Basalt considers allowing backyard and in-home apartments town-wide
Council will take an initial vote on rules allowing accessory dwelling units in residential areas and revising affordable-housing requirements for development. Occupancy rules and exemptions for smaller projects remain unsettled.
What it means for you
For residents, this could create more rental homes across Basalt while changing what homeowners may build and what developers owe toward affordable housing.
The full picture
Council is being asked to approve the first reading of Ordinance No. 04, Series of 2026. A first reading is a preliminary vote that moves an ordinance forward but does not make it final. The ordinance would allow accessory dwelling units in residential zoning districts throughout Basalt and revise the town’s affordable-housing mitigation rules. An accessory dwelling unit is a smaller, independent home added to the same property as a primary home, such as a basement apartment, apartment over a garage or detached backyard unit. Staff recommends approval and proposes a final public hearing and second reading on February 24.
The proposal grows out of Basalt’s 2024 Housing Needs Assessment, completed by Economic and Planning Systems in September 2024. That assessment recommended creating incentives for accessory units and reconsidering the amount of affordable housing that new development must provide or help fund. The town later received a Colorado Department of Local Affairs Planning Capacity Grant and hired Design Workshop and Economic and Planning Systems to turn those recommendations into policy and code language. The packet does not state the grant amount or the town’s share of the consulting cost.
During 2025, the consultants developed a framework for an accessory-unit incentive program, town-wide zoning amendments and revisions to community housing mitigation. Housing mitigation is the town’s requirement that certain development help offset the demand it creates for local workers’ housing, generally through affordable homes or another approved contribution. In August 2025, the Planning and Zoning Commission reviewed the concepts, and council approved resolutions directing staff and the consultants to prepare formal amendments. The Basalt Affordable Community Housing Commission reviewed the current proposal on January 22, 2026, and the Planning and Zoning Commission held a public hearing February 3. Both generally supported moving forward.
The ordinance would amend definitions, residential district rules, special requirements for the R-4 Mixed Density Residential zone, planned unit development procedures and Article XIX governing housing mitigation. It would also add a new Article XXIII devoted to accessory dwelling units. A planned unit development is a customized development approval that may set site-specific uses, dimensions and other rules rather than relying only on standard zoning. The supplied packet excerpt does not include the full proposed accessory-unit standards, so it does not spell out maximum unit size, parking requirements, setbacks, owner-occupancy rules, application fees or the details of any financial incentives.
Two policy choices remain especially open. The Basalt Affordable Community Housing Commission wants to preserve a mitigation exemption for smaller homes in projects containing three or fewer units, but it recommends tightening the size limits. Under its recommendation, a single-family home not deed-restricted for a primary resident could qualify only if it is no larger than 1,500 square feet, down from 3,000 square feet. The comparable limit for a multifamily unit would fall from 1,400 to 1,000 square feet. The current draft follows the earlier policy resolutions instead; staff says it can prepare the commission’s alternative before the final vote if council prefers it.
The Planning and Zoning Commission raised a different question: whether accessory units outside the town’s incentive program should still have to serve a primary resident. A primary-residence condition generally means the unit must be someone’s principal home rather than a vacation property or short-term lodging, though the exact proposed definition and enforcement system matter. Staff included alternative language in Exhibit C, but that text is not part of the supplied excerpt. Council can decide whether to add it. The packet also does not explain whether existing accessory units would be grandfathered, how compliance would be monitored or whether short-term rentals would be prohibited under other code provisions.
The proposal could affect residential property across Basalt rather than one named neighborhood. Homeowners may gain a way to house relatives, caregivers or tenants and receive rental income, while neighbors may weigh parking, privacy, building scale and enforcement. For Basalt as a whole, additional small homes could expand the year-round rental supply without requiring a separate large development. The mitigation revisions could also change project costs and the number or value of affordable-housing contributions expected from future development.
No direct town appropriation, expected accessory-unit count or construction timetable appears in the staff report. If council approves first reading, staff can revise the ordinance before the February 24 second reading. Second reading would be the final council vote, after another public hearing. Residents may want clearer information before then about unit sizes, parking, utility connections, fire access, short-term rentals, incentive costs and the practical difference between the current exemption language and the Housing Commission’s proposal.
Residents may speak for up to three minutes during public comment near the start of the February 10 meeting and again when Ordinance No. 04 is called for its public hearing. Comments should identify which occupancy or mitigation option the resident supports and why. Written comments may also be emailed to council for inclusion in the public record before the first or second reading.