Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0903.03 Pierce Lively x2059
SENATE BILL 24-154
Senate Committees House Committees
Local Government & Housing
A BILL FOR AN ACT
C
ONCERNING INCREASING THE NUMBER OF CONVERTED ACCESSORY101
DWELLING UNITS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Section 1 of the bill creates a series of requirements related to
accessory dwelling units in subject jurisdictions.
As established in the bill, a subject jurisdiction is the
unincorporated portion of a county that is not within:
! A unit owners' association; or
! An area identified as having a high fire intensity on the fire
SENATE SPONSORSHIP
Jaquez Lewis,
HOUSE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. intensity scale published as part of the Colorado state forest
service wildfire risk viewer.
The bill requires a subject jurisdiction to allow, on or after January 1,
2025, subject to an administrative approval process, the conversion of an
accessory dwelling unit. The bill also prohibits subject jurisdictions from
applying a restrictive design or dimension standard to an accessory
dwelling unit.
Section 2 grants the Colorado economic development commission
the power to contract with the Colorado housing and finance authority for
the operation of a program in which the Colorado housing and finance
authority offers direct loans for the conversion of accessory dwelling
units on owner-occupied land.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 35 to title2
29 as follows:3
ARTICLE 354
State Land Use Criteria For Affordable Housing5
PART 16
ACCESSORY DWELLING UNITS7
29-35-101. Legislative declaration. (1) T
HE GENERAL ASSEMBLY8
FINDS, DETERMINES, AND DECLARES THAT: 9
(a) M
ORE PERMISSIVE REGULATION BY LOCAL GOVERNMENTS OF10
ACCESSORY DWELLING UNITS PROVIDES A REASONABLE CHANCE FOR11
HOMEOWNERS TO CONSTRUCT OR CONVERT AN ACCESSORY DWELLING12
UNIT AND THEREBY INCREASE HOUSING SUPPLY , STABILIZE HOUSING13
COSTS, AND CONTRIBUTE TO AFFORDABLE AND EQUITABLE HOME14
OWNERSHIP TO ADEQUATELY MEET THE HOUSING NEEDS OF A GROWING15
C
OLORADO POPULATION;16
(b) R
ELATIVE TO DISPERSED, LOW-DENSITY DEVELOPMENT ,17
ACCESSORY DWELLING UNIT CONVERSION HAS A MINIMAL IMPACT ON18
WATER USAGE, GREENHOUSE GAS EMISSIONS, INFRASTRUCTURE DEMAND,19
SB24-154-2- AND HOUSEHOLD ENERGY AND TRANSPORTATION COSTS . ACCESSORY1
DWELLING UNITS USE SIGNIFICANTLY LESS ENERGY FOR HEATING AND2
COOLING.3
(c) C
OMPARED TO A SINGLE -UNIT DETACHED DWELLING ,4
ACCESSORY DWELLING UNITS USE TWENTY -TWO PERCENT LESS WATER ,5
SMALL MULTIFAMILY HOMES SIXTY -THREE PERCENT LESS, AND LARGER6
MULTIFAMILY HOMES EIGHTY -SIX PERCENT LESS BASED ON DATA FROM7
D
ENVER AND AURORA WATER USERS ANALYZED FOR THE COLORADO8
WATER AND GROWTH DIALOGUE FINAL REPORT IN 2018;9
(d) A
CCESSORY DWELLING UNITS PROVIDE FAMILIES WITH OPTIONS10
FOR INTERGENERATIONAL LIVING ARRANGEMENTS THAT ENABLE CHILD OR11
ELDER CARE AND AGING IN PLACE;12
(e) A
CCESSORY DWELLING UNITS ARE OFTEN OCCUPIED AT LOW TO13
