STATEWIDE ~ The Division of Local Government (DLG) under the Department of Local Affairs (DOLA) has announced the recipients of the first round of the Accessory Dwelling Unit Grant Program (ADUG). This program, which was open from August 1, 2025, through October 3, 2025, aims to support local governments in promoting the construction of accessory dwelling units (ADUs) in Colorado.

According to Governor Jared Polis, this grant program is crucial in providing affordable housing options for Colorado residents. He stated that ADUs offer a viable alternative to low-density development and can help reduce barriers to construction in detached home neighborhoods. The governor also emphasized that Colorado is leading the way in allowing homeowners to build ADUs on their own property.

Maria De Cambra, Executive Director of DOLA, highlighted the benefits of ADUs for smaller and lower-income households as well as older adults who wish to age in place. She expressed pride in supporting local governments to diversify their housing stock through this grant program.

To be eligible for the ADUG, local governments must achieve certification from DOLA as an ADU Supportive Jurisdiction. This certification requires compliance with HB 24-1152 and implementation of strategies that actively encourage ADU construction or conversion. However, these funds do not cover the costs associated with becoming compliant; they are meant to reward and expedite local efforts towards achieving this goal.

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Senator Judy Amabile, sponsor of HB24-1152, expressed her satisfaction with seeing the impact of this law through the release of these grant funds. She believes that ADUs offer alternative housing options that can help families care for one another and save money while living near their jobs and loved ones.

Senator Kyle Mullica echoed similar sentiments and emphasized that these grants will make life more affordable for homeowners by allowing them to build an ADU on their property. He also highlighted the importance of addressing the housing crisis and building more homes for working Coloradans.

Senator Tony Exum, Sr., sponsor of HB24-1152, emphasized the need for safe and affordable housing for all Colorado residents. He believes that this law will help bring down housing prices and keep more people in their communities by unlocking the potential of ADUs.

As of October 3, 2025, 82% of the local governments subject to the ADU law were either compliant or pursuing compliance. Additionally, five jurisdictions not subject to this law have voluntarily pursued compliance. This certification also makes their residents eligible for funding opportunities from the Colorado Housing and Finance Authority (CHFA).

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The first round of ADUG funding has been awarded to seven projects across the state, including Grand Junction's ADU Production Program, Superior's Building Together program, Larimer County's Accessory Dwelling Unit Fee Waiver Program, Glenwood Springs' ADU Accelerator Program, Fruita's ADU Fee Waiver Project, Brighton's ADU Supportive Jurisdiction Grant, and Longmont's ADU Stock Plan Update.

The next round of funding will open on February 2, 2026, and close on February 27, 2026. In addition to this grant program, DOLA has also released a new Accessory Dwelling Unit (ADU) Toolkit to further support compliance with the ADU law. This comprehensive resource serves as a clearinghouse for local governments researching or updating their current ADU regulations and programs.

For more information on ADUs and available resources, interested parties can visit DOLA's dedicated webpage on this topic. With these efforts in place, it is hoped that Colorado will continue to lead the way in providing affordable housing options for its residents through the construction of accessory dwelling units.

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