Basalt P&Z backs ADU code changes, asks staff to craft occupancy language

The Basalt Planning & Zoning Commission on Feb. 3 voted to recommend code amendments to permit accessory dwelling units (ADUs) across residential zone districts and to update community‑housing mitigation requirements, and asked staff to work with council and counsel to add provisions that encourage occupancy.

Design Workshop representatives presented draft code language. Staff said the change would allow ADUs more broadly in town and revise minimum sizes and lot‑area standards in some zone districts; it would also retain a prohibition on short‑term rentals for ADUs. Commissioners expressed support for making ADUs easier to approve while seeking guardrails against absentee ownership or conversion to non‑community uses.

Commissioners focused on implementation details: minimum ADU size thresholds were raised in some zones (for example, a 300‑square‑foot minimum in one district was proposed to move toward a 415‑square‑foot standard in some code sections), some minimum lot sizes were adjusted, and the draft includes a primary‑resident requirement for units that receive town funds or incentives. Staff said the draft also contains a six‑month minimum lease requirement that the council preferred over a year to balance workforce needs.

"There's a clause in here that the ADU has to have a minimum 6 month lease," staff said during discussion. Commissioners and staff discussed a two‑tier approach in which basic ADUs proceeding without town funds would be subject to a primary‑resident requirement while units that receive town financial support would be subject to income and deed‑restriction requirements.

The P&Z voted to recommend the amendments to Town Council and directed staff and counsel to draft specific language to encourage occupancy and explore incentive options such as revolving loans or fee offsets. Staff noted statewide programs and examples — including Salida's broader ADU adoption — while cautioning that Basalt may not qualify for some state programs because of jurisdiction size.

The recommendation now moves to Town Council for formal action. Staff said additional implementation details, including any incentive program and enforcement provisions, will be prepared for subsequent council review.