Frisco is poised to remove the income cap for Accessory Dwelling Unit (ADU) residents, a code change that could allow higher-earning Summit County workers to occupy these crucial housing units. This adjustment eliminates the requirement that ADU owners only rent to residents earning a maximum of 100% of the area median income (AMI), as reported by SummitDaily. While the code will still mandate ADU residents work in Summit County, Frisco's goal to increase affordable housing options faces a tension: removing the income cap might make ADUs less accessible to the lowest-income workers. Therefore, these changes, while incentivizing ADU construction and broadening the renter pool, could dilute the direct benefit for Summit County's most financially vulnerable residents.
The Broader Housing Challenge
Frisco's housing market struggles with limited supply and high demand, making it difficult for local workers to find housing. The town's ADU modifications aim to alleviate these supply constraints by making development more attractive to property owners.
New Incentives and Restrictions
Frisco is implementing regulatory changes to encourage ADU development. Town council members supported allowing ADUs to have setbacks 5 feet less than normally allowed zoning, except in specific districts, according to SummitDaily. This flexibility aims to ease construction for property owners. Additionally, homeowners in the Frisco Housing Helps program must execute an occupancy-only deed restriction. This requires occupants to work at least 30 hours a week at businesses within one mile of the Ten Mile Basin, as stated by friscogov. The Town estimates this deed restriction's value will likely be 10-15% of the property's market value, offering a tangible incentive for creating workforce housing.
How Frisco Compares to Other Towns
Boulder maintains income-based restrictions for its ADUs, contrasting sharply with Frisco's new policy. A detached ADU in Boulder can be up to 1,000 square feet if rents are limited to 75% of the area median income, according to Bouldercolorado. Attached ADUs can be up to 1,200 square feet or two-thirds the principal home's size under the same 75% AMI rent limitation. Boulder City Council approved updates to its ADU regulations in February 2025, underscoring a commitment to income-restricted affordability.
Potential Future Impacts
Frisco's ADU policy, by removing income caps, effectively creates a new class of subsidized housing for higher-earning local professionals, aiming to house a broader segment of the workforce. This could increase housing options for middle-income workers in Summit County. However, increased competition for these units may marginalize the lowest-income workers. The specific impact on housing availability for different income brackets will likely become clearer as these changes take effect, potentially reshaping Frisco's workforce housing landscape.
