HOUSE BILL 24-1152 BY REPRESENTATIVE(S) Amabile and Weinberg, Bacon, Boesenecker, Epps, Froelich, Garcia, Jodeh, Kipp, Lindsay, Lindstedt, Mabrey, McCormick, Ortiz, Ricks, Rutinel, Sirota, Story, Valdez, Vigil, Willford, Woodrow, McCluskie, English, Herod, Martinez, McLachlan, Parenti, Weissman; also SENATOR(S) Mullica and Exum, Cutter, Hinrichsen, Priola, Roberts, Winter F. C ONCERNING INCREASING THE NUMBER OF ACCESSORY DWELLING UNITS , AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 35 to title 29 as follows: ARTICLE 35 State Land Use Criteria For Strategic Growth PART 1 ACCESSORY DWELLING UNITS 29-35-101. Legislative declaration. (1) (a) T HE GENERAL ASSEMBLY HEREBY FINDS , DETERMINES, AND DECLARES THAT: NOTE: This bill has been prepared for the signatures of the appropriate legislative officers and the Governor. To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws. ________ Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. (I) ACCESSORY DWELLING UNITS OFFER A WAY TO PROVIDE COMPACT , RELATIVELY AFFORDABLE HOUSING IN ESTABLISHED NEIGHBORHOODS WITH MINIMAL IMPACTS TO INFRASTRUCTURE AND TO SUPPLY NEW HOUSING OPPORTUNITIES WITHOUT ADDED DISPERSED LOW -DENSITY HOUSING; (II) A CCESSORY DWELLING UNITS GENERATE RENTAL INCOME TO HELP HOMEOWNERS COVER MORTGAGE PAYMENTS OR OTHER COSTS , WHICH CAN BE IMPORTANT FOR A VARIETY OF RESIDENTS , SUCH AS OLDER HOMEOWNERS ON FIXED INCOMES AND LOW - AND MODERATE-INCOME HOMEOWNERS ; (III) A CCESSORY DWELLING UNITS PROVIDE FAMILIES WITH OPTIONS FOR INTERGENERATIONAL LIVING ARRANGEMENTS THAT ENABLE CHILD OR ELDER CARE AND AGING IN PLACE , AND A 2021 SURVEY BY THE AARP FOUND THAT APPROXIMATELY SEVENTY -FIVE PERCENT OF PEOPLE FIFTY YEARS OF AGE OR OLDER WANT TO STAY IN THEIR HOMES OR COMMUNITIES FOR AS LONG AS THEY CAN . ACCORDING TO A 2018 STUDY BY THE CENTER FOR AMERICAN PROGRESS, FIFTY-ONE PERCENT OF COLORADANS LIVE IN A CHILD CARE DESERT -A COMMUNITY WHERE THERE ARE NO CHILD CARE PROVIDERS OR SO FEW OPTIONS THAT THERE ARE MORE THAN THREE TIMES AS MANY CHILDREN AS THERE ARE LICENSED CHILD CARE SLOTS . THESE CHILD CARE DESERTS ARE SITUATED WITHIN RURAL , SUBURBAN, AND URBAN COMMUNITIES AND ARE A MAJOR REASON FOR WORKING PARENTS TO LEAVE THE WORKFORCE . (IV) A CCESSORY DWELLING UNITS ARE OFTEN OCCUPIED AT LOW TO NO RENT BY FAMILY MEMBERS , AND IF THEY ARE RENTED PRIVATELY, THEIR RENTS ARE RELATIVELY AFFORDABLE BECAUSE OF THEIR SMALL SIZE ; (V) A S COLORADO'S POPULATION AGES AND TYPICAL HOUSEHOLD SIZE CONTINUES TO DECREASE , ACCESSORY DWELLING UNITS OFFER MORE COMPACT HOUSING OPTIONS THAT ALIGN WITH THE STATE 'S CHANGING DEMOGRAPHICS , AND COLORADANS OVER SIXTY -FIVE YEARS OF AGE ARE THE FASTEST -GROWING AGE COHORT IN COLORADO ACCORDING TO THE STATE DEMOGRAPHY OFFICE ; (VI) A CCESSORY DWELLING UNITS ENABLE SENIORS TO DOWNSIZE , MOVE INTO ACCESSIBLE UNITS, OR LIVE WITH FAMILY OR A CAREGIVER WHILE PAGE 2-HOUSE BILL 24-1152 REMAINING IN THEIR COMMUNITIES . A 2018 AARP SURVEY FOUND THAT SIXTY -SEVEN PERCENT OF ADULTS WOULD CONSIDER LIVING IN AN ACCESSORY DWELLING UNIT TO BE CLOSE TO SOMEONE BUT STILL HAVE A SEPARATE SPACE . MOST SENIORS DO NOT LIVE IN HOMES THAT ARE ACCESSIBLE , EVEN THOUGH DISABILITY IS PREVALENT AMONG THE SENIOR POPULATION AND INCREASES WITH AGE . LESS THAN FOUR PERCENT OF EXISTING HOUSING UNITS IN THE UNITED STATES ARE ESTIMATED TO BE LIVABLE FOR PEOPLE WITH MODERATE MOBILITY DIFFICULTIES , ACCORDING TO "HOUSING FOR AN AGING POPULATION" IN THE JOURNAL HOUSING POLICY DEBATE. (VII) R ELATIVE TO DISPERSED, LOW-DENSITY DEVELOPMENT , COMPACT INFILL DEVELOPMENT , INCLUDING ACCESSORY DWELLING UNIT DEVELOPMENT , REDUCES WATER USE , GREENHOUSE GAS EMISSIONS , INFRASTRUCTURE COSTS, AND HOUSEHOLD ENERGY AND TRANSPORTATION COSTS ; (VIII) A CCESSORY DWELLING UNITS USE SIGNIFICANTLY LESS ENERGY FOR HEATING AND COOLING THAN SINGLE -UNIT DETACHED DWELLINGS