Accessory Dwelling Unit (ADU) Grant Program

The Accessory Dwelling Unit Grant Program (ADUG), authorized under Colorado state legislation HB24-1152 (§§ 29-35-401 - 29-35-405), is designed to support the construction and proliferation of Accessory Dwelling Units (ADUs) across Colorado. Administered by the Colorado Department of Local Affairs (DOLA), this grant program aligns with broader statewide goals of increasing affordable housing stock and promoting sustainable land use practices. The ADUG targets local and tribal governments that have achieved or are actively working towards certification as ADU Supportive Jurisdictions through DOLA. The ADUG program provides direct financial support to certified jurisdictions for activities that facilitate the development of ADUs. Eligible uses of the funds include covering the costs of developing pre-approved ADU plans, offering technical assistance for ADU construction or conversions, and subsidizing fees or other financial barriers associated with ADU development. The program prioritizes projects that focus on low- and moderate-income households, accessible or visitable units, long-term rentals for the local workforce, and other identified local housing needs. Importantly, all applicants must provide a 25% local cash match as part of their funding proposal. In its first round, which concluded in October 2025, the ADUG awarded $889,525 to seven communities. Projects funded included fee waiver programs, pre-approved plan development, and implementation accelerators. For Fiscal Year 2025–2026, approximately $1.6 million was allocated to this initiative, with $700,000 remaining for the second round. The second application window officially opened on February 2, 2026, and was initially scheduled to close on February 27, 2026. However, the deadline was subsequently extended to 5:00 PM on March 18, 2026, allowing more time for applicants to finalize and submit proposals. Applications must be submitted through the DLG Grants Portal, which includes instructional support via an official YouTube tutorial. Prior to submission, applicants are encouraged to review the ADUG Fact Sheet, Toolkit, and webinar recordings that provide further insight into program structure and funding strategies. While there is no minimum or maximum award amount specified, the program emphasizes strategic deployment of funds in alignment with housing needs, compliance, and innovation in ADU support. Eligibility is limited to Colorado local and tribal governments that are certified or in the process of being certified as ADU Supportive Jurisdictions. Certification requires a jurisdiction to demonstrate compliance with Section 29-35-403 and implement at least one recognized ADU supportive strategy. Prospective applicants may seek guidance and certification support from DOLA’s technical assistance staff before formally applying. For assistance or inquiries, interested jurisdictions can contact Jack Wolflink, Housing & Transit Grant Program Manager, at [email protected] or 720-916-9499. Additional contacts include Nicola Donaven and Mitch Hendrick. The program does not provide direct funding to individuals; however, separate ADU Finance Programs are available for residents through the Colorado Housing and Finance Authority (CHFA), delivered via local lending institutions.

Use the ADU Toolkit for best practices; Contact DOLA early for technical assistance.