We’re One Step Closer: Colorado Springs ADU Code Changes Set the Stage for a June 30 Shift

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If you’ve been following our past updates and newsletters, you know we’ve been closely tracking the evolution of Colorado Springs’ accessory dwelling unit (ADU) code—and we’re excited to share that we’re one step closer to a major milestone.

On March 26, City Council passed the first reading of a long-anticipated ordinance that will expand and redefine ADU options for homeowners. The second reading is scheduled for April 8, and if passed, the new rules are scheduled to go into effect on June 30, 2025.

🎥 And in case you missed it—our CEO, Alex Kosley, was featured on KOAA News 5 breaking it all down for the public.
Click here to watch the segment →

🔍 A Quick Recap: What’s Changing?

These updates mark a significant shift in how ADUs will be treated across both single-family and multifamily zones in Colorado Springs. Here’s what you need to know:

🏡 R-1 Zones (Single-Family)

This is where the most exciting changes are happening—if the ordinance is finalized.

🏠 Detached ADUs to be permitted (effective June 30)

  • For the first time in Colorado Springs, detached ADUs will be officially allowed in R-1 zones (and all other single-family zone districts)
  • This opens new possibilities for families, homeowners seeking passive income, flex space, or those looking to age in place

📐 Key Design Standards:

  • Setbacks: Just 5 feet from side and rear property lines
  • Height Limit:
    • Max height of 16 feet
    • Up to 25 feet if the ADU is built above a detached garage
  • Attached ADUs remain permitted under the existing rules and zoning height maximums

🚗 New Requirement: One Off-Street Parking Space

  • A new requirement that wasn’t in earlier drafts—plan for one dedicated off-street spot

🌲 No Detached ADUs in the Wildland Urban Interface (WUI)

  • If your property is in a WUI fire district, only attached ADUs will be permitted

⛔ Short-Term Rental Restrictions:

  • If you have (or build) an ADU, your property will no longer be eligible for a new STR (short-term rental) permit
  • Existing STRs with ADUs are grandfathered in—so if you already have both, you’re safe

🏘️ R-2 and Multifamily Zones

These zones already allow detached ADUs, but the ordinance brings some important updates:

📏 Height Restrictions Tightened

  • Max height is now capped at 16 feet, down from the previous 25 ft
  • Exception: You can still go up to 25 ft if building above a garage
  • This essentially eliminates most two-story detached ADU designs unless integrated with a garage

🌲 WUI Restrictions Apply Here Too

  • Detached ADUs will no longer be permitted in WUI fire risk districts
  • Attached ADUs remain allowed in the WUI

⛔ STR Restrictions Also Apply

  • Same as in R-1 zones: properties with ADUs will not be eligible for new STR permits
  • Existing STR permits will remain valid (just make sure to not let it expire without renewing!)

📅 What’s Next?

We’re getting closer to the finish line, but there are still a few steps remaining:

  • ✅ First Reading Passed: March 26, 2025
  • 📆 Second Reading Scheduled: April 8, 2025
  • ⏳ Effective Date (if passed): June 30, 2025

We’ll continue monitoring any changes to the proposed language or details that emerge between now and final adoption. Expect more updates from us as we approach June 30.

🏗️ Planning Ahead? Our ADU Models Are Being Designed With This Code in Mind

At StreamHome, we’ve been preparing for this moment. Our new lineup of ADU models is being strategically designed to meet these updated standards—including the new height limits, setbacks, and parking requirements.

Whether you’re planning to house a family member, generate rental income, or simply make better use of your property, our models will be optimized for what’s coming.

👉 Stay tuned for model releases and pricing updates in the near future.

🤔 What Should You Do Now?

This is the perfect time to start planning if you’ve been considering adding an ADU to your property—especially in R-1 zones, where this opens brand new doors.

To help, we’re offering free zoning consultations to evaluate your lot and walk you through what’s possible under the pending rules.

🎯 Click here to schedule your free ADU consultation

Let’s plan ahead, build smart, and make the most of this opportunity—together.

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Stay tuned for more updates as we move toward final adoption. And as always, thank you for being part of this journey with StreamHome.

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