Land Use & Zoning

Colorado has encouraged municipalities to allow accessory dwelling units (ADUs) primarily to:

ABan all ADUs in single-family neighborhoods
BIncrease housing supply and create affordable housing options✓ Correct
CRequire all new homes to include an ADU
DTax ADU rentals at a higher rate

Explanation

Colorado has encouraged municipalities to allow ADUs — secondary housing units on single-family lots — as a strategy to increase housing supply, create affordable options, and allow multigenerational living.

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