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February 28, 2024

Committee Passes ADU Bill to Save Coloradans Money on Housing

Legislation would increase housing options Coloradans can afford to help meet demand

DENVER, CO - The House Transportation, Housing & Local Government Committee today passed legislation to create more housing options Coloradans can afford by allowing homeowners to build Accessory Dwelling Units (ADUs). HB24-1152 passed by a vote of 9-2.

“Nearly 80 percent of Coloradans agree that this bipartisan bill can help solve Colorado’s housing crisis and save people money,” said Rep. Judy Amabile, D-Boulder. “Giving Coloradans the freedom to build an ADU on their own property allows them to care for a loved one with a disability, house an aging parent, or bring in some extra money all while providing much needed housing in our communities. We need to take a multi-faceted approach to address Colorado’s housing crisis, and this bill will create more housing options Coloradans can afford and make it easier to live in this great state.”

HB24-1152, also sponsored by Rep. Ron Weinberg, R-Loveland, would allow homeowners in jurisdictions defined under the bill to build an ADU and create a new state grant program to help local governments implement policies to promote the construction of ADUs.

The bill would provide local governments with access to grants that support lower and middle-income Coloradans building an ADU, property owners renting their ADU at an affordable rate or ADUs intended to serve demonstrated housing needs in the community. The bill also provides grants to increase housing accessibility and availability for Coloradans with disabilities.

Finally, the bill includes funding through the Colorado Housing and Finance Authority to directly help homeowners build ADUs, including with down payment assistance, affordable loans, and buying down interest rates on loans for the conversion or construction of ADUs.

Recent polling found that 78 percent of Colorado voters support a law that allows ADUs to be built on single-family home properties.

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