Updated 1 day ago on . Most recent reply
Which cities qualify for the $8M state ADU
Hello,
I've been doing deep research on Colorado's ADU landscape over the past few months — specifically how Colorado's HB 24-1152 and the CHFA ADU Buydown Financing program actually work in practice. Most online guides oversimplify this in ways that mislead homeowners and investors. So I went to the source.
I got direct answers from Mitch Hendrick, Planning Grants Unit Manager at the Colorado Department of Local Affairs (DOLA), and from Charity Bossetti at CHFA. Sharing the clarifications here because they materially change the underwriting for any Colorado ADU project.
**1. The $8M state ADU fund only works in "Supportive Jurisdictions" — and the list is more specific than most guides admit.**
Certified Supportive Jurisdictions in the Denver Metro / Front Range:
- Westminster
- Wheat Ridge
- Commerce City
- Brighton
- Boulder
- Longmont
- Loveland
- Lafayette
- Louisville
- Superior
- Erie
- Berthoud
- Timnath
- Windsor
- Lyons
- Fort Collins
- Larimer County (unincorporated)
- Adams County (unincorporated)
NOT on the list (despite popular assumption):
- Denver
- Aurora
- Lakewood
- Arvada
- Englewood
- Littleton
- Thornton
- Colorado Springs
This is important because a lot of online guides imply state funding is broadly available across Denver Metro. It isn't. The biggest cities are not certified.
**2. "County certified" doesn't mean "all cities in that county certified."**
This was the clarification that surprised me most. When DOLA certifies a county, it ONLY covers the unincorporated portions. Incorporated cities within that county need separate certification.
Examples Mitch gave me:
- Adams County is certified — but only unincorporated areas. Brighton and Commerce City are separately certified. Thornton (the largest city in Adams County) is NOT certified.
- Larimer County is certified — along with separately certified Fort Collins, Loveland, Windsor, and Timnath.
If you're underwriting a Thornton deal expecting access to the state ADU fund because "Adams County is certified," you're going to be disappointed.
**3. The DOLA list updates roughly monthly. Several major Denver Metro cities have indicated interest but aren't yet certified.**
Mitch confirmed some major Denver Metro cities are in the pipeline but couldn't share which ones. Cities typically need to update their land use codes before they can be certified, which takes a few months. Translation: things may change in the next 6-12 months. Worth watching.
**4. You do NOT need a special "CHFA-certified lender" to access the program.**
This is the one most lenders themselves don't know. ANY lender willing to submit the application can help borrowers access CHFA ADU Buydown Financing. The lender qualifies the borrower, confirms the property is in a Supportive Jurisdiction, and submits the application. CHFA funds the buydown after closing.
When I called around to Colorado lenders, most had never even heard of this program. If a lender tells you "we're not CHFA-certified so we can't do this," they're misinformed. Find a different lender or share this info with them.
**5. Real Colorado ADU construction costs are way higher than online estimators suggest.**
I talked with Robin at ArcWest Architects in Denver, who has been doing ADU work in Denver Metro for years. His honest take:
Detached new construction in Denver Metro: $250K minimum, more typically $275K-$400K depending on size and finishes. Online tools that quote $80K-$150K for ADUs are using California-default numbers or theoretical bare-bones builds that don't reflect actual permit costs, labor rates, materials, and site work in Colorado.
Basement and garage conversions are genuinely cheaper at $80K-$180K range, which is why those are often the better play for first-time house hackers in older Denver neighborhoods.
**6. Permit timelines are longer than people expect.**
Denver standard ADU: 8-12 weeks from submission to permit.
Historic districts: 16+ weeks.
Unincorporated Arapahoe County: 12-18 months.
Fort Collins: 10-14 weeks but with water provider verification adding complexity.
Build this into your financing timeline. "I'll have it done in 6 months" is unrealistic for new construction.
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Why I'm sharing this:
I've been building a Denver Metro and Colorado-focused ADU and house hacking feasibility tool. The point of the tool is to help homeowners and investors run the math at a specific address before they make decisions — which city it's in, which funding applies, what costs are realistic, what rent makes sense.
Not dropping a link because I'm not trying to sell anything in this post. Just sharing what I learned, in case it helps anyone here who's looking at Denver Metro or Colorado ADU deals right now. If you want to see the tool, send me a DM.
Happy to answer specific questions in the comments — especially if you're underwriting a Colorado deal and want a sanity check on whether the funding assumptions hold up.