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March 26, 2024 SB 24-154
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0903
Sen. Jaquez Lewis
Date:
Bill Status:
Fiscal Analyst:
March 26, 2024
Senate Local Govt. & Housing
Josh Abram | 303-866-3561
josh.abram@coleg.gov
Bill Topic: ACCESSORY DWELLING UNITS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☒ Statutory Public Entity
The bill requires certain local governments to allow accessory dwelling unit (ADU)
conversions, and authorizes the Office of Economic Trade and International
Development to contract with the Colorado Housing Finance Authority to operate an
ADU conversion loan program. The bill increases state expenditures in FY 2024-25
only.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $45,504 to the Office of Economic
Trade and International Development
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 24-154
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $45,504 -
Centrally Appropriated $8,866 -
Total Expenditures $54,371 -
Total FTE 0.4 FTE -
Transfers - -
Other Budget Impacts General Fund Reserve $6,826 -
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March 26, 2024 SB 24-154
Summary of Legislation
Beginning January 1, 2025, this bill requires that covered jurisdictions allow the conversion of an
accessory dwelling unit (ADU). The approval process must not apply a restrictive design or
dimension standard. The requirement applies to nonexempt parcels in the unincorporated
portion of a county that is not part of a homeowners’ association (HOA), or in an area identified
as having a high fire intensity on the fire intensity scale published in the Colorado State Forest
Service wildfire risk viewer.
The bill expands the authority of the Economic Development Commission in the Office of
Economic Development and International Trade (OEDIT) to contract with the Colorado Housing
and Finance Authority (CHFA) to operate a program offering direct loans for the conversion of
ADUs on owner-occupied land.
State Expenditures
The bill increases state expenditures in OEDIT by $54,371 in FY 2024-25 only, paid from the
General Fund. OEDIT will have an estimated increase in workload of 20 hours per week for
9 months to create program guidelines, create marketing materials, and manage the
procurement and contract process with CHFA to set up the loan program. New costs are
displayed in Table 2.
Table 2
Expenditures Under SB 24-154
FY 2024-25
Office of Economic Development and International Trade
Personal Services $45,504
Centrally Appropriated Costs
1
$8,866
FTE – Personal Services 0.4 FTE
Total Cost $54,371
1
Centrally appropriated costs are not included in the bill's appropriation.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note,
the bill is expected to increase the amount of General Fund held in reserve by the amounts
shown in Table 1, decreasing the amount of General Fund available for other purposes.
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March 26, 2024 SB 24-154
Statutory Public Entity
CHFA will have increased administrative and program expenses to establish an ADU conversion
loan program, and its expenditures will increase to administer and issue loans and revenue will
increase as loans are repaid.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $45,504 to the Office of
Economic Development and International Trade, and 0.4 FTE.
State and Local Government Contacts
Housing Finance Authority Counties Law
Local Affairs Municipalities Economic Development
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.