I think you can have a separate COMMERCIAL kitchen, which is pretty hard to pull off (grease trap, rest room, NO access to living area). So it's not like you can put a sink, an oven and a refrigerator in your garage or basement. I used to have the regulations saved in my favorites but lost it in a computer melt down. If I find it again I'll send you the link.
In the meantime...
http://cakecentral.com/cake-decorating-ftopicp-7098090-.html#7098090
Found it!
According to page 59 of this document...
http://www.cdphe.state.co.us/r.....ilFood.pdf
6-502 Living Areas
No retail food establishment operation shall be conducted in any area used as living or sleeping quarters. A retail food establishment operation shall be separated from any living or sleeping quarters by complete partitioning and solid, self-closing doors, and shall comply with local requirements.
This reads to me like a separate kitchen would be allowed as long as it follows the regulations set forth in the other 160 pages.
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