COLORADO SPRINGS, Colorado — Colorado lawmakers want to encourage more property owners to build Accessory Dwelling Units as a means of countering rising housing costs. Accessory Dwelling Units (ADUs) are separate structures built on an existing residential lot and used as a primary dwelling.
They are generally less expensive to build than a new house, and can easily connect to existing utility infrastructure. ADU's can be attached to the primary home or built as a stand-alone building.
Rita Tressler and her family hired Stream Home Construction to build a detached ADU on her property near Chestnut Street and Centennial Boulevard.
"This was just a perfect opportunity at the right time," Tressler said.
The two-story, 750-square-foot house was designed with single-level living in mind.
"I got married and then we're blending families and it's very expensive to try to blend a family and buy a house that would accommodate it correctly, and it kind of occurred to me that this is perfect," Tressler explained.
Her in-laws will live on the main level which features a kitchen, bedroom, bathroom, and a living room that opens to a covered patio. Her stepson will live upstairs where the second bedroom and bathroom have a separate temperature control.
Theresa Spicer and Kelci Hunter also hired Stream Home Construction to build an ADU on their property in Old Colorado City. The design team incorporated elements of the Spanish Colonial Revival style of the primary home into the ADU blueprints.
"We wanted it to fit in with the neighborhood, wanted to make sure that it was the similar style of the existing structure," Spicer said.
Their ADU also has two stories, with two bedrooms and two bathrooms on the lower level flanking a central kitchen and living room. There is a studio unit on the second story.
"I don't think we were looking for a property for an ADU, but when we saw the property we knew it was primed for an ADU," Hunter said.
The couple consulted with Stream Home during the homebuying process to find a location that met the zoning requirements to build a rental property.
"The first level is going to be rental property for probably traveling nurses. And the second level we're thinking studio, just something that we'll use for our own personal use in some manner," said Spicer.
Alex Kosley, CEO of Stream Home Construction, said interest in ADUs grew after the City of Colorado Springs changed land use codes to make it easier to build them. He encourages people who are interested in building an ADU to plan carefully.
There's a lot of considerations, it's a big endeavor and it really kind of changes your whole life and your property," Kosely said. "But we think it's a great investment."
Kosley said his company specializes in ADU construction. They are a design-build firm. His interest in ADU began many years ago when he was living in a friend's basement.
"And I just thought, man, would be great to be able to help people to rent out their basements, provide housing for people like me who need a rental."
House Bill 24-1152 incentivizes ADU construction statewide by creating a grant program that will enable local governments to waive common development fees. The legislation would also create a low-interest loan program to reduce the financial barriers for qualified applicants.
The bill also prohibits local governments from enforcing laws that would prohibit ADU construction.
State Sen. Tony Exum of Colorado Springs is a co-sponsor of the bill.
"Seventy-eight percent of Coloradans are in favor of this because of the housing crisis," Exum said.
The bill passed an initial committee hearing in the House and is waiting for a vote by appropriations.
Mike Tassi, the Assistant Planning Director for the City of Colorado Springs explained that ADUs have historically been part of the fabric of development in the city. Their goal in amending the land use code in 2020 was to make it easier for property owners in certain areas to construct them.
"Adding ADUs provided an affordable option for people who couldn't afford an apartment," Tassi explained.
The city categorizes ADUs as Detached Accessory Dwelling Units, Integrated Accessory Dwelling Units, and Accessory Family Suites. Both the Integrated ADU and Family Suites are built with a share wall to the primary home. The key difference is that a family suite is accessed internally.
Integrated ADUs and Accessory Family Suites are permitted in all R-1 zoned properties in the city. However, detached ADUs must be located in R-2, R-4, and R-5 multi-family zoned areas.
Click here to view the zoning and building requirements for ADUs in Colorado Springs.
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