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Colorado Property Management Related Legislation

Below is a list of legislative bills passed in Colorado that impact rental housing. For each bill we share the key points and link the full bill. All information is obtained directly from the Colorado General Assembly website. This information should not be considered legal advice.

HB24 1152 - Accessory Dwelling Units

Effective Date: August 6th, 2025

Key points:

  • Mandatory ADU Allowance: Effective June 30, 2025, municipalities with populations of 1,000 or more within metropolitan planning organizations, and certain counties, must permit one ADU as an accessory use to a single-unit detached dwelling in areas zoned for such dwellings. This requirement standardizes ADU allowances across specified jurisdictions. 

  • Prohibition of Restrictive Regulations: The act prohibits subject jurisdictions from enforcing local laws that:

    • Ban the construction or conversion of ADUs. 

    • Impose owner-occupancy requirements on properties with ADUs. 

    • Mandate additional parking spaces for ADUs. 

    • Enforce restrictive design or dimensional standards that would impede ADU development. 

  • Supportive Jurisdictions and Grant Program: Local governments that comply with ADU requirements and implement strategies to encourage ADU development can qualify as "supportive jurisdictions." These jurisdictions are eligible for grants from the Accessory Dwelling Unit Fee Reduction and Encouragement Grant Program, which provides funding to:

    • Develop pre-approved ADU plans. 

    • Offer technical assistance for ADU projects. 

    • Reduce or waive fees associated with ADU construction. 

  • These measures aim to remove common barriers to ADU construction.

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