Colorado Department of Local Affairs publishes new rules to streamline factory-built construction

Building More Housing
Coloradans Can Afford

DOLA’s Division of Housing Publishes New Rules Implementing Senate Bill 25-002 to Streamline Factory-Built Construction,
Rules to Take Effect June 30

STATEWIDE – New state rules set to cut through red tape and accelerate the production of affordable housing and other factory-built structures will take effect on June 30, the Colorado Department of Local Affairs (DOLA) Division of Housing (DOH) announced today. The new administrative rules implementing Senate Bill 25-002, have now been published in the Colorado Register and will create regional and statewide standards for factory-built structures, which include modular homes and tiny homes, helping communities increase housing options with more housing people can afford through innovative lower-cost solutions.

“Modular and factory-built construction is cheaper, faster, and helps build more quality homes at lower costs. I was proud to sign SB25-002 to boost modular construction which will help us build more homes Coloradans can afford. These statewide standards will cut through red tape and remove government barriers to modular homes. Colorado is tackling our housing shortage from every angle and increasing modular home production is an important way to save people money on housing,” said Governor Polis.

“Regional design criteria for factory-built structures represent a real opportunity to tackle Colorado’s housing challenges in a practical way, and DOLA is proud to support this effort,” said Maria De Cambra, Executive Director of DOLA. “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.” 

Why it Matters:

Factory-built construction is one of the fastest, most cost-effective ways to scale up housing supply statewide. Creating a predictable regulatory environment through this legislative implementation effort helps protect consumers, empower builders, and ensure that safe, modern, and resilient homes can be built quickly where they are needed most.

The rules published by DOH today were developed with the help of a 19-member Technical Advisory Committee, which includes local government representation from each of our state’s four climate zones. They replace a confusing patchwork of regulations from around Colorado with a streamlined approval process, clearing the path for innovative housing solutions while maintaining strict safety and environmental standards. They also simplify processes by allowing both individuals and businesses to serve as installers, and authorizing third-parties to review and approve design plans; and providing additional accountability for consumer safety by requiring building contractors who are working on projects utilizing factory-built construction to register with the state if not already licensed with the appropriate local jurisdiction, and complete annual factory-built structure education regardless of local or state oversight.

Key Highlights of the Legislation:

• Cutting the Red Tape: All code requirements for the construction and installation of a factory-built structure that are established by the geographic and climatic conditions of the installation site (e.g. wind shear, snow load, fire suppression) will be accounted for under one roof along with the base code requirements that have been traditionally applied through a state-wide program under DOLA.
• Consistent Statewide Standards: After conducting a robust stakeholdering effort that involved engaging with all local building departments and utilizing the services of a highly regarded national code consultant agency, DOLA’s state-wide program now accounts for all unique local conditions that are grounded to current building codes to ensure accurate and clear application by manufacturers prior to constructing a factory-built structure for installation in a given jurisdiction in Colorado.
• Smart Regional Standards: An expanded advisory committee—including local building officials, emergency managers, and industry experts—have established unified regional design criteria that specifically account for local geographic conditions, including robust wind conditions, heavy snowfall, and wildfire risks.
• Verified On-Site Safety: By combining efficient offsite manufacturing production with standardized and collaborative inspection processes, the new rules ensure that all onsite utility work maintains high safety levels, with connections verified through the Department of Regulatory Agencies and local building departments.
• Consumer Protections: These requirements allow an opportunity for manufacturers to speed up production by utilizing third-party plan review and inspection agencies under a strict auditing process to ensure compliance with safety standards.

Read the administrative rules as published in the register.

Read the language of the enabling statute: Senate Bill 25-002, Regional Building Codes for Factory-Built Structures.

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