Colorado Springs is overhauling its accessory dwelling unit (ADU) policies following new state legislation. The local ordinance, expected to be finalized in April 2025, will allow ADUs more broadly across the city with specific safeguards. As your neighbors and local real estate experts at The Johnson Team, we've created this guide to help you understand what these changes mean for your property.
Why Colorado Springs Is Changing Its ADU Rules
In May 2024, Governor Jared Polis signed House Bill 24-1152, requiring cities to allow at least one ADU on any lot zoned for a single-family detached house by June 30, 2025 (Colorado General Assembly).
The law prohibits local governments from imposing "unreasonable" barriers to ADU construction, such as owner-occupancy requirements, excessive parking mandates, or strict design standards unique to ADUs (Colorado Newsline). State leaders aim to help alleviate Colorado's housing shortage and improve affordability.
"It can improve your quality of life if it's for a teenager or an aging parent. It can provide additional income if you want to rent it out," Governor Polis explained. "Most importantly, it meets a housing need in the community."
New ADU Requirements for Colorado Springs Homeowners
Under the new ordinance, here are the key rules you'll need to follow:
Where ADUs Are Allowed
Any lot zoned for a single-family detached house may now have one accessory dwelling unit (City of Colorado Springs). This applies citywide, except in high wildfire-risk areas. ADUs can be detached cottages, attached additions, or internal units like basement apartments.
Size and Height Restrictions
- Size limit: 50% of the primary residence's square footage or 1,250 square feet, whichever is less
- Height limit: Detached ADUs can only be one-story tall (16 feet). Only exception: above-garage ADUs can be up to 25 feet high
Setbacks: Side and rear setbacks of 5 feet minimum (City Code)
Special Rules and Requirements
- Wildfire areas: No detached ADUs allowed in WUI zones. In these areas, "Secondary living spaces must be inside the primary home" (KOAA News)
- Parking: One dedicated off-street parking spot required for each ADU
- Rental restrictions: No short-term rentals (STRs) allowed on properties with ADUs
Owner occupancy: No longer required, meaning you can rent both the main house and ADU (CPR News)
Benefits of Building an ADU in Colorado Springs
Additional Income Opportunities
For homeowners, an ADU can provide supplemental income through long-term rentals, helping offset mortgage payments or property taxes. Many of our Colorado Springs home sellers have found that properties with income potential can command higher prices in today's market.
Housing Flexibility for Family Members
ADUs offer living space for aging parents, adult children, or other family members, allowing them to maintain independence while staying close. This multi-generational living arrangement has become increasingly popular in Colorado Springs neighborhoods.
Increased Property Value
Adding an ADU can potentially increase your property's value and marketability when it's time to sell. Our team has seen firsthand how well-designed ADUs can become a key selling point in Colorado Springs neighborhoods.
How to Get Started With Your ADU Project
Timeline for New Rules
The new codes will go into effect by summer 2025, aligning with the state law's deadline of June 30, 2025. By July 2025, property owners should be able to apply under the new ADU regulations.
Permitting Process
You'll need to submit plans to the Colorado Springs Planning & Community Development department and the Pikes Peak Regional Building Department. The good news: no rezoning or special use permit is required if your plans meet the standards.
HOA Considerations
HOAs can no longer ban ADUs outright, but they might still have architectural guidelines. Check your covenants, but know that state law backs your right to build an ADU. If you're buying a home in a neighborhood with an HOA and thinking about future ADU construction, our hyper-local team can help you understand the specific restrictions within each community.
How These ADU Rules Affect Areas Near Colorado Springs
The state law affects different nearby communities in different ways:
- Fountain: As part of the Colorado Springs metro area with over 1,000 residents, Fountain must allow ADUs by June 2025
- Other nearby towns (like Monument and Manitou Springs): If they're in the metro area, they must also comply with the new ADU laws
- Areas outside city limits: In unincorporated El Paso County (such as Black Forest or Peyton), the county's rules require special use permits, neighbor notifications, and a longer approval process with fees and hearings. The county refers to these as "accessory living quarters" or "guest houses" rather than ADUs
Key Takeaways for Colorado Springs Homeowners
The new ADU rules represent a significant opportunity for homeowners to maximize their property's potential. Whether you're looking to generate rental income, house family members, or increase your property value, ADUs will soon be a viable option across most of Colorado Springs.
City officials expect to provide resources to help residents navigate the new ADU process. By summer 2025, the path to building an ADU will be clearer and simpler than ever before.
For those considering an ADU project, now is the time to start planning. The changes will take effect soon, and early preparation will help ensure a smooth process once the new rules are officially implemented.
How The Johnson Team Can Help You Navigate ADU Opportunities
At The Johnson Team, we understand how property improvements like ADUs can impact your real estate investment. We can help you:
- Assess how an ADU might affect your property's market value
- Understand how ADUs might influence buying or selling decisions in different neighborhoods
- Navigate the changing real estate landscape as these new regulations take effect
If you're considering adding an ADU to your property or looking to purchase a home with ADU potential, contact The Johnson Team for personalized guidance. Our expertise in the Colorado Springs housing market can help you make informed decisions about this exciting new opportunity.
