Accessory Dwelling Unit (ADU) Grant Program
The Accessory Dwelling Unit Grant (ADUG) Program enacted by HB24-1152 (§§ 29-35-401 - 29-35-405) provides grants to certified accessory dwelling unit (ADU) Supportive Jurisdictions for activities that promote the construction of ADUs.
This program awards grants directly to local governments. If you are a resident interested in potential ADU financing, please contact your local Colorado Housing and Finance Authority (CHFA) representative at askchfa@chfainfo.com.
- The first [preliminary] round of funding opened on August 1, 2025 and closed to applications on Friday, October 3, 2025.
- For more information, check out our Recorded Information session and Guidelines
- 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.
- 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 cash 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.
- 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 at askchfa@chfainfo.com.
- Approximately $1,600,000 in grant funding is available for awards in Fiscal Year 2025-2026. Future funding for this program is subject to annual appropriations
- Program funding is appropriated through state funding sources
- First [preliminary] funding cycle: Friday, August 1, 2025 to Friday, October 3, 2025
- We anticipate a second funding cycle to take place in early 2026 pending funding availability
- DLG Grants Portal Access
- Accessory Dwelling Unit Grant Program Guidelines
- Webinar: ADUG Information Session - Info Session Slides and Info Session Recording
- ADUG Project Budget Template
- ADUG Application Questions Template
- ADUG FAQs (Updated September 30, 2025)
- Housing Strategies Peer Exchange: Accessory Dwelling Units (July 2025) - July Peer Exchange Slides and July Peer Exchange Recording
- ADU financing for borrowers from the Colorado Housing and Finance Authority (CHFA). Please contact your local CHFA representative at askchfa@chfainfo.com for more information.
- ADU Toolkit
- ADU law (HB24-1152) information and guidance
Contact Information
Initial Interest
Before applying, interested parties may also email Jack Wolflink to get feedback on the proposed project and technical assistance.
Program Contact
Jack Wolflink, Housing & Transit Grant Program Manager
jack.wolflink@state.co.us or 720-916-9499
Nicola Donaven, Housing & Transit Program Assistant
nicola.donaven@state.co.us
Mitch Hendrick, Planning Grants Unit Manager
mitch.hendrick@state.co.us
We're Here to Help!
Do you have questions about the new laws and impacts to your jurisdiction? Check out our FAQ page, visit our main State Land Use and Housing Legislation page to learn about all the laws, or get one-on-one support below: