Gov. Jared Polis just signed legislation to ban almost all occupancy limits, and coming rapidly toward his desk is a bill to allow ADUs on almost every single-family lot in big Colorado cities.
The occupancy ban still allows cities and counties to enforce fire codes and to regulate unhealthy and unsanitary conditions, but for the most part, cities will no longer be able to restrict how many unrelated people live in a house or apartment together.
Very few cities still have occupancy limits on their books, and those that do rarely enforce them. Most of the enforcement was occurring in areas near colleges where neighbors complained about cars blocking driveways and too many loud, late-night parties, and landlords use the law as an excuse to limit the number of tenants in an apartment (a discriminatory trick that can intentionally restrict units from less affluent renters).
But late-night disturbances in college neighborhoods can occur whether it is guests or residents making the problems. And we know that both rich and poor tenants can trash a condo or fail to make rent payments on time.
The reality is that with housing reaching unsustainable costs in places across the state, more and more families are doubling up to be able to afford housing. Those families should not live in fear of being “caught” and also should be afforded the protections that come with having their name on the lease as legitimate tenants.
Colorado cities will just have to get more aggressive in enforcing nuisance ordinances that already exist in most places. Anyone can have a problem neighbor whether there is one person living in a house or 15. The problem most generally isn’t density, but rather is the behaviors that can be associated with many college-aged tenants living together. We doubt families will be a concern.
Gov. Jared Polis was right to sign House Bill 1007, and unlike Denver’s effort in 2021 to alleviate occupancy limits, this bill was met with less fearmongering and more common-sense requests for amendments.
Next up Polis will likely have to consider a bill to allow ADUs on every lot in large cities. Accessory Dwelling Units are a way to bring gentle density to single-family neighborhoods. We understand concerns that coupled with the occupancy limit ban, this bill may bring more than gentle density.
That’s why we are glad to see changes in the proposed law that allow for local jurisdictions to regulate setbacks for detached ADUs. It’s a gentle acquiescence that not every lot, in every city is appropriate for a detached ADU, but that some would try to squeeze one in any way possible to maximize return on investment on a small lot even if the unit takes up the entire backyard.
House Bill 1152 prohibits municipalities from passing ordinances that are more restrictive or require more in terms of design and appearance than the city does for other residential structures. But under the law communities will still be able to set dimensional standards and setback laws that hold ADUs to the same standard as houses. For example, Denver has a minimum amount of a lot that must not be developed, regardless if it’s simply one massive house or two units on a single lot.
The bill also includes a grant program for lower-income homeowners looking to add an ADU that they would rent and for those looking to keep their ADU rents affordable. This will be the key to making certain that more ADUs are constructed than just those that will be used as pool houses or fancy guest houses — developments that do nothing to add to the housing supply.
None of this legislation will solve the housing crisis. We don’t expect a slew of ADUs to pop up in backyards or to get developed in basements, but a few hundred a year, across the state, that could be rented out to more than one family, could slowly have an impact on bringing down rents and purchase prices.
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