BECAUSE OF THEIR SMALLER SIZE , WHICH REDUCES HOUSEHOLD ENERGY COSTS AND GREE NHOUSE GAS EMISSIONS . ACCESSORY DWELLING UNITS CAN REDUCE LIFETIME CARBON DIOXIDE EMISSIONS BY FORTY PERCENT COMPARED TO MEDIUM -SIZED SINGLE-FAMILY HOMES, ACCORDING TO A REPORT FROM THE OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY . REDUCING EMISSIONS FROM THE HOUSING SECTOR IS CRITICAL FOR MEETING THE STATE 'S GREENHOUSE GAS EMISSIONS TARGETS ESTABLISHED IN SECTION 25-7-102. ACCORDING TO "THE CARBON FOOTPRINT OF HOUSEHOLD ENERGY USE IN THE UNITED STATES" IN THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES, REDUCING FLOOR SPACE PER CAPITA IS A CRITICAL STRATEGY TO REACHING MID -CENTURY CLIMATE GOALS. (IX) C OMPACT INFILL DEVELOPMENT REDUCES WATER DEMAND AND INFRASTRUCTURE COSTS BY USING LESS PIPING , WHICH REDUCES WATER LOSS ; INCLUDES LESS LANDSCAPED SPACE PER UNIT; AND MAKES BETTER USE OF EXISTING INFRASTRUCTURE . (X) A CCESSORY DWELLING UNITS REDUCE GOVERNMENT CAPITAL AND MAINTENANCE COSTS FOR INFRASTRUCTURE SINCE ACCESSORY DWELLING UNITS ARE BUILT IN EXISTING NEIGHBORHOODS AND HAVE A RELATIVELY SMALL IMPACT ON EXISTING INFRASTRUCTURE . NATIONAL PAGE 3-HOUSE BILL 24-1152 STUDIES SUCH AS "RELATIONSHIPS BETWEEN DENSITY AND PER CAPITA MUNICIPAL SPENDING IN THE UNITED STATES", PUBLISHED IN URBAN SCIENCE, HAVE FOUND THAT LOWER DENSITY COMMUNITIES HAVE HIGHER GOVERNMENT CAPITAL AND MAINTENANCE COSTS FOR WATER , SEWER, AND TRANSPORTATION INFRASTRUCTURE AND LOWER PROPERTY AND SALES TAX REVENUE . THESE INCREASED COSTS ARE OFTEN BORNE BY BOTH STATE AND LOCAL GOVERNMENTS . (XI) A NUMBER OF LOCAL LAND USE LAWS PROHIBIT HOMEOWNERS FROM BUILDING AN ACCESSORY DWELLING UNIT , OR APPLY REGULATIONS TO ACCESSORY DWELLING UNITS THAT SIGNIFICANTLY LIMIT THEIR CONSTRUCTION ; (XII) A NUMBER OF MUNICIPALITIES HAVE REMOVED BARRIERS TO ACCESSORY DWELLING UNIT CONSTRUCTION SUCH AS PARKING REQUIREMENTS , OWNER OCCUPANCY REQUIREMENTS , AND RESTRICTIVE SIZE AND DESIGN LIMITATIONS , WHICH HAS RESULTED IN ACCESSORY DWELLING UNIT PERMITS INCREASING TO TEN TO TWENTY PERCENT OF TOTAL NEW HOUSING PERMITS AND AN OVERALL INCREASE IN THE TOTAL HOUSING SUPPLY . SINCE CALIFORNIA IMPLEMENTED VARIOUS REFORMS TO ENCOURAGE ACCESSORY DWELLING UNIT CONSTRUCTION , INCLUDING REQUIRING CITIES TO ALLOW ACCESSORY DWELLING UNITS AS A USE BY RIGHT , PREVENTING THE IMPOSITION OF PARKING REQUIREMENTS , AND PREVENTING OWNER OCCUPANCY REQUIREMENTS , ACCESSORY DWELLING UNIT CONSTRUCTION HAS INCREASED SIGNIFICANTLY IN CALIFORNIA. F OLLOWING REFORMS TO CALIFORNIA'S ACCESSORY DWELLING UNIT LAW IN 2016, ACCESSORY DWELLING UNIT DEVELOPMENT HAS INCREASED RAPIDLY FROM AROUND ONE THOUSAND ACCESSORY DWELLING UNITS PERMITTED IN 2016 TO OVER TWENTY-FOUR THOUSAND IN 2022, OR ABOUT TWENTY PERCENT OF NEW HOUSING PERMITS STATEWIDE , ACCORDING TO DATA FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND ANALYSIS BY THE BIPARTISAN POLICY CENTER. (XIII) H OUSING SUPPLY IMPACTS HOUSING AFFORDABILITY , AND HOUSING PRICES ARE TYPICALLY HIGHER WHEN HOUSING SUPPLY IS RESTRICTED BY LOCAL LAND USE REGULATIONS IN A METROPOLITAN REGION , ACCORDING TO THE NATIONAL BUREAU OF ECONOMIC RESEARCH IN WORKING PAPERS SUCH AS "REGULATION AND HOUSING SUPPLY", "THE IMPACT OF ZONING ON HOUSING AFFORDABILITY", AND "THE IMPACT OF LOCAL RESIDENTIAL LAND USE RESTRICTIONS ON LAND VALUES ACROSS PAGE 4-HOUSE BILL 24-1152 AND WITHIN SINGLE FAMILY HOUSING MARKETS"; (XIV) I NCREASING HOUSING SUPPLY MODERATES PRICE INCREASES AND IMPROVES HOUSING AFFORDABILITY ACROSS ALL INCOMES , ACCORDING TO STUDIES SUCH AS "THE ECONOMIC IMPLICATIONS OF HOUSING SUPPLY" IN THE JOURNAL OF ECONOMIC PERSPECTIVES AND "SUPPLY SKEPTICISM: H OUSING SUPPLY AND AFFORDABILITY" IN THE JOURNAL HOUSING POLICY DEBATE; (XV) A CADEMIC RESEARCH SUCH AS "THE IMPACT OF BUILDING RESTRICTIONS ON HOUSING AFFORDABILITY" IN THE FEDERAL RESERVE