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Loveland, CO Accessory Structures: ADU Impact Fees (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Exemption threshold
ADU 900 sq ft or less gross floor area
Governing section
UDC § 18.16.04.03.C
Adopted
Ord. 6445 § 3, eff. 12/29/2020
Large-lot ADUs over cap
Fees charged per § 18.04.07.01.E.4
Unpaid fee consequence
Perpetual lien on real property
Fee schedule review
Set by Council resolution every 5 years

Summary

Loveland exempts accessory dwelling units of 900 square feet or less from the city's capital expansion fees, the municipal equivalent of development impact fees. Larger ADUs allowed on Large Suburban, Estate, and Large Estate lots lose that exemption and are billed under the standard fee schedule tied to the principal dwelling.

C. Accessory Dwelling Units. Capital expansion fees are not charged for accessory dwelling units that are 900 square feet or less in gross floor area, in accordance with Section 18.04.07.01, Accessory Dwelling Units.

Full Breakdown

02. 02 normally triggers these fees. 1, owes no capital expansion fee at all. That exemption was adopted by Ord. B. The exemption is not unlimited. 04, Capital Expansion Fees" once an ADU grows past the standard threshold. So the fee break tracks the 900-square-foot line, not ADU status generally. 2, and are adjusted every January 1 using the Engineering News-Record Denver-area construction cost index, with street capital fees pegged instead to the Colorado Department of Transportation's construction cost index. C.

Violations & Fines

Capital expansion fees that are owed and go unpaid become a perpetual lien on the property under UDC § 18.16.04.04.A, ranking ahead of every other lien except real property taxes. Under § 18.16.04.04.B, the City Clerk certifies delinquent charges to the Larimer County Treasurer, who collects them the same way as property taxes. Separately, § 18.16.04.04.C lets the City withhold or revoke any permit, certificate, or approval from an applicant who is delinquent on capital expansion fees, which can stop a building permit or certificate of occupancy for an ADU that exceeded 900 square feet without paying the assessed fee.

Frequently Asked Questions

Does a Loveland ADU under 900 square feet owe capital expansion fees?
No. UDC § 18.16.04.03.C exempts accessory dwelling units of 900 square feet or less in gross floor area from capital expansion fees entirely, regardless of the use table that would otherwise apply to a new dwelling unit.
What if my ADU on a large lot is bigger than 900 square feet?
Large Suburban, Estate, and Large Estate lots can build ADUs up to 50 percent of the principal dwelling's floor area under § 18.04.07.01.E, but § 18.04.07.01.E.4 requires capital expansion fees once the unit exceeds the standard 900-square-foot exemption threshold.
What happens if capital expansion fees on an ADU go unpaid?
The unpaid amount becomes a perpetual lien on the property under § 18.16.04.04.A, ranking behind only property tax liens, and the City can withhold or revoke building permits and approvals until the delinquent fee is paid.
Are ADUs the only exemption from Loveland's capital expansion fees?
No. UDC § 18.16.04.03 also exempts construction within Historic Downtown Loveland and City-funded projects not run by a City utility or enterprise, in addition to the 900-square-foot ADU exemption in subsection C.

Sources & Official References

Other rules in Loveland

All Loveland rules

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