Colo. Rev. Stat. § 29-35-402, Definitions

As used in this part 4, unless the context otherwise requires:

(1) Accessible unit means a housing unit that:

(a) Satisfies the requirements of the federal Fair Housing Act, 42 U.S.C. sec. 3601 et seq., as amended;

(b) Incorporates universal design; or

(c) Is either a type A dwelling unit, as defined in section 9-5-101 (10), or a type B dwelling unit, as defined in section 9-5-101 (12).

(2) 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

(3) Accessory dwelling unit supportive jurisdiction means a local government that the department has certified pursuant to section 29-35-404 as an accessory dwelling unit supportive jurisdiction.

(4) Accessory use means a structure or the use of a structure on the same lot with, and of a nature customarily incidental and subordinate to, the principal structure or use of the structure.

(5) (a) Administrative approval process means 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.

(b) Notwithstanding subsection (5)(a) of this section, an administrative approval process may 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, provided that:

(I) The state historic preservation office within history Colorado has designated the local government as a certified local government; and

(II) 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.

(6) County means a county, including a home rule county but excluding a city and county.

(7) Department means the department of local affairs.

(8) Dwelling unit means a single unit providing complete independent living facilities for one or more individuals, including permanent facilities for cooking, eating, living, sanitation, and sleeping.

(9) Exempt parcel means a parcel that is:

(a) Not served by a domestic water and sewage treatment system, as defined in section 24-65.1-104 (5), or is served by a well with a permit that cannot supply an additional dwelling unit;

(b) A historic property that is not within a historic district; or

(10) Historic district means a district established by local law that meets the definition of district set forth in 36 CFR 60.3 (d).

(11) Historic property means a property listed:

(a) On the national register of historic places;

(b) On the Colorado state register of historic properties; or

(c) As a contributing structure or historic landmark by a certified local government, as defined in section 39-22-514.5 (2)(b).

(12) Local government means a municipality, county, or tribal nation with jurisdiction in Colorado.

(13) Local law means any code, law, ordinance, policy, regulation, or rule enacted by a local government that governs the development and use of land, including land use codes, zoning codes, and subdivision codes.

(14) Low- and moderate-income household means a household that is considered low-, moderate-, or medium-income, as determined by the federal department of housing and urban development.

(15) Metropolitan planning organization means a metropolitan planning organization under the Federal Transit Act of 1998, 49 U.S.C. sec. 5301 et seq., as amended.

(16) Municipality means a home rule or statutory city or town, territorial charter city or town, or city and county.

(17) Objective standard means a standard that:

(a) Is a defined benchmark or criterion that allows for determinations of compliance to be consistently decided regardless of the decision maker; and

(b) Does not require a subjective determination concerning a development proposal, including but not limited to whether the application for the development proposal is:

(I) Consistent with master plans, or other development plans;

(II) Compatible with the land use or development of the area surrounding the area described in the application; or

(III) Consistent with public welfare, community character, or neighborhood character.

(18) Restrictive design or dimension standard means a standard in a local law that:

(a) Requires an architectural style, building material, or landscaping that is more restrictive for an accessory dwelling unit than for a single-unit detached dwelling in the same zoning district;

(b) Does not allow for accessory dwelling unit sizes between five hundred and seven hundred fifty square feet;

(c) Requires side setbacks for an accessory dwelling unit that are larger than the side setbacks required for a primary dwelling unit in the same zoning district;

(d) Requires a rear setback for an accessory dwelling unit that is larger than the greater of:

(I) The rear setback required for other accessory building types in the same zoning district; or

(II) Five feet;

(e) Is a more restrictive minimum lot size standard for an accessory dwelling unit than for a single-unit detached dwelling in the same zoning district; or

(f) Applies more restrictive aesthetic design or dimensional standards to accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10), than other accessory dwelling units.

(19) (a) Short-term rental means the rental of a lodging unit for less than thirty days. As used in this subsection (19), lodging unit means any property or portion of a property that is available for lodging; except that the term excludes a hotel or motel unit.

(b) Notwithstanding subsection (19)(a) of this section, a local government may apply its own definition of short-term rental for purposes of this part 4.

(20) Single-unit detached dwelling means a detached building with a single dwelling unit on a single lot.

(21) Subject jurisdiction means either:

(a) A municipality that both has a population of one thousand or more, as reported by the state demography office, and is within a metropolitan planning organization; or

(b) The portion of a county that is both within a census designated place with a population of forty thousand or more, as reported in the most recent decennial census, and within a metropolitan planning organization.

