From Restrictions to Opportunities: Colorado Springs' New ADU Revolution Starts June 30th

What Should I Look For When Buying A Property With The Goal Of Adding An ADU?

Colorado Springs just witnessed a game-changing moment for property owners and investors as the city council passed a major ADU ordinance that will revolutionize accessory dwelling unit construction starting June 30, 2025. Licensed general contractor Alex Kosley breaks down exactly what property buyers should look for when planning to add an ADU, delivering this news just hours after the council vote.

The current landscape allows ADUs in specific zoning districts (R2, R4, and R5), with single-family zones limited to attached units only. Alex walks listeners through critical considerations including setback requirements, minimum space needs, parking considerations, and the golden opportunity of alleyway access. The real excitement comes from understanding how the upcoming changes will open ADU construction to approximately 193,000 additional properties across Colorado Springs—roughly 85% of the city's residential property mass.

This episode doesn't just cover the expanding opportunities but also addresses new limitations being implemented, such as height restrictions capping ADUs at 16 feet (25 feet if above a garage) and prohibitions on detached ADUs in wildfire risk zones. Alex provides thoughtful guidance on determining whether an ADU might serve as rental income, family housing, workspace, or multigenerational living quarters, emphasizing that "an ADU isn't just a building, it's a strategy" for financial freedom and community connection.

Ready to evaluate a property's ADU potential or start planning your project? Schedule a free consultation for personalized guidance from experts who understand both real estate and construction complexities in the Colorado Springs market.

To learn more about StreamHome Construction visit:
https://www.YourStreamHome.com
StreamHome Construction
719-644-6777

Episode Transcript

Speaker 1 (00:04):
Welcome to the Stream Home Construction Podcast,
where we take your project fromconception to completion.
Hosted by Licensed GeneralContractor Alex Kozley, we cover
everything from accessorydwelling units to commercial
construction in the greaterColorado Springs area.
Whether you're dreaming of anew ADU, planning an office
upgrade or tackling a majorrenovation project, we've got

(00:26):
the expertise to guide youthrough it.
Let's get building.

Speaker 2 (00:37):
Welcome back everyone , Tony Hill's co-host slash
producer back in the studio withlicensed general contractor
Alex Cozley.
Alex, how's it going?

Speaker 3 (00:47):
I'm doing wonderful today, tony, how are you doing?

Speaker 2 (00:51):
That's great to hear, Alex, Great to hear.
Everyone wants to know whatshould I look for when buying a
property with the goal of addingan ADU?

Speaker 3 (01:00):
Well, tony, that's an awesome question and, honestly,
the timing couldn't be better.
Less than two hours ago, justthis morning, city council here
in Colorado Springs just votedand passed a major ADU code
change ordinance.
We're really excited about thatand it's going to be a game
changer for a lot of homeownersand real estate investors in the
area.
I'll also dive in some details.
I do want to break this intotwo parts, because the code was

(01:23):
just passed today.
It won't go to effect June 30th.
We want to try to be clearbetween what to look for now
versus how things are going tochange come June 30th 2025.
So, basically, right now, undercurrent rules in Colorado
Springs, edus or accessorydwelling units are allowed in a
few specific zoning districts,most notably R2, r4, and R5,

(01:46):
which are basically yourtwo-family and multifamily
zoning districts.
Within these districts, rightnow you can build either an
attached or a detached ADU.
That gives you some niceflexibility Now.
Currently you can also build anADU in R1 in single-family zone
districts, but it can only beattached.
However, that's going to changewith the new code that was just

(02:06):
passed today, starting inFebruary.
We'll talk about that in aminute.
Some other requirements thatyou're looking for on your lots
the R2, r4, r5 lots also have tomake sure that there's room for
the ADU within the setbackrequirements.
So, if anyone's not familiar,setbacks are basically an area
that extends from your propertyline inwards and, just depending

(02:28):
on the zone district and ifit's a front, a side or a rear
property line a setback isbasically an area that you're
not allowed to construct abuilding within.
So in the R2, R4, R5 zonedistricts the correct setbacks
for ADUs in the side and rearyards are five.
You can put it pretty closeback into the corner, but that's

(02:49):
just something to take intoconsideration.
When you're looking for aproperty, you make sure there's
enough room to build it and it'snot inside of those setbacks.
So yeah, unless you're on acorner lot, you have some larger
setbacks and a smallerbuildable footprint.
Basically, the smallestfootprint size that we can work
with is about 15 by 20 feet.

(03:10):
You know 300 foot footprint,just so that we can mentally
build an apartment and we canwork with, is about 15 by 20
feet.
You know 300 foot footprintjust so that we can mentally
build an apartment.
I mean we can build a couplestories in there, but that's at
least a 15 by 20 foot rectanglethat's not encroaching into the
property.
Setbacks will be key.
We also want to make surethere's a clear space not
obstructed by utilities, treesor odd slopes.
Although we can handle allthose things if needed, it's not

(03:32):
the ideal or lowest priceoptions.
Let's not forget about parkingeither.
City Council in the newest codechange was considering removing
parking requirements for ADUs.
However, due to tremendouspushback from people in the city
, they have opted to add aparking requirement back into
the new ADU code change.
So they were considering takingit away, but it's going to

(03:55):
remain.
So you do also need a space fora parking spot.
If you don't have it, it'spossible to get a variance from
city planning, which issomething that we've
successfully done before, but wealways try to incorporate a
parking space into our project.
Another thing I would add inlooking for a property that's
ADU friendly, I think the dreamscenario is having an alleyway
in the back of the property.