BANK OF NEW YORK ECONOMIC POLICY REVIEW HAS IDENTIFIED ZONING AND OTHER LAND USE CONTROLS AS A PRIMARY DRIVER OF RISING HOUSING COSTS IN THE MOST EXPENSIVE HOUSING MARKETS ; (XVI) A CCESSORY DWELLING UNITS OFFER AFFORDABLE AND ATTAINABLE OPTIONS TO LIVE IN HIGH -OPPORTUNITY NEIGHBORHOODS , WHICH CAN HELP IMPROVE EQUITY OUTCOMES REGIONALLY AND STATEWIDE . A N ANALYSIS OF ACCESSORY DWELLING UNIT PERMITTING IN CALIFORNIA FOUND THAT ACCESSORY DWELLING UNITS ARE TYPICALLY PERMITTED ON PARCELS WITH RELATIVELY GOOD ACCESS TO JOBS COMPARED TO SURROUNDING AREAS , ACCORDING TO "WHERE WILL ACCESSORY DWELLING UNITS SPROUT UP WHEN A STATE LETS THEM GROW? EVIDENCE FROM CALIFORNIA" IN CITYSCAPE: A JOURNAL OF POLICY DEVELOPMENT AND RESEARCH. (XVII) L OCAL GOVERNMENT REGULATION OF ACCESSORY DWELLING UNITS VARIES SIGNIFICANTLY WITHIN REGIONS AND STATEWIDE IN COLORADO IN TERMS OF WHERE THEY ARE ALLOWED , THE DIMENSIONAL AND DESIGN RESTRICTIONS APPLIED , AND OTHER REQUIREMENTS . THIS INCONSISTENCY INHIBITS THE DEVELOPMENT OF A ROBUST MARKET OF ACCESSORY DWELLING UNIT DEVELOPERS , MODULAR ACCESSORY DWELLING UNIT DESIGNS , AND ASSOCIATED COST REDUCTIONS . COLORADO IS SIMILAR TO MOST STATES IN THIS REGARD , AND, ACCORDING TO "ZONING BY A THOUSAND CUTS" IN THE PEPPERDINE LAW REVIEW, WHICH ANALYZED ACCESSORY DWELLING UNIT REGULATIONS ACROSS CONNECTICUT, "THE HIGH DEGREE OF REGULATORY VARIATION THWARTS THE DEVELOPMENT OF PROTOTYPE DESIGNS OR PREFABRICATED [ACCESSORY DWELLING UNITS ] THAT COULD SATISFY DIFFERENT RULES ACROSS JURISDICTIONS ". PAGE 5-HOUSE BILL 24-1152 (XVIII) MORE PERMISSIVE REGULATION BY LOCAL GOVERNMENTS OF ACCESSORY DWELLING UNITS PROVIDES A REASONABLE C HANCE FOR HOMEOWNERS TO CONSTRUCT OR CONVERT AN ACCESSORY DWELLING UNIT AND THEREBY INCREASE HOUSING SUPPLY , STABILIZE HOUSING COSTS, AND CONTRIBUTE TO AFFORDABLE AND EQUITABLE HOME OWNERSHIP TO ADEQUATELY MEET THE HOUSING NEEDS OF A GROWING COLORADO POPULATION . (b) T HEREFORE, THE GENERAL ASSEMBLY DECLARES THAT INCREASING THE HOUSING SUPPLY THROUGH THE CONSTRUCTION OR CONVERSION OF ACCESSORY DWELLING UNITS IS A MATTER OF MIXED STATEWIDE AND LOCAL CONCERN . 29-35-102. Definitions. A S USED IN THIS PART 1, UNLESS THE CONTEXT OTHERWISE REQUIRES : (1) "A CCESSIBLE UNIT" MEANS A HOUSING UNIT THAT: (a) S ATISFIES THE REQUIREMENTS OF THE FEDERAL "FAIR HOUSING ACT", 42 U.S.C. SEC. 3601 ET SEQ., AS AMENDED; (b) I NCORPORATES 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) "A CCESSORY DWELLING UNIT" MEANS AN INTERNAL, ATTACHED, OR DETACHED DWELLING UNIT THAT : (a) P ROVIDES COMPLETE INDEPENDENT LIVING FACILITIES FOR ONE OR MORE INDIVIDUALS ; (b) I S LOCATED ON THE SAME LOT AS A PROPOSED OR EXISTING PRIMARY RESIDENCE ; AND (c) INCLUDES FACILITIES FOR LIVING, SLEEPING, EATING, COOKING, AND SANITATION. (3) "A CCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION " MEANS PAGE 6-HOUSE BILL 24-1152 A LOCAL GOVERNMENT THAT THE DEPARTMENT HAS CERTIFIED PURSUANT TO SECTION 29-35-104 AS AN ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION . (4) "A CCESSORY 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) "A DMINISTRATIVE 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) N OTWITHSTANDING 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) T HE 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 ST ANDARDS EITHER SET FORTH IN LOCAL LAW OR ESTABLISHED BY THE SECRETARY OF THE INTERIOR OF THE UNITED STATES. (6) "C OUNTY" MEANS A COUNTY, INCLUDING A HOME RULE COUNTY BUT EXCLUDING A CITY AND COUNTY . PAGE 7-HOUSE BILL 24-1152 (7) "DEPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS . (8) "D WELLING 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) "E XEMPT PARCEL" MEANS A PARCEL THAT IS: (a) N OT 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 (c) IN A FLOODWAY OR IN A ONE HUNDRED YEAR FLOODPLAIN , AS IDENTIFIED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY . (10) "H ISTORIC DISTRICT" MEANS A DISTRICT ESTABLISHED BY LOCAL LAW THAT MEETS THE DEFINITION OF "DISTRICT" SET FORTH IN 36 CFR 60.3 (d). (11) "H ISTORIC PROPERTY" MEANS A PROPERTY LISTED: (a) O N THE NATIONAL REGISTER OF HISTORIC PLACES ; (b) O N 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) "L OCAL GOVERNMENT" MEANS A MUNICIPALITY, COUNTY, OR TRIBAL NATION WITH JURISDICTION IN COLORADO. (13) "L OCAL 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. PAGE 8-HOUSE BILL 24-1152 (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) "M ETROPOLITAN 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) "M UNICIPALITY" MEANS A HOME RULE OR STATUTORY CITY OR TOWN , TERRITORIAL CHARTER CITY OR TOWN , OR CITY AND COUNTY. (17) "O BJECTIVE STANDARD" MEANS A STANDARD THAT: (a) I S 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) C ONSISTENT WITH MASTER PLANS , OR OTHER DEVELOPMENT PLANS ; (II) C OMPATIBLE 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) "R ESTRICTIVE DESIGN OR DIMENSION STANDARD " MEANS A STANDARD IN A LOCAL LAW THAT : (a) R EQUIRES 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) D OES NOT ALLOW FOR ACCESSORY DWELLING UNIT SIZES PAGE 9-HOUSE BILL 24-1152 BETWEEN FIVE HUNDRED AND SEVEN HUNDRED FIFTY SQUARE FEET ; (c) R EQUIRES 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) R EQUIRES A REAR SETBACK FOR AN ACCESSORY DWELLING UNIT THAT IS LARGER THAN THE GREATER OF : (I) T HE REAR SETBACK REQUIRED FOR OTHER ACCESSORY BUILDING TYPES IN THE SAME ZONING DISTRICT ; OR (II) FIVE FEET; (e) I S 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) "S HORT-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) N OTWITHSTANDING SUBSECTION (19)(a) OF THIS SECTION, A LOCAL GOVERNMENT MAY APPLY ITS OWN DEFINITION OF "SHORT-TERM RENTAL " FOR PURPOSES OF THIS PART 1. (20) "S INGLE-UNIT DETACHED DWELLING " MEANS A DETACHED BUILDING WITH A SINGLE DWELLING UNIT ON A SINGLE LOT . (21) "S UBJECT JURISDICTION" MEANS EITHER: (a) A MUNICIPALITY THAT BOTH HAS A POPULATION OF ONE THOUSAND OR MORE , AS REPORTED BY THE STATE DEMOGRAPHY OFFICE , PAGE 10-HOUSE BILL 24-1152 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) "T ANDEM 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) "U NIVERSAL DESIGN" MEANS ANY DWELLING UNIT DESIGNED AND CONSTRUCTED TO BE SAFE AND ACCESSIBLE FOR ANY INDIVIDUAL REGARDLESS OF AGE OR ABILITIES . (24) "V ISITABLE 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. 29-35-103. Accessory dwelling unit requirements for a subject jurisdiction. (1) O N 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) O N OR AFTER JUNE 30, 2025, A SUBJECT JURISDICTION SHALL NOT : (a) R EQUIRE 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) R EQUIRE 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 : PAGE 11-HOUSE BILL 24-1152 (I) TO CONSTRUCT OR CONVERT AN ACCESSORY DWELLING UNIT . T HIS EXCEPTION DOES NOT APPLY FOR AN ACCESSORY DWELLING UNIT THAT IS BEING CONSTRUCTED SIMULTANEOUSLY WITH A NEW PRIMARY DWELLING UNIT . (II) F OR A LICENSE OR PERMIT FOR A SHORT-TERM RENTAL ON THE PARCEL THROUGH A LOCAL LAW OR PROGRAM . (c) A PPLY A RESTRICTIVE DESIGN OR DIMENSION STANDARD TO AN ACCESSORY DWELLING UNIT . (3) N OTHING IN THIS SECTION PREVENTS A SUBJECT JURISDICTION OR OTHER LOCAL GOVERNMENT FROM : (a) R EQUIRING 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) R EQUIRING, IN CONNECTION WITH THE CONSTRUCTION OR CONVERSION OF AN ACCESSORY DWELLING UNIT , ONE NEW PARKING SPACE ON A PARCEL THAT : (I) D OES 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) I S 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) A LLOWING 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 PAGE 12-HOUSE BILL 24-1152 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) A LLOWING THE CONSTRUCTION OR CONVERSION OF MULTIPLE ACCESSORY