The Colorado Department of Local Affairs (DOLA) has announced the recipients of the first round of grants under the 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) in neighborhoods with detached homes. These smaller housing units are seen as a way to provide more affordable housing options across Colorado.
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 supports various activities by local governments that encourage ADU construction. This includes developing pre-approved plans for ADUs, offering technical assistance to homeowners, and providing financial support or waivers for fees related to building ADUs.
Maria De Cambra, Executive Director of DOLA, commented on the importance of this initiative: “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.”
Eligibility for the grant required local governments—regardless of whether they were subject to the 2024 ADU law (HB24-1152)—to be certified by DOLA as an “ADU Supportive Jurisdiction.” Certification involved demonstrating compliance with HB24-1152 and implementing strategies that encourage construction or conversion of ADUs. The grant funds do not cover costs associated with becoming compliant but serve as incentives for jurisdictions actively working toward increasing affordable housing.
Senator Judy Amabile (D-Boulder), 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 stated: “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.”
By October 3rd—the end date for applications—82% of local governments required by law had either achieved compliance or were working towards it; five additional jurisdictions not subject to HB24-1152 were voluntarily seeking compliance.
Certification makes residents eligible for further funding opportunities provided by the Colorado Housing and Finance Authority (CHFA).
In this initial round:
– Grand Junction received $325,000 for its ADU Production Program.
– Superior was awarded $225,000 under its Building Together initiative.
– Larimer County received $105,000 toward fee waivers.
– Glenwood Springs got $84,000 for its Accelerator Program.
– Fruita was granted $75,000.
– Brighton received $38,025.
– Longmont was awarded $37,500.
A second round of applications will open February 2–27 next year. DOLA has also released an Accessory Dwelling Unit Toolkit intended as a resource hub for local governments updating or researching regulations around ADUs.
Further information about requirements and resources is available at DOLA’s dedicated webpage.
