m. on June 30, 2025 demonstrating compliance or requesting an extension.

An extension may be granted if the subject jurisdiction demonstrates that it has: 

• Initiated the process of compliance, 
• A timeline for completion of that process, and 
• Explained the reason for not meeting the initial compliance deadline.

Preliminary reporting instructions for compliance, as well as details on the extension request, have been posted on the Accessory Dwelling Units subpage. These instructions outline what will be requested when submitting within the Land Use and Housing Implementation Portal (currently in development).

How can local governments qualify for grant funding?

HB24-1152 established a grant program at DOLA and a financing program for homeowners to construct ADUs at CHFA. The ADU grant program will support activities that promote the construction of accessory dwelling units, such as offsetting costs for developing pre-approved accessory dwelling unit plans, providing technical assistance to homeowners, or waiving, reducing, or providing financial assistance for accessory dwelling unit associated fees and other required costs.

In order to qualify for this ADU grant funding (and to enable their residents to be eligible for CHFA’s financing), 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 demonstrating compliance with the law as well as the adoption of one or more strategies listed in statute, which include:

• 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.

More detailed information on the supportive strategies mentioned above is available on the ADU subpage in the ADU Supportive Strategies document under Tools & Resources. This document outlines the benefits and potential challenges of each strategy, along with guidance on how to implement them and examples of communities that have applied them.

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 expect to begin program development this summer 2025 and will facilitate stakeholder input prior to grant program launch in the fall. 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 as well as that law’s subpage.

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.

Does the definition of “administrative approval process” within HB24-1152 disallow an appeal of an ADU application?

No. HB24-1152 defines “administrative approval process” as; a process in which: (i) a development proposal for a specified project is approved, approved with conditions, or denied by local government administrative staff based solely on its compliance with objective standards set forth in local laws; and (ii) does not require, and cannot be elevated to require, a public hearing, a recommendation, or a decision by an elected or appointed public body or a hearing officer.

DOLA has interpreted this to mean that the initial review and decision of an ADU application must follow the administrative process outlined above. However, this does not exclude a secondary process initiated by an external party, such as a resident. Nevertheless, both the appeal request and the appeal decision must be grounded in objective criteria that meet the definition of an “objective standard.” An objective standard is defined in the law as: 

1. A defined benchmark or criterion that allows for determinations of compliance to be consistently decided regardless of the decision maker; and 
2. Does not require a subjective determination concerning a development proposal, including but not limited to whether the application for the development proposal is: 
   • Consistent with master plans, or other development plans; 
   • Compatible with the land use or development of the area surrounding the area described in the application; or 
   • Consistent with public welfare, community character, or neighborhood character.

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 visit the ADU subpage.

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?

We encourage communities to visit our Water and Land Use Integration for Local Governments page for a robust set of informational resources, tools and guidance, including a fact sheet for Water Supply Elements in Comprehensive Plans. 

DOLA will be developing additional supportive resources for communities to complete water elements as part of comprehensive plans (available in early 2026). 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.

What is the role of displacement mitigation strategies in SB24-174, and how do they relate to the requirements of HB24-1313?

SB24-174 requires that Housing Action Plans include identification of at least one displacement mitigation strategy from a menu. HB24-1313 requires communities to select two displacement mitigation strategies from a menu. In an effort to lower the burden on jurisdictions subject to both laws, DOLA has consolidated the two statutory menus so that communities subject to both laws can select two strategies from the same list and simultaneously meet the requirements of both laws. Please review the preliminary Affordability Strategy Guidance and contact us with any questions. 

What are the options for regional housing needs planning?

This law permits subject jurisdictions to either conduct a local Housing Needs Assessment (HNA) or participate in and rely on a regional Housing Needs Assessment (RHNA). To rely on an RHNA, the jurisdiction must review it at a public meeting with its governing body and submit any comments to the regional entity. In conducting a subsequent Housing Action Plan or Comprehensive Plan update, a subject jurisdiction must consider and reflect relevant HNAs. DOLA interprets this to mean that it would be up to the jurisdiction whether that would mean reflecting a local HNA, RHNA, or both. Additionally, a RHNA is not required to follow any pre-determined boundary (such as a census tract, MPO area, or county), and may choose the boundary of their study.

It's important to note that jurisdictions with a population under 5,000 are not required to produce a Housing Action Plan (HAP) unless they have participated in an RHNA. For instance, a community with a population of 3,500 must complete an HNA (since the law mandates that all municipalities with populations of 1,000 or more do so), but it would not need to complete the subsequent HAP unless it participated in an RHNA. If the municipality has participated in an RHNA, then the HAP would also be required.

