Grand Junction, CO Accessory Structures: ADU Rental Restrictions (2026)
Key Facts
- Standard covenant term
- 5 years, no short-term rental
- Owner-occupied incentive term
- 7 years total (2 extra years)
- Recording requirement
- Mesa County land title records
- Early termination fee
- 20% of fees/incentive + 20%/remaining year
- Sale/transfer
- buyer assumes covenant or seller pays fee
- Governing section
- GJMC § 43.01.060(b)(2), (c)
Summary
To collect the City's ADU fee payment in Grand Junction, a developer must record a covenant in Mesa County land records banning short-term rental of the ADU or the main house for five years, extended to seven years for owner-occupied applicants who take the additional $15,000 incentive.
(i) Agree to execute and record in the Mesa County land title records a binding restrictive covenant, in a form provided by the City, that no short-term rental be permitted as a use of either the ADU or principal structure on the property for a period of no less than five years; ... (ii) ... Agree to execute and record in the Mesa County land title records a binding restrictive covenant (see attachment A to the ordinance codified in this section) that no short-term rentals be permitted as a use of either the ADU or principal structure on the property for a period of no less than seven years from the certificate of occupancy; ... (1) An owner may terminate the APP Covenant and Agreement Documents at any time by providing a signed written termination notice within 30 days to the City and pay a termination fee in the following amount: (i) 20 percent of the total City paid fees and/or additional incentive; plus (ii) an additional 20 percent of the City paid fees for each full or incomplete year left in the term (“termination fee”).
Full Breakdown
Grand Junction Municipal Code § 43.01.060(b)(2)(i) requires any developer receiving City-paid impact fees to execute and record a binding restrictive covenant in the Mesa County land title records barring short-term rental use of either the ADU or the principal structure for no less than five years. An owner-occupied applicant who also takes the additional $15,000 incentive must instead record a covenant, referencing Attachment A to the authorizing ordinance, banning short-term rental of either structure for no less than seven years running from the certificate of occupancy (§ 43.01.060(b)(4)(ii)).
The covenant runs with the land: if the property is sold or transferred, voluntarily or involuntarily, § 43.01.060(c)(2) requires the seller to pay the early termination fee at closing or the buyer to execute a new covenant assuming the remaining commitment, prorated by partial years. An owner may end the covenant early at any time by giving 30 days' signed written termination notice and paying a termination fee equal to 20 percent of the total City-paid fees and incentive, plus an additional 20 percent of the City-paid fees for every full or partial year remaining in the term (§ 43.01.060(c)(1)).
The covenant and any unpaid termination fee attach as a perpetual real estate lien under § 43.01.080, collectible by the Mesa County Treasurer using the same tax-sale procedure used for delinquent property taxes.
Violations & Fines
Breaking the no-short-term-rental covenant or transferring the property without paying the termination fee or assigning a new covenant exposes the owner to the § 43.01.060(c) termination fee (20 percent of fees/incentive plus 20 percent per remaining year) and a perpetual lien under § 43.01.080; the City may also pursue civil injunction, abatement, mandamus, or declaratory judgment to enforce the covenant.
Frequently Asked Questions
How long can't I short-term rent my Grand Junction ADU?
Can I end the rental ban early?
What happens to the covenant if I sell the house?
What if I violate the covenant?
Sources & Official References
Other rules in Grand Junction
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