Larimer County is trying a new way to squeeze more affordable rentals out of existing neighborhoods by helping homeowners turn their backyards and basements into below-market units, without getting buried in permit costs.
This week, the county opened applications for Backyard Boost, a pilot program for residents in unincorporated Larimer County who want to build accessory living areas and rent them at below-market rates. The county says the effort combines technical help with financial incentives, trimming the upfront bill for a backyard apartment, garage conversion, or carriage house so more projects actually get off the drawing board.
In a spotlight published Friday, Larimer County detailed what is on the table. Eligible projects will see building, electrical, mechanical, and plumbing permit fees credited at permit approval, along with plan review charges, transportation capital expansion fees, and applicable use taxes. In exchange, participating homeowners must sign a 36-month affordability agreement, with rent caps tied to roughly 60% of the area median income. Funding is limited and is expected to cover only about eight to ten projects on a first-come, first-served basis.
What Backyard Boost Pays For and Who Qualifies
According to Larimer County, Backyard Boost works by crediting specific development fees at the time a permit is issued, so homeowners are not fronting quite as much cash before construction starts on an Accessory Living Area, or ALA.
The county outlines a step-by-step process. Owners must first confirm that their property is in unincorporated Larimer County, then submit hard-copy building plans and a building permit application to the Building Division. They next file a Backyard Boost application and meet with the county Housing Liaison. If approved, the fee credits are applied at permit issuance, and construction can move forward.
Qualifying ALAs can be attached to the main home, tucked inside it, such as a basement unit, or fully detached in the backyard. During the 36-month restriction period, owners must rent the ALA as the tenant’s primary residence and follow the county’s annual rent limits.
State Backing and Award Amounts
The pilot is tied into a broader statewide push to make accessory dwelling units more common. Colorado’s Accessory Dwelling Unit Grant Program is designed to help local governments cut red tape and costs for homeowners who want to build ADUs.
The Governor's Office lists Larimer County among the inaugural ADUG grant recipients and shows a $105,000 award for the county in November 2025. Larimer County’s own Backyard Boost announcement, however, cites a $140,000 appropriation from the Colorado Department of Local Affairs, paired with county matching dollars. State and county materials, therefore, do not quite line up on the exact figure supporting this program.
Why This Matters In Larimer County
Local housing data has been flashing warning lights on affordability, especially for lower-income households. Smaller units like ALAs are increasingly seen as one of the politically palatable ways to add rentals without dramatically altering neighborhood character.
The Regional Housing Needs Assessment executive summary points to the rising cost of land and construction and highlights where demand is strongest for lower-cost rentals. Those findings help explain why Larimer County and nearby cities are experimenting with fee waivers and other carrots aimed at unlocking backyard units and similar small-scale options.
How To Apply And Upcoming Workshops
Homeowners eyeing Backyard Boost need to come prepared. The county says applicants should have full design plans ready and submit a hard-copy building permit application to Larimer County’s Building Division, clearly indicating their intent to seek the Backyard Boost fee waiver as part of that process.
Applicants will meet with the county Housing Liaison and can also work with Housing Partners of Larimer for landlord support and resources. To walk residents through the details, the county has scheduled a free ALA Workshop & Resource Fair at 5:30 p.m. on Aug. 20 in the First-Floor Hearing Room of the Larimer County Administration Building at 200 W. Oak St. in Fort Collins.
Questions can be directed to the Building Division at 970-498-7717 or to Housing Liaison Lexi Valenti at 970-498-7379 or [email protected].
Backyard Boost is not a blank check. It does not pay for construction itself, and it does not wipe out every fee, so impact fees and materials costs still land on the homeowner. County officials argue that trimming the permitting bill could nonetheless make a handful of backyard units pencil out and add a small but meaningful batch of stable, income-restricted rentals to the local housing stock. The pilot will gauge both demand and administrative hurdles, and if it performs well, it could graduate into a standing tool in Larimer County’s effort to grow neighborhood-scale housing options.
