The state is awarding close to $1 million in grants to seven communities to bolster the development of accessory dwelling units, known as ADUs, as part of a broader effort to increase the housing supply in an attempt to lower housing costs.
It follows a new statewide law that requires communities to allow homeowners to add ADUs to their properties, and fits in with Gov. Jared Polis’ ongoing push for state-level housing policies.
“ADUs expand housing options that more Coloradans can afford, and these new grants offer Coloradans extra funding in helping to break ground on a new ADU,” said Polis in a written statement.
The goal of the grant program is to help offset some of the costs to develop an ADU, which can run into the hundreds of thousands of dollars to construct. The state said the money could provide technical or financial assistance to homeowners. A second round of ADU grants will open up in February.
“ADUs are a great option to increase housing supply with minimal impacts on existing neighborhoods by using utilities and infrastructure that are already in place,” said Maria De Cambra, the Executive Director of the Department of Local Affairs.
Only communities whose zoning codes comply with the state law were eligible for the grants. In October, the state said 82 percent of Colorado cities and towns were following the law, which largely applies to larger communities along the Front Range. It also noted that five jurisdictions not subject to the law are voluntarily pursuing compliance.
Here is the full list of grantees:
● $325,000: Grand Junction ADU Production Program
● $225,000: Building Together: Encouraging ADU Development in Superior
● $105,000: Larimer County Accessory Dwelling Unit Fee Waiver Program
● $84,000: Glenwood Springs ADU Accelerator Program
● $75,000: Fruita ADU Fee Waiver Project
● $38,025: Brighton ADU Supportive Jurisdiction Grant
● $37,500: Longmont ADU Stock Plan Update
The ADU law is part of a broader — and contentious — state effort to encourage denser development and housing near transit and populated areas.
Six “home rule” cities are suing over two related housing laws, alleging the state has unconstitutionally usurped their local authority over land use and zoning. The lawsuit also challenges the constitutionality of an executive order from Polis to withhold some state grants from local communities if they fail to implement particular housing laws.
