Thinking about building an accessory dwelling unit on your Greenwood Village property? Maybe you want space for a parent, a private office, or rental income, but you are unsure what the rules allow. You are not alone. In this guide, you will learn what Colorado’s new ADU law means for you, how local rules fit in, what it might cost, and a simple path to get started. Let’s dive in.
What Colorado law allows in Greenwood Village
Colorado’s 2024 ADU law requires cities like Greenwood Village to allow one ADU on lots where a single-unit detached home is allowed. Reviews must be administrative using objective standards, not public hearings. You can read the law on the state’s bill page for HB24-1152.
Under the state baseline, you should expect:
- Types allowed: internal, attached, and detached ADUs must be considered allowable types. See the state’s ADU toolkit for plain-language guidance.
- Size and setbacks: jurisdictions must allow an ADU between 500 and 750 square feet at minimum. Rear setbacks cannot exceed the accessory building setback or five feet, whichever is greater, and side yard setbacks cannot be greater than those for the main home. See the state’s at-a-glance summary.
Local context in Greenwood Village
Greenwood Village publicly opposed parts of the 2024 housing legislation, as noted on the City’s Legislation page. Even so, the state’s timelines and implementation requirements are in effect. That means ADUs must be processed administratively using objective standards.
Because local implementation details can evolve, your best first step is to contact the City’s Community Development team to confirm zoning, setbacks, and submittal requirements. Start with the City’s Community Development and permitting contact page here: Greenwood Village permitting and contractor info.
HOAs may still apply reasonable design standards, but Colorado law limits HOA covenants that effectively prohibit ADUs. The state’s summary page covers these HOA provisions in the at-a-glance summary.
Practical rules you will likely face
- Owner-occupancy: State law generally restricts cities from requiring you to live in either the main home or the ADU, with narrow exceptions. See the Department of Local Affairs guidance on ADU implementation.
- Parking: The state limits new parking mandates. A city can require you to designate an existing space, but a brand-new space can be required only in specific cases, such as when no off-street parking exists and on-street parking is prohibited. Review the state’s summary on ADU implementation.
- Building and safety: Your ADU must meet building, fire, electrical, and utility standards. Approvals are administrative if you meet objective standards, though a variance could trigger a separate public hearing. The state’s ADU toolkit explains how local review should work.
Can the numbers pencil in Greenwood Village?
Greenwood Village is a low-density, high-demand suburb. For many owners, an ADU supports multigenerational living or offsets carrying costs with rent. Area rental data often shows Greenwood Village apartment averages in the low 2,000s per month, depending on size and finish. For context, see the latest snapshot from RentCafe.
Typical Denver-area cost ranges reported for detached ADUs run roughly 180,000 to 400,000 dollars. Conversions, like a garage or basement ADU, can be meaningfully less. A local builder overview is here: Denver-area ADU cost context.
When you estimate potential return, include:
- Construction cost, design, permit and tap fees
- Utility upgrades, site work, grading, and engineering
- Property tax, insurance, maintenance, and reserves
- Expected rent, vacancy, and financing cost
Your step-by-step path
- Confirm zoning and site basics
- Call Greenwood Village Community Development to verify your zoning, allowed uses, setbacks, and any PUD language for your parcel. Use the City’s contact portal here: Greenwood Village permitting and contractor info.
- Review your HOA CC&Rs. If you see ADU restrictions, compare them with the state’s at-a-glance summary and consult as needed.
- Plan your design
- Decide whether an internal, attached, or detached ADU fits your lot and goals.
- Prepare a site plan, floor plans, and outline your utility connections for water, sewer, and electric.
- Submit for administrative review
- The City must process ADUs administratively using objective standards under HB24-1152. If you need a variance due to setbacks or constraints, that is a separate process.
- Permitting to construction
- Timelines vary by scope. Internal and garage conversions often move faster than new detached builds. Plan for materials lead times, inspections, and utility coordination.
- Explore financing and incentives
- Common options include HELOCs, cash-out refinancing, or construction loans.
- The state created an ADU Grant Program that supports local jurisdictions, plus CHFA-directed financing supports referenced in HB24-1152. Check current availability through the ADU Grant Program page and confirm whether Greenwood Village participates in any local incentives.
When ADUs may not fit
- Tight lots or unusual setbacks that cannot meet objective standards without variances.
- Utility constraints or high tap fees that change the budget.
- HOA design rules that are reasonable and do not effectively prohibit the project.
Ready to explore your options?
If you want a clear, numbers-first look at whether an ADU makes sense for your Greenwood Village property, let’s talk. From estimating potential rent to discussing financing paths and resale impact, you will get straightforward guidance and next steps. Reach out to Johnny Lee for a friendly consult.
FAQs
Are ADUs legal today in Greenwood Village?
- Yes. Colorado’s 2024 ADU law requires cities like Greenwood Village to allow one ADU on lots that permit single-unit detached homes, with administrative review. See HB24-1152.
How big can an ADU be under current rules?
- The state requires at least a 500 to 750 square foot allowance, with local standards allowed above that as long as they do not effectively prohibit ADUs. See the state’s at-a-glance summary.
Can my HOA stop me from building an ADU?
- HOAs cannot enforce covenants that conflict with state law, though they can adopt reasonable restrictions that do not make ADUs infeasible. See the state’s at-a-glance summary.
Will I have to add a new parking space?
- Often no. The state limits new parking mandates, though a city may require a new space in narrow cases or require you to designate an existing space. Review the DOLA guidance on ADU implementation.
What does it cost to build an ADU here?
- Detached ADUs in the Denver area are often reported around 180,000 to 400,000 dollars, with conversions typically less. See a builder overview of ADU costs.
Can I use an ADU for short-term rental income?
- Greenwood Village regulates short-term rentals as an accessory use, and state law allows local rules on STR licensing. Confirm current city treatment and see the state overview of ADU implementation.
