🏗️ What Colorado’s New Factory-Built Housing Law Means for Modular Projects

As housing costs continue to rise across Colorado, one thing is clear: we need faster, smarter, and more scalable solutions. That’s where modular construction steps in—and thanks to new state legislation (SB 25‑002), the road is getting smoother.

But what does this mean for you as a homeowner, builder, or developer?

Let’s break it down.

🔍 What Is SB 25‑002?

Colorado’s new law, passed in 2025, is aimed at standardizing how factory-built structures—like modular homes, ADUs, and even commercial units—are reviewed and approved statewide. Instead of each city or county having different rules, the state is now developing regional codes based on local climate, terrain, and fire risk.

This is a big deal. In the past, one city might approve a modular project while the next city over says no. That inconsistency made it hard to scale offsite construction. SB 25‑002 helps fix that.

🛠️ What Changes Are Coming?

By mid-2026, Colorado will:

• Adopt regional building codes for factory-built housing

• Define statewide standards for electrical, plumbing, fire safety, and energy performance

• Allow certified third-party plan reviewers and inspectors

• Clarify how cities and counties can (and cannot) regulate modular housing

Perhaps most importantly: cities will no longer be able to single out factory-built homes with tougher requirements than site-built homes. As long as your modular home meets the regional code, it can’t be denied just because it came from a factory.

🧭 Why This Matters for TMOD™ Clients

At TMOD™, we’ve seen firsthand how local inconsistencies slow down good projects. One city might ask for extra inspections, another might not understand modular permitting at all.

This new legislation creates more predictability—and that means faster timelines and lower predevelopment risk.

Here’s how it benefits our clients:

🧩 TMOD™: Already Ahead of the Curve

Our Offsite Development Partner Solutions already align with many of the practices this bill supports:

• 3D visualization for early buy-in with planners and stakeholders

• Concept site plans to evaluate feasibility before breaking ground

• Digital models shared with manufacturers, engineers, and city officials

• Clear, upfront planning to keep modular on track from concept to completion

This new law supports the kind of transparency and coordination we already deliver.

🏡 The Future of Modular in Colorado

SB 25‑002 is a big win for housing innovation. It sends a clear message: factory-built housing isn’t fringe—it’s part of the solution.

If you’ve been considering a modular home or exploring offsite solutions for your next development, there’s never been a better time. TMOD™ is here to help you navigate what’s possible under the new rules and bring your project to life—efficiently, affordably, and with confidence.

Let’s talk about how this law unlocks new opportunities for your land, your project, or your community.

📩 Contact us to start planning with TMOD™ today.