COLORADO HOUSE BILL 24-1152

Colorado House Bill 24-1152, which Gov. Jared Polis signed into law in May, went into effect June 30, 2025. It aims to boost the supply of affordable housing by making it easier – and less expensive – for most Colorado homeowners to build an ADU (a.k.a. casita, in-law suite or granny flat). It also presents opportunity for those who have been either ineligible to add an ADU or for whom bureaucratic hurdles seemed too burdensome. That can provide for more personal elbow room or bring in rental income even as it boosts a home’s value by perhaps 35%.

Colorado House Bill 24-1152, signed into law in May 2024 and effective June 30, 2025, aims to simplify and encourage the construction of accessory dwelling units (ADUs) in many parts of the state. This legislation is a significant step toward addressing the state's housing supply challenges by making it easier and less expensive for homeowners to add an ADU. Here's a breakdown of the key provisions and what it means for Colorado homeowners:

Who is affected by the new law? The new law applies to "subject jurisdictions," which include:

  • Municipalities with a population of 1,000 or more that are located within a metropolitan planning organization (MPO).

  • Portions of a county that are within a census-designated place of at least 40,000 people and also within an MPO.

Local governments not included in this definition can choose to "opt-in" and become an "ADU supportive jurisdiction" to be eligible for state grants and other benefits.

Key changes and requirements:

  • Permitting: The law requires subject jurisdictions to allow ADUs through an administrative approval process, which eliminates the need for a public hearing. This streamlines the process and is intended to result in faster permit approvals.

  • Zoning and restrictions: The bill overrides some common local restrictions, including:

    • Owner-occupancy requirements: Local governments can no longer require that a property owner live in either the main house or the ADU.

    • Parking requirements: Jurisdictions cannot require the construction of an additional parking space for an ADU, with some limited exceptions (for example, if the existing lot has no off-street parking and on-street parking is prohibited).

    • HOA restrictions: Homeowners' associations (HOAs) in supportive or subject jurisdictions cannot enforce rules that completely ban ADUs or make it unreasonably difficult or expensive to build one. However, they can still impose reasonable design standards to ensure the ADU is compatible with the neighborhood.

    • Design standards: Local governments cannot apply more restrictive design or dimensional standards (like architectural style or building materials) to ADUs than they do to the primary single-family home.

  • Size and setbacks: The law sets some general guidelines for ADU size and setbacks, such as a minimum rear setback of five feet. Local jurisdictions cannot have regulations that are more restrictive than the standards for other accessory buildings.

  • Types of ADUs: The legislation defines an ADU as a dwelling unit that has independent living facilities, including a kitchen, bathroom, and sleeping area. It can be internal (like a basement apartment), attached to the main house, or a separate detached structure.

Financial assistance and incentives: To help homeowners with the cost of building an ADU, the law created the Accessory Dwelling Unit Grant Program. This program awards grants to local governments that have been certified as "ADU Supportive Jurisdictions" for activities that promote ADU construction. These activities can include:

  • Developing pre-approved ADU plans.

  • Providing technical assistance to homeowners.

  • Waiving, reducing, or providing financial assistance for ADU-associated fees.

The Colorado Housing and Finance Authority (CHFA) is also involved, with an $8 million program to assist in ADU development through low-interest loans, down payment assistance, and credit enhancements for low- and moderate-income homeowners./

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