(04:15):
It just makes it really easy toalmost like create two separate
properties.
You know they had to.
Whoever lives in the ADU canpull in through the alley.
You can separate the front andthe rear yard with a fence
through the middle and then itcan almost function like two
totally separate properties,just like your house and your
neighbor's house, essentially atthat point.
So definitely a plus, but notrequired to have an alleyway.

(04:38):
So that generally covers the R2kind of requirements, what
you're generally looking for fora property that's ADU friendly.
Now let's talk about kind of theexciting news from today, and
that is that this new ordinanceJune 30th will allow detached
ADUs also in single-family zonedistricts.
This is a big deal.
This is most of justresidential properties in

(05:01):
Colorado Springs aresingle-family.
Actually about I think between80% and 85% of all residential
properties are single-family,whereas detached was only
allowed in the multi family.
Now going to single family isgoing to increase about seven
times the number of propertiesthat we're going to be allowed
to build ADUs on in ColoradoSprings starting June 30th.

(05:25):
So that's super exciting.
It's about 85% of the totalland mass of Colorado Springs is
sold for single familyresidential, so major, majorly
opening the market to us.
We had a totally change of game.
I did a little bit of research.
There's actually about 193,000properties in Colorado Springs
on single family that today youcan't build a detached ADU on,

(05:49):
but starting June 30th you will.
So this is a major, majorchange.
It's going to increase thedemand for ADUs financially and
we're definitely planning to seea major influx, which is one
reason we've been pouring ourenergy into developing a set of
streamlined ADU models.
We want to be ready to meetthis increased demand as soon as
the new code is in effect.

(06:09):
These models are all designedto be built faster, more
affordably than full customprojects, while still offering
great layouts, modern design,all the essentials.
But of course, if you have aspecific vision or a unique lot,
you can always build customdesign building ADUs that fits
your goals and budget.
I do want to mention, inconjunction with the new ADU

(06:29):
code, it's not all loosening theregulations.
There's a couple areas that ithas to tighten the regulations,
so something to watch out forwhen you're looking for an
ADU-friendly property.
One of those is that you can nolonger build detached ADUs once
the new code goes into effect inthe WUI fire risk zone in
Colorado Springs, and that wassomething that we built in the

(06:51):
WUI before, but they're notgoing to allow that moving
forward starting June 30th.
So that's one change that's kindof restricted how ADUs can be
built, and another change that'srestricting use compared to the
existing code is that buildingheights are now going to be
limited for ADUs to 16 feet, andnow, unless it's built above a

(07:11):
detached garage, then the heightlimit is going to be 25 feet,
where the previous height limitwas 25 feet or even 28 feet,
depending on the pitch of yourroof.
The previous height limit was25 feet or even 28 feet,
depending on the pitch of yourroof.
Now they're really basicallyeliminating two-story ADUs,
which has been almost half ofour projects.
Wouldn't be feasible underthese new codes.
You can call us directly tohelp in your property search.

(07:31):
If you already have a realtor,though, they can call us and we
can work with them to helpevaluate whether the property is
a good fit for you.
On the other hand, if you aren'talready, working with a realtor
and want someone who reallyunderstands the ADU landscape.
I'm personally a licensedrealtor and really specializing
in ADU-friendly properties.
I'd be honored to help anyonefind the right property that

(07:52):
fits their investment or familygoals as well.
Also, you can always schedule afree consultation on our
website.
They'll walk you through thezoning, setbacks, parking,
everything else you need to knowto know what's possible, what's
feasible on any property.
I'll leave you with a fewquestions to think about for
anyone who's consideringbuilding an ADU.
Just some things to jot down andbe thinking about to get the

(08:13):
juices flowing.
For one do you want the ADU tobe a rental property, family
guest house or something like awork-from-home office or
multi-generational setup?
Are you more interested inspeed and affordability, or are
you hoping to design somethingtruly unique?
Importantly, most importantly,what's your long-term vision for
the property?

(08:33):
Are you thinking about wealthbuilding, flexibility, aging in
place, helping family or justmaximizing your properties?
Because, at the end of the day,an ADU isn't just a building,
it's a strategy and, if doneright, it can really open up
doors for financial freedom,financial support and even
community connection.
So, again, when looking to buya property and judging whether

(08:56):
or not it's a good fit for afuture ADU.
We recommend you hit us up atyourstreamhomecom.
Give us a call at text719-644-6777.
We'll help you make your ADUdream a reality.

Speaker 2 (09:10):
Okay, okay, awesome.
Just out of curiosity, how cana buyer estimate the cost of
utility upgrades beforepurchasing a property?

Speaker 3 (09:18):
The best way again is to speak to an expert in the
field so you know they can callus, we can give them a full
rundown.
Before we start any project, weprovide our clients with a
ballpark estimate that reallyitemizes every single cost that
they're going to face.
You know, on building an ADU,we want people to have a good
idea of what all the costs aregoing to be before they sign up
and start the design orpre-construction phase on their

(09:39):
project.
So again, best recommendationtalk to a contractor who can do
that work.

Speaker 2 (09:46):
Well as always, Alex, that's some informative and
helpful information you gave ustoday.
Thanks again, and we'll catchyou in the next episode.
Have a fantastic rest of yourday, you too.
See you.

Speaker 1 (09:57):
Thanks, Tony rest of your day.
You too, see you.
Thanks, tony.
That's a wrap for this episodeof the Stream Home Construction
Podcast.
Ready to bring your vision tolife?
Snag a free on-siteconsultation by visiting our
website at wwwyourstreamhomecom,or call or text us at

(10:19):
719-644-6777.
Until next time, let's keepbuilding your residential and
commercial dream in the greaterColorado Springs area.