Accessory Dwelling Unit (ADU) Grant Program
The Accessory Dwelling Unit Grant (ADUG) Program enacted by HB24-1152 (§§ 29-35-101 - 29-35-105) provides grants to local governments. The ADUG Program provides grants to accessory dwelling unit (ADU) Supportive Jurisdictions for activities that promote the construction of ADUs.
This program awards grants to local governments. If you are a resident interested in potential ADU financing, please contact your local CHFA representative.
- The first 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 late 2025.
- 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 29-35-103 as a subject jurisdiction; and
- Implement at least one ADU supportive strategy.
- To be certified as an ADU Supportive Jurisdiction and be eligible for grant funds, a local government must:
- 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.
- We anticipate a second funding cycle to take place in late 2025.
- DLG Grants Portal Access
- [DRAFT] Accessory Dwelling Unit Grant Program Guidelines (final version will be published by August 1, 2025)
- ADU financing for borrowers from the Colorado Housing and Finance Authority (CHFA). Please contact your local CHFA representative for more information.
Contact Information
Initial Interest
Before applying, interested parties may also email Mitch Hendrick to get feedback on the proposed project and technical assistance.
Program Contact
Mitch Hendrick, Planning Grants Unit Manager
mitch.hendrick@state.co.us or 303-548-9364
Nicola Donaven, Housing Grant Program Assistant
nicola.donaven@state.co.us