Colorado is taking tangible steps to address its housing crisis with the release of grant funds aimed at promoting the construction of accessory dwelling units (ADUs). As reported by the Colorado Governor's Office, Governor Jared Polis, alongside the Department of Local Affairs (DOLA), recently announced the awards for their Accessory Dwelling Unit Grant Program (ADUG). This program supports local governments by encouraging and facilitating the construction of ADUs, often seen as an affordable housing solution.
The inaugural ADUG's grants, ranging from $37,500 to $325,000, will support a variety of initiatives, including pre-approved ADU plans and technical assistance for homeowners. Notably, the city of Grand Junction received $325,000 for its ADU Production Program, while the town of Superior was awarded $225,000 for its effort, "Building Together: Encouraging ADU Development." Misplaced in the landscape of Colorado housing, these grants signal a more inclusive approach to urban planning, reducing the barriers that often deter smaller, more affordable housing developments.
DOLA Executive Director Maria De Cambra emphasized the value ADUs offer, remarking that they "provide more housing options for smaller and lower-income households, and older adults who wish to age in place," as per the Colorado Governor's Office. The grants come as a follow-up to the 2024 ADU law, known formally as HB24-1152, which aimed to make it easier for Coloradans to create ADUs. "These grants will give homeowners the tools to create more housing opportunities," Senator Judy Amabile from Boulder told the Colorado Governor's Office.
Senator Kyle Mullica also mentioned the importance of ADUs in offering a more affordable living arrangement and helping "Coloradans to age in place." Another notable award was a $105,000 grant given to Larimer County's Accessory Dwelling Unit Fee Waiver Program. This financial support rests on the shoulders of the 82% of local governments that have taken steps toward compliance with the ADU law, a remarkable feat considering the complexity of housing policy and regulation.
The next round of ADUG funding opens on February 2, 2026, which offers local governments another chance to apply for financial assistance. In anticipation, DOLA has made available an Accessory Dwelling Unit (ADU) Toolkit to serve as a comprehensive resource for municipalities. The toolkit is a signpost in the direction of simplification and support in what can often be an arduous process for developing alternative housing solutions.