(22) Tandem parking space means a parking space that is located either in front of or behind one or more other parking spaces that share the same point of access.

(23) Universal design means any dwelling unit designed and constructed to be safe and accessible for any individual regardless of age or abilities.

(24) Visitable unit means a dwelling unit that a person with a disability can enter, move around the primary entrance floor of, and use the bathroom in.

Source: L. 2024: Entire article added (see the editor's note following the part 4 heading), (HB 24-1152), ch. 167, p. 819, � 1, effective May 13.

29-35-403. Accessory dwelling unit requirements for a subject jurisdiction. (1) On or after June 30, 2025, a subject jurisdiction shall 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 jurisdiction allows single-unit detached dwellings.

(2) On or after June 30, 2025, a subject jurisdiction shall not:

(a) Require the construction of a new off-street parking space in connection with the construction or conversion of an accessory dwelling unit, except as described in subsections (3)(a) and (3)(b) of this section;

(b) Require an accessory dwelling unit, or any other dwelling on the same lot as an accessory dwelling unit, to be owner-occupied; except that a subject jurisdiction may require a property owner to demonstrate that the property owner resides on the parcel when an application is submitted:

(I) To construct or convert an accessory dwelling unit. This exception does not apply for an accessory dwelling unit that is being constructed simultaneously with a new primary dwelling unit.

(II) For a license or permit for a short-term rental on the parcel through a local law or program.

(3) Nothing in this section prevents a subject jurisdiction or other local government from:

(a) Requiring the designation of an off-street parking space in connection with an accessory dwelling unit, so long as there is an existing driveway, garage, tandem parking space, or other off-street parking space available for such a designation at the time of the construction or conversion of the accessory dwelling unit;

(b) Requiring, in connection with the construction or conversion of an accessory dwelling unit, one new parking space on a parcel that:

(I) Does not have an existing off-street parking space, including a driveway, garage, or tandem parking space, that could be used for an accessory dwelling unit;

(II) Is in a zoning district that, as of January 1, 2024, requires one or more parking spaces for the primary dwelling unit; and

(III) Is located on a block where on-street parking is prohibited for any reason including ensuring access for emergency services;

(c) Allowing the construction or conversion of an accessory dwelling unit that is smaller than five hundred square feet or greater than eight hundred square feet, or restricting the size of an accessory dwelling unit so that it is no larger than the size of the principal dwelling unit on the same lot as the accessory dwelling unit;

(d) Allowing the construction or conversion of multiple accessory dwelling units on the same lot;

(e) Applying a design or dimension standard to an accessory dwelling unit that is not a restrictive design or dimension standard;

(f) Adopting or enforcing a generally applicable requirement for:

(I) The payment of an impact fee or other similar development charge, pursuant to section 29-20-104.5; or

(II) The mitigation of impacts in conformance with the requirements of part 2 of article 20 of this title 29;

(g) Enacting or applying a local law concerning the short-term rental of an accessory dwelling unit or any other dwelling on the same lot as an accessory dwelling unit;

(h) Applying the design standards and procedures of a historic district to a lot on which an accessory dwelling unit is allowed in that historic district, including a standard or procedure related to demolition;

(i) Applying and enforcing a locally adopted life safety code, including but not limited to, a building, fire, utility, or stormwater code;

(j) Allowing the construction of, or issuing a permit for the construction of, a single-unit detached dwelling in an area zoned for single-unit detached dwellings;

(k) Encouraging the construction of accessory dwelling units that are, through the application of local laws or programs including through deed restrictions, made affordable to households under certain income limits or used primarily to house the local workforce pursuant to a local, regional, or state affordable housing program;

(l) Defining accessory dwelling unit in local law as including or excluding other dwelling unit types such as a motor home, as defined in section 42-1-102 (57), a multipurpose trailer, as defined in section 42-1-102 (60.3), and a recreational vehicle, as defined in section 24-32-902 (9); or

(m) Requiring a statement by a water or wastewater service provider regarding its capacity to service the property as a condition of permitting an accessory dwelling unit.

(4) This section only applies to a parcel in a subject jurisdiction that is not an exempt parcel.

Source: L. 2024: Entire article added (see the editor's note following the part 4 heading), (HB 24-1152), ch. 167, p. 823, � 1, effective May 13.

