Accessory Dwelling Unit Grant Program (ADUG)
Accessory Dwelling Unit Grant Program (ADUG) supports Colorado local and tribal governments with ADU planning, incentives, and fee relief to encourage new construction and lasting affordable housing.
Funder: Department of Local Affairs
Due Dates: October 3, 2025 (Round 1 deadline) | March 18, 2026 (Round 2 deadline) | September 28, 2026 (Round 3 opens) | October 23, 2026, at 5:00 PM (Round 3 deadline)
Funding Amounts: Approximately $1.8 million available for FY 2026–2027; two-year agreements; 25% local cash match
Summary: Supports Colorado local and tribal governments with ADU planning, technical assistance, incentives, and development-related fee relief.
Key Information: Applicants need DOLA ADU Supportive Jurisdiction certification, with the certification memo included in the application.
Description
The Accessory Dwelling Unit Grant Program (ADUG), enacted by Colorado’s HB24-1152, funds activities that promote and incentivize new ADU construction. The Community Development Office within the Department of Local Affairs’ Division of Local Government administers the program. Funding supports pre-approved designs, technical assistance, local incentive programs, and waivers, reductions, or financial assistance for ADU fees and other required costs.
DOLA seeks lasting ADU programs that contribute new affordable housing beyond the grant period. Supported work addresses low-, moderate-, or medium-income households, affordable units, accessible or visitable ADUs, long-term workforce rentals, and other demonstrated community housing needs. Conversion means creating a new ADU from existing space, such as a garage or basement—not bringing an existing ADU into compliance.