DWELLING UNITS ON THE SAME LOT ; (e) A PPLYING A DESIGN OR DIMENSION STANDARD TO AN ACCESSORY DWELLING UNIT THAT IS NOT A RESTRICTIVE DESIGN OR DIMENSION STANDARD ; (f) A DOPTING OR ENFORCING A GENERALLY APPLICABLE REQUIREMENT FOR : (I) T HE 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) E NACTING 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) A PPLYING 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) A PPLYING AND ENFORCING A LOCALLY ADOPTED LIFE SAFETY CODE , INCLUDING BUT NOT LIMITED TO , A BUILDING, FIRE, UTILITY, OR STORMWATER CODE ; (j) A LLOWING 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) E NCOURAGING THE CONSTRUCTION OF ACCESSORY DWELLING UNITS THAT ARE , THROUGH THE APPLICATION OF LOCAL LAWS OR PROGRAMS INCLUDING THROUGH DEED RESTRICTIONS , MADE AFFORDABLE TO PAGE 13-HOUSE BILL 24-1152 HOUSEHOLDS UNDER CERTAIN INCOME LIMITS OR USED PRIMARILY TO HOUSE THE LOCAL WORKFORCE PURSUANT TO A LOCAL , REGIONAL, OR STATE AFFORDABLE HOUSING PROGRAM ; (l) D EFINING 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) T HIS SECTION ONLY APPLIES TO A PARCEL IN A SUBJECT JURISDICTION THAT IS NOT AN EXEMPT PARCEL . 29-35-104. Accessory dwelling unit supportive jurisdiction report - certification of a jurisdiction as an accessory dwelling unit supportive jurisdiction. (1) (a) I N 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) C OMPLYING WITH SECTION 29-35-103 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 29-35-103; AND (II) IMPLEMENTING ONE OR MORE OF THE FOLLOWING STRATEGIES : (A) W AIVING, REDUCING, OR PROVIDING FINANCIAL ASSISTANCE FOR ACCESSORY DWELLING UNIT -RELATED FEES THAT ARE INCURRED BY LOW - AND MODERATE-INCOME HOUSEHOLDS; (B) E NACTING LOCAL LAWS OR PROGRAMS THAT INCENTIVIZE THE AFFORDABILITY OF CERTAIN ACCESSORY DWELLING UNITS INCLUDING ACCESSORY DWELLING UNITS USED PRIMARILY TO HOUSE THE LOCAL WORKFORCE ; PAGE 14-HOUSE BILL 24-1152 (C) PROVIDING PRE-APPROVED PLANS FOR THE CONSTRUCTION OF ACCESSORY DWELLING UNITS ; (D) I MPLEMENTING A PROGRAM TO PROVIDE EDUCATION AND TECHNICAL ASSISTANCE TO HOMEOWNERS TO CONSTRUCT OR CONVERT AN ACCESSORY DWELLING UNIT ; (E) I MPLEMENTING A PROGRAM TO REGULATE THE USE OF ACCESSORY DWELLING UNITS FOR SHORT -TERM RENTALS; (F) E NACTING LOCAL LAWS THAT INCENTIVIZE THE CONSTRUCTION AND CONVERSION OF ACCESSIBLE AND VISITABLE ACCESSORY DWELLING UNITS ; (G) A SSISTING PROPERTY OWNERS WITH ENSURING THAT PRE -EXISTING ACCESSORY DWELLING UNITS COMPLY WITH LOCAL LAWS ; (H) E NABLING A PATHWAY FOR THE SEPARATE SALE OF AN ACCESSORY DWELLING UNIT ; (I) E NACTING 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) O N OR BEFORE JUNE 30, 2025, A SUBJECT JURISDICTION SHALL SUBMIT THE REPORT DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION. (II) N OTWITHSTANDING 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) I NITIATED A PROCESS TO UPDATE ITS LOCAL LAWS AS NECESSARY PAGE 15-HOUSE BILL 24-1152 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) PROVIDED AN EXPLANATION FOR NOT BEING ABLE TO MEET THE DEADLINE DESCRIBED IN SUBSECTION (1)(b)(I) OF THIS SECTION. (c) I F 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 29-35-103. (2) (a) W ITHIN 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) I F 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) I F 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) T HE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF PAGE 16-HOUSE BILL 24-1152 TRANSPORTATION, THE COLORADO ENERGY OFFICE , AND THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT , MAY DEVELOP POLICIES AND PROCEDURES AS NECESSARY TO IMPLEMENT THIS SECTION . 