NO RENT BY FAMILY MEMBERS , AND IF THEY ARE RENTED PRIVATELY ,14
THEIR RENTS ARE RELATIVELY AFFORDABLE BECAUSE OF THEIR SMALL15
SIZE;16
(f) C
ONVERTING EXISTING BUILDINGS IS MUCH MORE17
COST-EFFECTIVE THAN NEW CONSTRUCTION ; AND18
(g) T
HE NUMBER OF CONVERSIONS THAT MIGHT BE ENCOURAGED19
BY THIS PART 1 ALONE CANNOT SOLVE THE HOUSING CRISIS , BUT CAN20
OFFER PROFOUND BENEFITS TO MANY FAMILIES ACROSS COLORADO.21
(2) T
HEREFORE, THE GENERAL ASSEMBLY DECLARES THAT22
INCREASING THE HOUSING SUPPLY THROUGH THE CONSTRUCTION OR23
CONVERSION OF ACCESSORY DWELLING UNITS IS A MATTER OF MIXED24
STATEWIDE AND LOCAL CONCERN .25
29-35-102. Definitions. A
S USED IN THIS PART 1, UNLESS THE26
CONTEXT OTHERWISE REQUIRES :27
SB24-154
-3- (1) "ACCESSORY DWELLING UNIT " MEANS AN INTERNAL ,1
ATTACHED, OR DETACHED DWELLING UNIT THAT :2
(a) P
ROVIDES COMPLETE INDEPENDENT LIVING FACILITIES FOR ONE3
OR MORE INDIVIDUALS;4
(b) I
S LOCATED ON THE SAME LOT AS A PROPOSED OR EXISTING5
OWNER-OCCUPIED RESIDENCE; AND6
(c) I
NCLUDES FACILITIES FOR LIVING, SLEEPING, EATING, COOKING,7
AND SANITATION.8
(2) (a) (I) "A
DMINISTRATIVE APPROVAL PROCESS " MEANS A9
PROCESS:10
(A) I
N WHICH A DEVELOPMENT APPLICATION IS APPROVED ,11
APPROVED WITH CONDITIONS , OR DENIED BY LOCAL GOVERNMENT12
ADMINISTRATIVE STAFF BASED SOLELY ON ITS COMPLIANCE WITH13
OBJECTIVE STANDARDS SET FORTH IN ZONING OR OTHER LOCAL LAWS ; AND14
(B) T
HAT DOES NOT REQUIRE, AND CANNOT BE ELEVATED TO15
REQUIRE, A PUBLIC HEARING, A RECOMMENDATION, OR A DECISION BY AN16
ELECTED OR APPOINTED PUBLIC BODY , OR A HEARING OFFICER.17
(II) N
OTWITHSTANDING ANY LAW TO THE CONTRARY , AN18
ADMINISTRATIVE APPROVAL PROCESS MAY REQUIRE AN APPOINTED19
HISTORIC PRESERVATION COMMISSION TO MAKE A DECISION , OR TO MAKE20
A RECOMMENDATION TO LOCAL GOVERNMENT ADMINISTRATIVE STAFF ,21
REGARDING A DEVELOPMENT APPLICATION INVOLVING A HISTORIC22
PROPERTY LISTED ON THE NATIONAL REGISTER OF HISTORIC PLACES , THE23
C
OLORADO STATE REGISTER OF HISTORIC PROPERTIES , OR DESIGNATED BY24
THE LOCAL GOVERNMENT , PROVIDED THAT:25
(A) T
HE LOCAL GOVERNMENT HAS BEEN DESIGNATED AS A26
CERTIFIED LOCAL GOVERNMENT BY THE STATE HISTORIC PRESERVATION27
SB24-154
-4- OFFICE; AND1
(B) T
HE DECISION OR RECOMMENDATION IS BASED ON STANDARDS2
SET FORTH IN LOCAL LAW OR ESTABLISHED BY THE SECRETARY OF THE3
INTERIOR OF THE UNITED STATES.4
(b) A
S USED IN THIS SUBSECTION (2), "OBJECTIVE STANDARD"5
MEANS A STANDARD THAT :6
(I) I
S UNIFORMLY VERIFIABLE AND ASCERTAINABLE BY REFERENCE7
TO AN AVAILABLE EXTERNAL OR UNIFORM BENCHMARK OR CRITERION BY8
THE DEVELOPMENT APPLICANT OR PROPONENT AND THE PUBLIC BODY OR9
OFFICIAL PRIOR TO THE DEVELOPMENT APPLICANT 'S OR PROPONENT'S10
FILING OF A DEVELOPMENT PROPOSAL ; AND11
(II) D
OES NOT REQUIRE THE DECISION-MAKER TO MAKE ONE OR12
MORE SUBJECTIVE DETERMINATIONS CONCERNING A DEVELOPMENT13
APPLICATION, INCLUDING BUT NOT LIMITED TO WHETHER THE14
APPLICATION:15
(A) I
S CONSISTENT WITH LOCAL DEVELOPMENT PLANS ;16
