Colorado Streamlines Modular Housing Rules to Boost Affordability

New statewide standards for factory-built homes take effect June 30, aiming to reduce costs, speed construction, and expand housing options across Colorado.

Colorado is taking another step toward addressing its housing shortage with new statewide rules designed to accelerate the construction of factory-built homes, including modular and tiny homes.

The Colorado Department of Local Affairs (DOLA) Division of Housing announced that administrative rules implementing Senate Bill 25-002 will take effect June 30. The new standards establish a streamlined statewide framework for factory-built structures, replacing a patchwork of local regulations that often slowed development and increased costs.

State officials say the changes will make it easier for manufacturers, builders, and local governments to work together while maintaining strict safety and building standards.

“Modular and factory-built construction is cheaper, faster, and helps build more quality homes at lower costs,” Gov. Jared Polis said. “These statewide standards will cut through red tape and remove government barriers to modular homes.”

Factory-built construction has emerged as one of the fastest-growing approaches to increasing housing supply, offering shorter construction timelines and lower costs than traditional site-built homes. State leaders believe the new rules will help communities across Colorado expand housing availability while improving affordability.

The regulations were developed with input from a 19-member Technical Advisory Committee representing local governments and industry experts from Colorado’s four climate regions. The committee worked to establish regional design standards that account for local conditions such as snow loads, wind exposure, wildfire risks, and fire suppression requirements.

Under the new framework, all code requirements tied to geographic and climate conditions will be integrated into a single statewide approval process. Manufacturers will be able to design homes that meet local requirements before construction begins, reducing delays once units arrive at installation sites.

The rules also expand flexibility by allowing both individuals and businesses to serve as installers and permitting approved third-party organizations to review and approve design plans. Contractors working on factory-built projects will be required to register with the state if they are not already licensed through a local jurisdiction and complete annual training related to factory-built structures.

DOLA Executive Director Maria De Cambra said the changes are intended to remove barriers while maintaining consumer protections.

“We are removing barriers so that manufacturers and off-site construction partners can work more efficiently, reduce costs, and save time, creating benefits that directly translate to homes that more Coloradans can afford,” De Cambra said.

The state says additional consumer safeguards are built into the system through auditing requirements for third-party reviewers and standardized inspection processes designed to ensure safety for utility connections and on-site installations.

Housing affordability remains one of Colorado’s most pressing challenges, particularly in rapidly growing regions such as Northern Colorado. State officials believe expanding factory-built housing options could help communities add homes more quickly while keeping costs within reach for more residents. A note from Publisher Blaine Howerton Housing affordability affects families across Northern Colorado. North Forty News follows the local decisions, state policies, and community impacts that shape where we live and what we can afford. If you value independent local journalism that connects these issues to our communities, consider becoming a supporting member. Start here →

Source: Colorado Department of Local Affairs (DOLA)

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