29-35-105. Accessory dwelling unit fee reduction and encouragement grant program - created - application - criteria - awards - fund - reporting requirements - rules - definitions - repeal. (1) T HE 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) G RANT 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) L OW- AND MODERATE-INCOME HOUSEHOLDS; (b) A FFORDABLE ACCESSORY DWELLING UNITS ; (c) A CCESSIBLE OR VISITABLE ACCESSORY DWELLING UNITS ; (d) A CCESSORY 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) T HE 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 PAGE 17-HOUSE BILL 24-1152 AND AWARD GRANTS AS PROVIDED IN THIS SECTION . (4) T O 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 29-35-104 CERTIFYING THAT THE LOCAL GOVERNMENT IS AN ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION ; (b) T HE NUMBER OF ACCESSORY DWELLING UNITS THAT THE LOCAL GOVERNMENT HAS PERMITTED AND WHEN THE LOCAL GOVERNMENT PERMITTED THOSE ACCESSORY DWELLING UNITS ; (c) T HE TYPE AND COSTS OF FEES AND OTHER ELIGIBLE COSTS THAT THE LOCAL GOVERNMENT IS PROPOSING TO USE A GRANT AWARD TO PAY FOR ; (d) T HE 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) T HE 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) I MPOSE ACCESSORY DWELLING UNIT FEES AND COSTS THAT ARE REASONABLE AND NECESSARY ; PAGE 18-HOUSE BILL 24-1152 (b) HAVE DEMONSTRATED A SIGNIFICANT COMMITMENT TO FURTHER CONSTRUCTION AND CONVERSION OF ACCESSORY DWELLING UNITS THROUGH THE ADOPTION OF STRATEGIES DESCRIBED IN SECTION 29-35-104 (1)(a)(II); AND (c) PROVIDE OFFSETS FOR, OR WAIVE A GREATER NUMBER OF ACCESSORY DWELLING UNIT FEES FOR : (I) L OW- AND MODERATE-INCOME HOUSEHOLDS; OR (II) ACCESSORY DWELLING UNITS THAT ARE RENTED TO LOW - AND MODERATE -INCOME HOUSEHOLDS. (6) I N AWARDING A GRANT , THE DEPARTMENT SHALL AWARD A LOCAL GOVERNMENT AN AMOUNT E QUAL 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) T HE 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 . THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO THE FUND . (b) S UBJECT 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) O N OR BEFORE JUNE 30, 2024, THE STATE TREASURER SHALL TRANSFER FIVE MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND . (8) I N ACCORDANCE WITH THE POLICIES AND PROCEDURES DEVELOPED BY THE DEPARTMENT PURSUANT TO SUBSECTION (9) OF THIS SECTION , EACH LOCAL GOVERNMENT THAT RECEIVES A GRANT THR OUGH THE GRANT PROGRAM SHALL SUBMIT A REPORT TO THE DEPARTMENT . AT A MINIMUM , THE REPORT MUST INCLUDE THE FOLLOWING INFORMATION : PAGE 19-HOUSE BILL 24-1152 (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) T HE 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) T HE 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) T HE 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) T HE 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) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES : (a) "A CCESSORY 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) "E LIGIBLE 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 PAGE 20-HOUSE BILL 24-1152 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) N OTWITHSTANDING 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) "F UND" MEANS THE ACCESSORY DWELLING UNIT FEE REDUCTION AND ENCOURAGEMENT GRANT PROGRAM FUND CREATED IN SUBSECTION (7) OF THIS SECTION. (d) "G RANT PROGRAM" MEANS THE ACCESSORY DWELLING UNIT FEE REDUCTION AND ENCOURAGEMENT GRANT PROGRAM CREATED IN THIS SECTION . (11) T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2030. SECTION 2. In Colorado Revised Statutes, 24-32-3305, add (3.3) as follows: 24-32-3305. Rules - advisory committee - enforcement. (3.3) T HE DEPARTMENT SHALL CREATE FOR FACTORY -BUILT STRUCTURES, INCLUDING THOSE THAT WOULD BE CONSIDERED ACCESSORY DWELLING UNITS , MODEL PUBLIC SAFETY CODE REQUIREMENTS RELATED TO GEOGRAPHIC OR CLIMATIC CONDITIONS , SUCH AS WEIGHT RESTRICTIONS FOR ROOF SNOW LOADS , WIND SHEAR FACTORS , OR WILDFIRE RISK, FOR LOCAL GOVERNMENTS TO CONSIDER AND ADOPT PURSUANT TO SECTION 24-32-3318 (2)(a). SECTION 3. In Colorado Revised Statutes, 