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Is the Colorado ADU dawn upon us?

Despite the narrative in places like Portland, Seattle, and Vancouver, one thing they surely have got right over the years has been encouraging the development of ADUs to assist in the affordable housing battle. It looks like Colorado is next. This is good news for homeowners, investors, and renters alike. 

In a bid to address the growing housing affordability crisis in Colorado, state legislators have introduced a promising bill aimed at facilitating Accessory Dwelling Units (ADUs). The proposal, outlined in a recent article by the Denver Business Journal, underscores a significant step towards providing more affordable housing options across the state.

ADUs, also known as granny flats or in-law units, are secondary housing units located on the same property as a primary residence. These units can be converted garages, basements, or separate structures, offering an additional living space without the need for extensive land development.

The proposed bill seeks to streamline the process for homeowners interested in constructing ADUs on their properties. By simplifying zoning regulations and permitting procedures, the legislation aims to remove barriers that have traditionally hindered the widespread adoption of ADUs. This move is anticipated to encourage more homeowners to invest in these secondary units, thereby increasing the overall housing supply and affordability.

One of the key provisions of the bill is the prohibition of local governments from imposing minimum lot sizes for ADU construction. This provision is particularly significant as it opens up the possibility for ADUs to be built on smaller lots, making them accessible to a broader range of homeowners and renters. Additionally, the bill proposes to waive impact fees for ADU construction, further reducing the financial burden on homeowners.

The introduction of this bill comes at a crucial time when housing affordability is a pressing issue in Colorado. With skyrocketing housing costs and limited availability, many residents are struggling to find suitable accommodations within their budget. ADUs present a practical solution by offering more affordable housing options while maximizing existing land resources.

Furthermore, ADUs can contribute to addressing other societal challenges, such as providing housing for aging relatives, accommodating multigenerational living arrangements, and increasing urban density in a sustainable manner. By promoting the construction of ADUs, policymakers aim to foster vibrant and inclusive communities that cater to diverse housing needs.

However, despite the potential benefits of ADUs, some concerns have been raised regarding their impact on neighborhood character and infrastructure. Critics argue that unchecked ADU development could strain local resources and exacerbate parking and congestion issues. To address these concerns, the proposed bill includes provisions for local governments to enact reasonable regulations to ensure that ADUs are built in a manner that aligns with community interests and infrastructure capacity.

In summary, the introduction of the ADU bill represents a promising step towards expanding housing affordability and accessibility in Colorado. By removing regulatory hurdles and incentivizing ADU construction, policymakers aim to empower homeowners to contribute to the solution while fostering more inclusive and sustainable communities. As the bill progresses through the legislative process, stakeholders will closely monitor its developments and implications for the future of housing in the state.


Work With Joe

I coach buyers, sellers, and investors throughout Colorado to help them achieve their real estate investment goals. Real estate is complicated and getting more complicated every year, so I am here to help you in the process. I am known as Coach Joe, having coached youth sports for over 40+ years. I have also owned and started several businesses, including 3 franchises.