The Colorado Department of Local Affairs (DOLA) has announced the recipients of the first round of funding from its Accessory Dwelling Unit Grant Program (ADUG). The program, which ran from August 1 to October 3, 2025, is designed to help local governments reduce barriers to building accessory dwelling units (ADUs), often seen as a more affordable housing option in neighborhoods with detached homes.
Governor Jared Polis stated, “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.”
The grant provides support for activities such as developing pre-approved ADU plans, offering technical assistance to homeowners, and providing financial assistance or waivers for fees related to ADU construction.
Maria De Cambra, Executive Director of DOLA, commented, “We know that ADUs provide more housing options for smaller and lower-income households, and older adults who wish to age in place. 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 qualify for the grant program, local governments must be certified by DOLA as an ADU Supportive Jurisdiction under HB24-1152. This requires compliance with the law and implementation of strategies that encourage ADU construction or conversion. The grant serves as an incentive fund rather than supporting compliance activities.
Senator Judy Amabile (D-Boulder), a sponsor of HB24-1152, said, “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. 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.”
Senator Kyle Mullica (D-Thornton), also a sponsor of HB24-1152 added: “Colorado families and communities are desperate for solutions to help address the housing crisis and build more homes for working Coloradans. These grants will help homeowners build an ADU on their property, making life more affordable and allowing more Coloradans to age in place.”
Senator Tony Exum Sr. (D-Colorado Springs), another sponsor of HB24-1152 said: “Everyone deserves a safe and comfortable place to live, but too many families are struggling to afford the cost of housing in our state. 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 reported by DOLA officials as of October 3rd this year, 82% of local governments required by law were either compliant or working toward compliance; five additional jurisdictions not subject to HB24-1152 were voluntarily seeking certification.
Certification also makes residents eligible for further funding from programs run by Colorado Housing and Finance Authority (CHFA).
The following awards were distributed:
– $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
A second round of applications will open February 2–27 next year. To assist local governments further with compliance efforts regarding accessory dwelling units legislation or regulations updates DOLA has published a new comprehensive toolkit available online.
For additional details about requirements or resources related to accessory dwelling units visit DOLA’s official webpage.
