STATEWIDE – DOLA's Division of Local Government (DLG) recently awarded the first round of the Accessory Dwelling Unit Grant Program (ADUG), which was open from August 1, 2025, through October 3, 2025. This grant program is vital to helping provide a home for every Colorado budget, by supporting local governments in activities that reduce barriers to construction of these smaller, more affordable units in detached home neighborhoods, to present a viable alternative to low-density, dispersed development. “Colorado is leading the way on the freedom to build an accessory dwelling unit on your own property, and these grants will cut through red tape to help more Coloradans build and access these opportunities. ADUs expand housing options that more Coloradans can afford, and these new grants offer Coloradans extra funding in helping to break ground on a new ADU,” said Governor Jared Polis.
The ADU Grant supports local governments in activities that promote the construction of accessory dwelling units, such as offsetting costs for developing pre-approved accessory dwelling unit plans, providing technical assistance to homeowners, or waiving, reducing, or providing financial assistance for accessory dwelling unit associated fees and other required costs.
“We know that ADUs provide more housing options for smaller and lower-income households, and older adults who wish to age in place,” said Maria De Cambra, DOLA Executive Director. “DOLA is proud to support local governments to diversify their housing stock, as ADUs are a great option to increase housing supply with minimal impacts on existing neighborhoods by using utilities and infrastructure that are already in place.”
To be eligible for ADUG, local governments, including those not subject to the 2024 ADU law (HB24-1152), must achieve certification from DOLA as an ADU Supportive Jurisdiction per the legislation. To be certified, jurisdictions must demonstrate compliance with HB 24-1152 and implement one or more of the listed strategies that actively encourage ADU construction or conversion. These appropriations do not fund the activities to become compliant, it is an incentive fund to reward and expedite local work focused on outcomes.
“I’m proud to see the continued impact of our 2024 law take shape through the first-ever release of these grant funds, which will give homeowners the tools to create more housing opportunities,” Senator Judy Amabile, D-Boulder, sponsor of HB24-1152. “From housing aging relatives to renting out extra space, ADUs offer alternative housing options that help families care for one another, save money, and live near their jobs, schools, and loved ones.”
“Colorado families and communities are desperate for solutions to help address the housing crisis and build more homes for working Coloradans,” Senator Kyle Mullica, D-Thornton, sponsor of HB24-1152. “These grants will help homeowners build an ADU on their property, making life more affordable and allowing more Coloradans to age in place.”
“Everyone deserves a safe and comfortable place to live, but too many families are struggling to afford the cost of housing in our state,” Senator Tony Exum, Sr., D-Colorado Springs, sponsor of HB24-1152. “This law was all about bringing down housing prices and keeping more Coloradans in the communities they call home by unlocking the potential of ADUs. Now, with the first round of grant funding released, we will see even more affordable, innovative housing options in our communities.”
As of October 3, 2025, 82% of the local governments subject to the ADU law were either compliant or pursuing compliance, with an additional five jurisdictions who are not subject to this law voluntarily pursuing compliance. Certification also allows their residents to be eligible for funding opportunities sponsored by the Colorado Housing and Finance Authority (CHFA).
Awards Summary
- $325,000: Grand Junction ADU Production Program
- $225,000: Building Together: Encouraging ADU Development in Superior
- $105,000: Larimer County Accessory Dwelling Unit Fee Waiver Program
- $84,000: Glenwood Springs ADU Accelerator Program
- $75,000: Fruita ADU Fee Waiver Project
- $38,025: Brighton ADU Supportive Jurisdiction Grant
- $37,500: Longmont ADU Stock Plan Update
The next round of ADUG funding will open on February 2, 2026, and close on February 27, 2026. To further support compliance with the ADU law, DOLA also recently released a new Accessory Dwelling Unit (ADU) Toolkit, a comprehensive resource that serves as a clearinghouse for local governments researching or updating their current ADU regulations, programs, incentives, and homeowner assistance materials.
For more information on ADU requirements and resources, please visit DOLA’s ADU webpage.
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