The Colorado Springs Unified Development Code (UDC) adopted in 2023 does not impose a strict owner-occupancy requirement on accessory dwelling units in most residential zones. Property owners may rent both the principal dwelling and the ADU long-term provided each unit meets habitability standards. Some Planned Unit Developments (PUDs) and Master Plan overlays retain owner-occupancy conditions.
The Colorado Springs UDC adopted by City Council in 2023 deliberately removed mandatory owner-occupancy from the ADU framework as part of its housing-supply reforms. Under UDC § 7.4, a property owner may construct an ADU and rent both the principal dwelling and the ADU separately on long-term leases (30+ days) without residing on-site. This is a significant departure from prior practice and from many neighboring jurisdictions. However, several site-specific overlays retain owner-occupancy as a recorded condition: certain Planned Unit Developments (PUDs) approved before 2023, ADUs created under the legacy 'mother-in-law unit' Conditional Use Permit framework, and ADUs approved through the City's Affordable Housing Density Bonus Program where deed restrictions impose ownership requirements. Property owners should review their recorded PUD documents and any prior Conditional Use Permit conditions before assuming the relaxed UDC standard applies. Colorado has no statewide owner-occupancy preemption. HOA covenants and Master Plan deed restrictions may independently impose owner-occupancy and are enforceable under Colorado Common Interest Ownership Act (CCIOA) C.R.S. § 38-33.3.
Operating an ADU contrary to a PUD or CUP owner-occupancy condition is a code violation with civil penalties up to $1,000 per day under City Code § 1.1.107. HOA owner-occupancy enforcement is civil under CCIOA. Recorded deed restrictions can be enforced by neighbors with standing.
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