If you’ve been hearing a lot about ADUs lately, you’re not imagining it. Accessory Dwelling Units — backyard cottages, basement apartments, garage conversions, in-law suites — have gone from a niche concept to one of the hottest topics in Colorado Springs residential construction. And the rules just changed in a big way.

At StreamHome Construction, we’ve been fielding more ADU questions than ever. So we put together this guide to help Colorado Springs homeowners understand exactly where things stand right now.

An Accessory Dwelling Unit (ADU) is a self-contained living space located on the same lot as a primary single-family home. It can be:

• Detached — a standalone structure in the backyard
• Attached — an addition connected to the main home
• Integrated/Interior — a conversion of existing space inside the home (basement, attic, garage)

They go by a lot of names: casita, mother-in-law suite, backyard cottage, granny flat. Whatever you call them, they’re a smart way to add value, flexibility, and housing options to your property.

For years, Colorado Springs had some of the most restrictive ADU regulations in the state. That changed in a big way in 2025.

State law first: In May 2024, Governor Polis signed House Bill 24-1152, which required every major municipality in Colorado — including Colorado Springs — to allow at least one ADU on any residential lot that permits a single-family home. That law took full effect June 30, 2025.

Then the city acted: Colorado Springs City Council passed Ordinance #25-45 on April 8, 2025, completely rewriting local ADU regulations to align with the new state law. The result is a dramatically more open landscape for ADU construction here in the Springs.

Here’s what changed:

• ADUs are now permitted in every residential zone district where single-family homes are allowed
• No minimum lot size requirements for ADUs
• No required parking spaces for ADUs
• No owner-occupancy requirement — you can rent both the primary home and the ADU
• HOAs can no longer ban ADUs outright under state law

This is a significant shift. Before this ordinance, only about 60 ADUs had been approved in Colorado Springs under the old rules. That number is expected to climb quickly.

Here’s what you need to know as of 2026:

Size: Your ADU can be up to 1,250 square feet, or up to 50% of your primary home’s square footage — whichever is less. If your primary home is under 1,500 sq ft, you’re still allowed up to 750 sq ft for the ADU. This actually gives Colorado Springs one of the most generous ADU size allowances in the entire state.

Height: Detached ADUs are capped at 16 feet. Garage conversions can go up to 25 feet. Attached or interior ADUs follow the same height limits as the primary structure.

Setbacks: Front and side setbacks match those of the primary home. Rear setbacks are the lesser of your zone’s standard accessory setback or 5 feet.

Permitting: ADUs go through Pikes Peak Regional Building Department (PPRBD) and are reviewed administratively — meaning no public hearings that could delay or block your project. That said, Colorado Springs does require a 14-day public notice posting on your property before the permit is issued, which adds some time to the process. Expect 8 to 14 weeks from submittal to issued permit overall.

ADUs aren’t a small undertaking — they involve zoning verification, design, permitting, foundation work, framing, mechanical systems, and finish work. That’s everything we do every day here in Colorado Springs.

We know the local permit process at PPRBD. We build homes in this city, so we know what quality construction looks like for a space someone is actually going to live in.

If you’re thinking about an ADU, the best first step is a conversation. We can look at your property, walk you through what’s possible under the current rules, and give you a realistic picture of timeline and cost — no pressure, no obligation.

Call us at (719) 359-7097 or reach out through our website. We’d love to help you think it through.