What is the difference between a Housing Needs Assessment and a Housing Action Plan?

Within SB24-174, the Housing Needs Assessment (HNA) is “step 1” and the Housing Action Plan (HAP) is “step 2.”

Housing Needs Assessments:

SB24-174 requires all jurisdictions within Colorado with a population of 1,000 or greater to conduct this assessment by December 31, 2026. However, a subject jurisdiction is exempt from this requirement if the local government has experienced a negative population change of at least one percent (1%) in the most recent decennial census, unless the local government receives funding to conduct a local housing needs assessment from DOLA pursuant to section 24-32-3710.

SB24-174 identifies datasets and outputs that are required within an HNA or RHNA. DOLA has published guidance for jurisdictions, consultants, or other entities conducting the assessment that outlines the required datasets, elements, and outputs and where to find the needed information. If you need assistance conducting or beginning an HNA, please reach out to the Technical Assistance Team.

Housing Action Plans:

By January 1, 2028, all Colorado jurisdictions with a population of 5,000 or greater; or that participated in a Regional HNA; or would have been deemed, as of January 1, 2024, to be a rural resort community as defined in section 29-32-101 (10), must conduct a Housing Action Plan (HAP). However, a subject jurisdiction is exempt from this requirement if the local government experienced a negative population change of at least one percent (1%) in the most recent decennial census.

An HAP must be responsive to an accepted housing needs assessment and demonstrate the local government’s commitment to address demonstrated housing needs, and guides the local government in developing legislative actions, promoting regional coordination, and informing the public of the local government’s efforts to address housing needs in the local government’s jurisdiction. Guidance for conducting an HAP is currently in development.

Is an existing housing strategic plan sufficient for a housing 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; 
• considered persons unable to attend meetings in person or at the local government’s regularly scheduled meeting times; 
• considered any applicable HNAs, regional and local plans, and any available assessments of public services and facilities;
• been 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 of the HAP. Guidance for conducting an HAP is currently in development.

Is the reporting process meant to be one-time or iterative? If DOLA identifies a deficiency, will there be a communication about how to correct, resources available, and a reasonable resubmittal timeline?

DOLA’s goal is to work with local governments proactively, as much as each would like, such that there would be no surprises during the reporting process. To that end, DOLA offers one-on-one meetings and courtesy reviews of draft or complete work (please contact us for more information). Many local reporting requirements in the laws include a response and remediation process. However, even where that is not specified, DOLA is committed to continuing to work with jurisdictions to support any changes needed to satisfy statutory requirements, identify resources to conduct such work, and otherwise support jurisdictions toward compliance on as quick of a timeline as feasible.

Legislative citations:

ADU report feedback/extension process: 29-35-104(2)(a); TOC HOG report feedback/amendment process: 29-35-204(8)(b); Housing Planning HNA review/notification process: 24-32-3703(3); Housing Planning HAP review/notification process: 24-32-3705(4)

(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.

How does HB 24-1007 interact with group homes?

DOLA interprets HB 24-1007 as limiting local government regulation of occupancy limits for dwelling units, not group homes. DOLA interprets the effect of HB 24-1007 as prohibiting local occupancy limits for dwelling units based on familial relationships, but that local governments retain authority to otherwise regulate occupancy for such dwellings based on the criteria in C.R.S. § 29-20-111(3). Please note, this interpretation is not legal advice and local governments are advised to consult with their municipal or county attorney for such advice on these matters.

(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.”

DOLA interprets this to mean 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. However, this does not constitute legal advice, and local governments are encouraged to consult with their municipal or county attorney for that purpose.

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 were Transit Areas chosen?

The law includes very specific directions for DOLA to create the Applicable Transit Service Area maps, based on existing or near-term planned service as of Jan 1, 2024. For more details, please reference HB24-1304’s mapping documentation.

Is there a mandatory reporting requirement for this law?

No. For HB24-1304, the only required reporting is for subject jurisdictions who impose a minimum parking requirement exception on a subject development within an applicable transit service area of up to one parking space per housing unit. The reporting on the use of the exception is due December 31, 2026 and annually thereafter. Please reference the Parking Minimum subpage for additional information.

DOLA welcomes and encourages voluntary compliance reporting under this law as part of an effort to share local approaches, sample language, and best practices with other interested local jurisdictions. The Land Use and Housing Implementation Portal will enable subject jurisdictions to voluntarily report on compliance.