Council updates land-use code for ADUs and parking near transit, strikes garage-area cap

Fort Collins City Council adopted a package of land-use code amendments to comply with two recently enacted state House bills: one requiring municipalities to allow accessory dwelling units (ADUs) where single-family homes are allowed, and one limiting parking requirements for multi-unit housing near high-frequency transit. The final vote, after an on-the-record amendment to the ordinance, was 6-1.

City planning manager Clay Fricke presented the staff recommendation to align local definitions and review procedures with HB 24-1152 and the related parking bill. Staff proposed streamlining review so ADU approvals would be processed administratively and removing the option to appeal ADU approvals to a council public hearing, consistent with the state statute’s prohibition on subjective design-review processes. Staff also proposed keeping certain objective limits (size, setbacks) and allowing school athletic fields to retain artificial turf where the state bill permits it.

During deliberations, staff noted a long-standing code issue: some building permit approvals result in “accessory structures with habitable space” that function like dwelling units but avoid impact fees because they do not meet the city’s prior definition of a dwelling unit (the prior definition required an installed cooking range). Staff had recommended defining any accessory structure that extends water and sewer as a dwelling unit for fee purposes, but the Planning and Zoning Commission recommended against adding that penalty language; staff removed it from the ordinance before council consideration.

Council also considered a community question about whether garage or accessory space should count toward the ADU size cap. After discussion, Councilmember Olson moved and the council adopted an amendment striking the line that counted garage, shed or other accessory space toward the maximum floor-area calculation for ADUs; the amended ordinance then passed 6-1 (Councilmember Olsen cast the lone no vote).

Councilmembers asked staff for a follow-up work session on ADU-supportive measures, scheduled for March 25, to discuss tools such as impact-fee reductions, preapproved designs and other incentives that could support ADU creation. Staff noted the state program offers grants to local governments that adopt specified ADU-supportive measures, and the city will consider those options in the upcoming work session.

The ordinance enacts the state-required baseline changes while leaving room for local refinements during the planned ADU work session. Council’s vote updates local procedure and expands where ADUs are permitted to match state law; the amendment removing accessory-space counting responds to council direction to avoid unduly constraining ADU size for homeowners who convert existing garages or build above them.