29-35-404. Accessory dwelling unit supportive jurisdiction report - certification of a jurisdiction as an accessory dwelling unit supportive jurisdiction. (1) (a) In order to be certified as an accessory dwelling unit supportive jurisdiction by the department, a local government must submit to the department, in a form and manner determined by the department, a report demonstrating evidence of the local government:

(I) Complying with section 29-35-403 as a subject jurisdiction or, if the local government is not a subject jurisdiction, as if the local government were a subject jurisdiction for purposes of section 29-35-403; and

(II) Implementing one or more of the following strategies:

(A) Waiving, reducing, or providing financial assistance for accessory dwelling unit-related fees that are incurred by low- and moderate-income households;

(B) Enacting local laws or programs that incentivize the affordability of certain accessory dwelling units including accessory dwelling units used primarily to house the local workforce;

(D) Implementing a program to provide education and technical assistance to homeowners to construct or convert an accessory dwelling unit;

(E) Implementing a program to regulate the use of accessory dwelling units for short-term rentals;

(F) Enacting local laws that incentivize the construction and conversion of accessible and visitable accessory dwelling units;

(G) Assisting property owners with ensuring that pre-existing accessory dwelling units comply with local laws;

(H) Enabling a pathway for the separate sale of an accessory dwelling unit;

(I) Enacting local laws that encourage the construction of accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10); or

(J) Any other strategy that is approved by the department and that encourages the construction, conversion, or use of accessory dwelling units.

(b) (I) On or before June 30, 2025, a subject jurisdiction shall submit the report described in subsection (1)(a) of this section.

(II) Notwithstanding subsection (1)(b)(I) of this section, the department may allow a subject jurisdiction to submit the report described in subsection (1)(a) of this section no more than six months after the deadline described in subsection (1)(b)(I) of this section if the subject jurisdiction demonstrates, in a form and manner determined by the department, that the subject jurisdiction has:

(A) Initiated a process to update its local laws as necessary to comply with the requirements of the report described in subsection (1)(a) of this section;

(B) A plan and timeline to update its local laws as necessary to comply with the requirements of the report described in subsection (1)(a) of this section; and

(c) If a local government that is not a subject jurisdiction submits a report pursuant to subsection (1)(a) of this section, that local government shall, as part of the report, submit evidence of complying with the requirements for a subject jurisdiction described in section 29-35-403.

(2) (a) Within ninety days of receiving a local government's report submitted pursuant to subsection (1)(a) of this section, the department shall review the report, either approve or reject the report, and provide feedback to the local government on the report.

(b) If the department approves a local government's report submitted pursuant to subsection (1)(a) of this section, the department shall issue to that local government a certificate indicating that the local government qualifies as an accessory dwelling unit supportive jurisdiction. The department may revoke such a certificate if a local government does not satisfy the requirements of subsection (1)(a) of this section.

(c) If the department rejects a local government's report submitted pursuant to subsection (1)(a) of this section, the department may grant the local government an additional one hundred twenty days to correct any deficiencies identified in the report and resubmit an amended report. Within ninety days of receiving an amended report, the department shall review the amended report, either approve or reject the amended report, and provide feedback on the amended report.

(3) The department, in consultation with the department of transportation, the Colorado energy office, and the Colorado office of economic development, may develop policies and procedures as necessary to implement this section.

Source: L. 2024: Entire article added (see the editor's note following the part 4 heading), (HB 24-1152), ch. 167, p. 825, � 1, effective May 13.

29-35-405. Accessory dwelling unit fee reduction and encouragement grant program - created - application - criteria - awards - fund - reporting requirements - rules - definitions - repeal. (1) The accessory dwelling unit fee reduction and encouragement grant program is created in the department to provide grants to accessory dwelling unit supportive jurisdictions for activities that promote the construction of accessory dwelling units, including but not limited to, 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, reducing, or providing financial assistance for accessory dwelling unit associated fees and other required costs.

(2) Grant recipients may use the money received through the grant program to offset both eligible costs and the cost of waiving, reducing, or providing financial assistance for reasonable and necessary accessory dwelling unit fees and other required costs for:

(a) Low- and moderate-income households;

(b) Affordable accessory dwelling units;

(d) Accessory dwelling units used as long-term rentals for members of the local workforce; or

(e) Accessory dwelling units used to support other demonstrated housing needs in the community.

(3) The department shall administer the grant program and, subject to available appropriations, provide technical assistance, develop a toolkit to support local governments in encouraging accessory dwelling unit construction, receive grant applications and award grants as provided in this section.