24-46-104, add (1)(q) as follows: 24-46-104. Powers and duties of commission - repeal. (1) The commission has the following powers and duties: (q) (I) T O EXPEND EIGHT MILLION DOLLARS TO CONTRACT WITH THE COLORADO HOUSING AND FINANCE AUTHORITY , CREATED IN PART 7 OF PAGE 21-HOUSE BILL 24-1152 ARTICLE 4 OF TITLE 29, FOR THE CREATION AND OPERATION OF ONE OR MORE OF THE FOLLOWING PROGRAMS TO BENEFIT LOW - TO MODERATE-INCOME RESIDENTS IN LOCAL GOVERNMENTS THAT HAVE BEEN CERTIFIED AS ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTIONS BY THE DEPARTMENT OF LOCAL AFFAIRS : (A) A N ACCESSORY DWELLING UNIT 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 ; (B) 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 ; (C) 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; OR (D) A PROGRAM IN WHICH THE COLORADO HOUSING AND FINANCE AUTHORITY OFFERS LOANS , REVOLVING LINES OF CREDIT, OR GRANTS TO ELIGIBLE NON -PROFITS, PUBLIC HOUSING AUTHORITIES, AND COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS TO MAKE DIRECT L OANS OR GRANTS TO SUPPORT THE CONSTRUCTION OR CONVERSION OF ACCESSORY DWELLING UNITS FOR LOW - AND MODERATE-INCOME BORROWERS OR TENANTS . (II) A NY CONTRACT MADE BY THE COMMISSION WITH THE COLORADO HOUSING AND FINANCE AUTHORITY PURSUANT TO THIS SUBSECTION (1)(q) MAY INCLUDE NORMAL AND CUSTOMARY FEES AND EXPENSES FOR ADMINISTRATING THE PROGRAMS DESCRIBED IN THIS SUBSECTION (1)(q). SECTION 4. In Colorado Revised Statutes, 24-46-105, add (1)(c) as follows: 24-46-105. Colorado economic development fund - creation - report - repeal. (1) (c) (I) O N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER EIGHT MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND . PAGE 22-HOUSE BILL 24-1152 THE COMMISSION SHALL USE THE FUNDS TRANSFERRED PURSUANT TO THIS SUBSECTION (1)(c)(I) TO CONTRACT WITH THE COLORADO HOUSING AND FINANCE AUTHORITY , CREATED IN PART 7 OF ARTICLE 4 OF TITLE 29, FOR THE PURPOSES DESCRIBED IN SECTION 24-46-104 (1)(q). (II) T HIS SUBSECTION (1)(c) IS REPEALED, EFFECTIVE JULY 1, 2025. SECTION 5. In Colorado Revised Statutes, 24-67-105, add (5.3) as follows: 24-67-105. Standards and conditions for planned unit development - definitions. (5.3) (a) I N A SUBJECT JURISDICTION, ANY PLANNED UNIT DEVELOPMENT RESOLUTION OR ORDI NANCE THAT IS ADOPTED OR APPROVED ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION (5.3), AND THAT ALLOWS THE CONSTRUCTION OF ONE OR MORE SINGLE -UNIT DETACHED DWELLINGS , MUST NOT RESTRICT THE CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE -UNIT DETACHED DWELLING MORE THAN THE LOCAL LAW THAT APPLIES TO ACCESSORY DWELLING UNIT DEVELOPMENT OUTSIDE OF A PLANNED UNIT DEVELOPMENT OR IN ANY WAY THAT IS PROHIBITED BY SECTION 29-35-103. (b) I N A SUBJECT JURISDICTION, ANY PLANNED UNIT DEVELOPMENT RESOLUTION OR ORDINANCE THAT WAS ADOPTED OR APPROVED BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION (5.3), THAT ALLOWS THE CONSTRUCTION OF ONE OR MORE SINGLE -UNIT DETACHED DWELLINGS, AND THAT RESTRICTS THE CONSTRUCTION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE -UNIT DETACHED DWELLING MORE THAN THE LOCAL LAW THAT APPLIES TO ACCESSORY DWELLING UNIT DEVELOPMENT OUTSIDE OF A PLANNED UNIT DEVELOPMENT : (I) S HALL NOT BE INTERPRETED OR ENFORCED TO RESTRICT THE CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE -UNIT DETACHED DWELLING UNIT IN ANY WAY THAT IS PROHIBITED BY SECTION 29-35-103; AND (II) MAY BE SUPERSEDED BY THE ADOPTION OF A LOCAL LAW PURSUANT TO SECTION 29-35-103. (c) N OTWITHSTANDING SUBSECTION (5.3)(b) OF THIS SECTION, A LOCAL GOVERNMENT MAY ADOPT CONFORMING AMENDMENTS TO ANY SUCH PAGE 23-HOUSE BILL 24-1152 PLANNED UNIT DEVELOPMENT . (d) A S USED IN THIS SUBSECTION (5.3), UNLESS THE CONTEXT OTHERWISE REQUIRES : (I) "A CCESSORY DWELLING UNIT" HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (2). (II) "L OCAL