Denver does NOT require owner occupancy for ADUs. The 2024 citywide ADU rezone (Council Bill 23-0739) eliminated all owner-occupancy requirements that had been part of earlier Denver Zoning Code provisions. DZC Article 11 use limitations explicitly allow non-owner-occupied ADUs in every residential zone.
Prior to the June 2024 rezone, Denver required the property owner to occupy either the principal dwelling or the ADU as their primary residence. Council Bill 23-0739 removed this requirement citywide, recognizing that owner-occupancy mandates limited ADU production. DZC Article 11.10 (ADU use limitations) does not include an owner-occupancy clause. No deed restriction is required at permit issuance. ADUs in single-family zones must comply with Denver's Short-Term Rental Ordinance (DRMC Chapter 33, Article XI) which itself requires the operator to register and identify a primary residence — a separate, narrower rule. Long-term rental of both the principal dwelling and the ADU is permitted, but properties with three or more rented dwelling units are subject to landlord-tenant licensing under DRMC 32-330.
There is no penalty for non-owner-occupancy of an ADU. Violations of the Short-Term Rental Ordinance (operating an STR without owner-occupancy or licensing) are separate offenses under DRMC 33-380 with fines up to $999 per day. Operating an unlicensed multi-unit rental violates DRMC 32-330 (Residential Rental License) with $150-$999 daily penalties.
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