Denver Zoning Laws and Repercussions

[Andrew Hall]

I live in the greater Denver area, just south of downtown. I purchased my first home a year ago and am currently working on finalizing my renovation to rent out to.

I have a 600sf garage that I am looking to finish by adding a bathroom (shower, sink, toilet) and kitchen appliances. The end goal is to add a door and rent this space out.

This is where it gets interesting. The contractor that I hired has permits approved to rough in water and sewage. I also have permit approval for the outlet additions that I am looking to add for the large appliances.

My contractor just notified me that my lot is not zoned for an ADU but all the permits needed to add the bathroom and outlets have been approved.

It seems odd that the permits would be approved, yet the lot doesn’t technically allow this type of dwelling. Does this make sense? If permits were approved, am I good to go?

I would hate to have this finished, only for my investment to be compromised due to zoning. Renting this unit out will increase my $/door significantly but I am trying to not be emotional and analyze the facts.

What should my next steps be? Should I move forward or cancel my plans? If the city approved the permits, can they later take action against the property?

Thanks in advance for any and all help!

[Anson Young]

Andrew,
Those two issues are totally separate.  The city does not care if you put in a bathroom/outlet into your own garage.  They can approve that without taking into consideration WHY you will use that (you might like to shower after getting out of your car, but before you go into your home for all they care).  The bathroom/outlet are not indicative of someone occupying the garage as a home.

The zoning is MUCH more important, and CAN come back to bite you for sure. ADU allows you to legally rent the unit, and even airBNB/short term rent the unit all above board. ADU permitting allows you to get a certificate of occupancy, which is pretty important for a legal rental. If a renter has an issue with safety for some reason down the road, and they find there is no certificate of occupancy, it could be bad news for you illegally renting a non permitted dwelling unit.