(B) I
S OR CAN BE COMPATIBLE WITH THE LAND USE OR17
DEVELOPMENT OF THE AREA SURROUNDING THE AREA DESCRIBED IN THE18
APPLICATION;19
(C) R
EQUIRES INDIVIDUALIZED EVALUATIONS RELATING TO20
MITIGATION OF IMPACTS; OR21
(D) I
S CONSISTENT WITH PUBLIC WELFARE , COMMUNITY, OR22
NEIGHBORHOOD CHARACTER .23
(3) "C
ONVERSION" MEANS CHANGING THE FUNCTION OR USE OF AN24
EXISTING BUILDING SO THAT THE ENTIRE BUILDING OR A PORTION OF THE25
BUILDING IS AN ACCESSORY DWELLING UNIT .26
(4) "C
OUNTY" MEANS A COUNTY , INCLUDING A HOME RULE27
SB24-154
-5- COUNTY BUT EXCLUDING A CITY AND COUNTY .1
(5) "D
WELLING UNIT" MEANS A SINGLE UNIT PROVIDING COMPLETE2
INDEPENDENT LIVING FACILITIES FOR ONE OR MORE INDIVIDUALS ,3
INCLUDING PERMANENT FACILITIES FOR COOKING , EATING, LIVING,4
SANITATION, AND SLEEPING.5
(6) "E
XEMPT PARCEL" MEANS A PARCEL THAT IS:6
(a) N
OT SERVED AND WILL NOT BE SERVED BY A DOMESTIC WATER7
AND SEWAGE TREATMENT SYSTEM , AS DEFINED IN SECTION 24-65.1-1048
(5),
OR OTHERWISE NOT ABLE TO SUPPORT THE WATER AND SEWAGE NEEDS9
OF A CONVERTED ACCESSORY DWELLING UNIT ;10
(b) A
HISTORIC PROPERTY THAT IS NOT WITHIN A HISTORIC11
DISTRICT; OR12
(c) I
N A FLOODWAY OR IN A ONE HUNDRED YEAR FLOODPLAIN , AS13
IDENTIFIED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY .14
(7) "H
ISTORIC DISTRICT" MEANS A DISTRICT ESTABLISHED BY15
LOCAL LAW THAT MEETS THE DEFINITION OF "DISTRICT" SET FORTH IN 3616
CFR
60.3 (d).17
(8) "H
ISTORIC PROPERTY" MEANS A PROPERTY LISTED:18
(a) O
N THE NATIONAL REGISTER OF HISTORIC PLACES ;19
(b) O
N THE COLORADO STATE REGISTER OF HISTORIC PROPERTIES ;20
OR21
(c) A
S A CONTRIBUTING STRUCTURE OR HISTORIC LANDMARK BY22
A CERTIFIED LOCAL GOVERNMENT , AS DEFINED IN SECTION 39-22-514.523
(2)(b).24
(9) "L
OCAL LAW" MEANS ANY CODE, LAW, ORDINANCE, POLICY,25
REGULATION, OR RULE ENACTED BY A COUNTY THAT GOVERNS THE26
DEVELOPMENT AND USE OF LAND , INCLUDING LAND USE CODES, ZONING27
SB24-154
-6- CODES, AND SUBDIVISION CODES.1
(10) (a) "O
WNER-OCCUPIED RESIDENCE" MEANS A RESIDENCE2
THAT IS OCCUPIED PRIMARILY FOR THE USE OF THE OWNER AND THE3
OWNER'S DESIGNEES.4
(b) "O
WNER-OCCUPIED RESIDENCE" INCLUDES, BUT IS NOT LIMITED5
TO, AN OWNER-OCCUPIED PRIMARY RESIDENCE .6
(11) "R
ESTRICTIVE DESIGN OR DIMENSION STANDARD " MEANS A7
STANDARD IN A LOCAL LAW THAT :8
(a) R
EQUIRES AN ARCHITECTURAL STYLE, BUILDING MATERIAL, OR9
LANDSCAPING THAT IS MORE RESTRICTIVE FOR AN ACCESSORY DWELLING10
UNIT THAN FOR A SINGLE-UNIT DETACHED DWELLING IN THE SAME ZONING11
DISTRICT;12
(b) D
OES NOT ALLOW FOR ACCESSORY DWELLING UNIT SIZES13
BETWEEN FIVE HUNDRED AND EIGHT HUNDRED SQUARE FEET ;14
(c) R
EQUIRES SIDE OR REAR SETBACKS FOR AN ACCESSORY15
DWELLING UNIT GREATER THAN THE SETBACKS REQUIRED FOR AN16
ACCESSORY BUILDING IN THE SAME ZONING DISTRICT , OR IF IT IS NOT17
CLEARLY ESTABLISHED IN THE SAME ZONING DISTRICT , IN THE CASE OF AN18
ACCESSORY DWELLING UNIT WITH A SINGLE STORY , REQUIRES SIDE OR19
REAR SETBACKS GREATER THAN FIVE FEET ;20
(d) I