(4) To receive a grant, an accessory dwelling unit supportive jurisdiction must submit an application to the department in accordance with the policies and procedures developed by the department pursuant to subsection (9) of this section. At a minimum, the application must include the following:

(a) A copy of the certificate issued by the department pursuant to section 29-35-404 certifying that the local government is an accessory dwelling unit supportive jurisdiction;

(b) The number of accessory dwelling units that the local government has permitted and when the local government permitted those accessory dwelling units;

(c) The type and costs of fees and other eligible costs that the local government is proposing to use a grant award to pay for;

(d) The number of accessory dwelling units that the local government expects to support with a grant award and the period for which the local government intends to support those accessory dwelling units; and

(e) Information about the types of households and accessory dwelling units that the local government intends to support with a grant award, such as whether the local government intends to support low- and moderate-income households, affordable accessory dwelling units, accessible or visitable accessory dwelling units, accessory dwelling units for housing the local workforce, or accessory dwelling units supporting other demonstrated housing needs in the community.

(5) The department shall review the applications received pursuant to subsection (4) of this section. In awarding grants, the department shall give priority to local governments that:

(a) Impose accessory dwelling unit fees and costs that are reasonable and necessary;

(b) Have demonstrated a significant commitment to further construction and conversion of accessory dwelling units through the adoption of strategies described in section 29-35-404 (1)(a)(II); and

(I) Low- and moderate-income households; or

(II) Accessory dwelling units that are rented to low- and moderate-income households.

(6) In awarding a grant, the department shall award a local government an amount equal to no more than fifteen thousand dollars per accessory dwelling unit permitted by the local government, to be reimbursed based on the number of permitted accessory dwelling units.

(7) (a) The accessory dwelling unit fee reduction and encouragement grant program fund is created in the state treasury. The fund consists of any money that the general assembly may transfer or appropriate to the fund and gifts, grants, or donations credited to the fund.

(b) Subject to annual appropriation by the general assembly, the department may expend money from the fund for the purpose of implementing and administering the grant program.

(c) On or before June 30, 2024, the state treasurer shall transfer five million dollars from the general fund to the fund.

(d) (I) For state fiscal years commencing on or before July 1, 2024, the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.

(II) For state fiscal years commencing on or after July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.

(III) (A) On June 30, 2025, the state treasurer shall transfer forty-nine thousand seven hundred forty-one dollars from the fund to the general fund.

(B) This subsection (7)(d)(III) is repealed, effective July 1, 2026.

(8) In accordance with the policies and procedures developed by the department pursuant to subsection (9) of this section, each local government that receives a grant through the grant program shall submit a report to the department. At a minimum, the report must include the following information:

(a) The number of accessory dwelling units with accessory dwelling unit fees or costs that local governments waived, reduced, or provided financial assistance for in the past year;

(b) The total amount of eligible costs that local governments incurred and were reimbursed for through the grant program in the past year in connection with the grant program;

(c) The number of the accessory dwelling units described in subsection (8)(a) of this section that were built in the past year that were built by low- and moderate-income households, that are affordable accessory dwelling units, and that are visitable or accessible accessory dwelling units;

(d) The number of accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10); and

(e) The number of accessory dwelling unit permits awarded, denied, or in progress in the local government's jurisdiction.

(9) The department shall implement the grant program in accordance with this section. The department shall develop, in consultation with the department of transportation, the Colorado energy office, and the Colorado office of economic development, policies and procedures both as required in this section and as may be necessary to implement the grant program.

(10) As used in this section, unless the context otherwise requires:

(a) Accessory dwelling unit fee means a reasonable and necessary fee collected or required by a local government in connection with the construction or conversion of an accessory dwelling unit. Such a fee may include impact fees.

(b) (I) Eligible costs means costs incurred by a local government and determined by the department to be incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or other reasonable and necessary fees levied by or costs borne by the local government for the construction or conversion of an accessory dwelling unit.

(II) Notwithstanding subsection (10)(b)(I) of this section, in order for costs incurred by a local government in connection with developing pre-approved accessory dwelling unit plans to qualify as eligible costs, at least one such pre-approved accessory dwelling unit plan must be for an accessible or visitable accessory dwelling unit.

(c) Fund means the accessory dwelling unit fee reduction and encouragement grant program fund created in subsection (7) of this section.

(d) Grant program means the accessory dwelling unit fee reduction and encouragement grant program created in this section.

(11) This section is repealed, effective December 31, 2030.

Source: L. 2024: Entire article added (see the editor's note following the part 4 heading), (HB 24-1152), ch. 167, p. 827, � 1, effective May 13. L. 2025: (7)(a) amended and (7)(d) added, (SB 25-317), ch. 385, p. 2162, � 44, effective June 3.

Cross references: For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.