Accessory Dwelling Unit Grant Program (ADUG)
Forecasted
Accessory Dwelling Unit Grant Program (ADUG) supports Colorado local and tribal governments with planning, technical assistance, and fee relief to promote new ADUs and lasting affordable housing.
This grant was recently updated
Round 3 is now marked closed as of October 23, 2026, and Round 4 is anticipated to open in spring 2027. DOLA will announce specific Round 4 dates on the ADUG webpage.
Funder: Department of Local Affairs
Due Dates (Anticipated): October 2027 (Round 4 application deadline)
Funding Amounts: Approximately $1.8 million available in FY 2026–2027; two-year grant agreements; 25% local cash match
Summary: Supports Colorado local and tribal governments with planning, technical assistance, and financial assistance that promote new accessory dwelling units.
Key Information: Applicants must be certified by DOLA as ADU Supportive Jurisdictions before applying.
Description
The Accessory Dwelling Unit Grant Program (ADUG), established under HB24-1152, funds Colorado local and tribal governments to promote construction of accessory dwelling units. The Department of Local Affairs’ Community Development Office, within the Division of Local Government, manages the program. Funding supports pre-approved ADU plans, technical assistance, incentive program development, and waivers, reductions, or financial assistance for ADU-related fees and other required costs.
The program aims to establish lasting local ADU programs that contribute affordable housing beyond the grant period. Supported housing needs include low-, moderate-, and medium-income households, affordable units, accessible or visitable ADUs, long-term rentals for the local workforce, and other demonstrated community needs. Applicants may combine planning and development assistance in one project.
