HB24-1152

Colorado is making strides in addressing its housing challenges with the introduction of HB 24-1152, a bill set to increase the accessibility and development of accessory dwelling units (ADUs) across the state. Aimed at creating more housing options within existing neighborhoods, this legislation is a significant step toward alleviating the state's housing shortage.

An accessory dwelling unit (ADU) is a legal and regulatory term for a secondary house or apartment that shares the building lot of a larger, primary home. The unit cannot be bought or sold separately, but they are often used to provide additional income through rent or to house a family member. For example, an elderly parent could live in a small unit and avoid having to move to an assisted living facility.

Defining the Scope: Municipalities and Populations

Central to HB 24-1152 is its delineation of "subject jurisdictions," which are required to comply with the new ADU regulations. These jurisdictions fall into two categories based on population size and geographical location, ensuring the bill targets areas most in need of housing expansion:

Municipalities with a Population Threshold: The bill applies to any municipality within a metropolitan planning organization (MPO) area that boasts a population of 1,000 or more. This criteria aims to focus on urban and suburban areas where the housing demand is most acute, leveraging ADUs as a solution to increase housing stock efficiently.

County Areas within Census Designated Places: For counties, the bill zeroes in on areas within a census-designated place with a population of 10,000 or more and also within an MPO area. This specification ensures that the legislation impacts significant population centers, addressing housing shortages in densely populated regions.

Incentives and Support for Compliance

To encourage municipalities and counties to embrace ADU development, HB 24-1152 establishes several support mechanisms and financial incentives:

Accessory Dwelling Unit Fee Reduction and Encouragement Grant Program: This program is designed to assist supportive jurisdictions in covering costs associated with ADU development, such as drafting pre-approved plans, offering technical assistance, and mitigating various fees.

Economic Development Initiatives: An $8 million fund managed by the Colorado Economic Development Commission facilitates affordable loans, interest rate buy-downs, down payment assistance, and direct loans for ADU projects, directly benefiting residents in supportive jurisdictions.

Regulatory Adjustments

The legislation also addresses limitations imposed by planned unit developments and homeowners' associations, advocating for a more unified approach to ADU permitting and development standards. By declaring certain restrictions void, the bill paves the way for broader ADU adoption and integration into Colorado's residential landscapes.

HB 24-1152 represents a comprehensive and strategic effort to expand housing options in Colorado through the promotion of ADUs. By setting clear criteria for subject jurisdictions and offering substantial incentives, the bill is poised to make a significant impact on the state's housing availability, especially in densely populated areas. Click here to read HB 24-1152 in its entirety.