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Loveland council approves first-reading UDC changes to allow accessory dwelling units

2803213 · March 18, 2025
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Summary

City council voted 9-0 on first reading to amend the Unified Development Code to remove occupancy limits and loosen restrictions on accessory dwelling units, aligning local rules with two recent state bills.

Loveland City Council on first reading approved an ordinance to remove occupancy limits and reduce restrictions on accessory dwelling units, bringing the city code into alignment with recently enacted state legislation.

The ordinance (No. 67-62) amends portions of Title 18, the Unified Development Code (UDC), to eliminate local limits on unrelated occupants and to allow accessory dwelling units (ADUs) as an administratively permitted use on single‑family detached lots. Carrie Burchette, Strategic Planning, told the council the changes "align our Unified Development Code with recent state‑approved legislation," specifically House Bill 24-1007 (residential occupancy limits) and House Bill 24-1152 (ADU provisions).

Under the amendments approved on first reading, the city will remove its existing occupancy standards and the associated "boarding house" land‑use category. ADUs will be permitted without neighborhood meetings or Planning Commission approvals; design compatibility standards that would treat ADUs differently than principal houses were removed to match the state law. The draft also adds a staff‑recommended option allowing larger accessory units on larger lots so a homeowner may choose the standard 900 sq. ft. ADU or an ADU sized up to roughly 50% of the principal house, subject to setbacks, coverage limits and required fees. Detached ADUs would follow state minimum setbacks (five feet side and rear).

Planning Commission reviewed the proposal in February and recommended approval 7‑0. Burchette said the code changes are intended to be applied citywide, including in existing and new planned unit developments.

Council discussion focused largely on terminology. Some council members urged replacing the term "family" in the code with neutral language such as "single‑dwelling" or "dwelling unit." Staff and members of the construction community cautioned that the word "family" appears throughout building and fire codes used by contractors and inspectors and warned that changing it could create confusion across multiple technical documents. Council debated an amendment to the ordinance to replace the word but that amendment failed; the council moved forward with the ordinance as drafted.

Action and votes: Councilor Olsen moved to approve Ordinance No. 67-62 on first reading; a second was made (not specified in the record). The motion passed by roll call, 9 yes, 0 no. Recorded yes votes: Foley; Samson; Kovach; Swanti; Olsen; Marsh; Mallow; McFaul; Black. No votes were recorded.

Why it matters: The changes remove a local occupancy standard and expand opportunities for homeowners to add rental or family housing on existing lots, a policy move intended to increase housing options in Loveland. Second reading and final adoption are scheduled at the next council meeting.