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Find similar grantsAccessory Dwelling Unit Finance Program is sponsored by State of Colorado. The Accessory Dwelling Unit Finance Program supports lenders who will directly support the construction and conversion of new accessory dwelling units across Colorado through low-interest loans, inter
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4. Accessory Dwelling Unit Finance Program The Accessory Dwelling Unit Finance Program supports the construction and conversion of new accessory dwelling units across Colorado.
The program includes revolving loans and interest rate buydowns for qualified lenders who will loan directly to borrowers to support low to moderate Colorado residents in Accessory Dwelling Unit Supportive Jurisdictions, as well as credit enhancement for Colorado lenders who support low to moderate income borrowers for the construction or conversion of ADUs.
This program is administered by the Colorado Housing & Finance Authority (CHFA). For more information, visit CHFA’s ADU Financing Program webpage.
**Type**: Loans, Interest Rate Buy-Downs and Credit Enhancement **For**: Eligible Lending Institutions who will lend directly to borrowers **Application period**: Revolving loans open to lenders in December 2025 who will then make the loans available to eligible Colorado residents in ADU Supportive Jurisdictions in Spring 2026.
Interest rate buydowns and credit enhancement will be available to lenders in early 2026 and then to borrowers later in 2026. **OEDIT division**: Business Funding and Incentives In 2024, the Colorado General Assembly passed a law, HB24-1152, requiring jurisdictions in major metropolitan areas to allow and support the construction and conversion of accessory dwelling units.
It also allowed areas outside of major metropolitan areas to opt in to support accessory dwelling units, allowing them and their residents to access funding from state grant and loan programs. An Accessory Dwelling Unit (ADU) is defined as a smaller, separate living space built on the same property as a main house. It is a second, complete home on a single lot.
For more information on which jurisdictions support accessory dwelling units and to learn about grant funding for these areas, please visit the Department of Local Affairs’ Accessory Dwelling Unit webpage. The accessory dwelling unit law also includes the Accessory Dwelling Unit Financing Program, which includes $8 million in loans, interest rate buydowns, and credit enhancement for eligible lenders.
This program is funded by OEDIT and administered by the Colorado Housing & Finance Authority (CHFA). Please visit CHFA’s Accessory Dwelling Unit Finance Program webpagefor more information.
Based on current listing details, eligibility includes: See the Colorado state grants portal for complete eligibility requirements. Applicants should confirm final requirements in the official notice before submission.
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