Introduction
Before heading towards the laws, let’s understand what ADUs are and how they can help you solve a few issues of yours. ADUs, or Accessory Dwelling Units, are small houses that can be built on the same property as yours.
ADUs, also known as Casitas, Granny flats, or MIL suites, are tiny homes that are quite popular in Colorado. These modular flats are made at factories and assembled on-site. Which means, 90% of the work is done at the factory. This helps increase efficiency and decrease headaches caused to the client by construction work.
Colorado’s New ADU Law
Now that we know what an Accessory Dwelling Unit is, let’s explore the new changes made by Colorado’s government and how it can help homeowners.
Colorado’s Law
Colorado passed a House Bill called 24-1152, in May 2024. This law applies to cities or towns 1000+ people under the Metropolitan Planning Organization. If you live in a small or rural area, this law does not apply to you. Mostly, rural areas have their own local ADU laws. You will follow your local rules in such a case.
How Will This Law Affect You
If you fall into the category where this new law will affect you, here is what you need to know;
You can build one ADU on your plot. It can be either an attached or a detached modular flat. The attached granny flat will somehow be attached to the residential home, as its name suggests. While the detached one is completely separate.
Attached and Detached ADU
The attached ADU can be used for personal use, as it will be close to the main house. You can either give it to your parents to keep them close, make it an office, or even a gym. While the detached ADU can also be used as a rental property.
Design Rules
Moreover, there are no extra strict rules for the design of the modular flat. You can use the same design rules as your residential home. If you are unaware of these rules, get in touch with an ADU company; they will be able to help you out.
Size of the Accessory Dwelling Unit
The allowed size of the flex flat is up to 750 sq ft, sometimes up to 800 sq ft depending on the area. Usually, there are three sizes available, 245 sq ft, 490 sq ft and 735 sq ft. you can choose the size according to the available space or the design you have in mind.
Owner Occupancy
The law also suggests that you don’t have to be available at the residential home in order to get an ADU. This means that you can give both of the properties on rent. Double income from a single plot, seems like a great deal. Also, there are no extra parking requirements.
Charges Paid by State
The state is paying $5 million to the local government under this new law to help with lower fees, free plans, or faster approvals. The state will also pay $8 million to help such homeowners who have taken loans, lower the interest, or help with downpayments. This is a great opportunity for people with low income.
This law has been active as of June 2025. The cities that refuse to incorporate these rules, the state has the right to withhold their fundings. You can apply through a simple administrative approval process.
How Can Olerra Help?
Olerra is an ADU company that can help you understand all of these new laws and where they apply to your house or not. We will unsure that you don’t face any difficulties when getting your dream tiny house built.
We make Accessory Dwelling Units that last up to 250+ years. With steel-framed and 1-hour fire-rated structures, we ensure that you have the best experience. We make the flex flat in our factory and accesmble it within 2 hours on the delivery day. We control the entire process and get no third parties involved.
Olerra provides 10,000+ interior and exterior finish combinations, movable modular flats, no trenching, concrete, or yard damage, and no outsourcing of any production. Olerra will be your best friend and help you complete this journey with ease. All you need to do is book a consultation. We will even provide you with a free property check and a quote forum.