
Denver’s ADU Assistance Program Sees Surging Interest
A new Colorado law requiring cities to permit accessory dwelling units (ADUs) on single-family properties has sparked a significant increase in demand for the Denver Housing Authority’s (DHA) ADU assistance program. This initiative is proving to be a vital resource for Denverites looking to expand housing options, create generational wealth, and foster multi-generational living.
Colorado’s New ADU Law: A Game Changer for Housing
Effective this past June, a new statewide Colorado law mandates that cities allow accessory dwelling units on properties zoned for single-family homes. This legislation aims to address housing needs by making it easier for homeowners to add secondary living spaces, which can serve various purposes from rental income to housing extended family members.
Denver Housing Authority Steps Up with Comprehensive Support
The Denver Housing Authority’s ADU program is designed to guide Denver residents through the often-complex process of building an ADU. Participants receive extensive support, including assistance with financing options, design packages, and overall project management.
One of the program’s most significant benefits is its ability to reduce construction costs. Through strategic partnerships, such as with Habitat for Humanity, the DHA program can offer savings ranging between $50,000 and $75,000 off the base rate of building an ADU, making these projects far more accessible for local families.
Real Impact: Tish Gonzales’s Multigenerational Vision
Tish Gonzales, a long-time Denver homeowner, is a prime example of the program’s success. She is currently building an ADU in her backyard with the DHA’s help, driven by a desire to create generational wealth for her family. Her daughter and son-in-law, who could not afford to purchase a home in her neighborhood, will rent the main house, allowing Gonzales to move into the ADU and “age in place.”
This arrangement not only keeps her family close and within their desired Denver community but also highlights the program’s comprehensive assistance. Gonzales praises the DHA for their “all the way through” support, from finding suitable financing to navigating design and providing necessary guidance.
Scaling Up: Meeting Denver’s Growing ADU Demand
With the new state law and increasing interest, the demand for ADUs in Denver is on the rise. Chala Mohr, who runs the DHA ADU program, notes that their capacity was previously limited to building 12 ADUs per year with their existing builder. To meet the growing need, the DHA has announced a new partnership with a modular home builder.
This crucial expansion is expected to double the program’s capacity, allowing more Denver families like Gonzales’s to realize their housing dreams and remain in the neighborhoods they cherish. It represents a proactive step towards creating more diverse and affordable housing solutions across the city.
Key Benefits of the DHA ADU Program
| Benefit Area | How DHA Program Helps |
|---|---|
| Cost Reduction | Offers significant savings ($50,000 – $75,000) through partnerships. |
| Process Guidance | Assists with financing, design packages, and overall support. |
| Increased Availability | New partnerships are doubling capacity to meet rising demand. |
Frequently Asked Questions About ADUs in Denver
- What is an ADU?
An Accessory Dwelling Unit (ADU) is a smaller, independent residential living unit located on the same lot as a primary single-family home. - When did Colorado’s ADU law start?
The Colorado law requiring cities to allow ADUs on single-family properties went into effect in June of this year. - How does the DHA ADU program save money for homeowners?
The program partners with organizations like Habitat for Humanity to reduce construction costs, potentially saving homeowners between $50,000 and $75,000. - Who benefits from building an ADU with DHA assistance?
Homeowners seeking to create generational wealth, house family members for multi-generational living, generate rental income, or “age in place” in their community. - What is DHA doing to meet rising demand for ADUs?
The Denver Housing Authority has partnered with a modular home builder to double its annual capacity for ADU construction, helping more families in Denver.
The Denver Housing Authority’s commitment to expanding access to ADUs is providing tangible benefits for local families, helping them secure their futures in the city they call home and strengthening communities through innovative housing solutions.
New Colorado Law Boosts Denver ADU Program Interest


