Build an ADU in Colorado Springs and you lose the short-term rental permit for the whole property
Build an ADU in Colorado Springs and you lose the short-term rental permit for the whole property
2026-09-10 · Colorado · Compliance
Colorado Springs legalised accessory dwelling units citywide and, in the same ordinance, made an ADU disqualifying for a short-term rental permit — on the whole property, not just the new unit. Ordinance 25-45 was approved by City Council on April 8, 2025, and the city's own short-term rental page dates the STR consequence precisely: “A new ADU ordinance 25-45 took effect on 6/30/2025, prohibiting properties with an accessory dwelling unit (ADU) from having a short-term rental (STR) permit.”1
For a Colorado Springs board that has been worrying that ADUs will turn into de facto lodging, the city has already answered part of the question — without the declaration having to say anything.
What the ordinance does on ADUs
It repeals the prior ADU and Accessory Family Suite regulations and replaces them with a single standard, making an ADU a permitted accessory use in every zone district that allows a single-family detached dwelling. It removes owner-occupancy requirements — and, notably, removes the associated recorded declarations the city used to require as a permit condition. It eliminates the off-street parking requirement for an ADU.
Size, per city summaries: up to 1,250 square feet or 50% of the primary dwelling, whichever is less; and if the primary home is under 1,500 square feet, an ADU of up to 750 square feet is still allowed. Height: a detached ADU is limited to a single storey and sixteen feet; an ADU above a garage may not exceed twenty-five feet; an attached or internal ADU may not increase the height of the primary home.
And the city tells owners their HOA cannot ban it
Colorado Springs is the exception among Colorado cities on this. Its ADU Ordinance Update page states: “Per legislative direction, the Unit Owners' Associations (HOAs and COAs) and Planned Development Zone (PDZ) districts, may not prohibit or unreasonably restrict the construction of ADUs.”
Note what that is: the city reporting state law, not creating a local rule against associations. The phrasing tracks the “reasonable restriction” test in HB24-1152, which added subsection (4) to C.R.S. 38-33.3-106.5 and voids association ADU restrictions in designated jurisdictions — only for an accessory use to a single-unit detached dwelling, and only where the restriction goes beyond a reasonable one.
The grandfather clause, and why it is narrower than it sounds
Properties that held both a legally permitted ADU and an STR permit before June 30, 2025 may continue as nonconforming uses — but only “until the uses change, the permit expires, or is otherwise terminated.”
That is a use-based grandfather, not an owner-based one. It does not travel indefinitely, and it does not survive a lapse. An owner in that position who lets an STR permit expire has lost it permanently.
What it means for a Colorado Springs association
Two things happen at once, and they pull in opposite directions.
Detached-home associations in Colorado Springs lost the ability to flatly prohibit ADUs, and the city says so on its own letterhead — which means owners will arrive at the architectural committee having already read that their board cannot say no.
But the city has simultaneously removed the outcome boards feared most. An owner who builds an ADU forfeits eligibility for a city STR permit on the entire property. A board weighing whether to fight ADUs at all should factor that in: the lodging risk is already regulated, by the city, for every ADU in Colorado Springs, whatever the declaration says.
The practical work is therefore in the reasonable-restriction lane. Placement, materials, architectural compatibility, height within the city's limits, prior notice — the kinds of design standards that do not unreasonably increase cost, effectively prohibit construction, or extinguish the ability to build. A blanket ban is the one thing that is off the table.
Condominium and shared-wall townhome associations are largely outside the statute's reach, because its hook is a single-unit detached dwelling.
The rest of the Colorado Springs short-term rental framework
Boards fielding STR questions should know the standing rules, all confirmed on the city's STR page. The underlying ordinances — 18-112 creating the programme, 19-49 on sales tax, 19-82 on occupancy limits, and 19-101 on non-owner-occupied regulation — predate this window.
Annual permit: $124.95. “Owner-occupied” means physically occupied by the owner no less than 185 days per year. New non-owner-occupied STRs are prohibited in R-E, R-1 6, R-1 9 and single-family planned development zones for applications after December 26, 2019; elsewhere a non-owner-occupied STR “must be 500' from another.” R-2 allows two listings, multifamily up to four, and condominium complexes are capped at a maximum of two short-term rentals per owner. Maximum occupancy is “two (2) occupants per bedroom, plus an additional two (2) occupants per dwelling unit,” with a fifteen-occupant ceiling per unit. Permits are non-transferable on sale. A twenty-four-hour emergency contact and weekly trash service are required, and no events or weddings are permitted. Active-duty service members stationed in El Paso County may obtain a one-year occupancy waiver on reassignment.
The STR page is silent on HOAs and covenants. The condominium cap is a city rule about permits, not a statement about declarations — and a city permit has never been permission under a declaration. A board whose documents prohibit short-term rentals enforces that itself.
A sourcing caveat
The ordinance text itself could not be opened during this research: the American Legal Publishing page carrying Ordinance 25-45 returned an HTTP 403 error. Everything above comes from City of Colorado Springs pages that did load — the ADU Ordinance Update page, the short-term rental page, the city's November 12, 2024 announcement of the rewrite, and the council legislative file. A board wanting to quote ordinance language directly should retrieve the codified text from the municipal code, which may resolve in an ordinary browser.
The city's November 2024 announcement had already trailed the HOA point: “HOAs or other associations would not be allowed to unreasonably restrict the construction of ADUs.”
Related Colorado HOA Topics
- ADU Ordinance Update, City of Colorado Springs — April 8, 2025 approval, owner-occupancy removal and the HOA/COA/PDZ statement ↩
- Short-Term Rentals, City of Colorado Springs — Ordinance 25-45 effective 6/30/2025, the ADU/STR prohibition, the nonconforming grandfather and the full STR rule set ↩
- "City updating accessory dwelling unit ordinance to comply with state legislation, promote housing" (November 12, 2024), City of Colorado Springs ↩
- HB24-1152 signed act, adding C.R.S. 38-33.3-106.5(4) — the ADU covenant preemption and the "reasonable restriction" definition ↩
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