ADU Program Provides Housing Affordability, Flexibility, and Stability in Metro Denver

Habitat and partners build and finance ADUs to support both homeowners and renters

Habitat for Humanity of Metro Denver is proud to be the construction partner for the Single Family + ADU (SF+ ADU) Program housed at the Denver Housing Authority. The program helps existing homeowners to plan, price, design, finance, and build an ADU on their residential property, and then rent the ADU affordably.

In 2019, the West Denver Renaissance Collaborative (WDRC) launched the WDSF+ ADU pilot program in collaboration with the Denver Housing Authority (DHA) and a robust network of partners. Habitat Metro Denver acts as the designer and builder in the partnership.

ADUs are one way that Habitat and its partners can provide additional affordable units in our competitive market and prevent overcrowding and instability for existing homeowners.

Photo above: Colorado Governor Jared Polis visited the home of ADU homeowner, Yoseph, in fall of 2023 to learn more about the program benefits.

How does the program work?

Meeting a need in specific neighborhoods: Habitat Metro Denver, alongside the other program partners, has focused its ADU construction in nine west Denver neighborhoods that are impacted by gentrification and residential destabilization. The program recently expanded to include all of Denver, since ADUs are now allowed citywide.
Finding homeowners the Denver Housing Authority finds and qualifies homeowners who have a large enough lot to accommodate an ADU, and have interest in the program.
Ensure site infrastructure: Habitat Metro Denver collaborates with partners to ensure each lot can accommodate the infrastructure needed for an ADU (i.e. water, power, sewer).
ADU construction: Habitat Metro Denver builds the ADUs, using seven low-cost ADU designs that have been approved by city building regulators and can be used by anyone in the Denver Housing Authority program, saving architecture and permitting fees. Habitat Metro Denver and The American Institute of Architects designed the floor plans, which range in size from a studio to a three-bedroom ADU.
Provide financial support: The Denver Housing Authority and other partners support homeowners with financial counseling and support to fund their ADU project. Other local lenders are also helping to innovate ADU financing.

How does the program benefit the Denver community?

Provides homes that are affordable for low- to moderate- income (LMI) families
Creates additional, affordable housing units within existing residential lots.
Provides an option for longtime homeowners to house extended family members, providing stability for homeowners and allowing older residents to age in place.
Generating supplementary income for homeowners that helps them cover unexpected housing expenses and pay property taxes, which can be challenging for those living on limited incomes.
Provides housing security for both the homeowner and the renter.
Preserves existing homes and adds affordable units consistent with neighborhood character.

Policy Wins: State and City Action on ADUs

State of Colorado

2024 – House Bill 24-1152 (signed May 2024): Requires cities (1,000+ residents, in MPOs) to allow one 500–800 ft² ADU per single-family lot. Eliminates off-street parking mandates, owner-occupancy restrictions, and HOA bans under the Colorado Common Interest Ownership Act (CCIOA)—voiding them by June 30, 2025.
July 2025 – House Bill 24-1007: Updates occupancy limits, enabling greater use of ADUs statewide.
State support: Up to $8 million appropriated for low- and moderate-income homeowner loans and down-payment assistance.

City and County of Denver

City & County of Denver

June 2023: Council passed zoning-code changes to streamline ADU construction—allowing two-story ADUs in urban areas, removing conversion barriers for existing structures, and extending parking exemptions.
Nov 2024 – File 24-1302 & Council ordinance: Denver approved citywide ADU allowance across all residential zones; Mayor signed it Nov 21; effective 2025.

Homeowners Stories

Jose ADU Homeowner

23 Oct, 2025 No Comments

Jose worried about his mother, Gracia, living alone. But thanks to the West Denver Single Family Plus (WDSF+) ADU Pilot Program, in partnership with Habitat

Building a bright future for their family by adding an ADU

11 Sep, 2024 No Comments

Nadine and Jon will never be empty nesters thanks to an accessory dwelling unit (ADU) that Habitat for Humanity of Metro Denver and the West

Featured on Colorado Housing Finance Authority’s Podcast:

CHFA: The Buildout: A CHFA Podcast

Season Two – Episode Five

Small But Mighty: How ADUs Are Increasing Housing Supply

Until 2025, where you lived in Colorado determined whether or not you could build an accessory dwelling unit or ADU. But a new law sponsored by Senator Judy Amabile has changed that. Now, it’s easier than ever to build a little granny flat out back. When it comes to bridging Colorado’s housing supply gap, each and every ADU adds up.

In Denver, Renee Martinez-Stone with the Denver Housing Authority has helped homeowners to build ADUs through a partnership with Habitat for Humanity of Metro Denver. ADUs not only offset costs for homeowners, but also provide lower rents, allowing longtime residents to stay put. Jaime Gomez, CEO of Habitat for Humanity of Metro Denver, explains how these flexible units are disrupting displacement and becoming a valuable tool to address Colorado’s housing crisis.

Resources from this episode:

We need ongoing funding and support from local municipalities and partners in order to build ADUs affordably and make them affordable for the homeowners who want to build ADUs on their land.