S A MORE RESTRICTIVE MINIMUM LOT SIZE STANDARD FOR AN21
ACCESSORY DWELLING UNIT THAN FOR A SINGLE -UNIT DETACHED22
DWELLING IN THE SAME ZONING DISTRICT ; OR23
(e) A
PPLIES MORE RESTRICTIVE AESTHETIC DESIGN OR24
DIMENSIONAL STANDARDS TO ACCESSORY DWELLING UNITS THAT ARE25
FACTORY-BUILT RESIDENTIAL STRUCTURES , AS DEFINED IN SECTION26
24-32-3302
(10), THAN OTHER ACCESSORY DWELLING UNITS .27
SB24-154
-7- (12) (a) "SHORT-TERM RENTAL" MEANS THE RENTAL OF A LODGING1
UNIT FOR LESS THAN THIRTY DAYS . AS USED IN THIS SUBSECTION (12),2
"
LODGING UNIT" MEANS ANY PROPERTY OR PORTION OF A PROPERTY THAT3
IS AVAILABLE FOR LODGING; EXCEPT THAT THE TERM EXCLUDES A HOTEL4
OR MOTEL UNIT.5
(b) N
OTWITHSTANDING SUBSECTION (12)(a) OF THIS SECTION, A6
LOCAL GOVERNMENT MAY APPLY ITS OWN DEFINITION OF "SHORT-TERM7
RENTAL" FOR PURPOSES OF THIS PART 1.8
(13) "S
INGLE-UNIT DETACHED DWELLING " MEANS A DETACHED9
BUILDING WITH A SINGLE DWELLING UNIT ON A SINGLE LOT .10
(14) "S
UBJECT JURISDICTION" MEANS THE UNINCORPORATED11
PORTION OF A COUNTY THAT IS NOT WITHIN :12
(a) A
N ASSOCIATION, AS DEFINED IN SECTION 38-33.3-103 (3); OR13
(b) A
N AREA IDENTIFIED AS HAVING A HIGH FIRE INTENSITY ON THE14
FIRE INTENSITY SCALE PUBLISHED AS PART OF THE COLORADO STATE15
FOREST SERVICE WILDFIRE RISK VIEWER.16
29-35-103. Accessory dwelling unit requirements for a subject17
jurisdiction. (1) O
N OR AFTER JANUARY 1, 2025, A SUBJECT18
JURISDICTION SHALL ALLOW, SUBJECT TO AN ADMINISTRATIVE APPROVAL19
PROCESS, THE CONVERSION OF AN ACCESSORY DWELLING UNIT .20
(2) A
SUBJECT JURISDICTION SHALL NOT APPLY A RESTRICTIVE21
DESIGN OR DIMENSION STANDARD TO AN ACCESSORY DWELLING UNIT .22
(3) N
OTHING IN THIS SECTION PREVENTS A SUBJECT JURISDICTION23
OR OTHER LOCAL GOVERNMENT FROM :24
(a) A
LLOWING THE CONSTRUCTION OR CONVERSION OF AN25
ACCESSORY DWELLING UNIT THAT IS SMALLER THAN FIVE HUNDRED26
SQUARE FEET OR GREATER THAN EIGHT HUNDRED SQUARE FEET , OR27
SB24-154
-8- RESTRICTING THE SIZE OF AN ACCESSORY DWELLING UNIT SO THAT IT IS NO1
LARGER THAN THE SIZE OF THE PRINCIPAL DWELLING UNIT ON THE SAME2
LOT AS THE ACCESSORY DWELLING UNIT ;3
(b) A
LLOWING THE CONSTRUCTION OR CONVERSION OF MULTIPLE4
ACCESSORY DWELLING UNITS ON THE SAME LOT ;5
(c) A
PPLYING A DESIGN OR DIMENSION STANDARD TO AN6
ACCESSORY DWELLING UNIT THAT IS NOT A RESTRICTIVE DESIGN OR7
DIMENSION STANDARD;8
(d) A
DOPTING OR ENFORCING A GENERALLY APPLICABLE9
REQUIREMENT FOR:10
(I) T
HE PAYMENT OF AN IMPACT FEE OR OTHER SIMILAR11
DEVELOPMENT CHARGE , PURSUANT TO SECTION 29-20-104.5; OR12
(II) T
HE MITIGATION OF IMPACTS IN CONFORMANCE WITH THE13
REQUIREMENTS OF PART 2 OF ARTICLE 20 OF THIS TITLE 29;14
(e) E
NACTING OR APPLYING A LOCAL LAW CONCERNING THE15
SHORT-TERM RENTAL OF AN ACCESSORY DWELLING UNIT OR ANY OTHER16
DWELLING ON THE SAME LOT AS AN ACCESSORY DWELLING UNIT ;17
(f) A
PPLYING THE DESIGN STANDARDS AND PROCEDURES OF A18
HISTORIC DISTRICT TO A LOT ON WHICH AN ACCESSORY DWELLING UNIT IS19
ALLOWED IN THAT HISTORIC DISTRICT , INCLUDING A STANDARD OR20
