Employee Dwelling Unit Program

Employee Dwelling Units (EDU) can be found throughout the Town of Telluride. EDUs are often referred to as "backyard units" or "mother-in-law" units because they are commonly found in back of a "main" structure, usually located on the top floor of a garage. The Town of Telluride offers incentives to landowners to build EDUs, including density bonuses and water and sewer tap fee waivers, under. Please refer to the Town of Telluride Land Use Code for more detailed information:

(excerpted from the Town of Telluride Land Use Code)

2-125 Designated Employee Dwelling Unit

"Designated employee dwelling unit" means any dwelling unit which has been deed restricted so as to limit and restrict occupancy to T.H.A. qualified employees. The use of the designated employee dwelling unit shall be restricted by executing and recording a covenant in favor of the Town and THA that shall burden and run with the land upon which the unit shall be constructed and which shall provide as follows:

a. it shall be occupied by a T.H.A. qualified employee under a written rental agreement for a minimum period of twelve (12) months which shall not allow short term subleasing without the consent of the T.H.A., and

b. that within the Residential, Hillside Transitional, Hillside Developing One, Medium Density Residential and Historic Residential Districts, the owner(s) in title shall not sell, condominiumize or subdivide the designated employee dwelling unit apart from the original qualifying lot; and

c. that a tenant lease may be terminated only upon giving thirty (30) days advance written notice by either party.

The Town and T.H.A. shall each be a named beneficiary of the covenant and may enforce it by any action available at law or equity. The form of the deed restriction shall be satisfactory to the Town Attorney.

Owners will be required to notify T.H.A. upon the termination and/or beginning of each lease or re-lease period and provide such information as may be required by T.H.A., including a copy of the lease.

The T.H.A. shall have the responsibility for determining eligibility and qualifying employees for occupying designated employee dwelling units.

No designated employee dwelling unit shall be demolished, partially demolished, removed or relocated unless approved by Town Council, or in the event the unit was approved by P&Z pursuant to Article 6, Division 1, "Uses Permitted on Review", approved in accordance with the procedure set forth in Section 6-102.

As defined in the Town's Land Use Code (2-132):
"T.H.A. qualified employee" as applied to designated employee dwelling units, shall mean any person registered with the Telluride Housing Authority who meets the following requirements: (1) is employed or can demonstrate intent to work an average of at least 1,000 hours per year within the boundaries of the Telluride R-1 School District or (2) is handicapped or disabled and has been a resident within the boundaries of the Telluride R-1 School District for at least 12 months immediately prior to the effective date of a lease or rental agreement or the closing date of a sale: OR (3) is elderly (62 years of age or older) and who has been employed an average of at least 1,000 hours per year in Telluride R-1 School District for at least 5 out of the previous 8 years.

The Housing Authority is responsible for qualifying EDU occupants. Applications are available at the Housing Authority office and on this website. Please note there is a $10.00 application fee.



Employee Dwelling Unit Program Application .

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