Basalt is taking a meaningful step toward addressing its housing shortage. At a recent Tuesday meeting, Town Council unanimously approved the first reading of an amendment to the town’s land-use code that would significantly broaden where accessory dwelling units, or ADUs, can be built.
For years, ADUs have been discussed as one practical way to add housing within existing neighborhoods. Until now, local zoning rules have limited ADUs to roughly 7% of the land within town limits. The proposed update would allow ADUs in all residential zone districts — a major shift in policy aimed at increasing housing options without expanding Basalt’s footprint.
What the Proposed Changes Would Do
The amendment formally defines an ADU as either an attached or detached unit that includes permanent facilities for living, sleeping, cooking, eating, and sanitation. In other words, it must function as a fully independent living space.
Examples could include:
-
A finished basement apartment
-
An upstairs lock-off
-
A garage conversion
-
A detached cottage built within existing property lines
These types of units can gently increase housing density while preserving neighborhood character and avoiding large-scale new developments.
However, while the new code would allow ADUs in all residential districts, they would not be automatically approved in every circumstance. Minimum lot size requirements would still apply, and existing homeowners association (HOA) rules would remain in effect.
As Basalt Town Attorney Jeffrey Conklin explained, HOA covenants are private agreements that the town cannot override. Any HOA wishing to allow ADUs would need to amend its own governing documents through its established approval process. To help facilitate that, town staff have prepared draft language that HOAs could use if they decide to update their policies.
Parking Requirements Under Discussion
One of the most debated elements of the proposal centers on parking. The draft amendment currently requires one off-street parking space per ADU. “Off-street” means a parking space located fully within the property boundaries, rather than on public roadways.
Some council members questioned whether that requirement should be flexible. In denser areas like the Hill District, where street parking is already limited, requiring a dedicated space may make sense. In neighborhoods such as Elk Run, where on-street parking is more readily available, a blanket requirement may be unnecessary.
Town planning staff indicated they are open to refining the language before the second reading, potentially shifting from a strict requirement to a preferred standard in certain areas.
A Broader Housing Strategy
This effort is part of a larger update to Basalt’s land-use code, being coordinated with Eagle County. Both jurisdictions are working to modernize regulations and address long-standing housing shortages.
Basalt’s Master Plan calls for adding 500 deed-restricted affordable housing units to meet current needs. Town leaders see ADUs as one of the most achievable early strategies — often referred to as “low-hanging fruit” — because they leverage existing lots and infrastructure.
Under the proposed framework, ADUs would be required to serve long-term renters, defined as leases of at least six months. The town intends to use deed restrictions to ensure these units contribute to the local workforce housing supply rather than becoming short-term rentals.
The Role of HOAs
While zoning changes are a significant step forward, HOAs remain a key variable. County documents indicate that most HOAs in Basalt currently restrict ADUs in some form. Common concerns include traffic, street parking impacts, and maintaining neighborhood character.
Rather than pursuing a state-level override similar to Colorado’s House Bill 24-1152, which limited HOA authority over ADUs in some Front Range communities — Basalt is opting for a collaborative approach. The town has accepted recommendations from Design Workshop, a consultant hired to develop an ADU incentive framework, to focus on education and outreach. The goal is to encourage HOAs to voluntarily amend restrictive covenants.
What This Means for Basalt Homeowners
If adopted on second reading, the updated code would open new possibilities for homeowners who want to:
-
Create housing for family members
-
Generate supplemental rental income
-
Provide long-term housing for local workers
-
Increase flexibility and long-term property value
For homeowners in HOA communities, the next step may involve conversations at the neighborhood level to determine whether covenants can be amended.
As Basalt works toward expanding housing options, ADUs are emerging as a practical and incremental solution, one that could gradually increase the town’s housing inventory while maintaining the scale and character that residents value.
