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Monument adopts ADU ordinance to comply with state law; council limits ADUs to long-term rentals and requires owner-occupancy
Summary
To comply with state House Bill 24-1152, Monument approved an ordinance establishing ADU permitting and development standards and a local supportive strategy; council added owner-occupancy and a prohibition on short-term rentals (rentals under 30 days) before passing the ordinance unanimously.
Monument’s Town Council on Dec. 1 approved Ordinance 23-2025 to bring the town into compliance with state law (House Bill 24-1152) that requires municipalities to establish administrative permitting processes for accessory dwelling units (ADUs). The ordinance updates Title 18 land-development code section 18.03.340 and includes local development standards and a supportive strategy recommended by staff.
Staff said the draft ordinance requires a permit for ADUs, sets standards for location and development, and recommends a supportive measure — waiving at least 50% of the municipal use tax for ADU construction or conversion (estimated in staff materials at roughly $1,600–$2,000 per ADU). The waiver was presented as a low-cost way to encourage ADU creation without significant staff burdens.
During public hearing and council discussion, members raised concerns about state influence and the effect of incentives. One councilor described the state guidance as strong-armed or a form of “fiscal coercion” for municipalities that want grant eligibility. Councilors also asked who will define “low or moderate income” for related incentive programs; staff said a municipal policy statement would be prepared and returned to council by mid-December.
Councilors added two local amendments before voting: a requirement that the property owner reside on the parcel (owner-occupancy) and a prohibition on short-term rentals for ADUs, defining short-term as rental periods fewer than 30 days. Staff and legal counsel confirmed owner-occupancy language can be included under the town’s code provisions and that covenants are not allowed to override the town permitting but that property owners remain responsible to comply with HOA covenants (the ordinance text will be clarified where needed).
The council voted 7–0 to adopt Ordinance 23-2025 with the owner-occupancy and long-term rental amendments. Staff said the adopted ordinance brings Monument into compliance with state deadlines, and the town manager will submit the required one-time compliance report to the state if the ordinance is adopted.
Next steps: staff will return with a financial-policy statement defining income thresholds and any final code edits needed to implement owner-occupancy and the rental-duration restriction.
