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Accessory Dwelling Units

Concerning increasing the number of accessory dwelling units, and, in connection therewith, making an appropriation.
2024 Regular Session
Local Government
State Government
Bill Summary

Section 1 of the bill creates a series of requirements related to accessory dwelling units. The bill establishes unique requirements for subject jurisdictions and for qualifying as an accessory dwelling unit supportive jurisdiction (supportive jurisdiction).

As established in the bill, a subject jurisdiction is either:

  • A municipality that has a population of 1,000 or more and that is within the area of a metropolitan planning organization; or
  • The portion of a county that is both within a census designated place with a population of ten thousand or more, as reported in the most recent decennial census, and within the area of a metropolitan planning organization.

The bill requires a subject jurisdiction to allow, subject to an administrative approval process, one accessory dwelling unit as an accessory use to a single-unit detached dwelling in any part of the subject jurisdiction where the subject jurisdiction allows single-unit detached dwellings. The bill also prohibits subject jurisdictions from enacting or enforcing certain local laws that would restrict the construction or conversion of an accessory dwelling unit.

In order to qualify as a supportive jurisdiction, a jurisdiction must submit a report to the division of local government in the department of local affairs (the division department ) demonstrating that the jurisdiction:

  • Has complied with the accessory dwelling unit requirements the bill imposes on subject jurisdictions; and
  • Has implemented one or more strategies to encourage and facilitate the construction or conversion of accessory dwelling units.

Section 1 also creates the accessory dwelling unit fee reduction and encouragement grant program within the division department . The purpose of this grant program is for the division department to provide grants to supportive jurisdictions for offsetting costs incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or waiving or reducing accessory dwelling unit associated fees and other required costs. In addition to providing grants, the department is required to develop a toolkit to support local governments in encouraging accessory dwelling unit construction. Section 2 requires the department to create, for local governments to consider and adopt, model public safety code requirements related to geographic or climatic conditions for factory-built structures, including those structures that would be considered accessory dwelling units. Section 2 3 grants the Colorado economic development commission the power to expend $8 million to contract with the Colorado housing and finance authority to operate and establish the following programs to benefit the residents of supportive jurisdictions:

  • An accessory dwelling unit loss reserve program that offers affordable loans credit enhancement program that supports lenders offering affordable loans to eligible low- and moderate-income borrowers for the construction or conversion of accessory dwelling units;
  • A program that allows for the buying down of interest rates on loans made to eligible low- and moderate-income borrowers in connection with the construction or conversion of accessory dwelling units;
  • A program that offers down payment assistance in connection with accessory dwelling units , principal reduction on loans to eligible low- and moderate-income borrowers made in connection with accessory dwelling units, or both ; and
  • A program through which the Colorado housing and finance authority offers direct loans in connection with loans, revolving lines of credit, or grants to eligible non-profits, public housing authorities, and community development financial institutions to make direct loans or grants to support the construction or conversion of accessory dwelling units for low- and moderate-income borrowers or tenants .

Section 3 4 prohibits a planned unit development resolution or ordinance for a planned unit development from restricting the permitting of an accessory dwelling unit more than the local law that applies to accessory dwelling units outside of the planned unit development. Section 4 5 states that any prohibition on accessory dwelling units or the implementation of restrictive design or dimension standards by a unit owners' association in a supportive jurisdiction is void as a matter of public policy.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)




Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details