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Highlands Ranch sits in unincorporated Douglas County — HOAs govern most lots, and Colorado’s HB 24-1152 changed the rules entirely. Here’s what that means for your property.
Highlands Ranch is home to over 105,000 residents across nearly 24,000 households in unincorporated Douglas County. Average home values approach $580,000, lots are generous, and the community is aging into multigenerational housing needs — making it one of the strongest ADU opportunities in the Denver metro.
Until recently, the community’s extensive HOA governance made ADU construction effectively impossible. Colorado’s HB 24-1152 changed that entirely.
Highlands Ranch is governed by the Highlands Ranch Community Association (HRCA) and numerous sub-associations. Under HB 24-1152, effective June 30, 2025, HOAs cannot ban ADU construction. They can require matching exterior materials, roof pitch, and colors — but they cannot deny your project outright.
What Highlands Ranch HOAs can and cannot do: ✓ Require matching siding, roof pitch, and exterior colors. ✓ Require architectural review. ✗ Cannot ban ADU construction. ✗ Cannot impose requirements more restrictive than those for other accessory structures.
Detached Backyard Cottages ($200K–$400K): Many lots offer generous rear yards. Rolling terrain creates walk-out and daylight configurations with ground-level entrances. These produce the highest rental income and property value increase.
Basement ADU Conversions ($40K–$120K): Many Highlands Ranch homes have walk-out or garden-level basements — ideal for a separate entrance, kitchenette, bathroom, and egress. Can be completed in 2–5 months.
Garage Conversions ($50K–$150K): Three-car garages are common here. Converting one or two bays creates a living unit while maintaining parking — a strong balance of affordability and functionality.
Highlands Ranch permits are processed through Douglas County Community Development. ADU applications now follow administrative approval — no public hearings if plans meet objective standards. Denver Water serves parts of Highlands Ranch and requires a separate water supply license and system development charge for ADUs.
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