LAW" HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (13). (III) "S UBJECT JURISDICTION" HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (21). SECTION 6. In Colorado Revised Statutes, 38-33.3-106.5, add (4) as follows: 38-33.3-106.5. Prohibitions contrary to public policy - patriotic, political, or religious expression - public rights-of-way - fire prevention - renewable energy generation devices - affordable housing - drought prevention measures - child care - definitions. (4) (a) I N A SUBJECT JURISDICTION OR AN ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION , NO PROVISION OF A DECLARATION , BYLAW, OR RULE OF AN ASSOCIATION THAT IS ADOPTED ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION (4) MAY RESTRICT THE CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE -UNIT DETACHED DWELLING IN ANY WAY THAT IS PROHIBITED BY SECTION 29-35-103, AND ANY PROVISION OF A DECLARATION , BYLAW, OR RULE THAT INCLUDES SUCH A RESTRICTION IS VOID AS A MATTER OF PUBLIC POLICY . (b) I N A SUBJECT JURISDICTION OR AN ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION , NO PROVISION OF A DECLARATION, BYLAW, OR RULE OF AN ASSOCIATION THAT IS ADOPTED BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION (4) MAY RESTRICT THE CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE -UNIT DETACHED DWELLING IN ANY WAY THAT IS PROHIBITED BY SECTION 29-35-103, AND ANY PROVISION OF A DECLARATION , BYLAW, OR RULE THAT INCLUDES SUCH A RESTRICTION IS VOID AS A MATTER OF PUBLIC POLICY . (c) S UBSECTIONS (4)(a) AND (4)(b) OF THIS SECTION DO NOT APPLY PAGE 24-HOUSE BILL 24-1152 TO REASONABLE RESTRICTIONS ON ACCESSORY DWELLING UNITS . AS USED IN THIS SUBSECTION (4)(c), "REASONABLE RESTRICTION " MEANS A SUBSTANTIVE CONDITION OR REQUIREMENT THAT DOES NOT UNREAS ONABLY INCREASE THE COST TO CONSTRUCT , EFFECTIVELY PROHIBIT THE CONSTRUCTION OF , OR EXTINGUISH THE ABILITY TO OTHERWISE CONSTRUCT , AN ACCESSORY DWELLING UNIT CONSISTENT WITH PART 1 OF ARTICLE 35 OF TITLE 29. (d) A S USED IN THIS SUBSECTION (4), UNLESS THE CONTEXT OTHERWISE REQUIRES : (I) "ACCESSORY DWELLING UNIT" HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (2). (II) "A CCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION " HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (3). (III) "S UBJECT JURISDICTION" HAS THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (21). SECTION 7. Appropriation. (1) For the 2024-25 state fiscal year, $537,246 is appropriated to the department of local affairs. This appropriation is from the accessory dwelling unit fee reduction and encouragement grant program fund created in section 29-35-105 (7)(a), C.R.S. To implement this act, the department may use this appropriation as follows: (a) $467,246 for use by division of local government for accessory dwelling unit fee reduction and encouragement grant program related to local government services, which amount is based on an assumption that the division will require an additional 4.9 FTE; and (b) $70,000 for the purchase of information technology services. (2) For the 2024-25 state fiscal year, $70,000 is appropriated to the office of the governor for use by the office of information technology. This appropriation is from reappropriated funds received from the department of local affairs under subsection (1)(b) of this section. To implement this act, the office may use this appropriation to provide information technology services for the department of local affairs. PAGE 25-HOUSE BILL 24-1152 SECTION 8. Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions. ____________________________ ____________________________ Julie McCluskie Steve Fenberg SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Robin Jones Cindi L. Markwell CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S. Polis GOVERNOR OF THE STATE OF COLORADO PAGE 26-HOUSE BILL 24-1152