Accessory Dwelling Unit (ADU) Grant Program

• The first [preliminary] round of funding will open on August 1, 2025, with applications due Friday, August 29, 2025, by 5 p.m. MST* 
• Applications must be submitted through the DLG Grants Portal. An instructional video tutorial on using the DLG Grants Portal is available on DOLA's YouTube. Please contact the Planning Grants Unit Manager if experiencing issues accessing the application.
• A second funding round is anticipated in early 2026 pending funding availability.

*The deadline of this round may be extended to accommodate a longer-than-anticipated certification process.

• Only ADU Supportive Jurisdictions (certified by DOLA) are eligible to apply for ADUG funding.
• Grant funds may support activities that promote the construction of ADUs, including but not limited to:
  • Offsetting costs incurred in connection with developing pre-approved ADU plans;
  • Providing technical assistance to persons converting or constructing ADUs; and
  • Waiving, reducing, or providing financial assistance for ADU-associated fees and other required costs.
• Grant recipients may use funds for eligible expenses associated with:
  • Low-and moderate-income households; 
  • Affordable accessory dwelling units; 
  • Accessible or visitable accessory dwelling units; 
  • Accessory dwelling units used as long-term rentals for members of the local workforce; or 
  • Accessory dwelling units used to support other demonstrated housing needs in the community. 
• There is a 25% required local match.
• There is no suggested minimum or maximum award for this work, however, there are limited grant funds available.
   

• Eligible entities include Colorado local and tribal governments that have been certified by DOLA as ADU Supportive Jurisdictions. If you are interested in learning more about the certification process, contact DOLA Technical Assistance Staff. 
  • To be certified as an ADU Supportive Jurisdiction and be eligible for grant funds, a local government must:
    • Submit a report to DOLA demonstrating evidence of compliance with section 29-35-403 as a subject jurisdiction; and
    • Implement at least one ADU supportive strategy. 
• This program awards grants to local governments. If you are a resident interested in potential ADU financing, please contact your local CHFA representative. 

• Approximately $1,600,000 in grant funding is available for awards in State  Fiscal Year 2025-2026.  Future funding for this program is subject to annual appropriations
• Program funding is appropriated through state funding sources
• The first [preliminary] funding cycle: Friday, August 1, 2025 to Friday, August 29, 2025*
• We anticipate a second funding cycle to take place in early 2026 pending funding availability

*The deadline of this round may be extended to accommodate a longer-than-anticipated certification process.