PROCEDURE RELATED TO DEMOLITION ;21
(g) A
PPLYING AND ENFORCING A LOCALLY ADOPTED LIFE SAFETY22
CODE, INCLUDING BUT NOT LIMITED TO, A BUILDING, FIRE, UTILITY, OR23
STORMWATER CODE;24
(h) A
LLOWING THE CONSTRUCTION OF , OR ISSUING A PERMIT FOR25
THE CONSTRUCTION OF, A SINGLE-UNIT DETACHED DWELLING IN AN AREA26
ZONED FOR SINGLE-UNIT DETACHED DWELLINGS ; OR27
SB24-154
-9- (i) ENCOURAGING THE CONSTRUCTION OF ACCESSORY DWELLING1
UNITS THAT ARE, THROUGH THE APPLICATION OF LOCAL LAWS OR2
PROGRAMS, MADE AFFORDABLE TO HOUSEHOLDS UNDER CERTAIN INCOME3
LIMITS OR USED PRIMARILY TO HOUSE THE LOCAL WORKFORCE .4
(4) T
HIS SECTION ONLY APPLIES TO A PARCEL IN A SUBJECT5
JURISDICTION THAT IS NOT AN EXEMPT PARCEL .6
SECTION 2. In Colorado Revised Statutes, 24-46-104, amend7
(1)(o) and (1)(p); and add (1)(q) as follows:8
24-46-104. Powers and duties of commission - definitions -9
repeal. (1) The commission has the following powers and duties:10
(o) To oversee the Colorado office of film, television, and media11
loan guarantee program pursuant to section 24-48.5-115 and the12
performance-based incentive for film production in Colorado pursuant to13
section 24-48.5-116; and
14
(p) To consult with the Colorado office of economic development15
pursuant to section 24-48.5-117;
AND16
(q) (I) T
O CONTRACT WITH THE COLORADO HOUSING AND FINANCE17
AUTHORITY, CREATED IN PART 7 OF ARTICLE 4 OF TITLE 29, FOR THE18
OPERATION OF A PROGRAM IN WHICH THE COLORADO HOUSING AND19
FINANCE AUTHORITY OFFERS DIRECT LOANS FOR THE CONVERSION OF20
ACCESSORY DWELLING UNITS ON OWNER -OCCUPIED LAND. 21
(II) A
S USED IN THIS SUBSECTION (1)(q), UNLESS THE CONTEXT22
OTHERWISE REQUIRES:23
(A) "A
CCESSORY DWELLING UNIT " MEANS AN INTERNAL ,24
ATTACHED, OR DETACHED DWELLING UNIT THAT PROVIDES COMPLETE25
INDEPENDENT LIVING FACILITIES FOR ONE OR MORE INDIVIDUALS , IS26
LOCATED ON THE SAME LOT AS A PROPOSED OR EXISTING PRIMARY27
SB24-154
-10- RESIDENCE, AND INCLUDES FACILITIES FOR LIVING, SLEEPING, EATING,1
COOKING, AND SANITATION.2
(B) "C
ONVERSION" MEANS CHANGING THE FUNCTION OR USE OF A3
BUILDING SO THAT THE ENTIRE BUILDING OR A PORTION OF THE BUILDING4
IS AN ACCESSORY DWELLING UNIT.5
(C) "O
WNER-OCCUPIED LAND" MEANS LAND THAT IS OCCUPIED6
PRIMARILY FOR THE USE OF THE OWNER AND THE OWNER 'S DESIGNEES.7
SECTION 3. Act subject to petition - effective date. This act8
takes effect at 12:01 a.m. on the day following the expiration of the9
ninety-day period after final adjournment of the general assembly; except10
that, if a referendum petition is filed pursuant to section 1 (3) of article V11
of the state constitution against this act or an item, section, or part of this12
act within such period, then the act, item, section, or part will not take13
effect unless approved by the people at the general election to be held in14
November 2024 and, in such case, will take effect on the date of the15
official declaration of the vote thereon by the governor.16
SB24-154
-11-