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, aims to help local governments reduce barriers to building accessory dwelling units (ADUs) in neighborhoods with detached homes.
Governor Jared Polis commented on the initiative, stating, “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 activities such as developing pre-approved ADU plans, providing technical assistance for homeowners, and offering financial support for fees related to ADU construction. Maria De Cambra, Executive Director at DOLA, said, “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,” demonstrating compliance with HB24-1152 or actively encouraging ADU development through specific strategies. The funding serves as an incentive rather than covering costs associated with becoming compliant.
Senator Judy Amabile of Boulder remarked on the impact of recent legislation: “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 from Thornton 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., representing Colorado Springs 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 early October 2025, over four-fifths of jurisdictions required by law were either compliant or moving toward compliance with HB24-1152. Additionally five other jurisdictions not subject to this law have chosen voluntarily to pursue compliance.
Certified jurisdictions also make their residents eligible for additional funding from programs run by organizations like Colorado Housing and Finance Authority (CHFA).
In this inaugural round of awards:
– Grand Junction received $325,000
– Superior received $225,000
– Larimer County received $105,000
– Glenwood Springs received $84,000
– Fruita received $75,000
– Brighton received $38,025
– Longmont received $37,500
A second application window for ADUG opens February 2–27 next year. DOLA has also published a new toolkit designed as a resource hub for local governments updating or researching policies around accessory dwelling units.
For further details about requirements or resources related to accessory dwelling units in Colorado visit DOLA’s official webpage.
