Community Update—Accessory Dwelling Units

Written By Annmarie Jensen
What's happening with accessory dwelling units?

Background on Accessory Dwelling Units

What Is an Accessory Dwelling Unit?

A dwelling unit is considered an accessory dwelling unit (ADU) if it is a second, subordinate dwelling unit located on the same zone lot as a primary single unit dwelling. An ADU can be attached to the primary dwelling unit, or it can be a separate, detached structure. For example, it can be a basement apartment in a single-unit house or a detached cottage near the alley. Other names for ADUs are granny flats, mother-in-law apartments, carriage houses, and guest houses.

Are ADUs a Key to Solving the Housing Supply Crisis?

In a time of housing crisis, many people see ADUs as an important part of the housing supply solution. They also begin to disrupt the single-family, residential-only model that is prevalent throughout much of Colorado. As a part of Marshall Fire redevelopment, some homeowners have sought to build an ADU so they can have a place to live more quickly while they await the construction of their main home.

Nationally, there is a lot of attention to ADUs because they help the homeowner have an income stream from rent, while providing a smaller housing unit that is often less expensive and harder to find in many neighborhoods. Some communities or homeowners associations (HOAs) in Colorado prohibit ADUs or are very restrictive about them.

Colorado State Plans Regarding ADUs

There has been a lot of buzz at the Colorado statehouse that a bill will be introduced to pre-empt local prohibitions on ADUs, or similar properties like duplexes and triplexes, as a way of increasing the supply of housing. These proposals may override what typically has been seen as being under the purview of local governments, in favor of creating a use-by-right system for homeowners who want to build ADUs. This means that neighbors who oppose ADUs won’t really have a say in stopping such development, and the homeowners are entitled to use their property for an ADU so long as they meet the local requirements for design. ECHO will provide information on this legislation when it is introduced.

What Role Can ADUs Play in Providing Affordable Housing?

National surveys indicate that, without some intervention, ADUs are typically only slightly less expensive per square foot than market-rate housing. However, there are many models of affordable ADU programs throughout the country. These programs give incentives to the homeowner to develop an ADU; in exchange, the homeowner agrees to keep the unit affordable for a specified period of time for those whose incomes are 80% or less of the area's median income. The incentives span a huge range, such as providing a general contractor, special financing, parking bonuses, fee waivers, or pre-approved construction plans.

Once implemented, an affordable ADU program requires staff to manage the program. They make sure the units remain affordable and the tenants continue to meet the eligibility requirements of the program. The program staffing requirement can be a challenge for smaller communities.

Louisville and Lafayette Are Making Revisions to Their ADU Policies

Louisville

Louisville currently does not allow ADUs, but the city has added revising the ordinance to its 2023 workplan. Louisville will solicit public input on ADUs in April and May of this year. Originally, Louisville was considering only allowing ADUs in the Marshall Fire rebuilding area. But, based on feedback from a community meeting held on February 16, they are now considering allowing ADUs in the entire city.

The City of Louisville is also surveying community members regarding ADUs.

Stay tuned for further information as the City will be posting opportunities for public participation.

Lafayette

Lafayette currently only allows ADUs in the Old Town Residential Zone. As part of their recently-revised comprehensive plan, Lafayette is considering expanding eligibility for ADUs to other parts of town. They currently do not have any plans for an affordable housing program and have said they do not have the staff capacity to operate such a program. ECHO has recommended that Lafayette consider an affordable ADU option, which is not currently part of their proposal. Staff and council members are researching incentives that the City might offer to create such a program.

Lafayette is soliciting community comments on its plan.

  • If you support an affordable ADU option that would help homeowners build an ADU in exchange for an affordability requirement, please direct your comments to Jeff Brasel, Director of Planning & Building, at jeff.brasel@lafayetteco.gov as well as to the City Council at council@louisvilleco.gov.

A video of the ADU staff presentation to the City Council on February 21, 2023, is available here: https://cityoflafayette.granicus.com/player/clip/1062

Longmont

Longmont currently has an ADU program. ADUs are allowed in residential or mixed-use zoning districts. The program requires the property owner to live in the primary residence, and it prohibits the use of ADUs for short-term rentals. City staff gave a presentation to the City Council in 2022 with some suggestions for improvements to the program, but the council has not taken up the issue since then. The council discussed creating some pre-approved ADU plans that would help homeowners get quicker permitting, but such plans have not yet been developed, and there currently is no affordability element to Longmont’s ADU regulations.

Superior

Superior currently allows for ADUs and recently amended its ordinance to allow ADUs to be built before the principal dwelling unit is replaced, as a way of supporting Marshall Fire rebuilders. Their ADU program has no provisions for making ADUs affordable.

Boulder

Boulder has an affordable ADU incentive that reduces parking requirements to encourage homeowners to create an affordable ADU.

Rent Control Legislation Endorsed by ECHO Board

Colorado local governments currently are banned from doing anything to control rents. After the Marshall Fire, we saw significant price gouging in rents that left many residents wondering why their local officials were not doing anything to stop it. The officials were prohibited by state law from addressing this problem.

Colorado House Bill 1115 would change that. It would strike the state ban on local governments engaging in any rent stabilization measures, and it would provide local governments an important tool to address locality-specific rental issues. The ECHO Board has endorsed the measure.

HB 1115 has passed the House and has been introduced in the Senate.

Annmarie Jensen
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